Oklahoma § 68-2357.22 - See the following versions:

§ 68-2357.22. See the following versions:

OS 68-2357.22v1 (HB 3051, Laws 2024, c. 143, § 1).

OS 68-2357.22v2 (SB 2038, Laws 2024, c. 452, § 153).

§68-2357.22v1. Credit for investments in qualified clean-burning

motor vehicle fuel property.

A. For tax years 2028 and before, there shall be allowed a onetime credit against the income tax imposed by Section 2355 of this

title for investments in qualified clean-burning motor vehicle fuel

property placed in service on or after January 1, 1991.

B. As used in this section, "qualified clean-burning motor

vehicle fuel property" means:

1. Equipment installed to modify a motor vehicle which is

propelled by gasoline or diesel fuel so that the vehicle may be

propelled by compressed natural gas, liquefied natural gas, or

liquefied petroleum gas. The equipment covered by this paragraph

must:

a.

be new, not previously used to modify or retrofit any

vehicle propelled by gasoline or diesel fuel and be

installed by an alternative fuels equipment technician

who is certified in accordance with the Alternative

Fuels Technician Certification Act,

b.

meet all Federal Motor Vehicle Safety Standards set

forth in 49 CFR 571, or

Oklahoma Statutes - Title 68. Revenue and Taxation

c.

for any commercial motor vehicle (CMV), follow the

Federal Motor Carrier Safety Regulations or Oklahoma

Intrastate Motor Carrier Regulations;

2. A motor vehicle originally equipped so that the vehicle may

be propelled by compressed natural gas, or liquefied natural gas or

liquefied petroleum gas but only to the extent of the portion of the

basis of such motor vehicle which is attributable to the storage of

such fuel, the delivery to the engine of such motor vehicle of such

fuel, and the exhaust of gases from combustion of such fuel;

3. Property, not including a building and its structural

components, which is:

a.

directly related to the delivery of compressed natural

gas, liquefied natural gas or liquefied petroleum gas,

or hydrogen for commercial purposes or for a fee or

charge, into the fuel tank of a motor vehicle

propelled by such fuel including compression equipment

and storage tanks for such fuel at the point where

such fuel is so delivered but only if such property is

not used to deliver such fuel into any other type of

storage tank or receptacle and such fuel is not used

for any purpose other than to propel a motor vehicle,

or

b.

a metered-for-fee, public access recharging system for

motor vehicles propelled in whole or in part by

electricity. The property covered by this paragraph

must be new, and must not have been previously

installed or used to refuel vehicles powered by

compressed natural gas, liquefied natural gas or

liquefied petroleum gas, hydrogen, or electricity.

Any property covered by this paragraph which is related to the

delivery of hydrogen into the fuel tank of a motor vehicle shall

only be eligible for tax years 2010 and 2023 through 2028;

4. Property which is directly related to the compression and

delivery of natural gas from a private home or residence, for

noncommercial purposes, into the fuel tank of a motor vehicle

propelled by compressed natural gas. The property covered by this

paragraph must be new and must not have been previously installed or

used to refuel vehicles powered by natural gas; or

5. For tax years 2010 and 2023 through 2028, a motor vehicle

originally equipped so that the vehicle may be propelled by a

hydrogen fuel cell electric fueling system.

C. As used in this section, "motor vehicle" means a motor

vehicle originally designed by the manufacturer to operate lawfully

and principally on streets and highways.

D. The credit provided for in subsection A of this section

shall be as follows:

Oklahoma Statutes - Title 68. Revenue and Taxation

1. For the qualified clean-burning motor vehicle fuel property

defined in paragraphs 1, 2, or 5 of subsection B of this section,

the amount of the credit shall be as follows based upon gross

vehicle weight of the qualified vehicle:

a.

for vehicles up to or below six thousand (6,000)

pounds, the credit shall be a maximum of Five Thousand

Five Hundred Dollars ($5,500.00),

b.

for vehicles between six thousand one (6,001) pounds

to ten thousand (10,000) pounds, the credit shall be a

maximum amount of Nine Thousand Dollars ($9,000.00),

c.

