(Oklahoma) Energy Efficient Residential Construction Tax Credit


Oklahoma allows a contractor who is the primary builder of an energy efficient home or manufactured home substantially completed after December 31, 2005 to claim an income tax credit beginning in tax year 2006. The home must be under 2,000 square feet. Improvements eligible for the credit include energy efficient heating and cooling systems, windows, doors, roofs and insulation to minimize heat loss and gain.

The contractor can take a tax credit for the amount of the eligible expenditures, not to exceed $2,000 for a home that is between 20% and 39% above the International Energy Conservation Code 2003 or $4,000 for a home that is 40% or above of the Code. In addition, the heating and cooling efficiencies must meet the minimum requirements established by the National Appliance Energy Conservation Act of 1987 and building envelope improvements must account for a certain percentage of the reduced annual heating and cooling energy consumption levels.

The contractor can carryover any unused portion of the tax credit for up to four subsequent years. As the result of a 2006 amendment, credits earned after August 25, 2006 are freely transferable to any taxpayer upon the filing of a transfer agreement.

Note: After a 2 year moratorium on all state tax credits, this credit may be claimed for tax year 2012 and subsequent tax years, for eligible expenditures on or after July 1, 2012.

Program Overview:
State: Oklahoma
Incentive Type: Personal Tax Credit
Eligible Efficiency Technologies: Furnaces , Heat pumps, Central Air conditioners, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Doors, Roofs, Comprehensive Measures/Whole Building
Applicable Sectors: Residential, Construction
Amount: Amount of eligible expenditures
Maximum Incentive: $4,000
Equipment Requirements: Property must be less than 2,000 square feet.
Carryover Provisions: Can carry over unused credit for up to four years
Start Date: 11/01/2005
Authority 1:
Date Enacted:
Date Effective:
68 O.S. § 2357.46 
06/08/2005 (subsequently amended)

Carolyn Sullivan
Oklahoma Department of Commerce
State Energy Office
900 North Stiles
P.O. Box 26980
Oklahoma City, OK 73126-0980
Phone: (405) 815-5347
E-Mail: carolyn_sullivan@okcommerce.gov
Web Site: http://www.okcommerce.gov/energy
Information Specialist – OTC
Oklahoma Tax Commission
Post Office Box 26800
Oklahoma City, OK 73126-0800
Phone: (405) 521-3160
E-Mail: helpmaster@mailhost.oktax.state.ok.us
Web Site: http://www.oktax.state.ok.us 

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