Tax Credits Are Driving Up Demand for Electronic Vehicles In Oklahoma

By Craig Day, The News On 6

OKMULGEE, OK -- Sales of all electric vehicles are super charged right now as a deadline for tax credits on the street legal cars gets closer.

Low Speed Vehicles, or LSV's, were designated by The National Highway Traffic Safety Administration in 1998. To qualify as an LSV, a vehicle must have four wheels and a top speed of at least 20 mph, but it cannot exceed 25 mph.

In Oklahoma, LSV's are street legal for all roads with a posted speed limit of 35 mph or less.

One dealer in Okmulgee is hustling to keep up with the demand.

Leoma Lamar is checking out the latest in low speed vehicle's for sale at Pat's Archery in Okmulgee. Lamar says she's a kid at heart and she likes the sporty models.

"I would keep it around the house, but I would also take it to the lake. We go up to Bears Den right there at Grand Lake and yeah I would keep it up there and drive it," Lamar said. "I would drive it around the house, I would drive it to the grocery store, wherever I could."

LSV Dealer Dean Anderson, who has sold hundreds of the battery powered vehicles, is hustling to keep up with demand.

"It is nuts.  It is absolutely crazy.  We've hired extra people, I've rented another building over here to store these buggies and it's been a Godsend, a blessing," Anderson said. "It's a great deal for the tax customers."

The vehicles qualify for a state tax credit that would basically cover half the cost and a federal tax credit that covers much of the rest.

For example, you might pay $1,500 out of pocket for a $13,000 dollar LSV.

"It's not a write off,  it's a tax credit," Anderson said.

So any benefit for customers depends on their tax burden. Batteries last 30 to 50 miles between recharging. The vehicles have turn signals, seat belts and other safety features; therefore, they are street legal.

"Legally, this vehicle can be tagged, titled, insured and driven on any street 35 miles and under," Anderson said.

The Oklahoma Tax Commission challenged the tax credits for LSV's, but a district judge disagreed.

But to benefit from the tax credit, customers have to take possession of the vehicles by December 31st.

Dealer Dean Anderson is quick to point out he is not a tax expert, so he recommends checking with an accountant or tax preparer to see if the tax credits on the vehicles would benefit you.