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SENATE FLOOR VERSION
February 10, 2025
SENATE BILL NO. 475 By: Prieto
An Act relating to tax procedure; amending 68 O.S.
2021, Section 205, as last amended by Section 1,
Chapter 208, O.S.L. 2024 (68 O.S. Supp. 2024, Section
205), which relates to the confidential nature of
records and files of the Oklahoma Tax Commission;
excepting the disclosure of information pertaining to
the claim of certain tax credit; amending 68 O.S.
2021, Section 2357.22, as last amended by Section
153, Chapter 452, O.S.L. 2024 (68 O.S. Supp. 2024,
Section 2357.22), which relates to the one -time
credit against income tax for investments in
qualified clean-burning motor fuel property;
requiring the Oklahoma Tax Commission to verify
whether a credit has been claimed for certai n vehicle
upon request; updating statutory references; updating
statutory language; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 205, as last
amended by Section 1, Chapter 208, O.S.L. 2024 (68 O.S. Supp. 2024,
Section 205), is amended to read as follows:
Section 205. A. The records and files of the Oklahoma Tax
Commission concerning the administration of the Uniform Tax
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Procedure Code or of any state tax law shall be considered
confidential and privileged, except as otherwise provided for by
law, and neither the Tax Commission nor any employee engaged in the
administration of the Tax Commission or charged with the custody of
any such records or files nor any person who may have secured
information from the Tax Commission shall disclose any information
obtained from the records or files or from any examination or
inspection of the premises or property of any person.
B. Except as provided i n paragraph 26 of subsection C of this
section, neither the Tax Commission nor any employee engaged in the
administration of the Tax Commission or charged with the custody of
any such records or files shall be required by any court of this
state to produce any of the records or files for the inspection of
any person or for use in any action or proceeding, except when the
records or files or the facts shown thereby are directly involved in
an action or proceeding pursuant to the provisions of the Uniform
Tax Procedure Code or of the state tax law, or when the
determination of the action or proceeding will affect the valid ity
or the amount of the claim of the state pursuant to any state tax
law, or when the information contained in the records or files
constitutes evidence of violation of the provisions of the Uniform
Tax Procedure Code or of any state tax law.
C. The provisions of this section shall not prevent the Tax
Commission, or with respect to the Oklahoma Department of Commerce
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in administration of the Oklahoma Rural Jobs Act as provided by
paragraph 22 of this subsection, from disclosing the following
information and no liability whatsoever, civil or criminal, shall
attach to any member of the Tax Commission, or the Oklahoma
Department of Commerce as a pplicable, or any employee thereof for
any error or omission in the disclosure of such information:
1. The delivery to a taxpayer or a duly authorized
representative of the taxpayer of a copy of any report or any other
paper filed by the taxpayer pursuant to the provisions of the
Uniform Tax Procedure Code or of any state tax law;
2. The exchange of information that i s not protected by the
federal Privacy Protection Act, 42 U.S.C., Section 2000aa et seq.,
pursuant to reciprocal agreements entered into by the Tax Commission
and other state agencies or agencies of the federal government;
3. The publication of statistics so classified as to prevent
the identification of a particular report and the items thereof;
4. The examination of records and files by th e State Auditor
and Inspector or the duly authorized agents of the State Auditor and
Inspector;
5. The disclosing o f information or evidence to the Oklahoma
State Bureau of Investigation, Attorney General, Oklahoma State
Bureau of Narcotics and Dangerous Drugs Control, any district
attorney or agent of any federal law enforcement agency when the
information or evidence is to be used by such officials to
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investigate or prosecute violations of the criminal provisions of
the Uniform Tax Procedure Code or of a ny state tax law or of any
federal crime committed against this state. Any information
disclosed to the Oklahoma St ate Bureau of Investigation, Attorney
General, Oklahoma State Bureau of Narcotics and Dangerous Drugs
Control, any district attorney or agen t of any federal law
enforcement agency shall be kept confidential by such person and not
be disclosed except when presented to a court in a prosecution for
violation of the tax laws of this state or except as specifically
authorized by law, and a violatio n by the Oklahoma State Bureau of
Investigation, Attorney General, Oklahoma State Bureau of Narcotics
