Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB586 Compare Versions

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3		-	ENGR. S. B. NO. 586 Page 1 1
	3	+	SENATE FLOOR VERSION - SB586 SFLR Page 1
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28		-	ENGROSSED SENATE
29		-	BILL NO. 586 By: Montgomery of the Senate
	29	+	SENATE FLOOR VERSION
	30	+	February 22, 2023
	31	+	AS AMENDED
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31		-	~~and~~
	33	+	SENATE BILL NO. 586 By: Montgomery
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33		-	Boles of the House
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38	39		[ income tax credit - property - effective date ]
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44	45		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
45	46		SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.22, as
46	47		amended by Section 1, Chapter 404, O.S.L. 2022 (68 O.S. Supp. 2022,
47	48		Section 2357.22), is amended to read as follows:
48	49		Section 2357.22. A. For tax years 2028 and before, there shall
49	50		be allowed a one-time credit against the income tax imposed by
50	51		Section 2355 of this title for inves tments in qualified clean-
51	52		burning motor vehicle fuel property placed in service on or after
52	53		January 1, 1991.
53	54		B. As used in this section, "qualified clean-burning motor
54	55		vehicle fuel property" means:
55	56		1. Equipment installed to modify a motor vehicle which is
56	57		propelled by gasoline or diesel fuel so that the vehicle may be
57	58		propelled by compressed natural gas, liquefied n atural gas, or
58	59		liquefied petroleum gas. The equip ment covered by this par agraph
59	60		must:
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61		-	ENGR. S. B. NO. 586 Page 2 1
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86	88		a. be new, not previously used to modify or retrofit any
87	89		vehicle propelled by gasoline or diesel fuel and be
88	90		installed by an alternative fuels equipment technician
89	91		who is certified in accordance with the Alternative
90	92		Fuels Technician Certificat ion Act,
91	93		b. meet all Federal Motor Vehicle Safety Standards set
92	94		forth in 49 CFR 571, or
93	95		c. for any commercial motor vehicle (CMV), follow the
94	96		Federal Motor Carrier Safety Regulations or Oklahoma
95	97		Intrastate Motor Carrier Regulations;
96	98		2. A motor vehicle ori ginally equipped so that the vehicle may
97	99		be propelled by compressed natural gas, or liquefied natural gas or
98	100		liquefied petroleum gas but only to the extent of the portion of the
99	101		basis of such motor vehicle which is attributable to t he storage of
100	102		such fuel, the delivery to the engine of such motor vehicle of such
101	103		fuel, and the exhaust of gases from combustion of su ch fuel;
102	104		3. Property, not including a building and its structural
103	105		components, which is:
104	106		a. directly related to the delive ry of compressed natural
105	107		gas, liquefied natural gas or liquefied petroleum gas,
106	108		or hydrogen for commercial purposes or for a fee or
107	109		charge, into the fuel tank of a motor vehicle
108	110		propelled by such fuel inclu ding compression equipment
109	111		and storage tanks for s uch fuel at the point where
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136	139		such fuel is so delivered but only if such property is
137	140		not used to deliver such fuel into any other type o f
138	141		storage tank or receptacle and such fuel is not used
139	142		for any purpose other than to propel a motor vehicle,
140	143		or
141	144		b. a metered-for-fee, public access recharging system for
142	145		motor vehicles propelled in whole or in part by
143	146		electricity. The property covered by this paragraph
144	147		must be new, and must not have been previously
145	148		installed or used to refuel vehicles powered by
146	149		compressed natural gas, liquefied natural gas or
147	150		liquefied petroleum gas, hydrogen, or electricity.
148	151		Any property covered by this paragraph which i s related to the
149	152		delivery of hydrogen into the fuel tank of a motor vehi cle shall
150	153		only be eligible for tax years 2010 and 2023 through 2028;
151	154		4. Property which is directly related to the compression and
152	155		delivery of natural gas from a private home or residence, for
153	156		noncommercial purposes, into the fuel tank of a motor vehicle
154	157		propelled by compressed natural ga s. The property covered by this
155	158		paragraph must be new and must not have been previously installed or
156	159		used to refuel vehicles powered by natural gas; or
157	160		5. For tax years 2010 and 2023 through 202 8, a motor vehicle
158	161		originally equipped so that the vehicle may be propelled by a
159	162		hydrogen fuel cell electric fueling system. Provided, a motor
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186	190		vehicle shall be registered i n this state to be considered qualified
187	191		clean-burning motor vehicle fuel property pursuant to this
188	192		subsection.
