| 65 | + | An Act relating to income tax credit; ame nding 68 |
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| 66 | + | O.S. 2021, Section 2357.22, as a mended by Section 1, |
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| 67 | + | Chapter 404, O.S.L. 2022 (68 O .S. Supp. 2022, Section |
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| 68 | + | 2357.22), which relates to credit for investments in |
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| 69 | + | qualified clean-burning motor vehicle fuel property; |
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| 70 | + | modifying credit amount for purcha se of motor |
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| 71 | + | vehicles for certain tax year s; and providing |
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| 72 | + | effective date. |
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| 41 | 73 | | |
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| 42 | 74 | | |
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| 43 | 75 | | |
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| 44 | 76 | | |
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| 45 | 77 | | BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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| 46 | 78 | | SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.22, as |
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| 47 | 79 | | amended by Section 1, Chapter 404, O.S.L. 2022 (68 O.S. Supp. 2022, |
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| 48 | 80 | | Section 2357.22), is amended to read as follows: |
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| 49 | 81 | | Section 2357.22. A. For tax years 2028 and before, there shall |
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| 50 | 82 | | be allowed a one-time credit against the income tax imposed by |
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| 51 | 83 | | Section 2355 of this title for inves tments in qualified clean- |
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| 52 | 84 | | burning motor vehicle fuel property placed in service on or after |
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| 53 | 85 | | January 1, 1991. |
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| 54 | 86 | | B. As used in this section, "qualified clean-burning motor |
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| 55 | 87 | | vehicle fuel property " means: |
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| 88 | 144 | | a. be new, not previously used to modify or retrofit any |
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| 89 | 145 | | vehicle propelled by gasoline or diesel fuel and be |
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| 90 | 146 | | installed by an alternative fuels equipment tec hnician |
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| 91 | 147 | | who is certified in accordance with the Alternative |
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| 92 | 148 | | Fuels Technician Certification Act, |
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| 93 | 149 | | b. meet all Federal Motor Vehicle Safety Standards set |
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| 94 | 150 | | forth in 49 CFR 571, or |
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| 95 | 151 | | c. for any commercial moto r vehicle (CMV), follow the |
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| 96 | 152 | | Federal Motor Carrier Safet y Regulations or Oklahoma |
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| 97 | 153 | | Intrastate Motor Carrier Regulations; |
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| 98 | 154 | | 2. A motor vehicle originally equippe d so that the vehicle may |
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| 99 | 155 | | be propelled by compressed natural gas, or liquefied natural gas or |
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| 100 | 156 | | liquefied petroleum gas but only to the extent of the portio n of the |
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| 101 | 157 | | basis of such motor vehicle which is attributable to t he storage of |
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| 102 | 158 | | such fuel, the delivery to the e ngine of such motor vehicle of such |
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| 103 | 159 | | fuel, and the exhaust of gases from combustion of such f uel; |
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| 104 | 160 | | 3. Property, not including a building and its str uctural |
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| 105 | 161 | | components, which is: |
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| 139 | 219 | | such fuel is so delivered but only if such property is |
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| 140 | 220 | | not used to deliver such fuel into any other type of |
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| 141 | 221 | | storage tank or receptacle and such fuel is not used |
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| 142 | 222 | | for any purpose other than to propel a motor vehicle, |
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| 143 | 223 | | or |
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| 144 | 224 | | b. a metered-for-fee, public access recharging system for |
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| 145 | 225 | | motor vehicles propelled in whole or in part by |
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| 146 | 226 | | electricity. The property covered by this paragraph |
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| 147 | 227 | | must be new, and must not have been previous ly |
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| 148 | 228 | | installed or used to refuel vehicles powered by |
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| 149 | 229 | | compressed natural gas, liquefied natural gas or |
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| 150 | 230 | | liquefied petroleum gas, hydrogen, or electricity. |
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| 151 | 231 | | Any property covered by this paragraph which is re lated to the |
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| 152 | 232 | | delivery of hydrogen into the fuel tank of a motor vehicle shall |
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| 153 | 233 | | only be eligible for tax years 2010 and 2023 through 2028; |
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| 154 | 234 | | 4. Property which is directly related to the compression and |
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| 155 | 235 | | delivery of natural gas from a private home or residence, for |
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| 156 | 236 | | noncommercial purposes, into the fuel tank of a motor vehicle |
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| 190 | 294 | | C. As used in this section, "motor vehicle" means a motor |
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| 191 | 295 | | vehicle originally designed by the manufacturer to operate lawfully |
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| 192 | 296 | | and principally on streets and highways. |
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| 193 | 297 | | D. The credit provided for in subsection A of th is section |
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| 194 | 298 | | shall be as follows: |
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| 195 | 299 | | 1. For the qualified clean-burning motor vehicle fuel property |
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| 196 | 300 | | defined in paragraphs 1, 2, or 5 of subsection B of this section, |
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| 197 | 301 | | the amount of the credit shall be as follows based upon gross |