and Dangerous Drugs Control, district attorney or agent of any
federal law enforcement agency by otherwise releasing the
information shall be a felony;
6. The use by any division of the Tax Commission of any
information or evidence in the possession of or contained in any
report or return filed with any other division of the Tax
Commission;
7. The furnishing, at the discretion of the Tax Commission, of
any information disclosed by its records or files to any official
person or body of this state, any other state, the U nited States or
foreign country who is concerned with the administration or
assessment of any similar tax in this state, any other state or the
United States. The provisions of this paragraph shall include the
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furnishing of information by the Tax Commission to a county assessor
to determine the amount of gross household income pursuant to the
provisions of Section 8C of Article X of the Oklah oma Constitution
or Section 2890 of this title. The Tax Commission shall promulgate
rules to give guidance to the c ounty assessors regarding the type of
information which may be used by the county assessors in determining
the amount of gross household inc ome pursuant to Section 8C of
Article X of the Oklahoma Constitution or Section 2890 of this
title. The provisions of this paragraph shall also include the
furnishing of information to the State Treasurer for the purpose of
administration of the Uniform U nclaimed Property Act;
8. The furnishing of information to other state agencies for
the limited purpose of aiding i n the collection of debts owed by
individuals to such requesting agencies;
9. The furnishing of information requested by any member of the
general public and stated in the sworn lists or schedules of taxable
property of public service corporations organized, existing, or
doing business in this state which are submitted to and certified by
the State Board of Equalization pursuant to the provis ions of
Section 2858 of this title and Section 21 of Article X of the
Oklahoma Constitution, provided such informati on would be a public
record if filed pursuant to Sections 2838 and 2839 of this title on
behalf of a corporation other than a public service corporation;
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10. The furnishing of information requested by any member of
the general public and stated in the findings of the Tax Commission
as to the adjustment and equalization of the valuation of real and
personal property of the counties of the stat e, which are submitted
to and certified by the State Board of Equalization pursuant to the
provisions of Section 286 5 of this title and Section 21 of Article X
of the Oklahoma Constitution;
11. The furnishing of information as to the issuance or
revocation of any tax permit, license or exemption by the Tax
Commission as provided for by law. Such information shall be
limited to the name of the person issued the permit, license or
exemption, the name of the business entity authorized to engage in
business pursuant to the permit, license or exemption, the address
of the business entity and the grounds for revocation;
12. The posting of notice of revocation of any tax permit or
license upon the premises of the place of business of any business
entity which has had any tax permit or license revoked by the Tax
Commission as provided for by law. Such notice shall be limited to
the name of the person issued the permit or license, the name of the
business entity authorized to engage in business pursuant to the
permit or license, the address of the business entity and the
grounds for revocation;
13. The furnishing of informatio n upon written request by any
member of the general public as to the outstanding and unpaid amount
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due and owing by any taxpayer of this sta te for any delinquent tax,
together with penalty and interest, for which a tax warrant or a
certificate of indebtedness has been filed pursuant to law;
14. After the filing of a tax warrant pursuant to law, the
furnishing of information upon written reque st by any member of the
general public as to any agreement entered into by the Tax
Commission concerning a compromis e of tax liability for an amount
less than the amount of tax liability stated on such warrant;
15. The disclosure of information necessary to complete the
performance of any contract authorized by this title to any person
with whom the Tax Commission has contracted;
16. The disclosure of information to any person for a purpose
as authorized by the taxpayer pursuant to a waiver of
confidentiality. The waiver shall be in writing and shall be made
upon such form as the Tax Commission may prescribe;
17. The disclosure of information required in order to comply
with the provisions of Section 2369 of this title;
18. The disclosure to an employer , as defined in Sections
2385.1 and 2385.3 of this title, of information required in order to
collect the tax imposed by Section 2385.2 of this title;
