Clean Fuel...Clean Air...Clean Cities

One of the main objectives of the Tulsa Area Clean Cities Coalition is to secure funding for our stakeholders. It is our goal to offer sound advice and instructions on how to obtain the money you need to facilitate your petroleum displacement program. In addition, coalitions may have access t

CLOSED:  Tulsa Area Clean Cities request for proposals:  Transportation Technologies;  Public Fleet Conversion Grant Program Funding to initiate alternative fueled vehicle projects for public fleets in the Tulsa Transportation Management Area (TTMA)  Project Proposal Deadline:  May 26th, 2010, 4:30 p.m. CST

Eligibility includes local governments and public entities located within the Tulsa Transportation Management Area only (map provided in solicitation).

Project Categories:  1) Projects that promote the conversion of vehicles to Alternative Fueled Vehicles (AFVs);  2) Projects that promote the acquisition of AFVs in fleets;  and 3) Projects that promote the AFV Refueling Infrastructure Development.

Approximately $242,000.00 CMAQ federal funding available.  $60,000. federal project maximum.  20% minimum cost share requirement.

For Questions and to submit proposals:  Meredith Webber, INCOG 2 West 2nd Street, Suite 800  Tulsa, OK  74103;  (918) 579-9434;  mwebber@incog.org 

o a broad range of funding sources, including solicitations that are open year round.

The Oklahoma Recovery & Reinvestment Website - provides descriptions, links, and funding levels for projects in the State of Oklahoma

Recovery.Gov - is a federal website including timelines, descriptions, and funding levels for projects sorted by state, category, or agency.

Access the U.S. Dept of Energy's Web site at http://http://www.eere.energy.gov/recovery/ for the latest information on funding opportunities available to Clean Cities coalitions and stakeholders.

To receive electronic updates of the Monthly Summary of Open Solicitations, which is produced by The Center for Economic and Environmental Partnership, Inc., e-mail your request to laurie.brown@ceepinc.org.

Oklahoma Tax Incentives

 DISCLAIMER: The information on this page should not be viewed as an official or legally binding document.  Other requirements or exceptions may apply.  For more detailed information, please consult a qualified tax representative and/or official Tax Commission publications.

Alternative Fuel Vehicle (AFV) Tax Credit

Alternative Fuel Vehicle (AFV) and Refueling Infrastructure Tax Credit

Biodiesel Production Facility Tax Credit

For tax years beginning after December 31, 2004, and before January 1, 2013, a biodiesel (B100) production facility is allowed a credit of $0.20 per gallon of biodiesel produced. An eligible biodiesel facility must produce at least 25% of its nameplate design capacity for at least six months after the first month for which it is eligible to receive the credit, on or before December 31, 2008. The credit is allowed for 60 months beginning with the first month for which the facility is eligible to receive the credit and ending not later than December 31, 2012. An eligible facility may also receive a credit of $0.20 per gallon for biodiesel produced in excess of the original nameplate design capacity which results from expansion of the facility completed on or after the effective date of this act and before December 31, 2008. Beginning January 1, 2013, a biodiesel facility may receive a credit of $0.075 per gallon of biodiesel, for new production for a period not to exceed 36 consecutive months. Additional restrictions apply. (Reference House Bill 1513, 2007, and Oklahoma Statutes 68-2357.67)

Ethanol Production Tax Credit

Ethanol Fuel Retailer Tax Credit

Oklahoma Loan Funds

Zero-interest Loan Fund for Government Entities: Alternative Fuel Vehicle (AFV) and Refueling Infrastructure Loans

Low-interest Alternative Fuel Vehicle (AFV) Loan Fund for Private Fleets

Oklahoma State Laws & Regulations

Last updated July 2007; Source: US Department of Energy

Biofuels Development and Promotion

Alternative Fuel Vehicle (AFV) Acquisition Requirements

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) The photo at right is a Neighborhood Electric Vehicle owned by The Metropolitan Environmental Trust, a Tulsa Area Clean Cities stakeholder.

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)

Alternative Fuel Vehicle (AFV) Technician Training

Federal Tax Incentives

Alternative Motor Vehicle Credit

Section 1341 of the Energy Policy Act of 2005 provides a tax credit to buyers of new alternative fuel vehicles placed in service as an alternative fuel vehicle after January 1, 2006. The legislation provides for a tax credit equal to 50% of the incremental cost of the vehicle, plus an additional 30% of the incremental cost for vehicles with near-zero emissions (SULEV or Bin 2 for vehicles <14,001 lb GVWR). The IRS has issued two notices to establish rules for manufacturers and qualified vehicle buyers to claim the credit. A Tax Credit table has information on certified vehicles and available credits.

The credit is available on the purchase of light-, medium, and heavy-duty vehicles and fuel-cell, hybrid, and dedicated natural gas, propane, and hydrogen vehicles. Light-duty lean burn diesel vehicles are also eligible.

Vehicles are subject to the following incremental cost limitations:

• $5,000: 8,500 GVWR or lighter

• $10,000: 8,501 - 14,000 GVWR

• $25,000: 14,001 - 26,000 GVWR

• $40,000: 26,001 GVWR and heavier

For non-tax-paying entities, the credit can be passed back to the vehicle seller. The tax credit can be applied to vehicle purchases made after December 31, 2005. The credit expires December 31, 2010.

