The Senate Finance Committee on Tuesday approved legislation that would modify the existing income tax credit for investments in clean burning fuel property, including compressed natural gas, to encourage public access to CNG fuel.
Under current law, the credit may be claimed for fueling equipment used exclusively for a private fleet. Senate Bill 1711 would allow the credit to be claimed only if the fuel is also made available for sale to the public.
Sen. Rob Standridge, author of the measure, said the tax credit should serve the purpose of making CNG more accessible.
“Oklahoma is a national leader in the production of compressed natural gas and expanding its use can only be good for the state,” said Standridge, R-Norman. “The use of CNG vehicles not only saves on fuel costs, but supports the state’s energy industry. Modifying the credit will allow us to broaden public access to one of our most abundant natural resources.”
Under the tax credit, certain property directly related to the delivery of the fuel may qualify for a credit of up to 75 percent of the expenditures.
“Oklahoma’s energy companies have opened up new possibilities for the extraction of affordable natural gas,” Standridge said. “Expanding the use of CNG by the public will only strengthen our state’s position as a leader in natural gas production.”