for vehicles of ten thousand one (10,001) pounds, but

not in excess of twenty-six thousand five hundred

(26,500) pounds, the credit shall be a maximum amount

of Twenty-six Thousand Dollars ($26,000.00), and

d.

for vehicles in excess of twenty-six thousand five

hundred one (26,501) pounds, the credit shall be a

maximum amount of One Hundred Thousand Dollars

($100,000.00);

2. For qualified clean-burning motor vehicle fuel property

defined in paragraph 3 of subsection B of this section, a perlocation credit of forty-five percent (45%) of the cost of the

qualified clean-burning motor vehicle fuel property; and

3. For qualified clean-burning motor vehicle fuel property

defined in paragraph 4 of subsection B of this section, a perlocation credit of the lesser of fifty percent (50%) of the cost of

the qualified clean-burning motor vehicle fuel property or Two

Thousand Five Hundred Dollars ($2,500.00).

E. In cases where no credit has been claimed pursuant to

paragraph 1 of subsection D of this section by any prior owner and

in which a motor vehicle is purchased by a taxpayer with qualified

clean-burning motor vehicle fuel property installed by the

manufacturer of such motor vehicle and the taxpayer is unable or

elects not to determine the exact basis which is attributable to

such property, the taxpayer may claim a credit in an amount not

exceeding the lesser of ten percent (10%) of the cost of the motor

vehicle or One Thousand Five Hundred Dollars ($1,500.00).

F. If the tax credit allowed pursuant to subsection A of this

section exceeds the amount of income taxes due or if there are no

state income taxes due on the income of the taxpayer, the amount of

the credit not used as an offset against the income taxes of a

taxable year may be carried forward, in order, as a credit against

subsequent income tax liability for a period not to exceed five (5)

years. The tax credit authorized pursuant to the provisions of this

section shall not be used to reduce the tax liability of the

taxpayer to less than zero (0).

G. A husband and wife who file separate returns for a taxable

year in which they could have filed a joint return may each claim

Oklahoma Statutes - Title 68. Revenue and Taxation

only one-half (1/2) of the tax credit that would have been allowed

for a joint return.

H. The Oklahoma Tax Commission is herein empowered to

promulgate rules by which the purpose of this section shall be

administered including the power to establish and enforce penalties

for violations thereof.

I. Notwithstanding the provisions of Section 2352 of this

title, for the fiscal year beginning on July 1, 2014, through fiscal

year 2023, the Tax Commission shall calculate an amount that equals

five percent (5%) of the cost of qualified clean-burning motor

vehicle fuel property as provided for in paragraph 1 of subsection D

of this section for tax year 2012. For each subsequent fiscal year

thereafter, the Tax Commission shall perform the same computation

with respect to the second tax year preceding the beginning of each

subsequent fiscal year. For fiscal year 2024, the Tax Commission

shall calculate an amount that equals twelve percent (12%) of the

credit for qualified clean-burning motor vehicle fuel property as

provided in paragraph 1 of subsection D of this section for tax year

2021. For each subsequent fiscal year, the Tax Commission shall

perform the same calculation for credits claimed in the second

preceding tax year. The Tax Commission shall then transfer an

amount equal to the amount calculated in this subsection from the

revenue derived pursuant to the provisions of subsections A, B and E

of Section 2355 of this title to the Compressed Natural Gas

Conversion Safety and Regulation Fund created in Section 130.25 of

Title 74 of the Oklahoma Statutes.

J. For the tax years 2020 through 2022, the total amount of

credits authorized by this section used to offset tax shall be

adjusted annually to limit the annual amount of credits to Twenty

Million Dollars ($20,000,000.00). The Tax Commission shall annually

calculate and publish by the first day of the affected taxable year

a percentage by which the credits authorized by this section shall

be reduced so the total amount of credits used to offset tax does

not exceed Twenty Million Dollars ($20,000,000.00) per year. The

formula to be used for the percentage adjustment shall be Twenty

Million Dollars ($20,000,000.00) divided by the credits claimed in

the second preceding year, with respect to any changes to the future

of the credit.

