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Oklahoma Credit for Investment in a Clean-Burning Motor Vehicle Fuel Property

Understanding the Oklahoma Tax Credit for Clean-Burning Motor Vehicle Fuel Investments

BS

Business Tax Specialist

Tax Expert

3 min read
Published on 6 months ago
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The Oklahoma Credit for Investment in Clean-Burning Motor Vehicle Fuel Property allows taxpayers to claim a tax credit for purchasing or converting to a qualified clean-burning motor vehicle. This credit is claimed using Form 567-A, which must be attached to the Oklahoma individual income tax return (Form 511-CR). The credit amount varies based on the gross vehicle weight of the qualified vehicle:

Credit Amounts by Vehicle Weight

  • For qualified clean-burning motor vehicle fuel property related to qualifying vehicle conversions or vehicles originally equipped for qualified clean-burning fuels, the credit amount is determined based on the gross vehicle weight of the qualified vehicle as provided in Form 567-A instructions:
  • Vehicles with gross vehicle weight rating:
  • 6,000 pounds or less: $5,500 credit
  • 6,001–10,000 pounds: $9,000 credit
  • 10,001–26,500 pounds: $26,000 credit
  • 26,501 pounds or more: $100,000 credit
  • The credit applies only to qualified clean-burning motor vehicle fuel property that meets Oklahoma requirements.

Claiming the Credit

  • Complete Form 567-A, Credit for Investment in Clean-Burning Motor Vehicle Fuel Property, for each qualified vehicle or property for which the credit is claimed.
  • Enter the total allowable credit from Form 567-A on Form 511-CR, line 3b. If multiple Forms 567-A are completed, combine the allowable credits and report the total amount on Form 511-CR.
  • The credit is subject to a five-year carryover provision for any allowed credit that is not used in the year claimed.

Additional Limitation

The credit is subject to statutory limitations and the availability rules provided under Oklahoma law. The current Form 567-A instructions do not provide a general $500,000 annual credit limitation.

How to File

  • When filing your Oklahoma state tax return electronically, navigate to the "State" section and select "Oklahoma State."
  • Under the "Credits" section, answer "yes" to "Do you have any credit to claim for investment in clean-burning motor vehicle fuel property?" to access Form 567-A.
  • Follow on-screen instructions to complete and submit the form.

Source:

Form 567-A: Credit for Investment in Clean-Burning Motor Vehicle Fuel Property
Form 511-CR: Oklahoma Individual Income Tax Return (Credit Section)

Disclaimer: Always verify details with the official Oklahoma Department of Revenue forms and instructions. Tax rules may change annually. For complex situations, consult a CPA or tax professional.

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Key Takeaways

  • Understanding tax deductions can significantly reduce your tax liability
  • Keep detailed records of all tax-related expenses and documents
  • Consult with a tax professional for complex situations

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