Oklahoma 2023 1st Special Session

Oklahoma Senate Bill SB17 Compare Versions

Version 1 (Old)

Version 2 (New)

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4		-	An Act
5		-	ENROLLED SENATE
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 59th Legislature (2023)
	34	+
	35	+	ENGROSSED SENATE
6	36		BILL NO. 17x By: Thompson (Roger) and Hall
7	37		of the Senate
8	38
9	39		and
10	40
11	41		Wallace and Martinez of the
12	42		House
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16	47		An Act relating to revenue and taxation; amending 68
17	48		O.S. 2021, Section 2357.104, which relates to certain
18	49		railroad rehabilitation tax credits; modifying
19	50		taxable year references; and providing an effective
20	51		date.
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24		-	SUBJECT: Tax credit
25		-
26	55		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
27		-
28	56		SECTION 1. AMENDATORY 68 O.S. 2021, Section 2 357.104, is
29	57		amended to read as f ollows:
30		-
31	58		Section 2357.104. A. Except as otherwise provided by this
32	59		section, for taxable years beginning after December 31, 2005, and
33	60		ending before January 1, 2025 2030, there shall be allowed a credit
34	61		against the tax imposed by Section 2355 of this title equal to fifty
35	62		percent (50%) of an eligible taxpayer ’s qualified railroad
36	63		reconstruction or replacement expenditures.
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38	64		B. For tax years 2020 th rough 2024 2029, the amount of the
39	65		credit shall be limited to the product of Five Thousand Dollars
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	67	+	SB17X HFLR Page 2
	68	+	BOLD FACE denotes Committee Amendments. 1
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40	93		($5,000.00) and the number of miles of railroad track owned or
41	94		leased within this s tate by the eligible taxpayer as of the close of
42	95		the taxable year.
43		-
44	96		C. The credit allowed pursuant to subsection A of this sec tion
45	97		but not used shall be freely transferable, by written ag reement, to
46	98		subsequent transferees at any time during the five (5) ye ars
47		-
48		-	ENR. S. B. NO. 17x Page 2
49	99		following the year of qualification. An eligible transferee shall
50	100		be any taxpayer subject to the tax imposed by Section 2 355 of this
51	101		title. The person originally allowed the credit and the subsequent
52	102		transferee shall jointly file a copy of the writte n credit transfer
53	103		agreement with the Oklahoma Tax Commission within thirty (30) days
54	104		of the transfer. The written agreement s hall contain the name,
55	105		address and taxpayer identification nu mber of the parties to the
56	106		transfer, the amount of credit being trans ferred, the year the
57	107		credit was originally allowed to the transferring per son and the tax
58	108		year or years for which the credit m ay be claimed. The Tax
59	109		Commission shall promulgate rules to permit verification of the
60	110		timeliness of a tax credit claimed upon a tax return pursuant to
61	111		this subsection but shall not promulgate any rules which unduly
62	112		restrict or hinder the transfers of suc h tax credit. The Department
63	113		of Transportation shall promulg ate rules to permit verification of
64	114		the eligibility of an eligible ta xpayer’s expenditures for the
65	115		purpose of claiming the credit. The rules s hall provide for the
66	116		approval of qualified railroad reconstruction or replacement
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67	144		expenditures prior to commencem ent of a project and provide a
68	145		certificate of verification upon compl etion of a project that uses
69	146		qualified railroad reconstruction or replacem ent expenditures. The
70	147		certificate of verification s hall satisfy all requirements of the
71	148		Tax Commission pertainin g to the eligibility of the person claiming
72	149		the credit.
73		-
74	150		D. Any credits allowed pursuant to the provisions of subsection
75	151		A of this section but not used in any tax year may be carried over
76	152		in order to each of the five (5) years following the year of
77	153		qualification.
78		-
79	154		E. As used in this section:
80		-
81	155		1. “Class II and Class III rail road” means a railroad that is
82	156		classified by the United States Surface Tra nsportation Board as a
83	157		Class II or Class III railroa d;
84		-
85	158		2. “Eligible taxpayer” means any Class II or Class III
86	159		railroad; and
87		-
88	160		3. “Qualified railroad reconstruction or replacement
89	161		expenditures” means expenditures for:
90		-
91		-
92		-	ENR. S. B. NO. 17x Page 3
93	162		a. track maintenance, natural disasters , and
94	163		reconstruction or replacement of railroad
95	164		infrastructure including track, roadbed, crossings,
96	165		bridges, industrial leads and track-related structures
97	166		owned or leased by a Class II or Class III railroad as
98	167		of January 1, 2006, or
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100	195		b. new construction of industrial leads, switches, spurs
101	196		and sidings and extensions of existing sidings by a
102	197		Class II or Class III railr oad.
103		-
104	198		F. The total amount of credits authorized by this section used
105	199		to offset tax shall be adjusted annually to limit the annual amount
106	200		of credits to Two Million Dollars ($2,000,000.00) for tax years 2018
107	201		and 2019 and Five Million Dollars ($5,000,000.00) for tax year 2020
108	202		and all subsequent tax years. The Tax Commission s hall annually
109	203		calculate and publish a percentage by which the credits auth orized
110	204		by this section shall be reduced so the total amount of credits used
111	205		to offset tax does not exceed the app licable annual limit. The
112	206		formula to be used for the percentage adju stment shall be the
113	207		applicable annual limit divided by the credits claimed in the second
114	208		preceding year.
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116	209		G. Pursuant to subse ction F of this section, in the event the
117	210		total tax credits authorized by this section exceed the annual
118	211		applicable limit in any c alendar year, the Tax Commission shall
119	212		permit any excess over the annual a pplicable limit but shall factor
120	213		such excess into the percentage adjustment formula for subsequent
121	214		years.
122		-
123	215		SECTION 2. This act shall become effective N ovember 1, 2023.
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126		-	ENR. S. B. NO. 17x Page 4
127		-	Passed the Senate the 24th day of May, 2023.
128		-
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130		-
131		-	Presiding Officer of the Senate
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134		-	Passed the House of Representatives the 26th day of May, 2023.
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138		-	Presiding Officer of the House
139		-	of Representatives
140		-
141		-	OFFICE OF THE GOVERNOR
142		-	Received by the Office of the Governor this _______ _____________
143		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
144		-	By: _______________________________ __
145		-	Approved by the Governor of the State of Oklahoma this _____ ____
146		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
147		-
148		-	_________________________________
149		-	Governor of the State of Oklahoma
150		-
151		-
152		-	OFFICE OF THE SECRETARY OF STATE
153		-	Received by the Office of the Secretary of State this __________
154		-	day of __________________, 20 _______, at _______ o'clock _______ M.
155		-	By: _______________________________ __
	217	+	COMMITTEE REPORT BY: COMMITTEE ON JOINT COMMITTEE ON APPROPRIATIONS
	218	+	AND BUDGET, dated 05/ 23/2023 – DO PASS, As Amended.