19. The disclosure to a plaintiff of a corporation ’s last-known
address shown on the records of the Fran chise Tax Division of the
Tax Commission in order for such plaintiff to comply with the
requirements of Section 2004 of Title 12 of the Oklahoma Statutes;
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20. The disclosure of information directly involved in the
resolution of the protest by a taxpayer t o an assessment of tax or
additional tax or the resolution of a claim for refund filed by a
taxpayer, including the disclosure of the pendency of an
administrative proceeding involving such protest or claim, to a
person called by the Tax Commission as an e xpert witness or as a
witness whose area of knowledge or expertise specifically addresses
the issue addressed in the protest or claim for refund. Such
disclosure to a witness shall be limited to information pertaining
to the specific knowledge of that wit ness as to the transaction or
relationship between taxpayer and witness;
21. The disclosure of information necessary to implement an
agreement authorized by Section 2702 of this title when such
information is directly involved in the resolution of issues arising
out of the enforcement of a municipal sales tax ordinance. Such
disclosure shall be to the governing body o r to the municipal
attorney, if so designated by the governing body;
22. The furnishing of information regarding incentive payments
made pursuant to the provisions of Sections 3601 through 3609 of
this title, incentive payments made pursuant to the provisions of
Sections 3501 through 3508 of this title, or tax credits claimed
pursuant to the provisions of Sections 1 through 8 of this act
Sections 3930 through 3937 of this title ;
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23. The furnishing to a prospective purchaser of any business,
or his or her authorized representative, of information relating to
any liabilities, delinquencies, assessments or warrants of the
prospective seller of t he business which have not been filed of
record, established or become final and which relate solely to the
seller’s business. Any disclosure under this paragraph shall only
be allowed upon the presentment by the prospective buyer, or the
buyer’s authorized representative, of the purchase contract and a
written authorization between the parties;
24. The furnishing of information as to the amount of state
revenue affected by the issuance or granting of any tax permit,
license, exemption, deduction, credit or other tax preference by the
Tax Commission as provided for by law. Such information shall be
limited to the type of permit, license, exemption, deduction, credit
or other tax preference issued or granted, the date and duration of
such permit, license, exemption, deduction, credit or other tax
preference and the amount of such revenue. The provisions of this
paragraph shall not authorize the disclosure of the name of the
person issued such permit, license, exemption, deduction, credit or
other tax preference, or the name of the business entity authorized
to engage in business pursuant to the permit, license, exemption,
deduction, credit or other tax preference;
25. The examination of records and files of a person or entity
by the Oklahoma State Bureau o f Narcotics and Dangerous Drugs
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Control, district attorney or the Attorney General pursuant to a
court order by a magistrate in whose territorial jurisdiction the
person or entity resides, or where the Tax Commission records and
files are physically locate d. Such an order may only be issued upon
a sworn application by an agent of the Oklahoma State Bureau of
Narcotics and Dangerous Drugs Control or the Attorney General,
certifying that the person or entity whose records and files are to
be examined is the target of an ongoing investigation of a felony
violation of the Uniform Controlled Dangerous Substances Act and
that information resulting from such an examination would likely be
relevant to that investigation. Any records or information obtained
pursuant to such an order may only be used by the Oklahoma State
Bureau of Narcotics and Dangerous Drugs Control, district attorney
or the Attorney General in the investigation and prosecution of a
felony violation of the Uniform Controlled Dangerous Substances A ct
or money laundering pursuant to Section 2001 of Title 21 of the
Oklahoma Statutes. Any such order issued pursuan t to this
paragraph, along with the underlying application, shall be sealed
and not disclosed to the person or entity whose records were
examined, for a period of ninety (90) days. The issuing magistrate
may grant extensions of such period upon a showing of good cause in
furtherance of the investigation. Upon the expiration of ninety
(90) days and any extensions granted by the magistrate, a copy of
the application and order shall be served upon the person or entity
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whose records were examined, along with a copy of the records or
