Compare Versions - OK SB1857 : Oklahoma 2022 Regular Session

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	28	+	ENGROSSED HOUSE AMENDME NT
	29	+	TO
	30	+	ENGROSSED SENATE BILL NO . 1857 By: Montgomery and David of the
	31	+	Senate
	32	+
	33	+	and
	34	+
	35	+	Wallace of the House
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4		-	An Act
5		-	ENROLLED SENATE
	39	+	[ income tax credit - qualified clean-burning motor
	40	+	vehicles and related assets - hydrogen fuel cells and
	41	+	related assets - effective date ]
	42	+
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	44	+
	45	+
	46	+	AUTHOR: Add the following House Coauthor: Boles
	47	+
	48	+	AMENDMENT NO. 1. Page 1, line 10, strike the enacting clause
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	51	+
	52	+	Passed the House of Representatives the 20th day of April, 2022.
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	58	+	Presiding Officer of the House of
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	61	+
	62	+	Passed the Senate the ____ day of _______ ___, 2022.
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	68	+	Presiding Officer of the Senate
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	71	+	ENGROSSED SENATE
6	72		BILL NO. 1857 By: Montgomery and David of the
7	73		Senate
8	74
9	75		and
10	76
11		-	Wallace and Boles of the
12		-	House
	77	+	Wallace of the House
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16		-	An Act relating to income tax credit ; amending 68
17		-	O.S. 2021, Section 2357.22, which relates to tax
18		-	credits for investment in certain qualified clean-
19		-	burning motor vehicles and related assets ; modifying
20		-	tax years for which credit may be claimed; providing
21		-	tax credit for hydrogen fuel cells and related
22		-	assets; modifying credit limit for certain years;
23		-	providing duty of Oklahoma Tax Commission; pro viding
24		-	certain formula; and providing an effec tive date.
	81	+	[ income tax credit - qualified clean-burning motor
	82	+	vehicles and related assets - hydrogen fuel cells and
	83	+	related assets - effective date ]
25	84
26	85
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28		-	~~SUBJECT: Credit for qualified clean -burning vehicles~~
	87	+
29	88
30	89		BE IT ENACTED BY THE PEOPLE OF T HE STATE OF OKLAHOMA:
31		-
32	90		SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.22, is
33	91		amended to read as follows:
34		-
35	92		Section 2357.22. A. For tax years beginning before December
36	93		31, 2027 2028 and before, there shall be allowed a one-time credit
37	94		against the income tax imposed by Section 2355 of this title for
38	95		investments in qualified clean -burning motor vehicle fuel property
39	96		placed in service after December 31, 1990 on or after January 1,
40	97		1991.
41		-
42	98		B. As used in this section, “qualified clean-burning motor
43	99		vehicle fuel property ” means:
44		-
45	100		1. Equipment installed to modify a motor vehicle which is
46	101		propelled by gasoline or diesel fuel so that the vehicle may be
	102	+	propelled by compressed natural gas, liquefied n atural gas, or
47	103
48		-	ENR. S. B. NO. 1857 Page 2
49		-	propelled by compressed natural gas, liquefied n atural gas, or
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50	129		liquefied petroleum gas. The equip ment covered by this paragraph
51	130		must:
52		-
53	131		a. be new, not previously used to modify or retrofit any
54	132		vehicle propelled by gasoline or diesel fuel and be
55	133		installed by an alternative fuels equipment technician
56	134		who is certified in accordance with the Alternative
57	135		Fuels Technician Certification Act,
58		-
59	136		b. meet all Federal Motor Vehicle Safety Standards set
60	137		forth in 49 CFR 571, or
61		-
62	138		c. for any commercial motor vehicle (CMV), follow the
63	139		Federal Motor Carrier Safety Regulations or Oklahoma
64	140		Intrastate Motor Carrier Regulations;
65		-
66	141		2. A motor vehicle originally equippe d so that the vehicle may
67	142		be propelled by compressed natural gas, or liquefied natural gas or
68	143		liquefied petroleum gas but only to the extent of the portion of the
69	144		basis of such motor vehicle which is attributable to t he storage of
70	145		such fuel, the delivery to the e ngine of such motor vehicle of such
71	146		fuel, and the exhaust of g ases from combustion of such fuel;
72		-
73	147		3. Property, not including a building and its structural
74	148		components, which is:
75		-
76	149		a. directly related to the delive ry of compressed natural
77	150		gas, liquefied natura l gas or liquefied petroleum gas,
78	151		or hydrogen for commercial purposes or for a fee or
79	152		charge, into the fuel tank of a motor vehicle
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80	179		propelled by such fuel inclu ding compression equipment
81	180		and storage tanks for s uch fuel at the point where
82	181		such fuel is so delivered but only if such property is
83	182		not used to deliver such fuel into any other type of
84	183		storage tank or receptacle and such fuel is not used
85	184		for any purpose other than to propel a motor vehicle,
86	185		or
87		-
