Oklahoma 2023 Regular Session

Oklahoma House Bill HB2542 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	An Act
2		-	ENROLLED HOUSE
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	30	+	April 10, 2023
	31	+	AS AMENDED
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	33	+	ENGROSSED HOUSE
3	34		BILL NO. 2542 By: O'Donnell and McBride of
4	35		the House
5	36
6	37		and
7	38
8	39		Woods of the Senate
9	40
10	41
11	42
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14		-
15		-
16		-	An Act relating to revenue and taxation; a mending 68
17		-	O.S. 2021, Section 2357.22, as amended by Section 1,
18		-	Chapter 404, O.S.L. 2022 (68 O.S. Supp. 2022, Section
19		-	2357.22) which relates to income tax credits for
20		-	certain qualified fuel burning properties; modifying
21		-	definitions; modifying eligible vehicle types for
22		-	purposes of tax credit; deleting reference to certain
23		-	tax year; providing an effective date; and declaring
24		-	an emergency.
	45	+	[ revenue and taxation - income tax credits - fuel
	46	+	burning properties - effective date -
	47	+	emergency ]
25	48
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30		-	SUBJECT: Revenue and taxation
31		-
32	53		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
33		-
34	54		SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.22, as
35	55		amended by Section 1, Chapter 404, O.S.L. 2022 (6 8 O.S. Supp. 2022,
36	56		Section 2357.22), is amended to read as follows:
37		-
38	57		Section 2357.22 A. For tax years 2028 and before, there shall
39	58		be allowed a one-time credit against the income tax imposed by
40	59		Section 2355 of this title for investments in qualified clean -
41	60		burning motor vehicle fuel property placed in service on or after
42	61		January 1, 1991, or with respect to a hydrogen fuel cell, on or
43	62		after the effective date of this act .
	63	+	B. As used in this section, "qualified clean -burning motor
	64	+	vehicle fuel property" mean s:
44	65
45		-	B. As used in this section, "qualified clean -burning motor
46		-	vehicle fuel property" means: ENR. H. B. NO. 2542 Page 2
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48	92		1. Equipment installed to modify a motor vehicle which is
49	93		propelled by gasoline or diese l fuel so that the vehicle may be
50	94		propelled by compressed natural gas, a hydrogen fuel cell, liquefied
51	95		natural gas, or lique fied petroleum gas. The equipment cover ed by
52	96		this paragraph must:
53		-
54	97		a. be new, not previously used to modify or retrofit any
55	98		vehicle propelled by gasoline or diesel fuel and be
56	99		installed by an alternative fuels equipment technician
57	100		who is certified in accor dance with the Alternative
58	101		Fuels Technician Certification Act,
59		-
60	102		b. meet all Federal Motor Vehicle Safety Standards set
61	103		forth in 49 CFR 571, or
62		-
63	104		c. for any commercial motor vehicle (CMV), follow the
64	105		Federal Motor Carrier Safety Regulations or Oklahoma
65	106		Intrastate Motor Carrier Regulations;
66		-
67	107		2. A motor vehicle originally equipped so that the vehicle may
68	108		be propelled by compressed natural gas, a hydrogen fuel cell, or
69	109		liquefied natural gas or liquefied petroleum gas but only to the
70	110		extent of the portion of the ba sis of such motor vehicle which is
71	111		attributable to the storage of such fuel, the delivery to the engine
72	112		of such motor vehicle of such fuel, and the exhaust of gases from
73	113		combustion of such fuel;
74		-
75	114		3. Property, not including a building and its structural
76	115		components, which is:
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78	143		a. directly related to the delivery of compressed natural
79	144		gas, liquefied natural gas or liquefied petroleum gas,
80	145		or hydrogen for commercial purposes or for a fee or
81	146		charge, into the fuel tank of a motor vehicle
82	147		propelled by such fuel inc luding compression equipment
83	148		and storage tanks for such fuel at the point where
84	149		such fuel is so delivered but only if such property is
85	150		not used to deliver such fuel into any other type of
86	151		storage tank or receptacle and such fuel is not used
87	152		for any purpose other than to propel a motor vehicle,
88	153		or
89		-
90	154		b. a metered-for-fee, public access recharging system for
91		-	motor vehicles propelled in whole or in part by ~~ENR. H. B. NO. 2542 Page 3~~
	155	+	motor vehicles propelled in whole or in part by
92	156		electricity. The property covered by this paragraph
93	157		must be new, and must not have been previously
94	158		installed or used to refuel vehicles powered by
95	159		compressed natural gas, liquefied natural gas or
96	160		liquefied petroleum gas, hydrogen, or electricity.