information actually provided by the Tax Commission;
26. The disclosure of information, as prescribed by this
paragraph, which is related to the proposed or actual usage of tax
credits pursuant to Section 2357.7 of this title, the Small Business
Capital Formation Incentive Act or the Rural Venture Capital
Formation Incentive Act. Unless the context clearly requires
otherwise, the terms used in this paragraph shall have the same
meaning as defined by Section 2357.7, 2357.61 or 2357 .72 of this
title. The disclosure of information authorized by this paragraph
shall include:
a. the legal name of any qualified venture cap ital
company, qualified small business capital company or
qualified rural small business capital company,
b. the identity or legal name of any person or entity
that is a shareholder or partner of a qualified
venture capital company, qualified small busines s
capital company or qualified rural small business
capital company,
c. the identity or legal name of any Oklahoma b usiness
venture, Oklahoma small business venture or Oklahoma
rural small business venture in which a qualified
investment has been made by a capital company, or
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d. the amount of funds invested in a qualified venture
capital company, the amount of qualified investments
in a qualified small business capital company or
qualified rural small business capital company and the
amount of investments m ade by a qualified venture
capital company, qualified small business capital
company, or qualified rural small busin ess capital
company;
27. The disclosure of specific information as required by
Section 46 of Title 62 of the Oklahoma Statutes;
28. The disclosure of specific information as required by
Section 205.5 of this title;
29. The disclosure of specific information as required by
Section 205.6 of this title;
30. The disclosure of information to the State Treasurer
necessary to implement Section 23 68.27 of this title;
31. The disclosure of specific information to the Oklahoma
Health Care Authority for purposes of determining eligibility for
current or potential recipients of assistance from the Oklahoma
Medicaid Program;
32. The disclosure of info rmation to the Oklahoma Department of
Veterans Affairs including but not limited to the name and basis for
eligibility of each individual who qualifies for the sales tax
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exemption authorized in paragraph 34 of Section 1357 of this title;
or
33. The disclosure of information to the Oklahoma Medical
Marijuana Authority for the purposes of compliance with the Oklahoma
Medical Marijuana and Patient Protection Act or Section 420 et seq.
of Title 63 of the Oklahoma Statutes ; or
34. The disclosure of information required in order to comply
with the provisions of subsection H of Section 2 357.22 of this
title.
D. The Tax Commission shall cause to be prepared and made
available for public inspection in the office of the Tax Commission
in such manner as it may deter mine an annual list containing the
name and post office address of each person, whether individual,
corporate or otherwise, making and filing an income tax return with
the Tax Commission.
It is specifically provided that no liability whatsoever, civil
or criminal, shall attach to any member of the Tax Commission or any
employee thereof for any error or omission of any name or address in
the preparation and publication of the list.
E. The Tax Commission shall prepare or cause to be prepared a
report on all provisions of state tax law that reduce state revenue
through exclusions, deductions, credits, exemptions, deferrals or
other preferential tax treatments. The report shall be prepared not
later than October 1 of each even -numbered year and shall be
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submitted to the Governor, the President Pro Tempore of the Senate
and the Speaker of the House of Representatives. The Tax Commission
may prepare and submit supplements to the report at other times of
the year if additional or updated information relevant to t he report
becomes available. The report shall include, for the previous
fiscal year, the Tax Commission ’s best estimate of the amount of
state revenue that would have been collected but for the existence
of each such exclusion, deduction, credit, exemptio n, deferral or
other preferential tax treatment allowed by law. The Tax Commission
may request the assistance of other state agencies as may be needed
to prepare the report. The Tax Commission is authorized to require
any recipient of a tax incentive or tax expenditure to report to the
Tax Commission such information as requested so that the Tax
Commission may fulfill its obligations as required by this
subsection. The Tax Commission may require this information to be
submitted in an electronic format. The Tax Commission may disallow
any claim of a person for a tax incentive due to its failure to file
a report as required under the authority of this subsection.