189	193		C. As used in this section, "motor vehicle" means a motor
190	194		vehicle originally designed by the manufacturer to operate lawfully
191	195		and principally on streets and highways.
192	196		D. The credit provided for in subsection A of th is section
193	197		shall be as follows:
194	198		1. For the qualified clean-burning motor vehicle fuel property
195	199		defined in paragraphs 1, 2, or 5 of subsection B of this section,
196	200		the amount of the credit shall be as follows based upon gross
197	201		vehicle weight of the qualified vehic le:
198	202		a. for vehicles up to or below six thousand (6,000)
199	203		pounds, the credit shall be a maxi mum of Five Thousand
200	204		Five Hundred Dollars ($5,500.00),
201	205		b. for vehicles between six thousand one (6,001) pounds
202	206		to ten thousand (10,000) pounds, the credit shall be a
203	207		maximum amount of Nine Thousand Dollars ($9,000.00),
204	208		c. for vehicles of ten thousand one ( 10,001) pounds, but
205	209		not in excess of twenty-six thousand five hundred
206	210		(26,500) pounds, the credit shall be a maximum amount
207	211		of Twenty-six Thousand Dollars ($26,000.00 ), and
208	212		d. for vehicles in excess of twenty-six thousand five
209	213		hundred one (26,501) pounds, the credit shall be a
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211		-	ENGR. S. B. NO. 586 Page 5 1
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236	241		maximum amount of One Hundred Thousand Dollars
237	242		($100,000.00);
238	243		2. For qualified clean-burning motor vehicle fuel property
239	244		defined in paragraph 3 of subsection B of this section, a per-
240	245		location credit of forty-five percent (45%) of the cos t of the
241	246		qualified clean-burning motor vehicle fuel property; and
242	247		3. For qualified cl ean-burning motor vehicle fuel property
243	248		defined in paragraph 4 of subsection B of this section, a per-
244	249		location credit of the lesser of fifty percent (50%) of the cost of
245	250		the qualified clean-burning motor vehicle fuel property or Two
246	251		Thousand Five Hundred D ollars ($2,500.00).
247	252		E. In cases where no credit has been cl aimed pursuant to
248	253		paragraph 1 of subsection D of this section by any prior owner and
249	254		in which a motor vehicle is purchased by a taxpayer with qualified
250	255		clean-burning motor vehicle fuel property in stalled by the
251	256		manufacturer of such motor vehicle and the ta xpayer is unable or
252	257		elects not to determine the exact basis whic h is attributable to
253	258		such property, the taxpay er may claim a credit in an amount not
254	259		exceeding the lesser of ten percent (10%) of th e cost of the motor
255	260		vehicle or One Thousand Five Hundred Dol lars ($1,500.00).
256	261		F. If the tax credit allowed pursuant to subs ection A of this
257	262		section exceeds the amount of income taxes due or if there are no
258	263		state income taxes due on the income of the taxpa yer, the amount of
259	264		the credit not used as an offset against the income taxes of a
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286	292		taxable year may be carried forward, in or der, as a credit against
287	293		subsequent income tax liability for a period not to exceed five (5)
288	294		years. The tax credit authorized pursu ant to the provisions of this
289	295		section shall not be used to r educe the tax liability of the
290	296		taxpayer to less than zero (0).
291	297		G. A husband and wife who file separate return s for a taxable
292	298		year in which they could have filed a joint return may each claim
293	299		only one-half (1/2) of the tax credit that would have been allow ed
294	300		for a joint return.
295	301		H. The Oklahoma Tax Commission is herein empowered to
296	302		promulgate rules by which the pu rpose of this section shall be
297	303		administered including the power to establish and enfor ce penalties
298	304		for violations thereof.
299	305		I. Notwithstanding th e provisions of Section 2352 of this
300	306		title, for the fiscal year b eginning on July 1, 2014, and each
301	307		fiscal year thereafter, the Tax Commission shall calculate an amount
302	308		that equals five percent (5% ) of the cost of qualified clean-burning
303	309		motor vehicle fuel property as provided for in paragraph 1 of
304	310		subsection D of this section for tax year 2012. For each subsequen t
305	311		fiscal year thereafter, the Tax Commission shall perform the same
306	312		computation with respect to the second tax year preceding the
307	313		beginning of each subsequent fiscal year. The Tax Commission shall
308	314		then transfer an amount equal to the amount calculated in this
309	315		subsection from the revenue derived pursuant to the provisions of
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336	343		subsections A, B and E of Section 2355 of this title to the
337	344		Compressed Natural Gas Conversion Safety and Regulation Fund created
338	345		in Section 130.25 of Title 74 of the Oklahoma Statutes.
