Oklahoma 2025 Regular Session

Oklahoma House Bill HB1427 Compare Versions

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28		-	ENGROSSED HOUSE
29		-	BILL NO. 1427 By: Wilk and Boles of the House
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 60th Legislature (2025)
	34	+
	35	+	COMMITTEE SUBSTITUTE
	36	+	FOR
	37	+	HOUSE BILL NO. 1427 By: Wilk and Boles of the House
30	38
31	39		and
32	40
33	41		Rader of the Senate
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	46	+
	47	+	COMMITTEE SUBSTITUTE
	48	+
38	49		[ revenue – taxation – credits – property – taxes –
39		-	]
	50	+	effective date –
	51	+	emergency ]
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44	56		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
45	57		SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.22, as
46	58		last amended by Section 153, Chapter 452, O.S.L . 2024 (68 O.S. Supp.
47	59		2024, Section 2357.22), is amended to read as follows:
48	60		Section 2357.22. A. For tax years 2028 and before, there shall
49	61		be allowed a one-time credit against the income tax imposed by
50	62		Section 2355 of this title for investments in quali fied clean-
51	63		burning motor vehicle fuel property placed in service on or after
52	64		January 1, 1991, or with respect to a hydrogen fuel cell, on or
53		-	after the effective date of thi s act, or for credits claimed based
54		-	upon investment in qualified clean -burning motor vehicle fuel
55		-	property made on or after the effective date of this act, there
56		-	shall be allowed a credit against the taxes imposed pursuant to
57		-	Section 624 or 628 of Title 36 of the Oklahoma Statutes .
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	92	+	after the effective date of this act , or for credits claimed based
	93	+	upon investment in qualified clean burning motor vehicle fuel
	94	+	property made on or after the effective date of this act, there
	95	+	shall be allowed a credit against the taxes imposed pursuant to
	96	+	Section 624 or 628 of Title 36 of the Oklahoma Statutes .
84	97		B. As used in this section, "qualified clean -burning motor
85	98		vehicle fuel property" means:
86	99		1. Equipment installed to modify a motor vehicle which is
87	100		propelled by gasoline or diesel fuel so that the vehicle may be
88	101		propelled by compressed natural gas, a hydrogen fuel cell, liquefied
89	102		natural gas, or liquefied petro leum gas. The equipment covered by
90	103		this paragraph must:
91	104		a. be new, not previously used to modify or retrofit any
92	105		vehicle propelled by gasoline or diesel fuel and be
93	106		installed by an alternative fuels equipment tech nician
94	107		who is certified in accordance with the Alternative
95	108		Fuels Technician Certification Act,
96	109		b. meet all Federal Motor Vehicle Safety Standards set
97	110		forth in 49 CFR 571, or
98	111		c. for any commercial motor vehicle (CMV), follow the
99	112		Federal Motor Carrier Safety Regulations or Oklahoma
100	113		Intrastate Motor Carrier Regulations;
101	114		2. A motor vehicle originally equipped so that the vehicle may
102	115		be propelled by compressed natural gas, a hydrogen fuel cell, or
103		-	liquefied natural gas or liquefied petroleum gas but only to the
104		-	extent of the portion of the basis of such motor vehicle which is
105		-	attributable to the storage of such fuel, the delivery to the engine
106		-	of such motor vehicle of such fuel, and the exhaust of gases from
107		-	combustion of such fuel;
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	143	+	liquefied natural gas or liquefied petroleum gas but only to the
	144	+	extent of the portion of the basis of suc h motor vehicle which is
	145	+	attributable to the storage of such fuel, the delivery to the engine
	146	+	of such motor vehicle of such fuel, and the exhaust of gases from
	147	+	combustion of such fuel;
134	148		3. Property, not including a building and its structural
135	149		components, which is:
136	150		a. directly related to the delivery of compressed natural
137	151		gas, liquefied natural gas or liquefied petroleum gas,
138	152		or hydrogen for commercial purposes or for a fee or
139	153		charge, into the fuel tank of a motor ve hicle
140	154		propelled by such fuel including com pression equipment
141	155		and storage tanks for such fuel at the point where
142	156		such fuel is so delivered but only if such property is
143	157		not used to deliver such fuel into any other type of
144	158		storage tank or receptacle and such fuel is not used
145	159		for any purpose other tha n to propel a motor vehicle,
146	160		or
147	161		b. a metered-for-fee, public access recharging system for
148	162		motor vehicles propelled in whole or in part by
149	163		electricity. The property covered by this paragraph
150	164		must be new, and must n ot have been previously
151	165		installed or used to refuel vehicles powered by
152		-	compressed natural gas, liquefied natural gas or
153		-	liquefied petroleum gas, hydrogen, or electricity;
154		-	4. Property which is directly related to the compression and
155		-	delivery of natural gas from a private home or residence, for
156		-	noncommercial purposes, into the fuel tank of a motor vehicle
157		-	propelled by compressed natural gas. The property covered by this
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	193	+	compressed natural gas, liquefied natural gas or
	194	+	liquefied petroleum gas, hydrogen, or electricity;
	195	+	4. Property which is directly related to the compression and
	196	+	delivery of natural gas from a private home or residence, for
	197	+	noncommercial purposes, into the fuel tank of a motor vehicle
	198	+	propelled by compressed natural gas. The property covered by this
184	199		paragraph must be new and must not have been previously installed or
185	200		used to refuel vehicles powered by natural gas; or
186	201		5. For tax years 2010 and 2023 through 2028, a motor vehicle
187	202		originally equipped so that the vehicle may be propelled by a
188	203		hydrogen fuel cell electric fueling system.
