Oklahoma 2024 Regular Session

Oklahoma House Bill HB3051 Compare Versions

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Version 2 (New)

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1		-	An Act
2		-	ENR. H. B. NO. 3051 Page 1
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4	34		BILL NO. 3051 By: Boles, Hilbert, and
5	35		Williams of the House
6	36
7	37		and
8	38
9		-	Paxton and Stephens of the
10		-	Senate
11		-
	39	+	Paxton of the Senate
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17	45		An Act relating to revenue and taxation; amending 68
18	46		O.S. 2021, Section 2357.22, as last amended by
19	47		Section 1, Chapter 215, O.S.L. 2023 (68 O.S. Supp.
20	48		2023, Section 2357.22), which relates to tax credits
21	49		for investment in certain clean -burning motor vehicle
22	50		fuel property; providing for reallocation of unused
23	51		tax credits; prescribing method for reallocation; and
24	52		providing an effective date .
25	53
26	54
27	55
28	56
29		-	SUBJECT: Revenue and taxation
30		-
31	57		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
32		-
33	58		SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.22, as
34	59		last amended by Section 1, Chapter 215, O.S.L. 2023 (68 O.S. Supp.
35	60		2023, Section 2357.22), is amended to read as follows:
36		-
37	61		Section 2357.22 A. For tax years 2028 and before, there shall
38	62		be allowed a one-time credit against the income tax imposed by
39	63		Section 2355 of this title for investments in qualified clean -
40	64		burning motor vehicle fuel pro perty placed in service on or after
41	65		January 1, 1991.
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43	93		B. As used in this section, "qualified clean-burning motor
44	94		vehicle fuel property " means:
45		-
46	95		1. Equipment installed to modify a motor vehicle which is
47		-	propelled by gasoline or diesel fuel so that the ~~vehicle~~ may be ~~ENR. H. B. NO. 3051 Page 2~~
	96	+	propelled by gasoline or diesel fuel so that the vehic le may be
48	97		propelled by compressed natural gas, liquefied natural gas, or
49	98		liquefied petroleum gas. The equipment covered by this paragraph
50	99		must:
51		-
52	100		a. be new, not previously used to modify or retrofit any
53	101		vehicle propelled by gasoline or diesel fuel and be
54	102		installed by an alternative fuel s equipment technician
55	103		who is certified in accordance with the Alternative
56	104		Fuels Technician Certification Act,
57		-
58	105		b. meet all Federal Motor Vehicle Safety Standards set
59	106		forth in 49 CFR 571, or
60		-
61	107		c. for any commercial motor vehicle (CMV), follow the
62	108		Federal Motor Carrier Safety Regulations or Oklahoma
63	109		Intrastate Motor Carrier Regulations;
64		-
65	110		2. A motor vehicle originally equipped so that the vehicle may
66	111		be propelled by compressed natural gas, or liquefied natural gas or
67	112		liquefied petroleum gas but only to the exten t of the portion of the
68	113		basis of such motor vehicle which is attributable to the storage of
69	114		such fuel, the delivery to the engine of such motor vehicle of such
70	115		fuel, and the exhaust of gases from combustion of such fuel;
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72	143		3. Property, not including a building and its structural
73	144		components, which is:
74		-
75	145		a. directly related to the delivery of compressed natural
76	146		gas, liquefied natural gas or liquefied petroleum gas,
77	147		or hydrogen for commercial purposes or for a fee or
78	148		charge, into the fuel tank of a motor vehicle
79	149		propelled by such fuel including compression equipment
80	150		and storage tanks for such fuel at the point where
81	151		such fuel is so delivered but only if such property is
82	152		not used to deliver such fuel into any other type of
83	153		storage tank or receptacle and such fuel is not used
84	154		for any purpose other than to propel a motor vehicle,
85	155		or
86		-
87	156		b. a metered-for-fee, public access recharging system for
88	157		motor vehicles propelled in whole or in part by
89	158		electricity. The property covered by this paragraph
90	159		must be new, and must not hav e been previously
91		-	installed or used to refuel vehicles powered by ~~ENR. H. B. NO. 3051 Page 3~~
	160	+	installed or used to refuel vehicles powered by
92	161		compressed natural gas, liquefied natural gas or
93	162		liquefied petroleum gas, hydrogen, or electricity.