339	346		J. For the tax years 2020 through 2022, the total amount of
340	347		credits authorized by this section used to offset t ax shall be
341	348		adjusted annually to limit the annual amount of credits to Twenty
342	349		Million Dollars ($20 ,000,000.00). The Tax Commission shall annual ly
343	350		calculate and publish by the first day of the affected taxable y ear
344	351		a percentage by which the credits authori zed by this section shall
345	352		be reduced so the total amount of credits used to offset tax does
346	353		not exceed Twenty Million Dollars ($20,000,000.00) per year. The
347	354		formula to be used for the percentage adjustment shal l be Twenty
348	355		Million Dollars ($20,000,000.00) divided by the credits claimed in
349	356		the second preceding year, with respect to a ny changes to the fu ture
350	357		of the credit.
351	358		K. Pursuant to subsection J of this section, in the event the
352	359		total tax credits authorized b y this section exceed Twenty Million
353	360		Dollars ($20,000,000.00) in any calendar year, the Tax Commission
354	361		shall permit any excess over Twenty Million Dollars ($20,000,000.00)
355	362		but shall factor such excess into the percentage adjustment formula
356	363		for subsequent years with respect to any changes to the fut ure of
357	364		the credit.
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384	392		L. For the tax years 2023 through 2028, the total amount of
385	393		credits authorized b y this section used to offset tax shall be
386	394		adjusted annually to limit the annual amount of credits to :
387	395		1. Ten Million Dollars ($10,000,000.00) for qualified clean
388	396		burning fuel property propelled by compressed natural gas, liquefied
389	397		natural gas, or liquefi ed petroleum gas, property related to the
390	398		delivery of compressed natural gas, liquefied natural gas or
391	399		liquefied petroleum gas, and property directly related to the
392	400		compression and delivery of natural gas;
393	401		2. Ten Million Dollars ($10,000,000.00) for property originally
394	402		equipped so that the vehicle ma y be propelled by a hydrogen fuel
395	403		cell electric fueling system and property directly related to the
396	404		delivery of hydrogen; and
397	405		3. Ten Million Dollars ($10,000,000.00) for property which is a
398	406		metered-for-fee, public access recharging system for motor vehicl es
399	407		propelled in whole or in part by electricity.
400	408		The Tax Commission shal l annually calculate and publish by the
401	409		first day of the affected taxable year a percentage by which the
402	410		credits authorized by this sectio n shall be reduced so the total
403	411		amount of credits used to offset tax does not exceed each of the
404	412		limits provided in paragraphs 1 through 3 of this subsection . The
405	413		formula to be used for the percentage adjustment shall be Ten
406	414		Million Dollars ($10,000,000.00) divided by the credits claimed in
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433	442		the second preceding year, with respect to any changes to the future
434	443		of the credit.
435	444		M. Pursuant to subsection L of this section, in the event the
436	445		tax credits authorized by this section exceed any of the limits
437	446		provided in paragraphs 1 through 3 of subsection L of this section
438	447		in any year, the Tax Commission shall permit any excess ove r Ten
439	448		Million Dollars ($10,000,000.00) but shall factor such excess into
440	449		the percentage adjustment formula for subsequent years with respe ct
441	450		to any changes to the future of the credit.
442	451		N. The Tax Commission shall notify the Office of the State
443	452		Secretary of Energy and Environment at any time when the amount of
444	453		claims for credits allowed pursuant to this section reaches eighty
445	454		percent (80%) of the total annual limit provided in subsection J of
446	455		this section. Upon such notification, the Secretary shall provi de
447	456		notice to the Governor, President Pro Tempore of the Senate, and
448	457		Speaker of the House of Representatives.
449	458		SECTION 2. This act shall become effective November 1, 2023.
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476		-	Passed the Senate the 2nd day of March, 2023.
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479		-
480		-	Presiding Officer of the Senate
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483		-	Passed the House of Representatives the ____ day of __________,
484		-	2023.
485		-
486		-
487		-
488		-	Presiding Officer of the House
489		-	of Representatives
490		-
	459	+	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
	460	+	February 22, 2023 - DO PASS AS AMENDED