Energy Efficient Residential Construction Tax Credit (Personal)

October 17, 2020


Oklahoma allows a contractor who is the primary builder of an energy efficient home or manufactured home substantially completed after December 31, 2005, to claim an income tax credit beginning in tax year 2006. The home must be under 2,000 square feet. Improvements eligible for the credit include energy efficient heating and cooling systems, windows, doors, roofs, and insulation to minimize heat loss and gain.

The contractor can take a tax credit for the amount of the eligible expenditures, not to exceed $2,000 for a home that is between 20% and 39% above the International Energy Conservation Code 2003 (and any supplement in effect at the time of completion) or $4,000 for a home that is 40% or above of the Code. In addition, the heating and cooling efficiencies must meet the minimum requirements established by the National Appliance Energy Conservation Act of 1987 and building envelope improvements must account for a certain percentage of the reduced annual heating and cooling energy consumption levels.

The contractor can carryover any unused portion of the tax credit for up to 4 subsequent years. Credits earned after August 25, 2006 are freely transferable to any taxpayer upon the filing of a transfer agreement.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Oklahoma
Incentive Type: Personal Tax Credit
Web Site:
Administrator: Oklahoma Tax Commission
Start Date: 11/01/2005
Eligible Renewable/Other Technologies:
  • Furnaces
  • Heat pumps
  • Air conditioners
  • Caulking/Weather-stripping
  • Duct/Air sealing
  • Building Insulation
  • Windows
  • Doors
  • Roofs
  • Comprehensive Measures/Whole Building
Incentive Amount: Amount of eligible expenditures
Maximum Incentive: $4,000
Equipment Requirements: Property must be less than 2,000 square feet.
Carryover Provisions: Can carry over unused credit for up to four years


This program has 1 incentives
Technologies: Furnaces, Heat pumps, Air conditioners, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Doors, Roofs, Comprehensive Measures/Whole Building
Sectors: Installers/Contractors
Parameters: The incentive has a minimum of $4000.00


Name: 68 O.S. § 2357.46
Date Enacted: 06/08/2005 (subsequently amended)
Effective Date: 11/01/2005


Name: Kylah McNabb
Address: 900 N. Stiles
Oklahoma City OK 73104
Phone: (405) 815-5249
Name: Information Specialist - OTC
Address: Post Office Box 26800
Oklahoma City OK 73126-0800
Phone: (405) 521-3160

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.