94		-
95	163		Any property covered by this paragraph which is related to t he
96	164		delivery of hydrogen into the fuel tank of a motor vehicle shall
97	165		only be eligible for tax years 2010 and 2023 through 2028;
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99	193		4. Property which is directly related to the compression and
100	194		delivery of natural gas from a private home or residence, for
101	195		noncommercial purposes, into the fu el tank of a motor vehicle
102	196		propelled by compressed natural gas. The property covered by this
103	197		paragraph must be new and must not have been previously installed or
104	198		used to refuel vehicles powered by natural gas; or
105		-
106	199		5. For tax years 2010 and 2023 through 2028, a motor vehicle
107	200		originally equipped so that the vehicle may be propelled by a
108	201		hydrogen fuel cell electric fueling system.
109		-
110	202		C. As used in this section, "motor vehicle" means a motor
111	203		vehicle originally designed by the manufa cturer to operate lawfully
112	204		and principally on streets and highways.
113		-
114	205		D. The credit provided for in subsection A of this section
115	206		shall be as follows:
116		-
117	207		1. For the qualified clean -burning motor vehicle fuel property
118	208		defined in paragraphs 1, 2, or 5 of subsect ion B of this section,
119	209		the amount of the credit shall be as follows based upon gross
120	210		vehicle weight of the qualified vehicle:
121		-
122	211		a. for vehicles up to or below six thousand (6,000)
123	212		pounds, the credit shall be a maximum of Five Thousand
124	213		Five Hundred Dollars ($ 5,500.00),
125		-
126	214		b. for vehicles between six thousand one (6,001) pounds
127	215		to ten thousand (10,000) pounds, the credit shall be a
128	216		maximum amount of Nine Thousand Dollars ($9,000.00),
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130	244		c. for vehicles of ten thousand one (10,001) pounds, but
131	245		not in excess of twenty -six thousand five hundred
132	246		(26,500) pounds, the credit shall be a maximum amount
133	247		of Twenty-six Thousand Dollars ($26,000.00), and
134		-
135	248		d. for vehicles in excess of twenty -six thousand five
136		-	hundred one (26,501) pounds, the credit shall be a ~~ENR. H. B. NO. 3051 Page 4~~
	249	+	hundred one (26,501) pounds, the credit shall be a
137	250		maximum amount of One Hundred Thousand Dollars
138	251		($100,000.00);
139		-
140	252		2. For qualified clean -burning motor vehicle fuel property
141	253		defined in paragraph 3 of subsection B of this section, a per -
142	254		location credit of forty -five percent (45%) of the cost of the
143	255		qualified clean-burning motor vehicle fuel property; and
144		-
145	256		3. For qualified clean -burning motor vehicle fuel property
146	257		defined in paragraph 4 of subsection B of this section, a per -
147	258		location credit of the lesser of fifty percent (50%) of the cost of
148	259		the qualified clean-burning motor vehicl e fuel property or Two
149	260		Thousand Five Hundred Dollars ($2,500.00).
150		-
151	261		E. In cases where no credit has been claimed pursuant to
152	262		paragraph 1 of subsection D of this section by any prior owner and
153	263		in which a motor vehicle is purchased by a taxpayer with qualifie d
154	264		clean-burning motor vehicle fuel property installed by the
155	265		manufacturer of such motor vehicle and the taxpayer is unable or
156	266		elects not to determine the exact basis which is attributable to
157	267		such property, the taxpayer may claim a credit in an amount not
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158	295		exceeding the lesser of ten per cent (10%) of the cost of the motor
159	296		vehicle or One Thousand Five Hundred Dollars ($1,500.00).
