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ENGROSSED HOUSE AMENDME NT
TO
ENGROSSED SENATE BILL NO . 484 By: Paxton of the Senate
and
McDugle and Boles of the
House
[ Oklahoma Geological Survey - appropriation -
effective date -
emergency ]
AUTHOR: Add the following House coauthors: Deck and Conley
AUTHOR: Add the following Senate coauthor: Garvin
AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill
and insert:
"[ revenue and taxation – Oklahoma Geothermal
Investment Affordability Act – tax credit –
effective date ]
BE IT ENACTED BY THE PEOP LE OF THE STATE OF OKLAHOMA:
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SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.407 of Title 68, unless
there is created a duplication in numbering, reads as follows:
A. This act shall be known and may be cited as the "Oklahoma
Geothermal Investment Affordability Act".
B. As used in this section:
1. "Federal geothermal energy tax credit" means the federal tax
credit provided in Section 26 U.S.C. Section 48E as applied to
eligible geothermal projects as described in Section 26 U.S.C.
Section 48, as amended;
2. "Oklahoma Geothermal Investment Affordability Tax Credit"
means the tax credit created by this section;
3. "Qualified geothermal project" means a project related to
energy property which uses the ground or ground water as a thermal
energy source to heat a structure or as a thermal energy sink t o
cool a structure; and
4. "Taxpayer" means a person, firm, or corporation subject to
the tax imposed by Section 2355 of Title 68 of the Oklahoma Statutes
or an insurance company subject to the t ax imposed by Sections 624
and 628 of Title 36 of the Oklahoma Statutes or other financial
institution subject to the tax imposed by Section 2370 of Title 68
of the Oklahoma Statutes .
C. 1. There is hereby created for state tax years beginning on
or after January 1, 2024, and ending no later tha n December 31,
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2033, a tax credit for qualified projects placed in ser vice in this
state increasing geothermal cap acity, as follows:
a. a base credit amount equal to Five Hundred Dollars
($500.00) per ton of incre ased geothermal capacity ,
plus
b. credit enhancements as follows:
(1) additional Five Hundred Dollars ($500.00) per ton
of increased geothermal capacity for projects
where forty percent (40%) or more of the
materials and manufactured products of the
project were produced in Oklahoma, and
(2) additional Five Hundred Dollars ($500.00) per ton
of increased geothermal cap acity for projects
located on tribal land, and
(3) additional Five Hundred Dollars ($500.00) per ton
of increased geothermal capacity for proje cts
located in a low-income community. For purposes
of this paragraph, "low-income community" means:
(a) any population census tract where the
poverty rate for such tract is twenty
percent (20%) or greater, or
(b) in the case of a tract not located with in a
metropolitan area, the median family income
for such tract does not exceed eighty
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percent (80%) of the statewide median
income, or
(c) in the case of a tract located within a
metropolitan area, the median family income
for such tract does not exceed eighty
percent (80%) of the greater of statewide
median family income or the metropoli tan
area median family income .
2. For qualified projects placed in serv ice after the effective
date of this act, the amount of total state tax credits utilized
under the provisions of this act shall not exceed Twenty Million
Dollars ($20,000,000.00).
D. Any nontaxable entities, including agencies of the State of
Oklahoma or political subdivisions there of, shall be eligible to
establish a transferable tax credit in the amount provided in
subsection C of this section. Such tax credit shall be a property
right available to a state agency or political subdivision of this
state to transfer to the contractor ass ociated with the applicable
qualified geothermal project, who may subsequently utilize such t ax
credits, whether individual or corporate, who shall have an actual
or anticipated income tax liability und er Section 2355 of Title 68
of the Oklahoma Statutes . These tax credit provisions are
authorized as an incentive to the State of Oklahoma, its age ncies
and political subdivisions to encourage the expenditure of funds i n
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the development, construction , and utilization of geothermal
projects as described i n this act.
E. A taxpayer owning an interest in an investment in a
qualified project shall be allo wed Oklahoma Geothermal Investment
Affordability Tax Credits under this section for tax years beginning
on or after January 1, 20 24, which tax credits 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 as sign its
interest in the inves tment.
F. An insurance company claiming a credit against state premium
tax or retaliatory tax or any other tax imposed by Section 624 or
628 of Title 36 of the Oklahoma Statu tes shall not be requir ed to
pay any additional retaliatory tax under Section 628 of Title 36 of
the Oklahoma Statutes as a result of claiming the credit. The
credit may fully offset any retaliatory tax imp osed by Section 628
of Title 36 of the Oklahoma S tatutes.
G. Any credit claimed but not used in a taxable year may be
carried forward two (2) subsequent tax able years.
H. The owner of a qualified project eligible for the credit
authorized by this section shall submit, at the time of filing the
tax return with the Oklahoma Tax Commission, along with any
additional information reques ted by the Oklahoma Tax Com mission to
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determine eligibility for credits offered under the provisions of
this act.
I. If under Section 42 of the Internal Revenue Code of 1986, as
amended, a portion of any related federal geothermal energy tax
credits taken on a qualified project is required to be recaptured
during the first ten (10) years after a project is placed in
service, the taxpayer claiming Oklahoma Geothermal Investment
Affordability Tax Credits with respect to such project shall also be
required to recapture a portion of suc h credits. The amount of
Oklahoma Geothermal Investment Affordability Tax Credits subject to
recapture shall be proportionally equal to the amount of federal
geothermal energy tax credits subject to recapture.
J. The Oklahoma Tax Commission may require t he filing of an
application for prequalification or request additional documentation
necessary to determine the accuracy and eligibility for a tax credit
claimed under the provisions of this act.
K. The Oklahoma Tax Commission shall promulgate rules as
necessary to administer the provisions of this act, including, but
not limited to, implementation of an advanced allocation
prequalification applicatio n process in order to a dminister the cap
on total credits as established in paragraph 2 of subsection C of
this section.
SECTION 2. This act shall become effective January 1, 2024."
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Passed the House of Representatives the 27th day of April, 2023.
Presiding Officer of the House of
Representatives
Passed the Senate the ____ day of _______ ___, 2023.
Presiding Officer of the Senate
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ENGROSSED SENATE
BILL NO. 484 By: Paxton of the Senate
and
Boles of the House
[ Oklahoma Geological Survey - appropriation -
effective date -
emergency ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 3. There is hereby appropriated to the Oklahoma
Geological Survey from any monies not otherwise appropriated from
the General Revenue Fund of the State Treasury for the fiscal year
ending June 30, 2024, the sum of Ten Million Dollars
($10,000,000.00) or so much thereof as may be necessary for the
purpose of purchasing new and/or updating existing seismic
monitoring equipment in this state.
SECTION 4. This act shall become effective July 1, 2023.
SECTION 5. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
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Passed the Senate the 21st day of March, 2023.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2023.
Presiding Officer of the House
of Representatives