Oklahoma Individual Vehicle Purchaser/Driver

Alternative Fuel Vehicle (AFV) Tax Credit

For tax years beginning before January 1, 2010, Oklahoma provides a one-time income tax credit for 50% of the cost of converting a vehicle to operate on an alternative fuel, or for 50% of the incremental cost of purchasing a new Original Equipment Manufacturer AFV. The state also provides a tax credit for 10% of the total vehicle cost, up to $1,500, if the incremental cost of a new AFV cannot be determined or when an AFV is resold, as long as a tax credit has not been previously taken on the vehicle. The alternative fuels eligible for the credit are compressed natural gas, liquefied natural gas, liquefied petroleum gas, methanol, and electricity. For qualified electric vehicles propelled by electricity only, the basis for the credit is the full purchase price of the vehicle. For vehicles also equipped with an internal combustion engine, such as a hybrid electric vehicle, the basis for the credit is limited to the portion of such motor vehicle which is attributable to the propulsion of the vehicle by electricity. For more information, see Oklahoma Income Tax Form 511CR (PDF 219 KB). (Reference Senate Bill 1558, 2008, and Oklahoma Statutes 68-2357.22) Download Adobe Reader

Biofuels Tax Exemption

An individual that produces biofuels or biodiesel from feedstock grown on property and used in a vehicle owned by the same individual are exempt from the state motor fuel excise tax. (Reference <Oklahoma Statutes 68-500.4 and 68-500.10)

Medium-Speed Vehicles Access to Roadways

A medium-speed electric vehicle is defined as any self-propelled, electronically powered four-wheeled motor vehicle, whose top speed is greater than 30 miles per hour (mph) but not greater than 35 mph. Medium-speed electric vehicles must be registered according to the Oklahoma Vehicle License and Registration Act and must meet National Highway Traffic Safety Administration safety standards for low-speed electric vehicles as set forth in Title 49, Code of Federal Regulations, Section 571.500. Medium-speed vehicles may be operated on roadways with a posted speed limit of up to 45 miles per hour but are not permitted to travel on any highway in the state which is a part of the National System of Interstate and Defense Highways. (Reference House Bill 2695 and Senate Bill 1384, 2008)

Neighborhood Electric Vehicle (NEV) Access to Roadways

NEVs manufactured in compliance with the National Highway Traffic Safety Administration standards for low-speed vehicles in Title 49 of the Code of Federal Regulations, section 571.500, are allowed to operate on Oklahoma streets and highways with a posted speed limit of 35 miles per hour or less. (Reference Oklahoma Statutes 47-11-805.1)

Alternative Fuel Labeling Requirement

In lieu of the motor fuel excise tax, Oklahoma imposes an annual flat fee on motor vehicles including passenger automobiles, pickup trucks, vans and heavy-duty vehicles using liquefied petroleum gas, compressed natural gas (CNG), liquefied natural gas (LNG), methanol, or blends of 85% methanol and 15% gasoline (M85). CNG, LNG, methanol, and M85 vehicles weighing less than one ton gross vehicle weight are taxed at a rate of $100 per vehicle per year, and vehicles weighing more than one ton gross vehicle weight are taxed at a rate of $150 per vehicle per year. Vehicles must display a decal issued on a yearly basis by the Oklahoma Tax Commission. (Reference Oklahoma Statutes 68-723)