K. Pursuant to subsection J of this section, in the event the

total tax credits authorized by this section exceed Twenty Million

Dollars ($20,000,000.00) in any calendar year, the Tax Commission

shall permit any excess over Twenty Million Dollars ($20,000,000.00)

but shall factor such excess into the percentage adjustment formula

for subsequent years with respect to any changes to the future of

the credit.

L. Except as otherwise provided by this subsection, for the tax

years 2023 through 2028, the total amount of credits authorized by

Oklahoma Statutes - Title 68. Revenue and Taxation

this section used to offset tax shall be adjusted annually to limit

the annual amount of credits to:

1. Ten Million Dollars ($10,000,000.00) for qualified clean

burning fuel property propelled by compressed natural gas, liquefied

natural gas, or liquefied petroleum gas, property related to the

delivery of compressed natural gas, liquefied natural gas or

liquefied petroleum gas, and property directly related to the

compression and delivery of natural gas;

2. Ten Million Dollars ($10,000,000.00) for property originally

equipped so that the vehicle may be propelled by a hydrogen fuel

cell electric fueling system and property directly related to the

delivery of hydrogen; and

3. Ten Million Dollars ($10,000,000.00) for property which is a

metered-for-fee, public access recharging system for motor vehicles

propelled in whole or in part by electricity.

If one of the tax credit pools as described in paragraphs 1

through 3 of this subsection is not fully utilized for the

applicable tax year, the remaining balance of that pool shall be

allocated to each of the two remaining tax credit pools in equal

amounts. If two of the tax credit pools as described in paragraphs

1 through 3 of this subsection are not fully utilized for the

applicable tax year, the remaining balances in both pools shall be

added together and the sum of those amounts shall be allocated to

the remaining tax credit pool.

The Tax Commission shall annually calculate and publish by the

first day of the affected taxable year a percentage by which the

credits authorized by this section shall be reduced so the total

amount of credits used to offset tax does not exceed each of the

limits provided in paragraphs 1 through 3 of this subsection. The

formula to be used for the percentage adjustment shall be Ten

Million Dollars ($10,000,000.00) divided by the credits claimed in

the second preceding year, with respect to any changes to the future

of the credit.

M. Pursuant to subsection L of this section, in the event the

tax credits authorized by this section exceed any of the limits

provided in paragraphs 1 through 3 of subsection L of this section

in any year, the Tax Commission shall permit any excess over Ten

Million Dollars ($10,000,000.00) but shall factor such excess into

the percentage adjustment formula for subsequent years with respect

to any changes to the future of the credit.

N. The Tax Commission shall notify the Office of the State

Secretary of Energy and Environment at any time when the amount of

claims for credits allowed pursuant to this section reaches eighty

percent (80%) of the total annual limit provided in subsection J of

this section. Upon such notification, the Secretary shall provide

notice to the Governor, President Pro Tempore of the Senate and

Speaker of the House of Representatives.

Oklahoma Statutes - Title 68. Revenue and Taxation

Added by Laws 1990, c. 336, § 12, operative July 1, 1990. Amended

by Laws 1991, c. 235, § 20, eff. July 1, 1991; Laws 1992, c. 306, §

1, eff. July 1, 1992; Laws 1993, c. 271, § 1, eff. July 1, 1993;

Laws 1994, c. 2, § 25, emerg. eff. March 2, 1994; Laws 1994, c. 379,

§ 1, eff. Sept. 1, 1994; Laws 1996, c. 224, § 1, eff. Nov. 1, 1996;

Laws 2001, c. 144, § 2, eff. Nov. 1, 2001; Laws 2003, c. 186, § 1,

eff. Nov. 1, 2003; Laws 2008, c. 126, § 1, eff. Jan. 1, 2009; Laws

2009, c. 308, § 1, eff. Jan. 1, 2010; Laws 2010, c. 418, § 3, emerg.

eff. June 9, 2010; Laws 2013, c. 95, § 2, emerg. eff. April 22,

2013; Laws 2013, c. 252, § 1, eff. Nov. 1, 2013; Laws 2014, c. 328,

§ 12; Laws 2019, c. 298, § 1, eff. Jan. 1, 2020; Laws 2022, c. 404,

§ 1, eff. Jan. 1, 2023; Laws 2023, c. 215, § 1, eff. July 1, 2023;

Laws 2024, c. 143, § 1, eff. Nov. 1, 2024.

