An Act
ENROLLED SENATE
BILL NO. 1685 By: Thompson of the Senate
and
Hilbert of the House
An Act relating to tax credit; amending 68 O.S. 2021,
Section 2357.403, which relate s to the Oklahoma
Affordable Housing Act; stating certain credit limit
shall not exceed certain federal credit; updating
statutory language; and providing an effective date .
SUBJECT: Tax credit
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.403, is
amended to read as follows:
Section 2357.403. A. This act shall be known and may be cited
as the “Oklahoma Affordable Housing A ct”.
B. As used in this section:
1. “Allocation year” means the year for which the Oklahoma
Housing Finance Agency all ocates credits pursuant to this section;
2. “Eligibility statement ” means a statement authorized and
issued by the Oklahoma Housing Fin ance Agency certifying that a
given project qualifies for the Oklahoma Affordable Housing Tax
Credit authorized by this section. The Oklahoma Housing Finance
Agency, under Title 330, Oklahoma Housing Finance Agency, Chapter
36, Affordable Housing Tax Cred it Program Rules, shall promulgate
rules establishing criteri a upon which the eligibility statements
ENR. S. B. NO. 1685 Page 2
will be issued. The eligibility statement shall specify the amount
of Oklahoma Affordable Housing T ax Credits allocated to a qualified
project. The Oklahoma Housing Finance Agency shall only authorize
the tax credits created by this section to qualified projects which
are placed in service after July 1, 2015, but which shall not be
used to reduce tax l iability accruing prior to January 1, 2016;
3. “Federal low-income housing tax credit ” means the federal
tax credit as provided in Section 42 of the Internal Revenue Code o f
1986, as amended;
4. “Oklahoma Affordable Housing Tax Credit ” means the tax
credit created by this section;
5. “Qualified project” means a qualified low-income building as
that term is defined in Section 42 of the Internal Revenue Code of
1986, as amended; and
6. “Taxpayer” means a person, firm or corporation subject to
the tax imposed by Section 2355 of this title or an insurance
company subject to the tax imposed by Secti on 624 or 628 of Title 36
of the Oklahoma Statutes or other financial institu tion subject to
the tax imposed by Section 2370 of this title.
C. For qualified proje cts placed in service after July 1, 2015,
the amount of state tax credits created by this sec tion which are
allocated to a project shall be equal to not exceed that of the
federal low-income housing tax credits for a qualified project . The
total Oklahoma Affordable Housing Tax Credits allocated to all
qualified projects for an allocation year shall not exceed Four
Million Dollars ($4,000,000.00). For purposes of this se ction, the
“credit period” shall mean the period of ten (10) taxab le years and
“placed in service” shall have the same meaning as is applicabl e
under the federal credit program.
D. A taxpayer owning an interest in an investment in a
qualified project sha ll be allowed Oklahoma Affordable Housing Tax
Credits under this se ction for tax years beginning on or after
January 1, 2016, if the Oklahoma H ousing Finance Agency issues an
eligibility statement for suc h project, which tax credit shall be
allocated among some or all of the partners, members or shareholders
of the taxpayer owning such interest in any m anner agreed to by such
ENR. S. B. NO. 1685 Page 3
partners, members or shareholders. Such taxpayer may assign its
interest in the investment.
E. An insurance company claiming a cre dit against state premium
tax or retaliatory tax or any other tax im posed by Section 624 or
628 of Title 36 of the Oklahoma Statutes shall not b e required to
pay any additional retaliatory tax under Sectio n 628 of Title 36 of
the Oklahoma Statutes as a res ult of claiming the credit. The
credit may fully offset any retalia tory tax imposed by Section 628
of Title 36 of the Oklahoma Statutes.
F. The credit authorized by this section shall not be used to
reduce the tax liability of the taxpayer to less than zero ($0.00).
G. Any credit claimed but not used in a taxable year m ay be
carried forward two (2) su bsequent taxable years.
H. The owner of a q ualified project eligible for the credit
authorized by this s ection shall submit, at the time of filing the
tax return with the Oklahoma Tax Commission, an eligibility
statement from the Oklahoma Housing Finance Agency. In the case of
failure to attach th e eligibility statement, no credit under this
section shall be allowed with respect to such project for that year
until required documents are provided to the Tax Commission.
I. If under Section 42 of the Intern al Revenue Code of 1986, as
amended, a portion of any federal low -income housing credits taken
on a qualified project is required to be recaptured durin g the first
ten (10) years after a project is placed in service, the tax payer
claiming Oklahoma Affordab le Housing Tax Credits with respect to
such project shall also be required to recapture a portion of such
credits. The amount of Oklahoma Affordable Ho using Tax Credits
subject to recapture shall be proportionally equal to the amount of
federal low-income housing credits subject to recapture.
J. The Oklahoma Housing Finance Agency or the Oklahoma Tax
Commission may require the filing of additional docu mentation
necessary to determine the accuracy of a tax credit claimed.
K. The Oklahoma Affordable Housin g Act shall undergo a review
every five (5) years by a committee of nine (9) persons, to be
appointed three persons each by the Governor, President Pr o Tempore
ENR. S. B. NO. 1685 Page 4
of the Oklahoma State Senate, and the Speaker of the Oklahoma House
of Representatives.
SECTION 2. This act shall become ef fective November 1, 2022.
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Passed the Senate the 8th day of March, 2022.
Presiding Officer of the Se nate
Passed the House of Representatives the 26th day of April, 2022.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this _______ _____________
day of _________________ __, 20_______, at _______ o'clock _______ M.
By: _______________________________ __
Approved by the Governor of the State of Oklahoma this _____ ____
day of _________________ __, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this _______ ___
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _______________________________ __