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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
COMMITTEE SUBSTITUTE
FOR
SENATE BILL 735 By: Howard and Garvin of the
Senate
and
Moore of the House
COMMITTEE SUBSTITUTE
An Act relating to income tax credit; creating the
Justin Sullivan Trailer Safety Act; providing a
credit for the purchase of a safe wheel tethering
system for certain semitrailers and frac tanks;
providing limit for credits earned; authorizing the
carry forward of credit for certain term; creating
definition; imposing cap on credits; prescribing
formula for adjustment to credit amounts; providing
for noncodification; 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 not to be
codified in the Oklahoma Statutes reads as follows:
This act shall be know n and may be cited as the “Justin Sullivan
Trailer Safety Act”.
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SECTION 2. NEW LAW A new sec tion of law to be codified
in the Oklahoma Statutes as Section 2358.11 of Title 68, unless
there is created a duplication in numb ering, reads as follows:
A. For tax years 2022 through 2026, there shall be allowe d 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 Secti on 1-162 of Title 47
of the Oklahoma Statutes and each frac tank as def ined by Section 54
of Title 17 of the Oklaho ma Statutes and registered under the
provisions of the Oklahoma Vehicle License and Registration Act in
Sections 1101 et seq. of Title 47 of the Oklahoma Statutes. The
amount of the credit shall equal twenty percent (20%) of the
purchase price. The total amount of credits earned by an individual
or entity shall not exceed Ten Thousand Dollars ( $10,000.00). The
amount of the credit allowed but not used in any taxable year may be
carried forward as a credit agains t subsequent income tax liability
for a period not exceeding five (5) ye ars 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 ru ns through the axle tube of the trailer
and is tethered to a pair of whe el-end caps located on opposite ends
of the trailer axle.
C. The total amount of credits authorized by this sect ion used
to offset tax shall be adjusted annually to limit the annual a mount
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of credits to Two Hundred Fifty Thous and Dollars ($250,000.00). T he
Oklahoma Tax Commission shall annually calculate and publish a
percentage by which the credits authorized by t his section shall be
reduced so the total amount of credits used to off set tax does not
exceed Two Hundred Fifty T housand Dollars ($250,000.00) per year.
The formula to be used for the percentage adjustment shall be Two
Hundred Fifty Thousand Dollars ($25 0,000.00) divided by the credits
claimed in the second preceding year.
SECTION 3. This act shall become effective November 1, 2021.
58-1-1911 QD 3/3/2021 5:26:42 PM