OK
Oklahoma House Bill HB3418

Oklahoma 2022 Regular Session

Oklahoma House Bill HB3418 Compare Versions

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1-An Act
2-ENROLLED HOUSE
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3+ENGR. S. A. TO ENGR. H. B. NO. 3418 Page 1 1
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28+ENGROSSED SENATE AMENDMENT
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30+ENGROSSED HOUSE
31+BILL NO. 3418 By: Fetgatter of the House
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33+ and
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35+ Montgomery of the Senate
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40+[ revenue and taxation - permanent full expensing f or
41+certain properties -
42+ emergency ]
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47+AMENDMENT NO. 1. Page 1, line 12, strike the enacting clause
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49+Passed the Senate the 19th day of April, 2022.
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53+ Presiding Officer of the Senate
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56+Passed the House of Representatives the ____ day of __________,
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61+ Presiding Officer of the House
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64+ENGR. H. B. NO. 3418 Page 1 1
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89+ENGROSSED HOUSE
390 BILL NO. 3418 By: Fetgatter of the House
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592 and
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794 Montgomery of the Senate
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14-An Act relating to revenue and taxation; defining
15-terms; authorizing permanent full expensing for
16-certain properties; requiring conformity with
17-Internal Revenue Code; authorizing Tax Commission to
18-promulgate rules; and declaring an emergency.
101+[ revenue and taxation - permanent full expensing f or
102+certain properties -
103+ emergency ]
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23-SUBJECT: Revenue and taxation
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25108 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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27109 SECTION 1. NEW LAW A new section of law to be codified
28110 in the Oklahoma Statutes as Section 2358.6A of Title 68, unless
29111 there is created a duplication in numbering, reads as follows:
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31112 A. As used in this section:
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33113 1. "Internal Revenue Code " means Title 26 of the United States
34114 Code also known as the federal Interna l Revenue Code of 1986, as
35115 amended;
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37116 2. "Tax Cuts and Jobs Act " means Public Law No. 115-97 (115th
38117 Congress Public Law 97);
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40118 3. "Qualified property" shall have the same meaning as in
41119 Internal Revenue Code Section 168(k) as the Code existed on January
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42146 1, 2021, and shall apply to property placed in service after
43147 December 31, 2021;
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45148 4. "Qualified improvement property " shall have the same meaning
46-as in Internal Revenue Code Section 168(e)(6 ) as the Code existed on ENR. H. B. NO. 3418 Page 2
149+as in Internal Revenue Code Section 168(e)(6 ) as the Code existed on
47150 January 1, 2021, and shall apply to property pl aced in service after
48151 December 31, 2021; and
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50152 5. "Full expensing" or "one hundred percent (100%) bonus
51153 depreciation" means a method for taxpayers to recover costs for
52154 certain expenditures in research and experimentation and depreciable
53155 business assets by i mmediately deducting the full cost of such
54156 expenditures in the tax year in which the cost is incurred or the
55157 property is placed in service.
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57-B. Taxpayers shall have the option for immediate and full
158+B. 1. Taxpayers shall have the option for immediate and full
58159 expensing for qualified property and qualified improv ement property
59160 as follows:
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61-1. For purposes of computing income tax for tax able years
161+2. For purposes of computing income tax for tax able years
62162 beginning after December 31, 2021, the cost of expenditures for
63163 business assets that are qualified property or qualified improvement
64164 property covered under Section 168 of the Internal Revenue Code
65165 shall be eligible for one hundred percent (100%) bonus depreciation
66166 and may be deducted as an expense incurred by the taxpayer during
67167 the taxable year during which the property is placed in service,
68168 notwithstanding any changes to federal law related to amortization
69169 of cost recovery beginning on or after January 1, 2023, and shall
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70196 permanently remain fully and immediately deductible as an expense in
71197 the tax year in which the property is placed in service for purposes
72198 of calculating the taxpayer's income; and
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74-2. The taxpayer's decision to recover investmen t costs through
199+3. The taxpayer's decision to recover investmen t costs through
75200 immediate expensing in the year the investment cost is incurred, or
76201 amortized over an amortiz ation schedule, is irrevocable unless
77202 specifically allowed for by the Oklahoma Tax Commission .
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79203 C. 1. To conform to Section 179 of the Internal Re venue Code,
80204 taxpayers shall be allowed to immediately deduct as an expense the
81205 cost of certain depreciable bu siness assets in the tax year in which
82206 the property is placed in service .
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84207 2. For purposes of computing income tax for taxable years
85208 beginning after December 31, 2021, taxpayers may elect to treat the
86209 cost of any Section 179 of the Internal Revenue Code property as an
87210 expense which is not chargeable to the capital account. Any cost so
88211 treated shall be allowed as a deduction for the taxable year in
89212 which the Section 179 Internal Revenue Code property is placed in
90213 service.
91- ENR. H. B. NO. 3418 Page 3
92214 D. The Oklahoma Tax Commission shall, within sixty (60) days of
93215 the effective date of this act, promulgate rules for implementation
94216 of this act which shall conform to the Internal Revenue Code of 1986
95217 and must be consistent with the Internal Revenue Service 's rules.
96218 The provisions of this section shall supersede to the extent of any
97219 inconsistency with any admi nistrative rule.
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99246 SECTION 2. It being immediately necessary for the preservation
100247 of the public peace, health or safety, an emergency is hereby
101248 declared to exist, by re ason whereof this act shall take effect and
102249 be in full force from and aft er its passage and approval.
103- ENR. H. B. NO. 3418 Page 4
104-Passed the House of Representatives the 20th day of May, 2022.
250+Passed the House of Representatives the 10th day of March, 2022.
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109255 Presiding Officer of the House
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113-Passed the Senate the 20th day of May, 2022.
259+Passed the Senate the ___ day of __________, 2022.
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122-OFFICE OF THE GOVERNOR
123-Received by the Office of the Governor this ____________________
124-day of ___________________, 20_______, at _______ o'clock _______ M.
125-By: _________________________________
126-Approved by the Governor of the State of Oklahoma this _____ ____
127-day of ___________________, 20_______, at _______ o'clock _______ M.
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130- _________________________________
131- Governor of the State of Oklahoma
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133-OFFICE OF THE SECRETARY OF STATE
134-Received by the Office of the Secretary of State this __________
135-day of ___________________, 20_______, at _______ o'clock _______ M.
136-By: _________________________________