Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB484 Compare Versions

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3		-	ENGR. H. A. to ENGR. S. B. NO. 484 Page 1 1
	3	+	SB484 HFLR Page 1
	4	+	BOLD FACE denotes Committee Amendments. 1
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28		-	ENGROSSED HOUSE AMENDME NT
29		-	TO
30		-	ENGROSSED SENATE BILL NO . 484 By: Paxton of the Senate
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 59th Legislature (2023)
	34	+
	35	+	COMMITTEE SUBSTITUTE
	36	+	FOR ENGROSSED
	37	+	SENATE BILL NO. 484 By: Paxton of the Senate
31	38
32	39		and
33	40
34	41		McDugle and Boles of the
35	42		House
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39	46
40		-	[ Oklahoma Geological Survey - appropriation -
41		-	effective date -
42		-	emergency ]
	47	+	COMMITTEE SUBSTITUTE
43	48
44		-
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46		-
47		-
48		-	AUTHOR: Add the following House coauthors: Deck and Conley
49		-
50		-	AUTHOR: Add the following Senate coauthor: Garvin
51		-
52		-
53		-
54		-	AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill
55		-	and insert:
56		-
57		-
58		-
59		-
60		-	"[ revenue and taxation – Oklahoma Geothermal
	49	+	[ revenue and taxation – Oklahoma Geothermal
61	50		Investment Affordability Act – tax credit –
62	51		effective date ]
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67	56		BE IT ENACTED BY THE PEOP LE OF THE STATE OF OKLAHOMA:
	57	+	SECTION 1. NEW LAW A new section of law to be codified
	58	+	in the Oklahoma Statutes as Section 2357.407 of Title 68, unless
	59	+	there is created a duplication in numbering, read s as follows:
	60	+	A. This act shall be known and may be cited as the "Oklahoma
	61	+	Geothermal Investment Affordability Act".
	62	+	B. As used in this section:
	63	+	1. "Federal geothermal energy tax credit" means the federal tax
	64	+	credit provided in Section 26 U.S. Code Section 48 E as applied to
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69		-	ENGR. H. A. to ENGR. S. B. NO. 484 Page 2 1
	66	+	SB484 HFLR Page 2
	67	+	BOLD FACE denotes Committee Amendments. 1
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94		-	SECTION 1. NEW LAW A new section of law to be codified
95		-	in the Oklahoma Statutes as Section 2357.407 of Title 68, unless
96		-	there is created a duplication in numbering, reads as follows:
97		-	A. This act shall be known and may be cited as the "Oklahoma
98		-	Geothermal Investment Affordability Act".
99		-	B. As used in this section:
100		-	1. "Federal geothermal energy tax credit" means the federal tax
101		-	credit provided in Section 26 U.S.C. Section 48E as applied to
102		-	eligible geothermal projects as described in Section 26 U.S.C.
	92	+	eligible geothermal projects as described in Section 26 U.S. Code
103	93		Section 48, as amended;
104		-	2. "Oklahoma Geothermal Investment Affordability Tax Credit"
	94	+	4. "Oklahoma Geothermal Investment Affordability Tax Credit"
105	95		means the tax credit created by this section;
106		-	3. "Qualified geothermal project" means a project related to
	96	+	5. "Qualified geothermal project" means a project related to
107	97		energy property which uses the ground or ground water as a thermal
108	98		energy source to heat a structure or as a thermal energy sink t o
109	99		cool a structure; and
110		-	4. "Taxpayer" means a person, firm, or corporation subject to
	100	+	6. "Taxpayer" means a person, firm or corporation subject to
111	101		the tax imposed by Section 2355 of Title 68 of the Oklahoma Statutes
112	102		or an insurance company subject to the t ax imposed by Sections 624
113	103		and 628 of Title 36 of the Oklahoma Statutes or other financial
114		-	institution subject to the tax imposed by Section 2370 of ~~Title 68~~
115		-	~~of the Oklahoma Statutes~~ .
	104	+	institution subject to the tax imposed by Section 2370 of this
	105	+	title.