189	204		C. As used in this section, "motor vehicle" means a motor
190	205		vehicle originally designed by the man ufacturer to operate lawfully
191	206		and principally on streets and highways.
192	207		D. The credit provided for in subsection A of this section
193	208		shall be as follows:
194	209		1. For the qualified clean -burning motor vehicle fuel propert y
195	210		defined in paragraphs 1, 2, or 5 of subs ection B of this section,
196	211		the amount of the credit shall be as follows based upon gross
197	212		vehicle weight of the qualified vehicle:
198	213		a. for vehicles up to or below six thousand (6,000)
199	214		pounds, the credit shall be a maximum of Five Thousand
200	215		Five Hundred Dollars ($5,500.00),
201		-	b. for vehicles between six thousand one (6,001) pounds
202		-	to ten thousand (10,000) pounds, the credit shall be a
203		-	maximum amount of Nine Thousand Dollars ($9,000 .00),
204		-	c. for vehicles of ten thousand one (10,001) pounds, but
205		-	not in excess of twenty -six thousand five hundred
206		-	(26,500) pounds, the credit shall be a maximum amount
207		-	of Twenty-six Thousand Dollars ($26,000.00), and
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	243	+	b. for vehicles between six thousand one (6,001) pounds
	244	+	to ten thousand (10,000) pounds, the credit shall be a
	245	+	maximum amount of Nine Thousand Dollars ($9,000.00),
	246	+	c. for vehicles of ten thousand one (10,001) pounds, but
	247	+	not in excess of twen ty-six thousand five hundred
	248	+	(26,500) pounds, the credit shall be a maximum amount
	249	+	of Twenty-six Thousand Dollars ($26,000.00), and
234	250		d. for vehicles in excess of twenty -six thousand five
235	251		hundred one (26,501) pounds, the credit shall be a
236	252		maximum amount of One Hundred Thousand Dollars
237	253		($100,000.00);
238	254		2. For qualified clean -burning motor vehicle fuel property
239	255		defined in paragraph 3 of subsection B of this section, a per -
240	256		location credit of forty -five percent (45%) of th e cost of the
241	257		qualified clean-burning motor vehicle fuel property; and
242	258		3. For qualified clean -burning motor vehicle fuel property
243	259		defined in paragraph 4 of subsection B of this section, a per -
244	260		location credit of the lesser of fifty percent (50%) of the cost of
245	261		the qualified clean-burning motor vehicle fuel property or Two
246	262		Thousand Five Hundred Dollars ($2,500.00).
247	263		E. In cases where no credit has been claimed pursuant to
248	264		paragraph 1 of subsection D of this section by any prior owner and
249	265		in which a motor veh icle is purchased by a taxpayer with quali fied
250	266		clean-burning motor vehicle fuel property installed by the
251		-	manufacturer of such motor vehicle and the taxpayer is unable or
252		-	elects not to determine the exact basis whi ch is attributable to
253		-	such property, the taxpayer may claim a credit in an amount not
254		-	exceeding the lesser of ten percent (10%) of the cost of the motor
255		-	vehicle or One Thousand Five Hundred Dollars ($1,500.00).