NOTE: Laws 1993, c. 224, § 9 repealed by Laws 1994, c. 2, § 34,

emerg. eff. March 2, 1994.

§68-2357.22v2. Credit for investments in qualified clean-burning

motor vehicle fuel property.

A. For tax years 2028 and before, there shall be allowed a onetime credit against the income tax imposed by Section 2355 of this

title for investments in qualified clean-burning motor vehicle fuel

property placed in service on or after January 1, 1991, or with

respect to a hydrogen fuel cell, on or after the effective date of

this act.

B. As used in this section, “qualified clean-burning motor

vehicle fuel property” means:

1. Equipment installed to modify a motor vehicle which is

propelled by gasoline or diesel fuel so that the vehicle may be

propelled by compressed natural gas, a hydrogen fuel cell, liquefied

natural gas, or liquefied petroleum gas. The equipment covered by

this paragraph must:

a.

be new, not previously used to modify or retrofit any

vehicle propelled by gasoline or diesel fuel and be

installed by an alternative fuels equipment technician

who is certified in accordance with the Alternative

Fuels Technician Certification Act,

b.

meet all Federal Motor Vehicle Safety Standards set

forth in 49 CFR 571, or

c.

for any commercial motor vehicle (CMV), follow the

Federal Motor Carrier Safety Regulations or Oklahoma

Intrastate Motor Carrier Regulations;

2. A motor vehicle originally equipped so that the vehicle may

be propelled by compressed natural gas, a hydrogen fuel cell, or

liquefied natural gas or liquefied petroleum gas but only to the

extent of the portion of the basis of such motor vehicle which is

attributable to the storage of such fuel, the delivery to the engine

Oklahoma Statutes - Title 68. Revenue and Taxation

of such motor vehicle of such fuel, and the exhaust of gases from

combustion of such fuel;

3. Property, not including a building and its structural

components, which is:

a.

directly related to the delivery of compressed natural

gas, liquefied natural gas or liquefied petroleum gas,

or hydrogen for commercial purposes or for a fee or

charge, into the fuel tank of a motor vehicle

propelled by such fuel including compression equipment

and storage tanks for such fuel at the point where

such fuel is so delivered but only if such property is

not used to deliver such fuel into any other type of

storage tank or receptacle and such fuel is not used

for any purpose other than to propel a motor vehicle,

or

b.

a metered-for-fee, public access recharging system for

motor vehicles propelled in whole or in part by

electricity. The property covered by this paragraph

must be new, and must not have been previously

installed or used to refuel vehicles powered by

compressed natural gas, liquefied natural gas or

liquefied petroleum gas, hydrogen, or electricity;

4. Property which is directly related to the compression and

delivery of natural gas from a private home or residence, for

noncommercial purposes, into the fuel tank of a motor vehicle

propelled by compressed natural gas. The property covered by this

paragraph must be new and must not have been previously installed or

used to refuel vehicles powered by natural gas; or

5. For tax years 2010 and 2023 through 2028, a motor vehicle

originally equipped so that the vehicle may be propelled by a

hydrogen fuel cell electric fueling system.

C. As used in this section, “motor vehicle” means a motor

vehicle originally designed by the manufacturer to operate lawfully

and principally on streets and highways.

