Okla. Admin. Code § 710:50-15-81

Current through Vol. 42, No. 7, December 16, 2024

Section 710:50-15-81 - Credit for qualified clean-burning motor vehicle fuel property

(a)Definitions. The following words and terms, when used in this Section, shall have the following meaning, unless the context clearly indicates otherwise:

(1)"Motorvehicle"means a motor vehicle originally designed by the manufacturer to operate lawfully and principally on streets and highways. [See: 68 O.S. § 2357.22(C)] "Vehicle" shall not mean conveyor belts, forklifts, riding mowers, tractors, or other similar items.

(2)"Qualified clean-burning motor vehicle fuel property" means as defined in Section 2357.22 of Title 68 of the Oklahoma Statutes.

(b)General provisions. For tax years 2028 and before, there shall be allowed a one-time nonrefundable income tax credit for investments in qualified clean-burning motor vehicle fuel property placed in service on or after January 1, 1991. An entity that converts property to qualified clean-burning motor vehicle fuel property may lease such property and retain the right to claim the credit. Property on which the credit has previously been claimed is ineligible for the credit.

(c)Amount of credit.

(1) For the qualified clean-burning motor vehicle fuel property defined in 68 O.S. Supp. 2022, §2357.22 (B)(1), (2) or (5), 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 6,000 pounds, the credit shall be a maximum of $5,500.00,

(B) For vehicles between 6,001 pounds to 10,000 pounds, the credit shall be a maximum amount of $9,000.00,

(C) For vehicles of 10,001 pounds, but not in excess of 26,500 pounds, the credit shall be a maximum amount of $26,000.00, and

(D) For vehicles in excess of 26,501 pounds, the credit shall be a maximum amount of $100,000.00.

(2) For qualified clean-burning motor vehicle fuel property defined in 68 O.S. Supp. 2022, § 2357.22(B)(3), a per location credit of 45% of the cost of the qualified clean-burning motor vehicle fuel property.

(3) For qualified clean-burning motor vehicle fuel property defined in 68 O.S. Supp. 2022, § 2357.22(B)(4), a per location credit of the lesser of 50% of the cost of the qualified clean-burning motor vehicle fuel property or $2,500.00.

(d)Carryforward. Any credit claimed, but not used, may be carried over, in order, to each of the five (5) subsequent taxable years.

(e)Limitations of eligibility. No qualified establishment, nor its contractors or subcontractors, that has received or is receiving an incentive payment pursuant to Section 3601 et seq. of the Oklahoma Statutes, (Oklahoma Quality Jobs Program Act), or Section 3901 et seq. of the Oklahoma Statutes, (Small Employer Quality Jobs Incentive Act), shall be eligible to receive the credit for qualified clean-burning motor vehicle fuel property provided by 68 O.S. §2357.22, in connection with the activity and establishment for which incentive payments have been, or are being received. [See: 68 O.S. §§3607, 3909]

(f)Sunset date. This credit will only be available through tax years beginning before December 31, 2028.

(g)Tax credit limitation.

(1) For tax years 2020 through 2022, the total amount of credits used to offset tax shall be adjusted annually to limit the annual amount of credits to Twenty Million Dollars ($20,000,000.00).

(2) For tax years 2023 through 2028, the total amount of credits used to offset tax shall be adjusted annually to limit the annual amount of credits to:

(A) 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;

(B) 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

(C) 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.

(3) The Tax Commission shall annually calculate and publish by the first day of the affected taxable year a percentage by which the credits shall be reduced so the total amount of credits used to offset tax does not exceed each of the limits provided in subsection (g).

Okla. Admin. Code § 710:50-15-81

Amended at 11 Ok Reg 555, eff 11-10-93 (emergency); Amended at 11 Ok Reg 3497, eff 6-26-94; Amended at 15 Ok Reg 2811, eff 6-25-98; Amended at 16 Ok Reg 2646, eff 6-25-99

Amended by Oklahoma Register, Volume 40, Issue 22, August 1, 2023, eff. 8/11/2023