Federal tax incentives for purchasing a natural gas vehicle (NGV) haven’t existed since 2010. However, many states continue to provide and even increase local incentives. With a recently announced rebate program from Oklahoma Natural Gas (ONG), Oklahoma continues to lead the way.
ONG, a natural gas distribution company which operates 28 CNG fueling stations in Oklahoma, recently raised the price per gasoline gallon equivalent (GGE) by $0.25. If you’re an NGV driver, that might seem significant. To keep it in perspective though, the price is now only $1.35 – that’s about a 60% discount from the gasoline station down the street from me.
The surcharge will support natural gas vehicle growth in Oklahoma. The program offers three types of rebates:
1. $2,500 for a dedicated natural gas vehicle
2. $1,500 for a bi-fuel natural gas vehicle
3. $2,500 for a residential CNG fueling system
You can download the tariff and learn more about the program here.
In addition to the Oklahoma Natural Gas CNG Rebate Program, the Alternative Fuel Vehicle Tax Credit is available in the state. It offers a one-time income tax credit for 50% of the incremental cost of a new or converted natural gas vehicle. Oklahoma also has a loan program that offers private fleets the opportunity to borrow toward the cost of switching to CNG at a 3% interest rate. You can learn more about these and other incentives at the Department of Energy’s website.
With such incentives available and with fuel cost at half the price of gasoline, the Sooner State makes switching to CNG an easy decision for drivers.
We want to know, have any of you taken advantage of these incentives in Oklahoma? If you’re not from Oklahoma, how do your state’s incentives compare? Let us know in the comment section below.