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Tax commission limits electric car tax credits

BY JULIE BISBEE Published: September 18, 2009
Increased interest in tax credits for electric cars prompted the state Tax Commission to pass an emergency rule on Thursday to explain which plug-in electric vehicles are eligible for credits.

Under the new rule, electric vehicles that are similar to golf carts and are "designed for sporting or recreation purposes,” are not eligible for a state tax credit.

The new rule goes on to say that, "the fact that a vehicle is ‘street legal’ is not determinative of qualification for the credit.”

In other words, taking the vehicle on the road occasionally does not make it eligible for the tax credit, according to the new rule.

Oklahomans who purchase an electric car are eligible for a tax credit that is equal to about half of the vehicle’s purchase price. There are also several federal credits for people who buy plug-in electric cars, including a credit of up to $7,500 of the car’s price, depending on the battery size and when the car is purchased, according to the Internal Revenue Service.