Oklahoma 2023 Regular Session

Oklahoma House Bill HB2040 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. H. B. NO. 2040 Page 1 1
	3	+	HB2040 HFLR Page 1
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28		-	ENGROSSED HOUSE
29		-	BILL NO. 2040 By: Nichols, Davis, Menz,
30		-	Martinez, Schreiber,
31		-	Hefner, Dollens, Hilbert,
32		-	Bennett, and Townley of the
33		-	House
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 59th Legislature (2023)
	34	+
	35	+	HOUSE BILL 2040 By: Nichols, Davis, Menz, and
	36	+	Martinez of the House
34	37
35	38		and
36	39
37	40		Matthews of the Senate
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42		-	An Act relating to revenue and taxation; a mending
43		-	68 O.S. 2021, Section 2357.403, as amended by
44		-	Section 1, Chapter 139, O.S .L. 2022 (68 O.S. Supp.
45		-	2022, Section 2357.403), which relate s to
46		-	affordable housing tax credits; increasing amount
47		-	of tax credits; making tax credit nonrefundable;
48		-	and providing an effective date.
	45	+	AS INTRODUCED
	46	+
	47	+	An Act relating to revenue and taxation; a mending 68
	48	+	O.S. 2021, Section 2357.403, as amended by Section 1,
	49	+	Chapter 139, O.S.L. 2022 (68 O.S. Supp. 2022, Section
	50	+	2357.403), which relate s to affordable housing tax
	51	+	credits; increasing amount of tax credits; and
	52	+	providing an effective date.
	53	+
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54	59		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
55	60		SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.403, as
56	61		amended by Section 1, Chapter 139, O.S.L. 2022 (68 O.S. Supp. 2022,
57	62		Section 2357.403), is amen ded to read as follows:
58	63		Section 2357.403 A. This act shall be known and may be cited
59	64		as the "Oklahoma Affordable H ousing Act".
60	65		B. As used in this section:
61	66		1. "Allocation year" means the year for which the Oklahoma
62	67		Housing Finance Agency all ocates credits pursuant to this section;
63		-	2. "Eligibility statement" means a statement authorized and
64		-	issued by the Oklahoma Hou sing Finance Agency certifying that a
65	68
66		-	ENGR. H. B. NO. 2040 Page 2 1
	69	+	HB2040 HFLR Page 2
	70	+	BOLD FACE denotes Committee Amendments. 1
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	95	+	2. "Eligibility statement " means a statement authorized and
	96	+	issued by the Oklahoma Hou sing Finance Agency certifying that a
91	97		given project qualifies for the Oklahoma Affordable Housing Tax
92	98		Credit authorized by this section. The Oklahoma Housing Finance
93	99		Agency, under Title 330, Oklahoma Housing Finance Agency, Chapter
94	100		36, Affordable Housing Tax Credit Program Rules, shall promulgate
95	101		rules establishing criteri a upon which the eligibility statements
96	102		will be issued. The eligibility statement shall specify the amount
97	103		of Oklahoma Affordable Housing T ax Credits allocated to a qualified
98	104		project. The Oklahoma Housing Finance Agency shall only authorize
99	105		the tax credits created by this section to qualified projects which
100	106		are placed in service after July 1, 2015, but which shall not be
101	107		used to reduce tax l iability accruing prior to January 1, 2016;
102	108		3. "Federal low-income housing tax credit" means the federal
103	109		tax credit as provided in Section 42 of the Internal Revenue Code o f
104	110		1986, as amended;
105	111		4. "Oklahoma Affordable Housing Tax Credit " means the tax
106	112		credit created by this section;
107	113		5. "Qualified project" means a qualified low-income building as
108	114		that term is defined in Section 42 of the Internal Revenue Code of
109	115		1986, as amended; and
110	116		6. "Taxpayer" means a person, firm or corporation subject to
111	117		the tax imposed by Section 2355 of this title or an insuran ce
112	118		company subject to the tax imposed by Section 624 or 628 of Title 36
113		-	of the Oklahoma Statutes or other financial institu tion subject to
114		-	the tax imposed by Section 2370 of this title.
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116		-	ENGR. H. B. NO. 2040 Page 3 1
	120	+	HB2040 HFLR Page 3
	121	+	BOLD FACE denotes Committee Amendments. 1
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	146	+	of the Oklahoma Statutes or other financial institu tion subject to
	147	+	the tax imposed by Section 2370 of this title.
