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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
SENATE BILL 735 By: Howard
AS INTRODUCED
An Act relating to income tax credit; providing a
credit for the purchase of a safe wh eel tethering
system for certain semitrailers and frac tanks;
authorizing the carry fo rward of credit for certain
term; creating definition; imposing cap on credits ;
prescribing formula for adjustment to credit amounts;
providing for codification; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2358.10 of Title 68, unless
there is created a duplication in numbering, reads as follows:
A. For tax year 2022 and subsequent t ax years, there shall be
allowed a credit against the income tax imposed by Section 2355 of
Title 68 of the Oklahoma Statutes for the purchase of a safe wheel
tethering system for each semitrailer as defined by Section 1-162 of
Title 47 of the Oklahoma Sta tutes and each frac tank as defined by
Section 54 of Title 17 of the Oklahoma S tatutes and registered under
the provisions of the Oklahoma Vehic le License and Regis tration Act
in Sections 1101 et seq. of Title 47 of the Oklahoma Statutes. The
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amount of the credit shall equal fifty percent (50%) of the purchase
price not to exceed Four Thousand Dollars ( $4,000.00). The amount
of the credit allowed but not used in any taxable yea r may be
carried forward as a credit against s ubsequent income tax liability
for a period not exceeding five (5) years following the purchase.
B. For the purposes of this section, “safe wheel tethering
system” means a system that prevents wheel separation from a trailer
using a steel cable that runs through the axle tube of the trailer
and is tethered to a pair of wheel-end caps located on opposite ends
of the trailer axle.
C. The total amount of credits authorized by this section used
to offset tax shall be adjusted annually to limit the annual amount
of credits to Two Hundred Fifty Thousand Dollars ($250,000.00). The
Oklahoma Tax Commission shall annually calculate and publish a
percentage by which the credits authorized by this section shall be
reduced so the total amount of credits used to offset tax does not
exceed Two Hundred Fifty Thousand Dollars ($250,000.00) per year.
The formula to be used for the percentage adjustment shall be Two
Hundred Fifty Thousand Dollars ($250,000.00) divided by the cre dits
claimed in the second preceding year.
SECTION 2. This act shall become effective November 1, 2021.
58-1-621 QD 1/21/2021 1:28:08 PM