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53	53	STATE OF OKLAHOMA
54	54
55	55	2nd Session of the 59th Legislature (2024)
56	56
57	57	SENATE BILL 1426 By: Boren
58	58
59	59
60	60
61	61
62	62
63	63	AS INTRODUCED
64	64
65	65	An Act relating to income tax credit; amending 68
66	66	O.S. 2021, Section 2357.46, which relates to tax
67	67	credit for construction of energ y efficient property;
68	68	modifying tax year for which credit can be claimed;
69	69	requiring property to be completed in the year in
70	70	which the credit is claimed; updating statutory
71	71	language; and provid ing an effective date .
72	72
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77	77	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
78	78	SECTION 1. AMENDATORY 68 O.S. 202 1, Section 2357.46, is
79	79	amended to read as follows:
80	80	Section 2357.46. A. Except as otherwise provided by su bsection
81	81	G of this section, for the time period beginning on or after January
82	82	1, 2006, and ending on July 1, 2016 tax years 2006 through 2016 and
83	83	tax year 2025 and subsequent tax years, there shall be allowed a
84	84	credit against the tax imposed by Section 2355 of this title for
85	85	eligible expenditures incurred by a contractor in the construction
86	86	of energy efficient residential property of two thousand (2,00 0)
87	87	square feet or less. The amount of the credit s hall be based upon
88	88	the following:
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140	140	1. For any eligible energy efficient residential property
141	141	constructed and certified as fort y percent (40%) or more above the
142	142	International Energy Conservation Code 2003 and any supplement in
143	143	effect at the time of completion, the amount of the credit shall be
144	144	equal to the eligible expenses, not to exceed Four Thousand Dollars
145	145	($4,000.00) for the taxpayer who is the contractor; and
146	146	2. For any eligible energy efficient resid ential property
147	147	constructed and certified as betwee n twenty percent (20%) and
148	148	thirty-nine percent (39%) above the International Energy
149	149	Conservation Code 2003 and any supplement in effect at the time of
150	150	completion, the credit shall be equal to the eligible expenditures,
151	151	not to exceed Two Thousand Dollars ($2,000.00) for the taxpayer who
152	152	is the contractor.
153	153	B. As used in this section:
154	154	1. “Eligible expenditure ” means any:
155	155	a. energy efficient heating or cooling system,
156	156	b. insulation material or system which is specifically
157	157	and primarily designed to reduce the heat gain or loss
158	158	of a residential property when installed in or on such
159	159	property,
160	160	c. exterior windows, including skylights,
161	161	d. exterior doors, and
162	162	e. any metal roof installed on a residential property,
163	163	but only if such roof has ap propriate pigmented
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215	215	coatings which are specifically and primarily designed
216	216	to reduce the heat gain of such dwelling unit and
217	217	which meet Energy Star pro gram requirements;
218	218	2. “Contractor” means the taxpayer who constructed the
219	219	residential property or manufactured home, or if more than one
220	220	taxpayer qualifies as the contractor, the primary contractor; and
221	221	3. “Eligible energy efficient residential property ” means a
222	222	newly constructed residential property or manufactured home property
223	223	which is located in the State of Oklahoma this state and
224	224	substantially complete after December 31, 2005 completed in the
225	225	calendar year corresponding to the tax year in which the credit is
226	226	claimed, and which is two thousand (2,000) square feet or less:
227	227	a. for the credit provided pursuant to paragraph 1 of
228	228	subsection A of this section, which is certified by an
229	229	accredited Residential Energy Services Network
230	230	Provider using the Home En ergy Rating System to have:
231	231	(1) a level of annual heating and cooling energy
232	232	consumption which is at leas t forty percent (40%)
233	233	below the annual level of heating and cooling
234	234	energy consumption of a comparable residential
235	235	property constructed in accordance w ith the
236	236	standards of Chapter 4 of the 2003 International
237	237	Energy Conservation Co de, as such code is in
238	238	effect on November 1, 2005,
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290	290	(2) heating and cooling equipment efficiencies which
291	291	correspond to the minimum allowed under the
292	292	regulations established by th e Department of
293	293	Energy pursuant to the National Appliance Energy
294	294	Conservation Act of 1987 and in effect a t the
295	295	time of construction of the property, and
296	296	(3) building envelope component improvements which
297	297	account for at least one -fifth of the reduced
298	298	annual heating and cooling energy consumption
299	299	levels, and
300	300	b. for the credit provided pursuant to paragraph 2 of
301	301	subsection A of this section, which is certified by an
302	302	accredited Residential Energy Services Netw ork
303	303	Provider using the Home Energy Rating System to have:
304	304	(1) a level of annual heating and cooling energy
305	305	consumption which is between twenty percent (20%)
306	306	and thirty-nine percent (39%) below the annual
307	307	level of heating and cooling energy consumption
308	308	of a comparable residential property constructed
309	309	in accordance with the stand ards of Chapter 4 of
310	310	the 2003 International Energy Conserv ation Code,
311	311	as such code is in effect on November 1, 2005,
312	312	(2) heating and cooling equipment efficiencies which
313	313	correspond to the minimum allowed under the
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365	365	regulations establish ed by the Department of
366	366	Energy pursuant to the National Appliance Energy
367	367	Conservation Act of 1987 and in effect at the
368	368	time of construction of the property, and
369	369	(3) building envelope component improvements which
370	370	account for at least one -third of the reduced
371	371	annual heating and cooling energy consumption
372	372	levels.
373	373	C. The credit provided for in subsection A of this section may
374	374	only be claimed once for the contractor of any eligible residential
375	375	energy efficient property during the taxable year when the property
376	376	is substantially complete.
377	377	D. If the credit allowed pursuant to this section exceeds the
378	378	amount of income taxes due or if there are no state income taxes due
379	379	on the income of the taxpayer, the amount of credit allowed but not
380	380	used in any taxable year may be carried forward as a credit against
381	381	subsequent income tax liability for a pe riod not exceeding four (4)
382	382	tax years following the qualified expenditures.
383	383	E. For credits earned on or after July 1, 2006, the credits
384	384	authorized by this section shall be free ly transferable to
385	385	subsequent transferees.
386	386	F. The Oklahoma Tax Commission shall promulgate rules necessa ry
387	387	to implement this act.
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439	439	G. No credit otherwise authorized by the provisions of this
440	440	section may be claimed for any event, transaction, investment,
441	441	expenditure or other act occurring on or after July 1 , 2010 for
442	442	which the credit would otherwise be allowable. The p rovisions of
443	443	this subsection shall cease to be operative on July 1, 2012.
444	444	Beginning July 1, 2012, the credit authorized by this section may be
445	445	claimed for any event, transaction, investment, expenditure , or
446	446	other act occurring on or after July 1, 2012, according to the
447	447	provisions of this section.
448	448	H. No credit otherwise authorized by the provisions of this
449	449	section may be claimed for any event , transaction, investment,
450	450	expenditure or other act occurring on or after July 1, 2016, for
451	451	which the credit would otherwise be allowable.
452	452	SECTION 2. This act shall become effective November 1, 2024.
453	453
454	454	59-2-3224 QD 12/15/2023 4:04:09 PM

Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB1426 Compare Versions