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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 380 By: Bergstrom
AS INTRODUCED
An Act relating to tax credit; amending 68 O.S. 2021,
Section 2357.403, as amended by Section 1, Chapter
139, O.S.L. 2022 (68 O.S. Sup p. 2022, Section
2357.403), which relates to the Oklahoma Affordable
Housing Act; making credit refundable for certain tax
years; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.403, as
amended by Section 1, Chapter 139, O.S.L. 2022 (68 O.S. Supp. 2022,
Section 2357.403), is amended to read as fo llows:
Section 2357.403. A. This act shall be known and may be cited
as the "Oklahoma Affordable Housing Act".
B. As used in this section:
1. "Allocation year" means the year for which the Oklahoma
Housing Finance Agency all ocates credits pursuant to this section;
2. "Eligibility statemen t" means a statement authorized and
issued by the Oklahoma Housing Finance Agency certifying that a
given project qualifies for the Oklahoma Affordable Housing Tax
Credit authorized by this section. The Oklahoma Housing Finance
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Agency, under Title 330, Ok lahoma Housing Finance Agency, Chapter
36, Affordable Housing Tax Credit Program Rules, shall promulgate
rules establishing criteri a upon which the eligibility statements
will be issued. The eligibility statement shall specify the amount
of Oklahoma Affordable Housing Tax Credits allocated to a qualified
project. The Oklahoma Housing Finance Agency shall only authorize
the tax credits created by this section to qualified projects which
are placed in service after July 1, 2015, but which shall not be
used to reduce tax liability accruing prior to January 1 , 2016;
3. "Federal low-income housing tax credit " means the federal
tax credit as provided in Section 42 of the Internal Revenue Code o f
1986, as amended;
4. "Oklahoma Affordable Housing Tax Credit " means the tax
credit created by this section;
5. "Qualified project" means a qualified low-income building as
that term is defined in Section 42 of the Internal Revenue Code of
1986, as amended; and
6. "Taxpayer" means a person, firm or corporation subject to
the tax imposed by Section 2355 of this title or an insurance
company subject to the tax imposed by Secti on 624 or 628 of Title 36
of the Oklahoma Statutes or other financial institu tion subject to
the tax imposed by Section 2370 of this title.
C. For qualified projects placed in service after July 1, 2015,
the amount of state tax credits created by this sec tion which are
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allocated to a project shall not exceed that of the federal low-
income housing tax credits for a qualified project. The total
Oklahoma Affordable Housing Tax Credits allocated to all qualified
projects for an allocation year shall not exceed Four Mill ion
Dollars ($4,000,000.00). For purposes of this se ction, the "credit
period" shall mean the period of ten (10) taxab le years and "placed
in service" shall have the same meaning as is ap plicable under the
federal credit program.
D. A taxpayer owning an interest in an investment in a
qualified project sha ll be allowed Oklahoma Affordable Housing Tax
Credits under this se ction for tax years beginning on or after
January 1, 2016, if the Okl ahoma Housing Finance Agency issues an
eligibility statement for suc h project, which tax credit shall be
allocated among some or all of the partners, members or shareholders
of the taxpayer owning such interest in any manner agreed to by such
partners, members or shareholders. Such taxpayer may assign its
interest in the investment.
E. An insurance company claiming a cre dit against state premium
tax or retaliatory tax or any other tax imposed by Section 624 or
628 of Title 36 of the Oklahoma Statutes shal l not be required to
pay any additional retaliatory tax under Sectio n 628 of Title 36 of
the Oklahoma Statutes as a res ult of claiming the credit. The
credit may fully offset any retalia tory tax imposed by Section 628
of Title 36 of the Oklahoma Statutes.
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F. The For tax year 2023 and previous tax years, credit
authorized by this section shall not be used to redu ce the tax
liability of the taxpayer to less than zero ($0.00). For tax year
2024 and subsequent tax years, if the credit authorized by this
section exceeds the tax imposed by Section 2355 of this title , by
Section 624 or 628 of Title 36 of the Oklahoma Statutes , or by
Section 2370 of this title, the excess amount shall be refunded to
the taxpayer.
G. Any credit claimed but not used in a taxable y ear may be
carried forward two (2) su bsequent taxable years.
H. The owner of a q ualified project eligible for the credit
authorized by this s ection shall submit, at th e time of filing the
tax return with the Oklahoma Tax Commission, an eligibility
statement from the Oklahoma Housing Finance Agency. In the case of
failure to attach th e eligibility statement, no credit under this
section shall be allowed with respect to such project for that year
until required documents are provided to the Tax Commission.
I. If under Section 42 of the Intern al Revenue Code of 1986, as
amended, a portion of any federal low -income housing credits taken
on a qualified project is required t o be recaptured durin g the first
ten (10) years after a project is placed in service, th e taxpayer
claiming Oklahoma Affordab le Housing Tax Credits with respect to
such project shall also be required to recapture a portion of such
credits. The amount of O klahoma Affordable Ho using Tax Credits
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subject to recapture shall be proportionally equa l to the amount of
federal low-income housing credits subject to recapture.
J. The Oklahoma Housing Finance Agency or the Oklahoma Tax
Commission may require the filin g of additional docu mentation
necessary to determine the accuracy of a tax credit claime d.
K. The Oklahoma Affordable Housin g Act shall undergo a review
every five (5) years by a committee of nine (9) persons, to be
appointed three persons each by the Gov ernor, President Pro Tempore
of the Senate, and the Speaker of the House of Representatives.
SECTION 2. This act shall become effective November 1, 2023.
59-1-175 QD 1/15/2023 9:14:06 PM