F. It is further provided that the provisions of this section
shall be strictly interpreted a nd shall not be construed as
permitting the disclosure of any other information contained in the
records and files of the Tax Commission relating to income tax or to
any other taxes.
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G. Unless otherwise provided for in this section, any violation
of the provisions of this section shall constitute a misdemeanor and
shall be punishable by the imposition of a fine not exceeding One
Thousand Dollars ($1,000.00) or by imprisonment in the county jail
for a term not exceeding one (1) year, or by both such fine an d
imprisonment, and the offender shall be removed or dismissed from
office.
H. Offenses described in Section 2376 o f this title shall be
reported to the appropriate district attorney of this state by the
Tax Commission as soon as the offenses are discover ed by the Tax
Commission or its agents or employees. The Tax Commission shall
make available to the appropriate district attorney or to the
authorized agent of the district attorney its records and files
pertinent to prosecutions, and such records and fil es shall be fully
admissible as evidence for the purpose of such prosecutions.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 2357.22, as
last amended by Section 153, Chapter 452, O.S.L. 2024 (68 O.S. Supp.
2024, Section 2357.22), is amended to read as follows:
Section 2357.22. A. For tax years 2028 and before, there shall
be allowed a one-time credit against the income tax imposed by
Section 2355 of this title for investments in qualified clean -
burning motor vehicle fuel property p laced in service on or after
January 1, 1991, or with respect to a hydrogen fuel cell, on or
after the effective date of this act July 1, 2023.
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B. As used in this section, “qualified clean-burning motor
vehicle fuel property ” means:
1. Equipment installe d to modify a motor vehicle which is
propelled by gasoline or diesel fuel so that the vehicle may be
propelled by compressed natural gas, a hydrogen fuel cell, liquefied
natural gas, or liquefied petroleum gas. The equipment covered by
this paragraph must:
a. be new, not previously used to modify or retrofit any
vehicle propelled by gasoline or diesel fuel and be
installed by an alternative fuels equipment technician
who is certified in accordance with the Alternative
Fuels Technician Certification Act,
b. meet all Federal Motor Vehicle Safety Standards set
forth in 49 CFR 571, or
c. for any commercial motor vehicle (CMV), follow the
Federal Motor Carrier Safety Regulations or Oklahoma
Intrastate Motor Carrier Regulations;
2. A motor vehicle originally equ ipped so that the vehicle may
be propelled by compressed natural gas, a hydrogen fuel cell, or
liquefied natural gas or liquefied petroleum gas but only to the
extent of the portion of the basis of such motor vehicle which is
attributable to the storage of such fuel, the delivery to the engine
of such motor vehicle of such fuel, and the exhaust of gases from
combustion of such fuel;
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3. Property, not including a building and its structural
components, which is:
a. directly related to the delivery of compres sed natural
gas, liquefied natural gas or liquefied petroleum gas,
or hydrogen for commercial purposes or for a fee or
charge, into the fuel tank of a motor vehicle
propelled by such fuel including compression equipment
and storage tanks for such fuel at t he point where
such fuel is so delivered but only if such property is
not used to deliver such fuel into any other type of
storage tank or receptacle and such fuel is not used
for any purpose other than to propel a motor vehicle,
or
b. a metered-for-fee, public access recharging system for
motor vehicles propelled in whole or in part by
electricity. The property covere d by this paragraph
must be new, and must not have been previously
installed or used to refuel vehicles powered by
compressed natural gas, l iquefied natural gas or
liquefied petroleum gas, hydrogen, or electricity;
4. Property which is directly related to the compression and
delivery of natural gas from a private home or residence, for
noncommercial purposes, into the fuel tank of a motor veh icle
propelled by compressed natural gas. The property covered by this
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paragraph must be new and must not have been previously installed or
used to refuel vehicles powered by natural gas; or
5. For tax years 2010 and 2023 through 2028, a motor vehicle
originally equipped so that the vehicle may be propelled by a
hydrogen fuel cell electric fueling system.