256		-	F. If the tax credit allowed pursuant to sub section A of this
257		-	section exceeds the amount of income taxes due or if there are no
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	294	+	manufacturer of such motor vehicle and the taxpayer is unable or
	295	+	elects not to determine the exact basis which is attributable to
	296	+	such property, the taxpayer may claim a credit in an amount no t
	297	+	exceeding the lesser of ten percent (10%) of the cost of the motor
	298	+	vehicle or One Thousand Five Hundred Dollars ($1,500.00).
	299	+	F. If the tax credit allowed pursuant to subsection A of this
	300	+	section exceeds the amou nt of income taxes due or if there are no
284	301		state income taxes due on the income of the taxpayer, the amount of
285	302		the credit not used as an offset against the income taxes of a
286	303		taxable year may be carried forward, in order, as a credit against
287	304		subsequent income tax liability for a period not to exceed five (5)
288	305		years. The tax credit authorized pursuant to the provisions of this
289	306		section shall not be used to reduce the tax liability of the
290	307		taxpayer to less than zero (0).
291	308		G. A husband and wife who file separate r eturns for a taxable
292	309		year in which they co uld have filed a joint return may each claim
293	310		only one-half (1/2) of the tax credit that would have been allowed
294	311		for a joint return.
295	312		H. The Oklahoma Tax Commission is herein empowered to
296	313		promulgate rules by which the purpose of this section shall be
297	314		administered including the power to establish and enforce penalties
298	315		for violations thereof.
299	316		I. Notwithstanding the provisions of Section 2352 of this
300	317		title, for the fiscal year beginning on July 1, 2014, through fiscal
301		-	year 2023, the Tax Commission shall calculate an amount that equals
302		-	five percent (5%) of the cost of qualified clean -burning motor
303		-	vehicle fuel property as provided for in paragraph 1 of subsection D
304		-	of this section for tax year 2012. For each subsequent fiscal year
305		-	thereafter, the Tax Commission shall perform the same computation
306		-	with respect to the second tax year preceding the beginning of each
307		-	subsequent fiscal year. For fiscal year 2024, the Tax Commission
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	345	+	year 2023, the Tax Commission shall calcul ate an amount that equals
	346	+	five percent (5%) of the cost of qualified clean -burning motor
	347	+	vehicle fuel property as provided for in paragraph 1 of subsection D
	348	+	of this section for tax year 2012. For each subsequent fiscal year
	349	+	thereafter, the Tax Commission shall perform the same computation
	350	+	with respect to the second tax year preceding the beginning of each
	351	+	subsequent fiscal year. For fiscal year 2024, the Tax Commission
334	352		shall calculate an amount that equals twelve percent (12%) of the
335	353		credit for qualified clean-burning motor vehicle fuel property as
336	354		provided in paragraph 1 of subsection D of this section for tax year
337	355		2021. For each subsequent fiscal year, the Tax Commission shall
338	356		perform the same calculation for credits claimed in the second
339	357		preceding tax year. The Tax Commission shall then transfer an
340	358		amount equal to the amount calculated in this subsection from the
341	359		revenue derived pursuant to the provisions of subsections A, B and E
342	360		of Section 2355 of this title to the Compressed Natural Gas
343	361		Conversion Safety and Regulation Fund created in Section 130.25 of
344	362		Title 74 of the Oklahoma Statutes.
345	363		J. For the tax years 2020 through 2022, the total amount of
346	364		credits authorized by this section used to offset tax shall be
347	365		adjusted annually to limit the annual amo unt of credits to Twenty
348	366		Million Dollars ($20,000,000.00). The Tax Commission shall annually
349	367		calculate and publish by the first day of the affected taxable year
350	368		a percentage by which the credits authorized by this section shall
351		-	be reduced so the total amount of credits used to offset tax does
352		-	not exceed Twenty Million Dollars ($20,000,000.00) per year. The
353		-	formula to be used for the percentage adjustment shall be Twenty
354		-	Million Dollars ($20,000,000.00) divided by the credits claimed in
355		-	the second preceding year, with respect to any changes to the future
356		-	of the credit.
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	396	+	be reduced so the total amo unt of credits used to offset tax does
	397	+	not exceed Twenty Million Dollars ($20,000,000.00) per year. The
	398	+	formula to be used for the percentage adjustment shall be Twenty
	399	+	Million Dollars ($20,000,000.00) divided by the credits claimed in
	400	+	the second preceding year, with respect to any changes to the future
	401	+	of the credit.
