OK
Oklahoma House Bill HB4018

Oklahoma 2024 Regular Session

Oklahoma House Bill HB4018 Compare Versions

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334 BILL NO. 4018 By: McBride, Menz, Dollens, and
435 Munson of the House
536
637 and
738
839 Seifried of the Senate
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1745 An Act relating to revenue and taxation; amending 68
1846 O.S. 2021, Section 2357.403, as amended by S ection 1,
1947 Chapter 139, O.S.L. 2022 (68 O.S. Supp. 2023, Section
2048 2357.403), which relates to affordable housing tax
2149 credits; providing for reallocation of credits; and
2250 providing an effective date.
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2654
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29-SUBJECT: Revenue and taxation
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3155 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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3356 SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.403, as
3457 amended by Section 1, Chapter 139, O.S.L. 2022 (68 O.S. Supp. 2023,
3558 Section 2357.403), is amended to read as follows:
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3759 Section 2357.403 A. This act shall be known and may be cited
3860 as the "Oklahoma Affordable Housing Act ".
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4061 B. As used in this section:
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4262 1. "Allocation year" means the year for which the Oklahoma
4363 Housing Finance Agency allocates credits pursuant to this section;
64+2. "Eligibility statement " means a statement author ized and
65+issued by the Oklahoma Housing Finance Agency certifying that a
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45-2. "Eligibility statement " means a statement authorized and
46-issued by the Oklaho ma Housing Finance Agency certifying that a ENR. H. B. NO. 4018 Page 2
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4793 given project qualifies for the Oklahoma Affordable Housing Tax
4894 Credit authorized by this section. The Oklahoma Housing Finance
4995 Agency, under Title 330, Oklahoma Housing Finance Agen cy, Chapter
5096 36, Affordable Housing Tax Credit Program Rules, shall promulgate
5197 rules establishing criteria upon which the eligibility statements
5298 will be issued. The eligibility statement shall sp ecify the amount
5399 of Oklahoma Affordable Housing Tax Credits a llocated to a qualified
54100 project. The Oklahoma Housing Finance Agency shall only authorize
55101 the tax credits created by this section to qualified projects which
56102 are placed in service after July 1, 2015, but which shall not be
57103 used to reduce tax liability acc ruing prior to January 1, 2016;
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59104 3. "Federal low-income housing tax credit " means the federal
60105 tax credit as provided in Section 42 of the Internal Revenue Code of
61106 1986, as amended;
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63107 4. "Oklahoma Affordable Housing Tax Credit " means the tax
64108 credit created by this section;
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66109 5. "Qualified project" means a qualified low -income building as
67110 that term is defined in Section 42 of the Internal Revenue Code of
68111 1986, as amended; and
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70112 6. "Taxpayer" means a person, firm or corporation subject to
71113 the tax imposed by Secti on 2355 of this title or an insurance
72114 company subject to the tax imposed by Section 624 or 628 of Title 36
73115 of the Oklahoma Statutes or other financial institution subject to
74116 the tax imposed by Se ction 2370 of this title.
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76144 C. For qualified projects placed i n service after July 1, 2015,
77145 the amount of state tax credits created by this section which are
78146 allocated to a project shall not exceed that of the federal low -
79147 income housing tax credits for a qualified project. The total
80148 Oklahoma Affordable Housing Tax C redits allocated to all qualified
81149 projects for an allocation year shall not exceed Four Million
82150 Dollars ($4,000,000.00). For purposes of this section, the "credit
83151 period" shall mean the period o f ten (10) taxable years and "placed
84152 in service" shall have the same meaning as is applicable under the
85153 federal credit program. Reallocated and rolled over credits will
86154 count against the four-million-dollar limit of their original
87155 allocation year and not count against the limit of the year in which
88156 they are allocated.
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90157 D. A taxpayer owning an interest in an investment in a
91-qualified project sha ll be allowed Oklahoma Affordable Housing Tax ENR. H. B. NO. 4018 Page 3
158+qualified project shall be allowed Oklahoma Affordable Housing Tax
92159 Credits under this section for tax years beginning on or after
93160 January 1, 2016, if the Oklahoma Housing Finance Agency issues an
94161 eligibility statement for such project, which tax credit shall be
95162 allocated among some or all of the partners, members or shareholders
96163 of the taxpayer owning such interest in any manner agreed to by such
97164 partners, members or shareholders. Such taxpayer ma y assign its
98165 interest in the investment.
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100166 E. An insurance company claiming a credit against state premium
101167 tax or retaliatory tax or any other tax imposed by Section 624 or
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102195 628 of Title 36 of the Oklahoma Statutes shall not be required to
103196 pay any additional retaliatory tax under Section 628 of Title 36 of
104197 the Oklahoma Statutes as a result of claiming the credit. The
105198 credit may fully offset any retaliatory tax imposed by Section 628
106199 of Title 36 of the Oklahoma Statutes.
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108200 F. The credit authorized by this sect ion shall not be used to
109201 reduce the tax liability of the taxpayer to less than zero ($0.00).
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111202 G. Any credit claimed but not used in a taxable year may be
112203 carried forward two (2) subsequent taxabl e years.
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114204 H. The owner of a qualified project eligible for th e credit
115205 authorized by this section shall submit, at the time of filing the
116206 tax return with the Oklahoma Tax Commission, an eligibility
117207 statement from the Oklahoma Housing Finance Agency. In the case of
118208 failure to attach the eligibility statement, no cred it under this
119209 section shall be allowed with respect to such project for that year
120210 until required documents are provided to the Tax Commission.
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122211 I. If under Section 42 of the Internal Revenue Code of 1986, as
123212 amended, a portion of any federal low -income housing credits taken
124213 on a qualified project is required to be recaptured during the first
125214 ten (10) years after a project is placed in service, the taxpayer
126215 claiming Oklahoma Affordable Housing Tax Credits with respect to
127216 such project shall also be required t o recapture a portion of such
128217 credits. The amount of Oklahoma Affordable Housing Tax Credits
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129245 subject to recapture shall be proportionally equal to the amount of
130246 federal low-income housing credit s subject to recapture.
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132247 J. The Oklahoma Housing Finance Agen cy or the Oklahoma Tax
133248 Commission may require the filing of additional documentation
134249 necessary to determine the accuracy of a tax credit claimed.
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136250 K. The Oklahoma Affordable Housing Act shall undergo a review
137251 every five (5) years by a committee of nine (9) persons, to be
138252 appointed three persons each by the Governor, President Pro Tempore
139253 of the Senate, and the Speaker of the House of Representatives.
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141254 SECTION 2. This act shall beco me effective November 1, 2024.
142- ENR. H. B. NO. 4018 Page 5
143-Passed the House of Representatives the 7th day of March, 2024.
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148- Presiding Officer of the House
149- of Representatives
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152-Passed the Senate the 16th day of April, 2024.
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157- Presiding Officer of the Senate
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160-OFFICE OF THE GOVERNOR
161-Received by the Office of the Governor this ____________________
162-day of ___________________, 20_______, at _______ o'clock _______ M.
163-By: _________________________________
164-Approved by the Governor of the State of Oklahoma this _____ ____
165-day of ___________________, 20______ _, at _______ o'clock _______ M.
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167-
168- _________________________________
169- Governor of the State of Oklahoma
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171-OFFICE OF THE SECRETARY OF STATE
172-Received by the Office of the Secretary of State this __________
173-day of ___________________, 20_______, at _______ o' clock _______ M.
174-By: _________________________________
255+COMMITTEE REPORT BY: COMMITTEE ON FINANCE
256+March 25, 2024 - DO PASS