C. As used in this section, “motor vehicle” means a motor
vehicle originally designed by the manufacturer to operate lawfully
and principally on street s and highways.
D. The credit provided for in subsection A of this section
shall be as follows:
1. For the qualified clean-burning motor vehicle fuel property
defined in paragraphs 1, 2, or 5 of subsection B of this section,
the amount of the credit shal l be as follows based upon gross
vehicle weight of the qualified vehicle:
a. for vehicles up to or below six thousand (6,000)
pounds, the credit shall be a maximum of Five Thousand
Five Hundred Dollars ($5,500.00),
b. for vehicles between six thousand one (6,001) pounds
to ten thousand (10,000) pounds, the credit shall be a
maximum amount of Nine Thousand Dollars ($9,00 0.00),
c. for vehicles of ten thousand one (10,001) pounds, but
not in excess of twenty -six thousand five hundred
(26,500) pounds, the credi t shall be a maximum amount
of Twenty-six Thousand Dollars ($26,000.00), and
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d. for vehicles in excess of twenty -six thousand five
hundred one (26,501) pounds, the credit shall be a
maximum amount of One Hundred Thousand Dollars
($100,000.00);
2. For qualified clean-burning motor vehicle fuel property
defined in paragraph 3 of subsection B of this section, a per -
location credit of forty-five percent (45%) of the cost of the
qualified clean-burning motor vehicle fuel property; and
3. For qualified clean -burning motor vehicle fuel property
defined in paragraph 4 of subsection B of this section, a per -
location credit of the lesser of fifty percent (50%) of the cost of
the qualified clean-burning motor vehicle fuel property or Two
Thousand Five Hundred Dollars ($2,500.00).
E. In cases where no credit has been claimed pursuant to
paragraph 1 of subsection D of this section by any prior owner and
in which a motor vehicle is purchased by a taxpayer with qualified
clean-burning motor vehicle fuel property installe d by the
manufacturer of such motor vehicle and the taxpayer is unable or
elects not to determine the exact basis which is attributable to
such property, the taxpayer may claim a credit in an amount not
exceeding the lesser of ten percent (10%) of the cost of the motor
vehicle or One Thousand Five Hundred Dollars ($1,500.00).
F. If the tax credit allowed pursuant to su bsection A of this
section exceeds the amount of income taxes due or if there are no
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state income taxes due on the income of the taxpayer, t he amount of
the credit not used as an offset against the income taxes of a
taxable year may be carried forward, in order, as a credit against
subsequent income tax liability for a period not to exceed five (5)
years. The tax credit authorized pursuant to the provisions of this
section shall not be used to reduce the tax liability of the
taxpayer to less than zero (0).
G. A husband and wife who file separate returns for a taxable
year in which they could have filed a joint return may each claim
only one-half (1/2) of the tax credit that would have been allowed
for a joint return.
H. The Oklahoma Tax Commission is herein empowered to
promulgate rules by which the purpose of this section shall be
administered including the power to establish and enforce pen alties
for violations thereof. Upon the request of an individual, the
Commission shall, in a reasonably timely mann er, verify whether a
credit authorized pursuant to subsection A of this section has been
previously claimed for a vehicle, as identified by its vehicle
identification number.