116	106		C. 1. There is hereby created for state tax years beginning on
117	107		or after January 1, 2024 , and ending no later than December 31 ,
	108	+	2033, a tax credit for qual ified projects placed in service in this
	109	+	state. Such credit shall be equal to Five Hundred Dollars ( $500.00)
	110	+	per ton of increased geothermal capacity resulting from a qualified
	111	+	project.
	112	+	2. For qualified projects placed in service after the effective
	113	+	date of this act, the amount of total state tax credits utilized
	114	+	under the provisions of this act shall not exceed Twenty Million
	115	+	Dollars ($20,000,000.00).
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119		-	ENGR. H. A. to ENGR. S. B. NO. 484 Page 3 1
	117	+	SB484 HFLR Page 3
	118	+	BOLD FACE denotes Committee Amendments. 1
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144		-	~~2033~~, ~~a tax credit for qualified projects placed in ser vice in this~~
145		-	~~state increasing geothermal cap acity~~, ~~as follows:~~
146		-	a. a ~~base~~ credit amount ~~equal to Five Hundred Dollars~~
147		-	~~($500.00) per ton~~ of ~~incre ased geothermal capacity ,~~
148		-	~~plus~~
149		-	~~b. credit enhancements as follows:~~
150		-	~~(1) additional Five Hundred Dollars ($500.00) per ton~~
151		-	of ~~increased geothermal capacity for projects~~
152		-	~~where forty percent (40%) or more of~~ the
153		-	~~materials~~ and ~~manufactured products of the~~
154		-	~~project were produced in Oklahoma~~, ~~and~~
155		-	~~(2) additional Five Hundred Dollars ($500~~.~~00) per ton~~
156		-	~~of increased geothermal cap acity for projects~~
157		-	~~located on tribal land,~~ ~~and~~
158		-	~~(3) additional Five Hundred Dollars ($500.00) per ton~~
159		-	~~of increased geothermal capacity for proje cts~~
160		-	~~located in a low-income~~ ~~community. For purposes~~
161		-	~~of this paragraph,~~ ~~"low-income community"~~ ~~means:~~
162		-	~~(a) any population census tract where the~~
163		-	~~poverty rate for such tract is twenty~~
164		-	~~percent (20%) or greater, or~~
165		-	~~(b) in the case of a tract not located with in a~~
166		-	~~metropolitan area,~~ the ~~median family income~~
167		-	~~for such tract does not exceed eighty~~
	143	+	D. Any nontaxable entities, including agencies of the State of
	144	+	Oklahoma or political subdivisions there of, shall be eligible to
	145	+	establish a transferable tax credit in the amount provided in
	146	+	subsection C of this section. Such tax credit shall be a property
	147	+	right available to a state agency or political subdivision of this
	148	+	state to transfer or sell to a taxable entity, whether individual or
	149	+	corporate, who shall have an actual or anticipated income tax
	150	+	liability under Section 2355 of Title 68 of the Oklahoma Statutes .
	151	+	These tax credit pro visions are authorized as an incentive to the
	152	+	State of Oklahoma, its age ncies and political subdivisions to
	153	+	encourage the expenditure of funds i n the development, construction
	154	+	and utilization of geothermal projects as described i n this act.
	155	+	E. A taxpayer owning an interest in an investment in a
	156	+	qualified project shall be allo wed Oklahoma Geothermal Investment
	157	+	Affordability Tax Credits under this section for tax years beginning
	158	+	on or after January 1, 20 24, which tax credits shall be allocated
	159	+	among some or all of the partners, members, or shareholders of the
	160	+	taxpayer owning such interest in any manner agreed to by such
	161	+	partners, members or sharehol ders. Such taxpayer may as sign its
	162	+	interest in the investment.