Alternative Fuel Infrastructure Tax Credit

Section 1342 of the Energy Policy Act of 2005 provides a tax credit equal to 30% of the of cost alternative refueling property, up to $30,000 for business property. Qualifying alternative fuels are natural gas, propane, hydrogen, E85, or biodiesel mixtures of B20 or more. Buyers of residential in-home refueling equipment can receive a tax credit for $1,000. For non-tax-paying entities, the credit can be passed back to the equipment seller. The credit is effective on equipment put into service after December 31, 2005. It expires December 31, 2009 (hydrogen property credit expires in 2014)

This legislation also extends the Tax Deduction Timeline that was established by EPAct 1992, Section 179, and extended by the Working Families Tax Relief Act of 2004.

In May 2006, the Internal Revenue Service (IRS) published Form 8911, which provides a mechanism to claim the infrastructure tax credit. Owners who install qualified refueling property on multiple sites can utilize the credit for each property. The instructions define what is considered qualified property and the value of the credit. See IRS Form 8911.

Hybrid Motor Vehicle Credit

Section 1341 of the Energy Policy Act of 2005 provides a tax credit for light-duty hybrid vehicles (<8,501 lb GVWR) based on their improved fuel economy and their life-time fuel savings potential. The IRS will certify vehicles for the credit and publish qualifying credit amounts as vehicles are certified. The Current Tax Credit table has the most recent information from the IRS.

The fuel economy portion of the credit is based on the following efficiency gains over model year 2002 baselines.

• 125%-149%: $400

• 150% -174%: $800

• 175%-199%: $1,200

• 200%-224%: $1,600

• 225%-249%: $2,000

• 250%+: $2,400

The conservation credit increases the fuel economy credit based on the following lifetime fuel savings:

• 1,200-1,799 gal: $250

• 1,800-2,399 gal: $500

• 2,400-2,999 gal: $750

• 3,000 gal+: $1,000

To qualify for the credits, the vehicles must meet at least Bin 5 standards if they are up to 6,000 lb GVWR, or Bin 8 standards if the vehicles are 6,001 lb-8,500 lb GVWR.

Heavy-duty hybrid vehicles are subject to the following incremental cost limitations:

• <14,001 GVWR: $7,500

• 14,001-26,000 GVWR: $15,000

• 26,001+ GVWR: $30,000

This tax credit replaces the tax deduction previously available to purchasers under the Clean Fuel Vehicle Property guidance. This tax credit expires December 31, 2010.

The IRS issued guidance to automobile manufacturers in January 2006. Specifically, this notice provides procedures for a vehicle manufacturer to certify to the Internal Revenue Service both that the vehicle meets certain requirements for the credit and information to calculate the amount of the credit allowable with respect to that vehicle.

Excise Tax Credit to the Seller of CNG or LNG
PL 109-59 provides for a tax credit of 50-cent per gasoline-gallon-equivalent of CNG or liquid gallon of LNG for the sale of CNG and LNG for use as a motor vehicle fuel. The credit begins on October 1, 2006 and expires on September 30, 2009. Partially offsetting the value of the excise tax credit is an increase in the motor fuels excise tax rate for both CNG and LNG. The CNG rate would increase from 6 cents per gallon equivalent to 18.3 cents. The LNG rate would increase from 18.3 cents to 24.3 cents on a liquid gallon basis. Under this approach, CNG and LNG will pay the same rate of tax into the Highway Trust Fund as all other transportation fuels, but then CNG and LNG would receive an excise tax credit paid out of the general fund. The credit will be paid to eligible recipients on a regular basis. The credit is effective on October 1, 2006 and is scheduled to expire on September 30, 2009.

Biodiesel and Ethanol (VEETC) Tax Credit

The American Jobs Creation Act of 2004 (Public Law 108-357) created tax incentives for biodiesel fuels and extended the tax credit for fuel ethanol. The biodiesel credit is available to blenders/retailers beginning in January 2005. It also established the Volumetric Ethanol Excise Tax Credit (VEETC), which provides ethanol blenders/retailers with $.51 per pure gallon of ethanol blended or $.0051 per percentage point of ethanol blended (i.e., E10 is eligible for $.051/gal; E85 is eligible for $.4335/gal). The incentive is available until 2010.

Section 1344 of the Energy Policy Act of 2005 extended the tax credit for biodiesel producers through 2008. The credits are $.51 per gallon of ethanol at 190 proof or greater, $1.00 per gallon of agri-biodiesel, and $.50 per gallon of waste-grease biodiesel. If the fuel is used in a mixture, the credit amounts to $.0051 per percentage point ethanol or $.01 per percentage point of agri-biodiesel used or $.0050 per percentage point of waste-grease biodiesel (i.e. E100 is eligible for $.51 per gallon)   For more information, visit IRS Form 637 and IRS publication 510.

Utilities/Private Incentives

There are currently no known utility or private incentives offered in Oklahoma.