I. Notwithstanding the provisions of Section 2352 of this
title, for the fiscal year beginning on July 1, 2014, through fiscal
year 2023, the Tax Commission shall calculate an amount that equals
five percent (5%) of the cost of qualified clean -burning motor
vehicle fuel property as provided for in paragraph 1 of subsection D
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of this section for tax year 2012. For each subsequent fiscal year
thereafter, the Tax Commission shall perform the same computation
with respect to the second tax year preceding the beginning of each
subsequent fiscal year. For fiscal year 2024, the Tax Commission
shall calculate an amount that equals twelve percent (12%) of the
credit for qualified clean -burning motor vehicle fuel property as
provided in paragraph 1 of subsection D of this section for tax year
2021. For each subsequent fiscal year, the Tax Comm ission shall
perform the same calculation for credits claimed in the second
preceding tax year. The Tax Commission shall then transfer an
amount equal to the amount calculated in this subsection from the
revenue derived pursuant to the provisions of subsections A, B and E
of Section 2355 of this title to the Compressed Natural Gas
Conversion Safety and Regulation Fund created in Section 130.2 5 of
Title 74 of the Oklahoma Statutes.
J. For the tax years 2020 through 2022, the total amount of
credits authorized by this section used to offset tax shall be
adjusted annually to limit the annual amount of credits to Twenty
Million Dollars ($20,000,0 00.00). The Tax Commission shall annually
calculate and publish by the first day of the affected taxable year
a percentage by which the credits authorized by this section shall
be reduced so the total amount of credits used to offset tax does
not exceed Twenty Million Dollars ($20,000,000.00) per year. The
formula to be used for the percentage adjustment shall be Twen ty
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Million Dollars ($20,000,000.00) divided by the credits claimed in
the second preceding year, with respect to any changes to the future
of the credit.
K. Pursuant to subsection J of this section, in the event the
total tax credits authorized by this section exceed Twenty Million
Dollars ($20,000,000.00) in any calendar year, the Tax Commission
shall permit any excess over Twenty Million Do llars ($20,000,000.00)
but shall factor such excess into the percentage adjustment formula
for subsequent years with respect to any changes to the future of
the credit.
L. For the tax years 2023 through 2028, the total amount of
credits authorized by this section used to offset tax shall be
adjusted annually to limit the annual amount of credits to:
1. Ten Million Dollars ($10,000,000.00) for qualified clean
burning fuel property propelled by compressed natural gas, liquefied
natural gas, or liquefied pet roleum gas, property related to the
delivery of compressed natural gas, liquefied natural gas or
liquefied petroleum gas, and property directly related to the
compression and delivery of natural gas;
2. Ten Million Dollars ($10,000,000.00) for property or iginally
equipped so that the vehicle may be propelled by a hydrogen fuel
cell electric fueling system and property directly related to the
delivery of hydrogen; and
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3. Ten Million Dollars ($10,000,000.00) for property which is a
metered-for-fee, public access recharging system for motor vehicles
propelled in whole or in part by electricity.
The Tax Commission shall an nually calculate and publish by the
first day of the affected taxable year a percentage by which the
credits authorized by this section shal l be reduced so the total
amount of credits used to offset tax does not exceed each of the
limits provided in paragraphs 1 through 3 of this subsection. The
formula to be used for the percentage adjustment shall be Ten
Million Dollars ($10,000,000.00) div ided by the credits claimed in
the second preceding year, with respect to any changes to the future
of the credit.
M. Pursuant to subsection L of this section, in the event the
tax credits authorized by this section exceed any of the limits
provided in paragraphs 1 through 3 of subsection L of this section
in any year, the Tax Commission shall permit any excess over Ten
Million Dollars ($10,000,000.00) but shall factor such excess into
the percentage adjustment formula for subsequent years with respect
to any changes to the future of the credit.
N. The Tax Commission shall notify the Office of the State
Secretary of Energy and Environment at any time when the amount of
claims for credits allowed pursuant to this section reaches eighty
percent (80%) of the total annual limit provided in subsection J of
this section. Upon such notification, the Secretary shall provide
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notice to the Governor, President Pro Tempore of the Senate and
Speaker of the House of Representatives.
SECTION 3. This act shall become effective November 1, 2025.
COMMITTEE REPORT BY: COMMITTEE ON REVENUE AND TAXATION
February 10, 2025 - DO PASS