	163	+	F. An insurance company claiming a credit again st state premium
	164	+	tax or retaliatory tax or any other tax imposed by Sections 624 or
	165	+	628 of Title 36 of the Oklahoma Statu tes shall not be requir ed to
	166	+	pay any additional retaliatory tax under Section 628 of Title 36 of
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169		-	ENGR. H. A. to ENGR. S. B. NO. 484 Page 4 1
	168	+	SB484 HFLR Page 4
	169	+	BOLD FACE denotes Committee Amendments. 1
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194		-	percent (80%) of the statewide median
195		-	income, or
196		-	(c) in the case of a tract located within a
197		-	metropolitan area, the median family income
198		-	for such tract does not exceed eighty
199		-	percent (80%) of the greater of statewide
200		-	median family income or the metropoli tan
201		-	area median family income .
202		-	2. For qualified projects placed in serv ice after the effective
203		-	date of this act, the amount of total state tax credits utilized
204		-	under the provisions of this act shall not exceed Twenty Million
205		-	Dollars ($20,000,000.00).
206		-	D. Any nontaxable entities, including agencies of the State of
207		-	Oklahoma or political subdivisions there of, shall be eligible to
208		-	establish a transferable tax credit in the amount provided in
209		-	subsection C of this section. Such tax credit shall be a property
210		-	right available to a state agency or political subdivision of this
211		-	state to transfer to the contractor ass ociated with the applicable
212		-	qualified geothermal project, who may subsequently utilize such t ax
213		-	credits, whether individual or corporate, who shall have an actual
214		-	or anticipated income tax liability und er Section 2355 of Title 68
215		-	of the Oklahoma Statutes . These tax credit provisions are
216		-	authorized as an incentive to the State of Oklahoma, its age ncies
217		-	and political subdivisions to encourage the expenditure of funds i n
	194	+	the Oklahoma Statutes as a result o f claiming the credit. The
	195	+	credit may fully offset any retaliatory tax imp osed by Section 628
	196	+	of Title 36 of the Oklahoma S tatutes.
	197	+	G. Any credit claimed but not used in a taxable year may be
	198	+	carried forward two (2) subsequent tax able years.
	199	+	H. The owner of a qualified project eligible for the credit
	200	+	authorized by this section shall submit, at the time of filing the
	201	+	tax return with the Oklahoma Tax Commission, along with any
	202	+	additional information requested by the Oklahoma Tax Com mission to
	203	+	determine eligibility for credits offered under the provisions of
	204	+	this act.
	205	+	I. If under Section 42 of the Internal Revenue Code of 1986, as
	206	+	amended, a portion of any related federal geothermal energy tax
	207	+	credits taken on a qualified project is required to be recaptured
	208	+	during the first ten (10) years after a project is placed in
	209	+	service, the taxpayer claiming Oklahoma Geothermal Investment
	210	+	Affordability Tax Credits with respect to such project shall also be
	211	+	required to recapture a portion of suc h credits. The amount of
	212	+	Oklahoma Geothermal Investment Affordability Tax Credits subject to
	213	+	recapture shall be proportionally equal to the amount of federal
	214	+	geothermal energy tax credits subject to recapture.
	215	+	J. The Oklahoma Tax Commission may require t he filing of an
	216	+	application for prequalification or request additional documentation
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219		-	ENGR. H. A. to ENGR. S. B. NO. 484 Page 5 1
	218	+	SB484 HFLR Page 5
	219	+	BOLD FACE denotes Committee Amendments. 1
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244		-	the development, construction , and utilization of geothermal
245		-	projects as described i n this act.
246		-	E. A taxpayer owning an interest in an investment in a
247		-	qualified project shall be allo wed Oklahoma Geothermal Investment
248		-	Affordability Tax Credits under this section for tax years beginning
249		-	on or after January 1, 20 24, which tax credits shall be allocated
250		-	among some or all of the partners, members, or shareholders of the
251		-	taxpayer owning such interest in any manner agreed to by such
252		-	partners, members, or shareholders. Such taxpayer may as sign its
253		-	interest in the inves tment.
254		-	F. An insurance company claiming a credit against state premium
255		-	tax or retaliatory tax or any other tax imposed by Section 624 or
256		-	628 of Title 36 of the Oklahoma Statu tes shall not be requir ed to
257		-	pay any additional retaliatory tax under Section 628 of Title 36 of
258		-	the Oklahoma Statutes as a result of claiming the credit. The
259		-	credit may fully offset any retaliatory tax imp osed by Section 628
260		-	of Title 36 of the Oklahoma S tatutes.