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| 198 | 302 | | vehicle weight of the qualified vehic le: |
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| 199 | 303 | | a. for vehicles up to or below six thousand (6,000) |
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| 200 | 304 | | pounds, the credit shall be a m aximum of Five Thousand |
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| 201 | 305 | | Five Hundred Dollars ($5,500.00), |
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| 202 | 306 | | b. for vehicles between six thousand one (6,001) pounds |
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| 203 | 307 | | to ten thousand (10,000) poun ds, the credit shall be a |
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| 204 | 308 | | maximum amount of Nine Thousand Dollars ($9,000.00), |
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| 205 | 309 | | c. for vehicles of ten thousand on e (10,001) pounds, but |
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| 206 | 310 | | not in excess of twenty-six thousand five hundred |
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| 241 | 369 | | (2) for tax year 2024, Two Hundred Fifty Thousand |
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| 242 | 370 | | Dollars ($250,000.00), |
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| 243 | 371 | | (3) for tax year 2025, Two Hundred Thousand Dollars |
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| 244 | 372 | | ($200,000.00), |
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| 245 | 373 | | (4) for tax year 2026, One Hundred Fifty Thous and |
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| 246 | 374 | | Dollars ($150,000.00), and |
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| 247 | 375 | | (5) for tax years 2027 and 2028, One Hundred Thousand |
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| 248 | 376 | | Dollars ($100,000.00); |
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| 249 | 377 | | 2. For qualified cl ean-burning motor vehicle fuel property |
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| 250 | 378 | | defined in paragraph 3 of subsection B of this section, a per- |
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| 251 | 379 | | location credit of forty-five percent (45%) of the cos t of the |
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| 252 | 380 | | qualified clean-burning motor vehicle fuel property; and |
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| 253 | 381 | | 3. For qualified clean -burning motor vehicle fuel property |
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| 254 | 382 | | defined in paragraph 4 of subsection B of this section, a per- |
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| 255 | 383 | | location credit of the lesser of fifty percent (50%) of the cost of |
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| 256 | 384 | | the qualified clean-burning motor vehicle fuel property or Two |
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| 257 | 385 | | Thousand Five Hundred Dollars ($2,500 .00). |
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| 292 | 444 | | exceeding the lesser of ten percent (10%) of the cost of the motor |
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| 293 | 445 | | vehicle or One Thousand Five Hundred Dol lars ($1,500.00). |
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| 294 | 446 | | F. If the tax credit allowed pursuant to subs ection A of this |
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| 295 | 447 | | section exceeds the amount of income taxes due or if there are no |
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| 296 | 448 | | state income taxes due on the income of the taxpayer, the amoun t of |
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| 297 | 449 | | the credit not used as an offset against the income taxes of a |
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| 298 | 450 | | taxable year may be carried forward, in or der, as a credit against |
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| 299 | 451 | | subsequent income tax liability for a period not to exceed five (5) |
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| 300 | 452 | | years. The tax credit authorized pursuant to the pro visions of this |
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| 301 | 453 | | section shall not be used to r educe the tax liability of the |
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| 302 | 454 | | taxpayer to less than zero (0). |
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| 303 | 455 | | G. A husband and wife who file separate return s for a taxable |
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| 304 | 456 | | year in which they could have filed a joint return may each claim |
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| 305 | 457 | | only one-half (1/2) of the tax credit that would have been allow ed |
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| 306 | 458 | | for a joint return. |
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| 307 | 459 | | H. The Oklahoma Tax Commission is herein empowered to |
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| 308 | 460 | | promulgate rules by which the pu rpose of this section shall be |
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| 343 | 519 | | subsection D of this section for tax year 2012. For each subsequen t |
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| 344 | 520 | | fiscal year thereafter, the Tax Commission shall perform the same |
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| 345 | 521 | | computation with respect to the second tax year preceding the |
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| 346 | 522 | | beginning of each subsequent fiscal year. The Tax Commission shall |
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| 347 | 523 | | then transfer an amount equal to the amount calculated in this |
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| 348 | 524 | | subsection from the revenue derived pursuant to the provisions of |
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| 349 | 525 | | subsections A, B and E of Se ction 2355 of this title to the |
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| 350 | 526 | | Compressed Natural Gas Conversion Safety and Regulation Fund created |
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| 351 | 527 | | in Section 130.25 of Title 74 of the Oklahoma Statutes. |
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| 352 | 528 | | J. For the tax years 2020 through 2022, the total amount of |
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| 353 | 529 | | credits authorized by this section used to offset t ax shall be |
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| 354 | 530 | | adjusted annually to limit the annual amount of credits to Twenty |
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| 355 | 531 | | Million Dollars ($20 ,000,000.00). The Tax Commission shall annual ly |
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| 356 | 532 | | calculate and publish by the first day of the affected taxable y ear |
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| 357 | 533 | | a percentage by which the credits authori zed by this section shall |
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| 358 | 534 | | be reduced so the total amount of credits used to offset tax does |
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| 359 | 535 | | not exceed Twenty Million Dollars ($20,000,000.00) per year. The |
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| 360 | | - | formula to be used for the percentage adjustment shal l be Twenty |
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| 361 | | - | Million Dollars ($20,000,000.00) divided by the credits claimed in |