88	186		b. a metered-for-fee, public access recharging system for
89	187		motor vehicles propelled in whole or in part by
90	188		electricity. The property covered by this paragraph
91		-
92		-	ENR. S. B. NO. 1857 Page 3
93	189		must be new, and must not have been previously
94	190		installed or used to refuel vehicles powered by
95	191		compressed natural gas, liquefied natural gas or
96	192		liquefied petroleum gas, hydrogen, or electricity.
97		-
98	193		Any property covered by this paragraph which is related to the
99	194		delivery of hydrogen into the fuel tank of a motor vehi cle shall
100	195		only be eligible for tax year 2010 tax years 2010 and 2023 through
101	196		2028; or
102		-
103	197		4. Property which is directly related to the compression and
104	198		delivery of natural gas from a private home or residence, for
105	199		noncommercial purposes, into the fuel tank of a motor vehicle
106	200		propelled by compressed natural ga s. The property covered by this
107	201		paragraph must be new and must not have been previously installed or
108	202		used to refuel vehicles powered by natural gas; or
109	203
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110	229		5. For tax years 2010 and 2023 through 202 8, a motor vehicle
111	230		originally equipped so that the vehicle may be propelled by a
112	231		hydrogen fuel cell electric fueling system .
113		-
114	232		C. As used in this section, “motor vehicle” means a motor
115	233		vehicle originally designed by the manufacturer to operate lawfully
116	234		and principally on streets and highways.
117		-
118	235		D. The credit provided for in subsection A of th is section
119	236		shall be as follows:
120		-
121	237		1. For the qualified clean-burning motor vehicle fuel property
122	238		defined in paragraph 1 or 2 paragraphs 1, 2, or 5 of subsection B of
123	239		this section, the amount of the credit shall be as follows based
124	240		upon gross vehicle wei ght of the qualified vehic le:
125		-
126	241		a. for vehicles up to or below six thousand (6,000)
127	242		pounds, the credit shall be a maximum of Five Thousand
128	243		Five Hundred Dollars ($5,500.00),
129		-
130	244		b. for vehicles between six thousand one (6,001) pounds
131	245		to ten thousand (10,000) poun ds, the credit shall be a
132	246		maximum amount of Nine Thousand Dollars ($9,000.00),
133		-
134		-
135		-	ENR. S. B. NO. 1857 Page 4
136	247		c. for vehicles of ten thousand one (10,001) pounds, but
137	248		not in excess of twenty -six thousand five hundred
138	249		(26,500) pounds, the credit shall be a maximum amount
139	250		of Twenty-six Thousand Dollars ($26,000.00 ), and
140		-
141	251		d. for vehicles in excess of twenty -six thousand five
142	252		hundred one (26,501) pounds, the credit shall be a
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143	279		maximum amount of Fifty Thousand Dollars ($50,00 0.00)
144	280		One Hundred Thousand Dollars ($100,000.00);
145		-
146	281		2. For qualified cl ean-burning motor vehicle fuel property
147	282		defined in paragraph 3 of sub section B of this section, a per-
148	283		location credit of forty-five percent (45%) of the cost of the
149	284		qualified clean-burning motor vehicle fuel property; and
150		-
151	285		3. For qualified clean -burning motor vehicle fuel property
152	286		defined in paragraph 4 of subsection B of t his section, a per-
153	287		location credit of the lesser of fifty percent (50%) of the cost of
154	288		the qualified clean-burning motor vehicle fuel property or Two
155	289		Thousand Five Hundred Dollars ($2,500 .00).
156		-
157	290		E. In cases where no credit has been cl aimed pursuant to
158	291		paragraph 1 of subsection D of this section by any prior owner and
159	292		in which a motor vehicle is purchased by a taxpayer with qualified
160	293		clean-burning motor vehicle fuel property installed by the
161	294		manufacturer of such motor vehicle and the ta xpayer is unable or
162	295		elects not to determine the exact basis which is attributable to
163	296		such property, the taxpayer may claim a cre dit in an amount not
164	297		exceeding the lesser of ten percent (10%) of the cost of the motor
165	298		vehicle or One Thousand Five Hundred Dol lars ($1,500.00).
166		-
167	299		F. If the tax credit allowed pursuant to subsection A of this
168	300		section exceeds the amount of income taxes due or if there are no
169	301		state income taxes due on the income of the taxpayer, the amoun t of
170	302		the credit not used as an offset against the income taxes of a
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171	329		taxable year may be carried forward, in order, as a credit against
172	330		subsequent income tax liability for a p eriod not to exceed five (5)
173	331		years. The tax credit authorized pursuant to the pro visions of this
174	332		section shall not be used to r educe the tax liability of the
175	333		taxpayer to less than zero (0).
176		-
177		-
178		-	ENR. S. B. NO. 1857 Page 5
179	334		G. A husband and wife who file separate returns for a taxable
180	335		year in which they could have filed a joint return may each claim
181	336		only one-half (1/2) of the tax credit that would have been allow ed
182	337		for a joint return.
183		-