D. The credit provided for in subsection A of this section

shall be as follows:

1. For the qualified clean-burning motor vehicle fuel property

defined in paragraphs 1, 2, or 5 of subsection B of this section,

the amount of the credit shall be as follows based upon gross

vehicle weight of the qualified vehicle:

a.

for vehicles up to or below six thousand (6,000)

pounds, the credit shall be a maximum of Five Thousand

Five Hundred Dollars ($5,500.00),

b.

for vehicles between six thousand one (6,001) pounds

to ten thousand (10,000) pounds, the credit shall be a

maximum amount of Nine Thousand Dollars ($9,000.00),

Oklahoma Statutes - Title 68. Revenue and Taxation

c.

for vehicles of ten thousand one (10,001) pounds, but

not in excess of twenty-six thousand five hundred

(26,500) pounds, the credit shall be a maximum amount

of Twenty-six Thousand Dollars ($26,000.00), and

d.

for vehicles in excess of twenty-six thousand five

hundred one (26,501) pounds, the credit shall be a

maximum amount of One Hundred Thousand Dollars

($100,000.00);

2. For qualified clean-burning motor vehicle fuel property

defined in paragraph 3 of subsection B of this section, a perlocation credit of forty-five percent (45%) of the cost of the

qualified clean-burning motor vehicle fuel property; and

3. For qualified clean-burning motor vehicle fuel property

defined in paragraph 4 of subsection B of this section, a perlocation credit of the lesser of fifty percent (50%) of the cost of

the qualified clean-burning motor vehicle fuel property or Two

Thousand Five Hundred Dollars ($2,500.00).

E. In cases where no credit has been claimed pursuant to

paragraph 1 of subsection D of this section by any prior owner and

in which a motor vehicle is purchased by a taxpayer with qualified

clean-burning motor vehicle fuel property installed by the

manufacturer of such motor vehicle and the taxpayer is unable or

elects not to determine the exact basis which is attributable to

such property, the taxpayer may claim a credit in an amount not

exceeding the lesser of ten percent (10%) of the cost of the motor

vehicle or One Thousand Five Hundred Dollars ($1,500.00).

F. If the tax credit allowed pursuant to subsection A of this

section exceeds the amount of income taxes due or if there are no

state income taxes due on the income of the taxpayer, the amount of

the credit not used as an offset against the income taxes of a

taxable year may be carried forward, in order, as a credit against

subsequent income tax liability for a period not to exceed five (5)

years. The tax credit authorized pursuant to the provisions of this

section shall not be used to reduce the tax liability of the

taxpayer to less than zero (0).

G. A husband and wife who file separate returns for a taxable

year in which they could have filed a joint return may each claim

only one-half (1/2) of the tax credit that would have been allowed

for a joint return.

H. The Oklahoma Tax Commission is herein empowered to

promulgate rules by which the purpose of this section shall be

administered including the power to establish and enforce penalties

for violations thereof.

I. Notwithstanding the provisions of Section 2352 of this

title, for the fiscal year beginning on July 1, 2014, through fiscal

year 2023, the Tax Commission shall calculate an amount that equals

five percent (5%) of the cost of qualified clean-burning motor

Oklahoma Statutes - Title 68. Revenue and Taxation

vehicle fuel property as provided for in paragraph 1 of subsection D

of this section for tax year 2012. For each subsequent fiscal year

thereafter, the Tax Commission shall perform the same computation

with respect to the second tax year preceding the beginning of each

subsequent fiscal year. For fiscal year 2024, the Tax Commission

shall calculate an amount that equals twelve percent (12%) of the

credit for qualified clean-burning motor vehicle fuel property as

provided in paragraph 1 of subsection D of this section for tax year

2021. For each subsequent fiscal year, the Tax Commission shall

perform the same calculation for credits claimed in the second

preceding tax year. The Tax Commission shall then transfer an

amount equal to the amount calculated in this subsection from the

revenue derived pursuant to the provisions of subsections A, B and E

of Section 2355 of this title to the Compressed Natural Gas

Conversion Safety and Regulation Fund created in Section 130.25 of

Title 74 of the Oklahoma Statutes.

J. For the tax years 2020 through 2022, the total amount of

credits authorized by this section used to offset tax shall be

adjusted annually to limit the annual amount of credits to Twenty

Million Dollars ($20,000,000.00). The Tax Commission shall annually

calculate and publish by the first day of the affected taxable year

a percentage by which the credits authorized by this section shall

be reduced so the total amount of credits used to offset tax does

not exceed Twenty Million Dollars ($20,000,000.00) per year. The

formula to be used for the percentage adjustment shall be Twenty

Million Dollars ($20,000,000.00) divided by the credits claimed in

the second preceding year, with respect to any changes to the future

of the credit.