97		-
98	161		Any property covered by this paragraph which is related to the
99	162		delivery of hydrogen into the fuel tank of a motor ve hicle shall
100	163		only be eligible for tax yea rs 2010 and 2023 through 2028;
101		-
102	164		4. Property which is directly related to the compression and
103	165		delivery of natural gas from a private home or residence, for
104	166		noncommercial purposes, into the fuel tank of a motor vehicle
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105	194		propelled by compressed natural gas. T he property covered by this
106	195		paragraph must be new and must not have been previously installed or
107	196		used to refuel vehicles powered by natural gas; or
108		-
109	197		5. For tax years 2010 and 2023 through 2028, a motor vehicle
110	198		originally equipped so that the vehicle may be propelled by a
111	199		hydrogen fuel cell electric fueling system.
112		-
113	200		C. As used in this section, "motor vehicle" means a motor
114	201		vehicle originally designed by the manufacturer to operate lawfully
115	202		and principally on streets an d highways.
116		-
117	203		D. The credit provided for in subsection A of this section
118	204		shall be as follows:
119		-
120	205		1. For the qualified clean-burning motor vehicle fuel property
121	206		defined in paragraphs 1, 2, or 5 of subsection B of this section,
122	207		the amount of the credit shall be as follows based upon gross
123	208		vehicle weight of the qualified vehicle:
124		-
125	209		a. for vehicles up to or below six thousand (6,000)
126	210		pounds, the credit shall be a maximum of Five Thousand
127	211		Five Hundred Dollars ($5,500.00),
128		-
129	212		b. for vehicles between six thousand one (6,0 01) pounds
130	213		to ten thousand (10,000) poun ds, the credit shall be a
131	214		maximum amount of Nine Thousand Dollars ($9,000.00),
132		-
133	215		c. for vehicles of ten thousand one (10,001) pounds, but
134	216		not in excess of twenty -six thousand five hundred
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135	244		(26,500) pounds, the credit sh all be a maximum amount
136		-	of Twenty-six Thousand Dollars ($26,000.00), and ENR. H. B. NO. 2542 Page 4
137		-
	245	+	of Twenty-six Thousand Dollars ($26,000.00), and
138	246		d. for vehicles in excess of twenty-six thousand five
139	247		hundred one (26,501) pounds, the credit shall be a
140	248		maximum amount of One Hundred Thousand Dollars
141	249		($100,000.00);
142		-
143	250		2. For qualified clean-burning motor vehicle fuel prope rty
144	251		defined in paragraph 3 of subsection B of this section, a per-
145	252		location credit of forty -five percent (45%) of the cost of the
146	253		qualified clean-burning motor vehicle fuel property; and
147		-
148	254		3. For qualified clean -burning motor vehicle fuel property
149	255		defined in paragraph 4 of subsection B of this section, a per-
150	256		location credit of the lesser of fifty percent (50%) of the cost of
151	257		the qualified clean-burning motor vehicle fuel property or Two
152	258		Thousand Five Hundred Dollars ($2 ,500.00).
153		-
154	259		E. In cases where no credit h as been claimed pursuant to
155	260		paragraph 1 of subsection D of this section by any prior owner and
156	261		in which a motor vehicle is purchased by a taxpayer with qualified
157	262		clean-burning motor vehicle fuel property installed by the
158	263		manufacturer of such motor vehicle and the taxpayer is unable or
159	264		elects not to determine the exact basis which is attributable to
160	265		such property, the taxpayer may claim a credit in an amount not
161	266		exceeding the lesser of ten percent (10%) of the cost of the motor
162	267		vehicle or One Thousand Five H undred Dollars ($1,500.00).