383	402		K. Pursuant to subsection J of this section, in the event the
384	403		total tax credits authorized by this section exceed Twenty Million
385	404		Dollars ($20,000,000.00) in any calendar year, the Tax Commis sion
386	405		shall permit any excess over Twenty Million Dollars ($20,000,000.00)
387	406		but shall factor such excess into the percentage adjustment formula
388	407		for subsequent years with respect to any changes to the future of
389	408		the credit.
390	409		L. For the tax years 2023 through 2 028, the total amount of
391	410		credits authorized by this section used to offset tax shall be
392	411		adjusted annually to limit the annual amount of credits to:
393	412		1. Ten Million Dollars ($10,000,000.00) for qualified clean
394	413		burning fuel property propelled by compressed n atural gas, liquefied
395	414		natural gas, or liquefied petroleum gas, property related to the
396	415		delivery of compressed natural gas, liquefied natural gas or
397	416		liquefied petroleum gas, and property directly related to the
398	417		compression and delivery of natural gas;
399	418		2. Ten Million Dollars ($10,000,000.00) for property originally
400	419		equipped so that the vehicle may be propelled by a hydrogen fuel
401		-	cell electric fueling system and property direc tly related to the
402		-	delivery of hydrogen; and
403		-	3. Ten Million Dollars ($10,000,000.00) for property which is a
404		-	metered-for-fee, public access recharging system for motor vehicles
405		-	propelled in whole or in part by electricity.
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	447	+	cell electric fueling system and property directly related to the
	448	+	delivery of hydrogen; a nd
	449	+	3. Ten Million Dollars ($10,000,000.00 ) for property which is a
	450	+	metered-for-fee, public access recharging system for motor vehicles
	451	+	propelled in whole or in part by electricity.
432	452		The Tax Commission shall annually calculate and publish by the
433	453		first day of the affected taxable year a percentage b y which the
434	454		credits authorized by this section shall be reduced so the total
435	455		amount of credits used to offset tax does not exceed each of the
436	456		limits provided in paragraphs 1 through 3 of this subsection. The
437	457		formula to be used for the percentage adjustmen t shall be Ten
438	458		Million Dollars ($10,000,000.00) divided by the credits claimed in
439	459		the second preceding year, with respect to any changes to the future
440	460		of the credit.
441	461		M. Pursuant to subsection L of this section, in the event the
442	462		tax credits authorized by t his section exceed any of the limits
443	463		provided in paragraphs 1 through 3 of subsection L of this section
444	464		in any year, the Tax Commission shall permit any excess over Ten
445	465		Million Dollars ($10,000,000.00) but shall fa ctor such excess into
446	466		the percentage adjus tment formula for subsequent years with respect
447	467		to any changes to the future of the credit.
448	468		N. The Tax Commission shall notify the Office of the State
449	469		Secretary of Energy and Environment at any time when the amount of
450	470		claims for credits allowed pursuant t o this section reaches eighty
451		-	percent (80%) of the total annual limit provided in subsection J of
452		-	this section. Upon such notification, the Secretary shall provide
453		-	notice to the Governor, President Pro Tempore of the Senate and
454		-	Speaker of the House of Representatives.
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481		-	Passed the House of Representatives the 24th day of March, 2025.
	498	+	percent (80%) of the total annual limit provided in subsection J of
	499	+	this section. Upon such notification, the Secretary shall provide
	500	+	notice to the Governor, President Pro Tempore of the Senate and
	501	+	Speaker of the House of Rep resentatives.
	502	+	SECTION 2. This act shall become effective July 1, 2025.
	503	+	SECTION 3. It being immediately necessary for the preservation
	504	+	of the public peace, health or safety, an emergency is hereby
	505	+	declared to exist, by reas on whereof this act shall take effect and
	506	+	be in full force from and after its passage and approval.
482	507
483		-
484		-
485		-
486		-	Presiding Officer of the House
487		-	of Representatives
488		-
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491		-	Passed the Senate the ____ day of __________, 2025.
492		-
493		-
494		-
495		-
496		-	Presiding Officer of the Senate
497		-
498		-
	508	+	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated
	509	+	03/06/2025 - DO PASS, As Amended and Coauthored.
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