160		-
161	297		F. If the tax credit allowed pursuant to subsection A of this
162	298		section exceeds the amount of income taxes due or if there are no
163	299		state income taxes due on the income of the taxpayer, the amount of
164	300		the credit not used as an offset against the income taxes of a
165	301		taxable year may be carried forward, in order, as a credit against
166	302		subsequent income tax liability for a period not to exceed fi ve (5)
167	303		years. The tax credit authorized pursuant to the provisions of this
168	304		section shall not be used to reduce the tax liability of the
169	305		taxpayer to less than zero (0).
170		-
171	306		G. A husband and wife who file separate returns for a taxable
172	307		year in which they could have filed a joint return may each claim
173	308		only one-half (1/2) of the tax credit that would have been allowed
174	309		for a joint return.
175		-
176	310		H. The Oklahoma Tax Commission is herein empowered to
177	311		promulgate rules by which the purpose of this section shall be
178	312		administered including the power to est ablish and enforce penalties
179	313		for violations thereof.
180		-	ENR. H. B. NO. 3051 Page 5
181	314		I. Notwithstanding the provisions of Section 2352 of this
182	315		title, for the fiscal year beginning on July 1, 2014, through fiscal
183	316		year 2023, the Tax Commission shall calculate an amount that equals
184	317		five percent (5%) of the cost of qualified clean -burning motor
185	318		vehicle fuel property as provided for in paragraph 1 of subsection D
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186	346		of this section for tax year 2012. For each subsequent fiscal year
187	347		thereafter, the Tax Commission sh all perform the same computati on
188	348		with respect to the second tax year preceding the beginning of each
189	349		subsequent fiscal year. For fiscal year 2024, the Tax Commission
190	350		shall calculate an amount that equals twelve percent (12%) of the
191	351		credit for qualified cl ean-burning motor vehicle fuel property as
192	352		provided in paragraph 1 of subsection D of this section for tax year
193	353		2021. For each subsequent fiscal year, the Tax Commission shall
194	354		perform the same calculation for credits claimed in the second
195	355		preceding tax year. The Tax Commission shall then transfer an
196	356		amount equal to the amount calculated in this subsection from the
197	357		revenue derived pursuant to the provisions of subsections A, B and E
198	358		of Section 2355 of this title to the Compressed Natural Gas
199	359		Conversion Safety and Regulation Fund created in Section 130.25 of
200	360		Title 74 of the Oklahoma Statutes.
201		-
202	361		J. For the tax years 2020 through 2022, the total amount of
203	362		credits authorized by this section used to offset tax shall be
204	363		adjusted annually to limit the annual amount of credits to Twenty
205	364		Million Dollars ($20,000,000.00). The Tax Commission shall annually
206	365		calculate and publish by the first day of the affected taxable year
207	366		a percentage by which the credits authorized by this section shall
208	367		be reduced so the total amount of credits used to offset tax does
209	368		not exceed Twenty Million Dollars ($20,000,000.00) per year. The
210	369		formula to be used for the percentage adjustment shall be Twenty
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211	397		Million Dollars ($20,000,000.00) divided by the credits claimed in
212	398		the second preceding y ear, with respect to any chang es to the future
213	399		of the credit.
214		-
215	400		K. Pursuant to subsection J of this section, in the event the
216	401		total tax credits authorized by this section exceed Twenty Million
217	402		Dollars ($20,000,000.00) in any calendar year, the Tax Commissio n
218	403		shall permit any excess over Twenty Million Dollars ($20,000,000.00)
219	404		but shall factor such excess into the percentage adjustment formula
220	405		for subsequent years with respect to any changes to the future of
221	406		the credit.
222		-
223	407		L. For Except as otherwise provided by this subsection, for the
224		-	tax years 2023 through 2028, the total amount of credits authorized ~~ENR. H. B. NO. 3051 Page 6~~
	408	+	tax years 2023 through 2028, the total amount of credits authorized
225	409		by this section used to offset tax shall be adjusted annually to
226	410		limit the annual amount of credits to:
227		-
228	411		1. Ten Million Dollars ($10,000,000.00) for qualified cle an
229	412		burning fuel property propelled by compressed natural gas, liquefied
230	413		natural gas, or liquefied petroleum gas, property related to the
231	414		delivery of compressed natural gas, liquefied natural gas or
232	415		liquefied petroleum gas, and property directly related to the
233	416		compression and delivery o f natural gas;
234		-
235	417		2. Ten Million Dollars ($10,000,000.00) for property originally
236	418		equipped so that the vehicle may be propelled by a hydrogen fuel
237	419		cell electric fueling system and property directly related to the
238	420		delivery of hydrogen; and
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240	448		3. Ten Million Dollars ($10,000,000.00) for property which is a
241	449		metered-for-fee, public access recharging system for motor vehicles
242	450		propelled in whole or in part by electricity.