163	268
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164	295		F. If the tax credit allowed pursuant to subsection A of this
165	296		section exceeds the amount of income taxes due or if there are no
166	297		state income taxes due on the income of the taxpayer, the a mount of
167	298		the credit not used as an offse t against the income taxes of a
168	299		taxable year may be carried forward, in order, as a credit against
169	300		subsequent income tax liability for a period not to exceed five (5)
170	301		years. The tax credit authorized pursuant to the provisions of this
171	302		section shall not be used to reduce the tax liability of the
172	303		taxpayer to less than zero (0).
173		-
174	304		G. A husband and wife who file separate returns for a taxable
175	305		year in which they could have filed a joint return may each claim
176	306		only one-half (1/2) of the tax credit that would have been allowed
177	307		for a joint return.
178		-
179	308		H. The Oklahoma Tax Commission is herein empowered to
180		-	promulgate rules by which the purpose of this section shall be ~~ENR. H. B. NO. 2542 Page 5~~
	309	+	promulgate rules by which the purpose of this section shall be
181	310		administered including the power to establish and enforce penalti es
182	311		for violations thereof.
183		-
184	312		I. Notwithstanding the provisions of Section 2352 of this
185	313		title, for the fiscal year beginning on July 1, 2014, and each
186	314		fiscal year thereafter, the Tax Commission shall calculate an amount
187	315		that equals five percent (5%) of the c ost of qualified clean -burning
188	316		motor vehicle fuel property as provided for in paragraph 1 of
189	317		subsection D of this section for tax year 2012. For each subsequent
190	318		fiscal year thereafter, the Tax Commission shall perform the same
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191	346		computation with respect to the second tax year preceding the
192	347		beginning of each subsequent fiscal year. The Tax Commission shall
193	348		then transfer an amount equal to the amount calculated in this
194	349		subsection from the revenue derived pursuant to the provisions of
195	350		subsections A, B and E of Section 2355 of this title to the
196	351		Compressed Natural Gas Conversion Safety and Regulation Fund created
197	352		in Section 130.25 of Title 74 of the Oklahoma Statutes.
198		-
199	353		J. For the tax years 2020 through 2022, the total amount of
200	354		credits authorized by this section used to offset tax shall be
201	355		adjusted annually to limit the annual amount of credits to Twenty
202	356		Million Dollars ($20,000,000.00). The Tax Commission shall annually
203	357		calculate and publish by the first day of the affected taxable year
204	358		a percentage by which the credits authorized by this section shal l
205	359		be reduced so the total amount of credits used to offset tax does
206	360		not exceed Twenty Million Dollars ($20,000,000.00) per year. The
207	361		formula to be used for the percentage adjustment shall be Twenty
208	362		Million Dollars ($20,000,000.00) divided by the credits c laimed in
209	363		the second preceding year, with respect to any changes to the future
210	364		of the credit.
211		-
212	365		K. Pursuant to subsection J of this section, in the event the
213	366		total tax credits authorized by this section exceed Twenty Million
214	367		Dollars ($20,000,000.00) in any calendar year, the Tax Commission
215	368		shall permit any excess over Twenty Million Dollars ($20,000,000.00)
216	369		but shall factor such excess into the percentage adjustment form ula
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217	397		for subsequent years with respect to any chan ges to the future of
218	398		the credit.