261		-	G. Any credit claimed but not used in a taxable year may be
262		-	carried forward two (2) subsequent tax able years.
263		-	H. The owner of a qualified project eligible for the credit
264		-	authorized by this section shall submit, at the time of filing the
265		-	tax return with the Oklahoma Tax Commission, along with any
266		-	additional information reques ted by the Oklahoma Tax Com mission to
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293		-	determine eligibility for credits offered under the provisions of
294		-	this act.
295		-	I. If under Section 42 of the Internal Revenue Code of 1986, as
296		-	amended, a portion of any related federal geothermal energy tax
297		-	credits taken on a qualified project is required to be recaptured
298		-	during the first ten (10) years after a project is placed in
299		-	service, the taxpayer claiming Oklahoma Geothermal Investment
300		-	Affordability Tax Credits with respect to such project shall also be
301		-	required to recapture a portion of suc h credits. The amount of
302		-	Oklahoma Geothermal Investment Affordability Tax Credits subject to
303		-	recapture shall be proportionally equal to the amount of federal
304		-	geothermal energy tax credits subject to recapture.
305		-	J. The Oklahoma Tax Commission may require t he filing of an
306		-	application for prequalification or request additional documentation
307	244		necessary to determine the accuracy and eligibility for a tax credit
308	245		claimed under the provisions of this act.
309	246		K. The Oklahoma Tax Commission shall promulgate rules as
310		-	necessary to administer the provisions of this act, including, but
	247	+	necessary to administer the provisions of this act; including but
311	248		not limited to, implementation of an advanced allocation
312	249		prequalification applicatio n process in order to a dminister the cap
313		-	on total credits as established in paragraph 2 of subsection C of
314		-	this section.
315		-	SECTION 2. This act shall become effective January 1, 2024."
	250	+	on total credits as established in subsection C of this section.
	251	+	SECTION 2. This act shall become effective January 1, 2024.
316	252
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343		-	Passed the House of Representatives the 27th day of April, 2023.
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348		-
349		-	Presiding Officer of the House of
350		-	Representatives
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353		-	Passed the Senate the ____ day of _______ ___, 2023.
354		-
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358		-
359		-	Presiding Officer of the Senate
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387		-	ENGROSSED SENATE
388		-	BILL NO. 484 By: Paxton of the Senate
389		-
390		-	and
391		-
392		-	Boles of the House
393		-
394		-
395		-
396		-
397		-	[ Oklahoma Geological Survey - appropriation -
398		-	effective date -
399		-	emergency ]
400		-
401		-
402		-
403		-
404		-
405		-	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
406		-	SECTION 3. There is hereby appropriated to the Oklahoma
407		-	Geological Survey from any monies not otherwise appropriated from
408		-	the General Revenue Fund of the State Treasury for the fiscal year
409		-	ending June 30, 2024, the sum of Ten Million Dollars
410		-	($10,000,000.00) or so much thereof as may be necessary for the
411		-	purpose of purchasing new and/or updating existing seismic
412		-	monitoring equipment in this state.
413		-	SECTION 4. This act shall become effective July 1, 2023.
414		-	SECTION 5. It being immediately necessary for the preservation
415		-	of the public peace, health or safety, an emergency is hereby
416		-	declared to exist, by reason whereof this act shall take effect and
417		-	be in full force from and after its passage and approval.
418		-
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444		-	Passed the Senate the 21st day of March, 2023.
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448		-	Presiding Officer of the Senate
449		-
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451		-	Passed the House of Representatives the ____ day of __________,
452		-	2023.
453		-
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456		-	Presiding Officer of the House
457		-	of Representatives
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	253	+	COMMITTEE REPORT BY: CO MMITTEE ON APPROPRIATIONS AND BUDGET , dated
	254	+	04/20/2023 - DO PASS, As Amended and Coauthored.