Governor of Oklahoma approves measure to extend CNG tax credit
 

May 6, 2019. A measure that redefines and extends tax credits related to compressed natural gas (CNG) vehicles and to the infrastructure used to keep them rolling cleared Gov. Kevin Stitt’s desk today.

   House Bill 2095, authored by state Reps. Terry O’Donnell, Mark McBride, Scott Fetgatter and state Sen. Stephanie Bice extends the availability of a tax credit that can be used by people who either convert diesel or gasoline-powered vehicles to run on compressed natural gas, liquefied natural gas or liquefied petroleum gas, or buy vehicles already equipped to operate on those alternative fuels.

   The measure extends the availability of state tax credits from Jan. 1, 2020, to Dec. 31, 2027, but caps its maximum annual affect on the state’s budget at $20 million.

   It also extends the availability of a tax credit owners of equipment used to deliver those alternative fuels to vehicles, either through a commercial industrial application or a retail pay-for-fuel scenario, though it reduces the amount of the credit those people can qualify to receive.

   Previously, state law allowed people who either converted a vehicle or bought a new alternative fuel vehicle that runs on CNG, LNG or LPG to seek a state tax credit that was worth up to 45% of the vehicle’s cost or conversion’s cost in the year the purchase was made.

   Going forward, the extension caps the amount of tax credits owners can receive for those costs from $5,500 for smaller vehicles to $50,000 for vehicles that weigh more than 26,501 pounds.

   As for people who buy equipment to commercially provide supply to CNG, LNG or LPG vehicle operators, the extended tax credit reduces that amount from 75% of its purchase cost to 45%.