Exemption + Fee for Alternative Fuel Vehicles

June 08, 2004


Compressed natural gas, liquid natural gas and methanol (M-85) are taxed at a flat rate of $100 per year, per vehicle of less than 1-ton capacity. Consumers pay this tax by purchasing a flat fee decal rather than paying excise tax at the pump. Propane or LPG is taxed at a rate of $50 per year, per vehicle of less than 1-ton capacity. AFVs exceeding 1-ton capacity are taxed at $150 per year.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Oklahoma
Incentive Type: Corporate Tax Exemption
Web Site: http://www.centraloklahomacleancities.org/frame.php3?page=events
Administrator: Association of Central Oklahoma Governments
Start Date:
Eligible Renewable/Other Technologies:
  • Renewable Fuel Vehicles
Incentive Amount: Exempted 100% from motor fuel excise tax; instead, pay $150 per methanol vehicle


Name: 68 Okl. St. § 1355 and § 723


Name: Yvonne Anderson
Organization: Association of Central Oklahoma Governments
Address: 21 E. Main Street, Suit 100
Oklahoma City OK 73104-2405
Phone: (405) 234-2264
Email: yanderson@acogok.org
Name: Information Specialist - OTC
Organization: Oklahoma Tax Commission
Address: Post Office Box 26800
Oklahoma City OK 73126-0800
Phone: (405) 521-3160
Email: helpmaster@mailhost.oktax.state.ok.us

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.