243		-
244	451		If one of the tax credit pools as described in paragraphs 1
245	452		through 3 of this subsection is not fully utilized for the
246	453		applicable tax year, the remaining balance of that pool shall be
247	454		allocated to each of the two remaining tax credit pools in equal
248	455		amounts. If two of the tax credit pools as described in paragraphs
249	456		1 through 3 of this subsection are not fully utilized for the
250	457		applicable tax year, the remaining balances in both pools shall be
251	458		added together and the sum of those amounts shall be allocated to
252	459		the remaining tax credit pool.
253		-
254	460		The Tax Commission shall annually c alculate and publish by the
255	461		first day of the affected taxable year a percentage by which the
256	462		credits authorized by this section shall be reduced so the total
257	463		amount of credits used to offset tax does not exceed each of the
258	464		limits provided in paragraphs 1 t hrough 3 of this subsection. The
259	465		formula to be used for the percentage adjustment shall be Ten
260	466		Million Dollars ($10,000,000.00) divided by the credits claimed in
261	467		the second preceding year, with respect to any changes to the future
262	468		of the credit.
263		-
264	469		M. Pursuant to subsection L of this se ction, in the event the
265	470		tax credits authorized by this section exceed any of the limits
266	471		provided in paragraphs 1 through 3 of subsection L of this section
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267	499		in any year, the Tax Commission shall permit any excess over Ten
268		-	Million Dollars ($10,000,000.00) but shall factor such excess into ~~ENR. H. B. NO. 3051 Page 7~~
	500	+	Million Dollars ($10,000,000.00) but shall factor such excess into
269	501		the percentage adjustment formula for subsequent years with respect
270	502		to any changes to the future of the credit.
271		-
272	503		N. The Tax Commission shall notify the Office of the State
273	504		Secretary of Energy and Environment at any time when the amount of
274	505		claims for credits allowed pursuant to this section reaches eighty
275	506		percent (80%) of the total annual limit provided in subsection J of
276	507		this section. Upon such notification, the Secretary shall provide
277	508		notice to the Governor, President Pro Tempore of the Senate and
278	509		Speaker of the House of Representatives.
279		-
280	510		SECTION 2. This act shall become effective November 1, 2024.
281		-	ENR. H. B. NO. 3051 Page 8
282		-	Passed the House of Representatives the 4th day of March, 2024.
283		-
284		-
285		-
286		-
287		-	Presiding Officer of the Ho use
288		-	of Representatives
289		-
290		-
291		-
292		-	Passed the Senate the 22nd day of April, 2024.
293		-
294		-
295		-
296		-
297		-	Presiding Officer of the Senate
298		-
299		-
300		-
301		-	OFFICE OF THE GOVERNOR
302		-	Received by the Office of the Governo r this ____________________
303		-	day of ___________________, 20_______, at _______ o'clock _______ M.
304		-	By: _________________________________
305		-	Approved by the Governor of the State of Oklahoma this _____ ____
306		-	day of ___________________, 20_______, at _______ o'cloc k _______ M.
307		-
308		-
309		-	_________________________________
310		-	Governor of the State of Oklahoma
311		-
312		-	OFFICE OF THE SECRETARY OF STATE
313		-	Received by the Office of the Secretary of State this __________
314		-	day of ___________________, 20_______, at _______ o'clock _______ M.
315		-	By: _________________________________
	511	+	COMMITTEE REPORT BY: COMMITTEE ON FINANCE
	512	+	April 1, 2024 - DO PASS