184	338		H. The Oklahoma Tax Commission is herein empowered to
185	339		promulgate rules by which the purpose of this sect ion shall be
186	340		administered, including the power to establish and enforce penalties
187	341		for violations thereof.
188		-
189	342		I. Notwithstanding th e provisions of Section 2352 of this
190	343		title, for the fiscal year beginning on July 1, 2014, and each
191	344		fiscal year thereafter, the Tax Commission shall calculate an amount
192	345		that equals five percent (5%) of the cost of qualified clean-burning
193	346		motor vehicle fuel property as provided f or in paragraph 1 of
194	347		subsection D of this section for tax year 2012. For each subsequent
195	348		fiscal year thereafter, the Tax Commission shall perform the same
196	349		computation with respect to the second tax year preceding the
197	350		beginning of each subsequent fiscal ye ar. The Tax Commission shall
198	351		then transfer an amount equal to the amount calculated in this
199	352		subsection from the revenue derived pursuant to the provisions of
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200	379		subsections A, B and E of Se ction 2355 of this title to the
201	380		Compressed Natural Gas Conversion Saf ety and Regulation Fund created
202	381		in Section 130.25 of Title 74 of the Oklahoma Statutes.
203		-
204	382		J. For the taxable year beginning January 1, 2020, and each
205	383		taxable year thereafter tax years 2020 through 2022 , the total
206	384		amount of credits authorized by this section used to offset t ax
207	385		shall be adjusted annually to limit the annual amount of credits to
208	386		Twenty Million Dollars ($20,0 00,000.00). The Tax Commission shall
209	387		annually calculate a nd publish by the first day of the affected
210	388		taxable year a percentage by which the credits authori zed by this
211	389		section shall be reduced so the total amount of credits used to
212	390		offset tax does not exce ed Twenty Million Dollars ($20,000,000.00)
213	391		per year. The formula to be used for the percentage adjustment
214	392		shall be Twenty Million Dollars ($20,000,000.00) divided by the
215	393		credits claimed in the second preceding year, with respect to a ny
216	394		changes to the future of the credit.
217		-
218	395		K. Pursuant to subsection J of this section, in the event the
219	396		total tax credits authorized b y this section exceed Twenty Million
220	397		Dollars ($20,000,000.00) in any calendar year, the Tax Commission
221		-
222		-	ENR. S. B. NO. 1857 Page 6
223	398		shall permit any excess over Twenty Million Dollars ($20,000,000.00)
224	399		but shall factor such excess into the percentage adjustment formula
225	400		for subsequent years with respect to any changes to the fut ure of
226	401		the credit.
227	402
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228	428		L. For the tax years 2023 through 2028, the total amount of
229	429		credits authorized by this section used to offset tax shall be
230	430		adjusted annually to limit the annual amount of credits to :
231		-
232	431		1. Ten Million Dollars ($10,000,000.00) for qualified clean
233	432		burning fuel property propelled by compressed natural gas, liquefied
234	433		natural gas, or liquefied petroleum gas, property related to the
235	434		delivery of compressed natural gas, liquefied natural gas or
236	435		liquefied petroleum gas, and property directly related to the
237	436		compression and delivery of natural gas;
238		-
239	437		2. Ten Million Dollars ($10,000,000.00) for property originally
240	438		equipped so that the vehicle may be propelled by a hydrogen fuel
241	439		cell electric fueling system and property directly related to the
242	440		delivery of hydrogen; and
243		-
244	441		3. Ten Million Dollars ($10,000,000.00) for property which is a
245	442		metered-for-fee, public access recharging system for motor vehicles
246	443		propelled in whole or in part by electricity .
247		-

204

382

J. For the taxable year beginning January 1, 2020, and each

205

383

taxable year thereafter tax years 2020 through 2022 , the total

206

384

amount of credits authorized by this section used to offset t ax

207

385

shall be adjusted annually to limit the annual amount of credits to

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386

Twenty Million Dollars ($20,0 00,000.00). The Tax Commission shall

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387

annually calculate a nd publish by the first day of the affected

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388

taxable year a percentage by which the credits authori zed by this

211

389

section shall be reduced so the total amount of credits used to

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390

offset tax does not exce ed Twenty Million Dollars ($20,000,000.00)

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391

per year. The formula to be used for the percentage adjustment

214

392

shall be Twenty Million Dollars ($20,000,000.00) divided by the

215

393

credits claimed in the second preceding year, with respect to a ny

216

394

changes to the future of the credit.

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1857 Compare Versions