Electric Vehicle Tax Credit

Starting with tax years after December 31, 2023, Oklahoma EV owners can claim a tax credit against the 3¢/kWh tax on charging at public, for-profit stations, up to the registration fees paid that year. Maximums by weight for all-electric/plug-in hybrid are $110/$82 under 6,000 lbs, $158/$118 for 6,000-10,000 lbs, $363/$272 for 10,000-26,000 lbs, and $2,250/$1,687 above 26,000 lbs. If the credit exceeds your tax liability, you can carry the excess forward up to 5 years.

This credit helps offset the 3¢/kWh tax on public, for-profit EV charging that begins January 1, 2024, which can be a selling point for customers buying or fleeting electric vehicles from passenger cars to heavy-duty trucks. The credit is capped at the vehicle registration fees paid in the same tax year, ranging from $110 for a light all-electric vehicle to $2,250 for an all-electric vehicle over 26,000 lbs, with lower plug-in hybrid amounts. Customers claim it themselves on their taxes, and unused credit carries forward up to 5 years, so advise them to confirm filing details with the Oklahoma Tax Commission.

Enacted by H.B. 2234 in April 2021, the program pairs a 3¢/kWh tax on public, for-profit EV charging effective January 1, 2024 with a personal tax credit for EV owners in tax years beginning after December 31, 2023. The credit equals registration fees paid in the same tax year, tiered by vehicle weight and by all-electric versus plug-in hybrid, from $82 up to $2,250 (all-electric) or $1,687 (plug-in hybrid) for vehicles over 26,000 lbs. Excess credit carries forward up to 5 years, and the credit covers residential, low-income, commercial, and industrial owners of passenger, neighborhood, medium-duty, and heavy-duty EVs.