K. Pursuant to subsection J of this section, in the event the

total tax credits authorized by this section exceed Twenty Million

Dollars ($20,000,000.00) in any calendar year, the Tax Commission

shall permit any excess over Twenty Million Dollars ($20,000,000.00)

but shall factor such excess into the percentage adjustment formula

for subsequent years with respect to any changes to the future of

the credit.

L. For the tax years 2023 through 2028, the total amount of

credits authorized by this section used to offset tax shall be

adjusted annually to limit the annual amount of credits to:

1. Ten Million Dollars ($10,000,000.00) for qualified clean

burning fuel property propelled by compressed natural gas, liquefied

natural gas, or liquefied petroleum gas, property related to the

delivery of compressed natural gas, liquefied natural gas or

liquefied petroleum gas, and property directly related to the

compression and delivery of natural gas;

2. Ten Million Dollars ($10,000,000.00) for property originally

equipped so that the vehicle may be propelled by a hydrogen fuel

Oklahoma Statutes - Title 68. Revenue and Taxation

cell electric fueling system and property directly related to the

delivery of hydrogen; and

3. Ten Million Dollars ($10,000,000.00) for property which is a

metered-for-fee, public access recharging system for motor vehicles

propelled in whole or in part by electricity.

The Tax Commission shall annually calculate and publish by the

first day of the affected taxable year a percentage by which the

credits authorized by this section shall be reduced so the total

amount of credits used to offset tax does not exceed each of the

limits provided in paragraphs 1 through 3 of this subsection. The

formula to be used for the percentage adjustment shall be Ten

Million Dollars ($10,000,000.00) divided by the credits claimed in

the second preceding year, with respect to any changes to the future

of the credit.

M. Pursuant to subsection L of this section, in the event the

tax credits authorized by this section exceed any of the limits

provided in paragraphs 1 through 3 of subsection L of this section

in any year, the Tax Commission shall permit any excess over Ten

Million Dollars ($10,000,000.00) but shall factor such excess into

the percentage adjustment formula for subsequent years with respect

to any changes to the future of the credit.

N. The Tax Commission shall notify the Office of the State

Secretary of Energy and Environment at any time when the amount of

claims for credits allowed pursuant to this section reaches eighty

percent (80%) of the total annual limit provided in subsection J of

this section. Upon such notification, the Secretary shall provide

notice to the Governor, President Pro Tempore of the Senate and

Speaker of the House of Representatives.

Added by Laws 1990, c. 336, § 12, operative July 1, 1990. Amended

by Laws 1991, c. 235, § 20, eff. July 1, 1991; Laws 1992, c. 306, §

1, eff. July 1, 1992; Laws 1993, c. 271, § 1, eff. July 1, 1993;

Laws 1994, c. 2, § 25, emerg. eff. March 2, 1994; Laws 1994, c. 379,

§ 1, eff. Sept. 1, 1994; Laws 1996, c. 224, § 1, eff. Nov. 1, 1996;

Laws 2001, c. 144, § 2, eff. Nov. 1, 2001; Laws 2003, c. 186, § 1,

eff. Nov. 1, 2003; Laws 2008, c. 126, § 1, eff. Jan. 1, 2009; Laws

2009, c. 308, § 1, eff. Jan. 1, 2010; Laws 2010, c. 418, § 3, emerg.

eff. June 9, 2010; Laws 2013, c. 95, § 2, emerg. eff. April 22,

2013; Laws 2013, c. 252, § 1, eff. Nov. 1, 2013; Laws 2014, c. 328,

§ 12; Laws 2019, c. 298, § 1, eff. Jan. 1, 2020; Laws 2022, c. 404,

§ 1, eff. Jan. 1, 2023; Laws 2023, c. 215, § 1, eff. July 1, 2023;

Laws 2024, c. 452, § 153, emerg. eff. June 14, 2024.

NOTE: Laws 1993, c. 224, § 9 repealed by Laws 1994, c. 2, § 34,

emerg. eff. March 2, 1994.