Zero-Emission Facilities Production Tax Credit (Oklahoma)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Zero-Emission Facilities Production Tax Credit|
|Incentive Type||Corporate Tax Credit|
|Eligible Technologies||Solar Thermal Electric, Photovoltaics, Wind, Hydroelectric, Geothermal Electric|
|Energy Category||Renewable Energy Incentive Programs|
|Amount||0.0025/kWh - 0.0075/kWh for 10 years; amount varies depending on when the facility is placed in operation and when electricity is generated.|
|Carryover Provisions||Excess credit generated before 2014 may be carried forward up to 10 years. Credits generated after this time can be reimbursed to the taxpayer at 85% of face value or credits can be allocated to other entities.|
|Eligible System Size||Facility must have a rated production capacity of 1 MW or greater.|
|Equipment Requirements||Facility construction and operation must not result in the creation of pollution or emissions harmful to the environment, pursuant to determination by the DEQ.|
|Program Administrator||Oklahoma Tax Commission|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
For tax years beginning on or after January 1, 2003, a state income tax credit is available to producers of electric power using renewable energy resources from a zero-emission facility located in Oklahoma. The zero-emission facility must have a rated production capacity of 1 megawatt or greater. The facility must be placed in operation after June 4, 2001, and the electricity must be sold to an unrelated party.
Eligible renewable energy resources include wind, moving water, sun, and geothermal energy. The construction and operation of the zero-emission facility must result in no pollution or emissions that are or may be harmful to the environment, as determined by the Department of Environmental Quality.
Tax Credit Amount
The amount of the credit varies depending on when the electricity is generated. Credits may be claimed for electricity generated on or after January 1, 2003, during a 10-year period following the date that the facility is placed in operation.
Facilities placed in operation before January 1, 2007:
For electricity generated on or after January 1, 2003, but prior to January 1, 2004, the amount of the credit is $0.0075 per kilowatt-hour (kWh) of electricity generated. For electricity generated after January 1, 2004, but prior to January 1, 2007, the amount of the credit is $0.0050 per kWh. For electricity generated after January 1, 2007, but prior to January 1, 2012, the amount of the credit is $0.0025 per kWh.
Facilities placed in operation on or after January 1, 2007:
For electricity generated on or after January 1, 2007, but prior to January 1, 2021, the amount of the credit is $0.0050 per kWh.
To claim this credit, applicants must complete Tax Form 511CR, Schedule for Other Credits.
For credits generated before January 1, 2014, the tax credit is freely transferable at any time during the 10 years following the year of qualification. This includes transfers or sales from non-taxable entities to taxable entities and transfers or sales from one taxable entity to another.
For credits generated on or after January 1, 2014, the Oklahoma Tax Commission can refund the taxpayer 85% of the face value of the tax credits at the taxpayer's request. The direct refund is available to all taxpayers including pass-through entities, but not nontaxable entities. Nontaxable entities will still be able to transfer or sell credits to taxable entities. If the taxpayer does not elect to receive a direct refund, excess credits can be allocated to one or more shareholders, partners, or members of the taxpayer entity.
|Contact Name||Kylah McNabb|
|Department||Oklahoma Department of Commerce|
|Division||State Energy Office|
|Address||900 N. Stiles St.|
|Place||Oklahoma City, Oklahoma|
|Contact Name||Information Specialist - OTC|
|Department||Oklahoma Tax Commission|
|Address||Post Office Box 26800|
|Place||Oklahoma City, Oklahoma|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||68 Okl. St. § 2357.32A|
|Date Enacted||01/01/02, subsequently amended|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.