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| 362 | | - | the second preceding year, with respect t o any changes to the fu ture |
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| 363 | | - | of the credit. |
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| 364 | | - | K. Pursuant to subsection J of this section, in th e event the |
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| 365 | | - | total tax credits authorized b y this section exceed Twenty Million |
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| 366 | | - | Dollars ($20,000,000.00) in any calendar year, the Tax Commission |
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| 587 | + | formula to be used for the percentage adjustment shal l be Twenty |
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| 588 | + | Million Dollars ($20,000,000.00) divided by the credits claimed in |
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| 589 | + | the second preceding year, with respect t o any changes to the fu ture |
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| 590 | + | of the credit. |
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| 591 | + | K. Pursuant to subsection J of this section, in the event the |
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| 592 | + | total tax credits authorized b y this section exceed Twenty Million |
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| 593 | + | Dollars ($20,000,000.00) in any calendar year, the Tax Commission |
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| 394 | 594 | | shall permit any excess over Twenty Million Dollars ($20,000,000.00) |
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| 395 | 595 | | but shall factor such excess into the pe rcentage adjustment formula |
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| 396 | 596 | | for subsequent years with respect to any changes to the fut ure of |
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| 397 | 597 | | the credit. |
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| 398 | 598 | | L. For the tax years 2023 through 2028, the total amount of |
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| 399 | 599 | | credits authorized b y this section used to offset tax shall be |
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| 400 | 600 | | adjusted annually to limit the annual amount of credits to : |
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| 401 | 601 | | 1. Ten Million Dollars ($10,000,000.00) for qualified clean |
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| 402 | 602 | | burning fuel property propelled by compressed natural gas, liquefied |
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| 403 | 603 | | natural gas, or liquefi ed petroleum gas, property related to the |
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| 404 | 604 | | delivery of compressed natu ral gas, liquefied natural gas or |
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| 405 | 605 | | liquefied petroleum gas, and property directly related to the |
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| 406 | 606 | | compression and deliver y of natural gas; |
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| 407 | 607 | | 2. Ten Million Dollars ($1 0,000,000.00) for property originally |
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| 408 | 608 | | equipped so that the vehicle ma y be propelled by a hy drogen fuel |
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| 409 | 609 | | cell electric fueling system and property directly related to the |
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| 410 | 610 | | delivery of hydrogen; and |
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| 411 | | - | 3. Ten Million Dollars ($10,000,000.00) for property which i s a |
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| 412 | | - | metered-for-fee, public access recharging system for motor vehicl es |
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| 413 | | - | propelled in whole or in part by electricity . |
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| 414 | | - | The Tax Commission shal l annually calculate and publish by the |
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| 415 | | - | first day of the affected taxable year a percentage by which the |
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| 416 | | - | credits authorized by this sectio n shall be reduced so the total |
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| 417 | | - | amount of credits used to offset t ax does not exceed each of the |
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| 662 | + | 3. Ten Million Dollars ($10,000,000.00) for property which i s a |
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| 663 | + | metered-for-fee, public access recharging system for motor vehicl es |
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| 664 | + | propelled in whole or in part by electricity . |
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| 665 | + | The Tax Commission shal l annually calculate and publish by the |
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| 666 | + | first day of the affected taxa ble year a percentage by which the |
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| 667 | + | credits authorized by this sectio n shall be reduced so the total |
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| 668 | + | amount of credits used to offset t ax does not exceed each of the |
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| 445 | 669 | | limits provided in paragraphs 1 through 3 of this subsection . The |
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| 446 | 670 | | formula to be used for t he percentage adjustment shall be Ten |
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| 447 | 671 | | Million Dollars ($10,000,000.00) divided by the credits claimed in |
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| 448 | 672 | | the second preceding year, wi th respect to any changes to the future |
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| 449 | 673 | | of the credit. |
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| 450 | 674 | | M. Pursuant to subsection L of this section, in the event the |
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| 451 | 675 | | tax credits authorized by this section exceed any of the limits |
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| 452 | 676 | | provided in paragraphs 1 through 3 of subsection L of this section |
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| 453 | 677 | | in any year, the Tax Commission shal l permit any excess ove r Ten |
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| 454 | 678 | | Million Dollars ($10,000,000.00) but shall factor such excess in to |
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| 455 | 679 | | the percentage adjustment formula for subs equent years with respe ct |
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| 456 | 680 | | to any changes to the future of the credit. |
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| 457 | 681 | | N. The Tax Commission shall notify the Office of the State |
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| 458 | 682 | | Secretary of Energy and Environment at any time when the amount of |
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| 459 | 683 | | claims for credits allowed pursuant to this section reaches eighty |
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| 460 | 684 | | percent (80%) of the total annual limit provided in subsection J of |
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| 461 | 685 | | this section. Upon such notification, the Secretary shall provi de |
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