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53	53	STATE OF OKLAHOMA
54	54
55	55	1st Session of the 59th Legislature (2023)
56	56
57	57	SENATE BILL 380 By: Bergstrom
58	58
59	59
60	60
61	61
62	62
63	63	AS INTRODUCED
64	64
65	65	An Act relating to tax credit; amending 68 O.S. 2021,
66	66	Section 2357.403, as amended by Section 1, Chapter
67	67	139, O.S.L. 2022 (68 O.S. Sup p. 2022, Section
68	68	2357.403), which relates to the Oklahoma Affordable
69	69	Housing Act; making credit refundable for certain tax
70	70	years; and providing an effective date.
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73	73
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75	75	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
76	76	SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.403, as
77	77	amended by Section 1, Chapter 139, O.S.L. 2022 (68 O.S. Supp. 2022,
78	78	Section 2357.403), is amended to read as fo llows:
79	79	Section 2357.403. A. This act shall be known and may be cited
80	80	as the "Oklahoma Affordable Housing Act".
81	81	B. As used in this section:
82	82	1. "Allocation year" means the year for which the Oklahoma
83	83	Housing Finance Agency all ocates credits pursuant to this section;
84	84	2. "Eligibility statemen t" means a statement authorized and
85	85	issued by the Oklahoma Housing Finance Agency certifying that a
86	86	given project qualifies for the Oklahoma Affordable Housing Tax
87	87	Credit authorized by this section. The Oklahoma Housing Finance
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139	139	Agency, under Title 330, Ok lahoma Housing Finance Agency, Chapter
140	140	36, Affordable Housing Tax Credit Program Rules, shall promulgate
141	141	rules establishing criteri a upon which the eligibility statements
142	142	will be issued. The eligibility statement shall specify the amount
143	143	of Oklahoma Affordable Housing Tax Credits allocated to a qualified
144	144	project. The Oklahoma Housing Finance Agency shall only authorize
145	145	the tax credits created by this section to qualified projects which
146	146	are placed in service after July 1, 2015, but which shall not be
147	147	used to reduce tax liability accruing prior to January 1 , 2016;
148	148	3. "Federal low-income housing tax credit " means the federal
149	149	tax credit as provided in Section 42 of the Internal Revenue Code o f
150	150	1986, as amended;
151	151	4. "Oklahoma Affordable Housing Tax Credit " means the tax
152	152	credit created by this section;
153	153	5. "Qualified project" means a qualified low-income building as
154	154	that term is defined in Section 42 of the Internal Revenue Code of
155	155	1986, as amended; and
156	156	6. "Taxpayer" means a person, firm or corporation subject to
157	157	the tax imposed by Section 2355 of this title or an insurance
158	158	company subject to the tax imposed by Secti on 624 or 628 of Title 36
159	159	of the Oklahoma Statutes or other financial institu tion subject to
160	160	the tax imposed by Section 2370 of this title.
161	161	C. For qualified projects placed in service after July 1, 2015,
162	162	the amount of state tax credits created by this sec tion which are
163	163
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214	214	allocated to a project shall not exceed that of the federal low-
215	215	income housing tax credits for a qualified project. The total
216	216	Oklahoma Affordable Housing Tax Credits allocated to all qualified
217	217	projects for an allocation year shall not exceed Four Mill ion
218	218	Dollars ($4,000,000.00). For purposes of this se ction, the "credit
219	219	period" shall mean the period of ten (10) taxab le years and "placed
220	220	in service" shall have the same meaning as is ap plicable under the
221	221	federal credit program.
222	222	D. A taxpayer owning an interest in an investment in a
223	223	qualified project sha ll be allowed Oklahoma Affordable Housing Tax
224	224	Credits under this se ction for tax years beginning on or after
225	225	January 1, 2016, if the Okl ahoma Housing Finance Agency issues an
226	226	eligibility statement for suc h project, which tax credit shall be
227	227	allocated among some or all of the partners, members or shareholders
228	228	of the taxpayer owning such interest in any manner agreed to by such
229	229	partners, members or shareholders. Such taxpayer may assign its
230	230	interest in the investment.
231	231	E. An insurance company claiming a cre dit against state premium
232	232	tax or retaliatory tax or any other tax imposed by Section 624 or
233	233	628 of Title 36 of the Oklahoma Statutes shal l not be required to
234	234	pay any additional retaliatory tax under Sectio n 628 of Title 36 of
235	235	the Oklahoma Statutes as a res ult of claiming the credit. The
236	236	credit may fully offset any retalia tory tax imposed by Section 628
237	237	of Title 36 of the Oklahoma Statutes.
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289	289	F. The For tax year 2023 and previous tax years, credit
290	290	authorized by this section shall not be used to redu ce the tax
291	291	liability of the taxpayer to less than zero ($0.00). For tax year
292	292	2024 and subsequent tax years, if the credit authorized by this
293	293	section exceeds the tax imposed by Section 2355 of this title , by
294	294	Section 624 or 628 of Title 36 of the Oklahoma Statutes , or by
295	295	Section 2370 of this title, the excess amount shall be refunded to
296	296	the taxpayer.
297	297	G. Any credit claimed but not used in a taxable y ear may be
298	298	carried forward two (2) su bsequent taxable years.
299	299	H. The owner of a q ualified project eligible for the credit
300	300	authorized by this s ection shall submit, at th e time of filing the
301	301	tax return with the Oklahoma Tax Commission, an eligibility
302	302	statement from the Oklahoma Housing Finance Agency. In the case of
303	303	failure to attach th e eligibility statement, no credit under this
304	304	section shall be allowed with respect to such project for that year
305	305	until required documents are provided to the Tax Commission.
306	306	I. If under Section 42 of the Intern al Revenue Code of 1986, as
307	307	amended, a portion of any federal low -income housing credits taken
308	308	on a qualified project is required t o be recaptured durin g the first
309	309	ten (10) years after a project is placed in service, th e taxpayer
310	310	claiming Oklahoma Affordab le Housing Tax Credits with respect to
311	311	such project shall also be required to recapture a portion of such
312	312	credits. The amount of O klahoma Affordable Ho using Tax Credits
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364	364	subject to recapture shall be proportionally equa l to the amount of
365	365	federal low-income housing credits subject to recapture.
366	366	J. The Oklahoma Housing Finance Agency or the Oklahoma Tax
367	367	Commission may require the filin g of additional docu mentation
368	368	necessary to determine the accuracy of a tax credit claime d.
369	369	K. The Oklahoma Affordable Housin g Act shall undergo a review
370	370	every five (5) years by a committee of nine (9) persons, to be
371	371	appointed three persons each by the Gov ernor, President Pro Tempore
372	372	of the Senate, and the Speaker of the House of Representatives.
373	373	SECTION 2. This act shall become effective November 1, 2023.
374	374
375	375	59-1-175 QD 1/15/2023 9:14:06 PM

Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB380 Compare Versions