141	148		C. For qualified proje cts placed in service after July 1, 2015,
142	149		the amount of state tax credits created by this section which are
143	150		allocated to a project shall not exceed that of the federal low-
144	151		income housing tax credits for a qualified project . The total
145	152		Oklahoma Affordable Housing Tax Credits allocated to all qualifi ed
146	153		projects for an allocation y ear shall not exceed Four Million
147		-	Dollars ($4,000,000.00) Ten Million Dollars ($10,000,000.00 ) until
148		-	December 31, 2027, and Four Mil lion Dollars ($4,000,000.00) until
149		-	December 31, 2033. For purposes of this section, the "credit
150		-	period" shall mean the period of ten (10) taxab le years and "placed
151		-	in service" shall have the same meaning as is app licable under the
152		-	federal credit program.
	154	+	Dollars ($4,000,000.00) Ten Million Dollars ($10,000,000.00) . For
	155	+	purposes of this section, the "credit period" shall mean the period
	156	+	of ten (10) taxable years and "placed in service" shall have the
	157	+	same meaning as is app licable under the federal credit program.
153	158		D. A taxpayer owning an interest in an investment in a
154	159		qualified project shall be allowed Oklahoma Affordable Housing Tax
155	160		Credits under this se ction for tax years beginning on or after
156	161		January 1, 2016, if the Okla homa Housing Finance Agency issues an
157	162		eligibility statement for such project, which tax credit shall be
158	163		allocated among some or all of the partners, members or shareholders
159	164		of the taxpayer owning such interest in any m anner agreed to by such
160	165		partners, members or shareholders. Such taxpayer may assign i ts
161		-	interest in the investment, but the tax credit authorized by the
162		-	provisions of this section shall not be refundable .
	166	+	interest in the investment.
163	167		E. An insurance company claiming a credit against state premium
164	168		tax or retaliatory tax or any other tax im posed by Section 624 or
	169	+	628 of Title 36 of the Oklahoma Statutes shall not be required to
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166		-	ENGR. H. B. NO. 2040 Page 4 1
	171	+	HB2040 HFLR Page 4
	172	+	BOLD FACE denotes Committee Amendments. 1
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191		-	628 of Title 36 of the Oklahoma Statutes shall not be required to
192	197		pay any additional retaliato ry tax under Section 628 of Title 36 of
193	198		the Oklahoma Statutes as a result of claiming the credit. The
194	199		credit may fully offset any retalia tory tax imposed by Section 628
195	200		of Title 36 of the Oklahoma Statutes.
196	201		F. The credit authorized by this section shall not be used to
197	202		reduce the tax liability of the taxpayer to less t han zero ($0.00).
198	203		G. Any credit claimed but not used in a taxable year m ay be
199	204		carried forward two (2) su bsequent taxable years.
200	205		H. The owner of a qualified project eligible for the credit
201	206		authorized by this section shall submit, at the time of filing the
202	207		tax return with the Oklahoma Tax Commission, an eligibility
203	208		statement from the Oklahoma Housing Finance Agency. In the case of
204	209		failure to attach the eligibility statement, no credit under t his
205	210		section shall be allowed with respect to such project for tha t year
206	211		until required documents are provided to the Tax Commission.
207	212		I. If under Section 42 of the Intern al Revenue Code of 1986, as
208	213		amended, a portion of any federal low -income housing credi ts taken
209	214		on a qualified project is required to be recaptured duri ng the first
210	215		ten (10) years after a project is placed in service, the tax payer
211	216		claiming Oklahoma Affordab le Housing Tax Credits with respect to
212	217		such project shall also be required to recaptur e a portion of such
213	218		credits. The amount of Oklahoma Affordable H ousing Tax Credits
	219	+	subject to recapture shall be proportionally equal to the amount of
	220	+	federal low-income housing credits subject to recapture.
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215		-	ENGR. H. B. NO. 2040 Page 5 1
	222	+	HB2040 HFLR Page 5
	223	+	BOLD FACE denotes Committee Amendments. 1
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240		-	subject to recapture shall be proportionally equal to the amount of
241		-	federal low-income housing credits subject to recapture.
242	248		J. The Oklahoma Housing Finance Agency or the Oklahoma Tax
243	249		Commission may require the filing of additional docu mentation
244	250		necessary to determine the accuracy of a tax credit claimed.
245	251		K. The Oklahoma Affordable Housin g Act shall undergo a review
246	252		every five (5) years by a committee of nine (9) persons, to be
247	253		appointed three persons each by the Governor, President Pr o Tempore
248	254		of the Senate, and the Speaker of the House of Representatives.
249	255		SECTION 2. This act shall become effective January 1, 2024.
250		-	Passed the House of Representatives the 23rd day of March, 2023.
251	256
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254		-
255		-	Presiding Officer of the House
256		-	of Representatives
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259		-	Passed the Senate the ____ day of __________, 2023.
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264		-	Presiding Officer of the Senate
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	257	+	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET , dated
	258	+	03/02/2023 - DO PASS, As Coauthored.