219		-
220	399		L. For the tax years 2023 through 2028, the total amount of
221	400		credits authorized by this section used to offset tax shall be
222	401		adjusted annually to limit the annual amount of cr edits to:
223		-
224	402		1. Ten Million Dollars ($10,000,000.00 ) for qualified clean
225		-	burning fuel property propelled by compressed natural gas, liquefied ~~ENR. H. B. NO. 2542 Page 6~~
	403	+	burning fuel property propelled by compressed natural gas, liquefied
226	404		natural gas, or liquefied petroleum gas, property related to the
227	405		delivery of compressed natural gas, liquefied natur al gas or
228	406		liquefied petroleum gas, and property d irectly related to the
229	407		compression and delivery of natural gas;
230		-
231	408		2. Ten Million Dollars ($10,000,000.00) for property originally
232	409		equipped so that the vehicle may be propelled by a hydrogen fuel
233	410		cell electric fueling system and property directly related to the
234	411		delivery of hydrogen; and
235		-
236	412		3. Ten Million Dollars ($10,000,000.00) for property which is a
237	413		metered-for-fee, public access recharging system for motor vehicles
238	414		propelled in whole or in part by electricity .
239		-
240	415		The Tax Commission shall annually calculate and publish by the
241	416		first day of the affecte d taxable year a percentage by which the
242	417		credits authorized by this section shall be reduced so the total
243	418		amount of credits used to offset tax does not exceed each of the
244	419		limits provided in paragraphs 1 through 3 of this subsection. The
245	420		formula to be used for the percentage adjustment shall be Ten
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246	448		Million Dollars ($10,000,000.00) divided by the credits claimed in
247	449		the second preceding year, with respect to any changes t o the future
248	450		of the credit.
249		-
250	451		M. Pursuant to subse ction L of this section, in the event th e
251	452		tax credits authorized by this section exceed any of the limits
252	453		provided in paragraphs 1 through 3 of subsection L of this section
253	454		in any year, the Tax Commission sh all permit any excess over Ten
254	455		Million Dollars ($10,000,000.00) but shall factor such exc ess into
255	456		the percentage adjustment formula for subsequent years with respect
256	457		to any changes to the future of the credit.
257		-
258	458		N. The Tax Commission shall notify the Office of the State
259	459		Secretary of Energy and Environment at any time when the amount of
260	460		claims for credits allowed pursuant to this section reaches eighty
261	461		percent (80%) of the total annual limit provided in subsection J of
262	462		this section. Upon such notification, t he Secretary shall provide
263	463		notice to the Governor , President Pro Tempore of the Senate an d
264	464		Speaker of the House of Representatives.
265		-
266	465		SECTION 2. This act shall become effective July 1, 2023.
267		-
268	466		SECTION 3. It being immediately neces sary for the preservation
269		-	of the public peace, health or safety, an emergency is here by ~~ENR. H. B. NO. 2542 Page 7~~
	467	+	of the public peace, health or safety, an emergency is here by
270	468		declared to exist, by reason whereof this act shall take effect and
271	469		be in full force from and after its passage and approval.
272		-	ENR. H. B. NO. 2542 Page 8
273		-	Passed the House of Representatives the 20th day of March, 2023.
274		-
275		-
276		-
277		-
278		-	Presiding Officer of the House
279		-	of Representatives
280		-
281		-
282		-
283		-	Passed the Senate the 20th day of April, 2023.
284		-
285		-
286		-
287		-
288		-	Presiding Officer of the Senate
289		-
290		-
291		-	OFFICE OF THE GOVERNOR
292		-	Received by the Office of the Governor this ____________________
293		-	day of ___________________, 20__ _____, at _______ o'clock _______ M.
294		-	By: _________________________________
295		-	Approved by the Governor of the State of Oklahoma this _____ ____
296		-	day of ___________________, 20_______, at _______ o'clock _______ M.
297		-
298		-
299		-	_________________________________
300		-	Governor of the State of Oklahoma
301		-
302		-	OFFICE OF THE SECRETARY OF STATE
303		-	Received by the Office of the Secretary of State this __________
304		-	day of ___________________, 20_______, at _______ o'clock _______ M.
305		-	By: _________________________________
306		-
	470	+	COMMITTEE REPORT BY: COMMITTEE ON FINANCE
	471	+	April 10, 2023 - DO PASS AS AMENDED