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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
SENATE BILL 923 By: Nice
AS INTRODUCED
An Act relating to revenue and taxation; amending 68
O.S. 2021, Section 2357.403, as last amended by
Section 1, Chapter 66, O.S.L. 2024 (68 O.S. Supp.
2024, Section 2357.403), which relates to affordable
housing tax credits; defining terms; expanding
requirement for certain eligible qualifying projects
placed in service after certain date; adjusting
annual cap; making tax credit nonrefundable ; and
providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.403, as
last amended by Section 1, Chapter 66, O.S.L. 2024 (68 O.S. Supp.
2024, Section 2357.403), is amended to read as follows:
Section 2357.403. A. This act shall be known and may be cited
as the “Oklahoma Affordable Housing Act ”.
B. As used in this section:
1. “Allocation year” means the year for which the Oklahoma
Housing Finance Agency allocates credits pursuant to this section;
2. “Eligibility statement” means a statement authorized and
issued by the Oklahoma Housing Finance Agency certifying that a
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given project qualifies for the Oklahoma Affordable Housing Tax
Credit authorized by this section. The Oklahoma Housing Finance
Agency, under Title 330, Oklahoma Housing Finance Agency, Chapter
36, Affordable Housing Tax Credit Program Rules, shall promulgate
rules establishing criteria upon which the eligibility statements
will be issued. The eligibility statement shall specify the amount
of Oklahoma Affordable Housing Tax Credits allocated to a qualified
project. The Oklahoma Housing Finance Agency shall only authorize
the tax credits created by this section to qualified pro jects which
are placed in service after July 1, 2015, but which shall not be
used to reduce tax liability accruing prior to January 1, 2016 . For
qualifying projects placed in service after January 1, 2026, the
Oklahoma Housing Finance Authority shall only authorize the tax
credits created by this section to low -income buildings tha t meet
the definition of workforce housing ;
3. “Federal low-income housing tax credit ” means the federal
tax credit as provided in Section 42 of the Internal Revenue Code of
1986, as amended;
4. “Oklahoma Affordable Housing Tax Credit ” means the tax
credit created by this section;
5. “Qualified project” means a qualified low -income building as
that term is defined in Section 42 of the Internal Revenue Code of
1986, as amended; and
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6. “Taxpayer” means a person, firm or corporation subject to
the tax imposed by Section 2355 of this title or an insurance
company subject to the tax imposed by Section 624 or 628 of Title 36
of the Oklahoma Statutes or other financial institution sub ject to
the tax imposed by Section 2370 of this title ; and
7. “Workforce housing” means housing occupied or reserved for
occupancy by households with a gross household income between sixty
percent (60%) and one hundred twenty percent (120%) of the median
gross income for households of the same size in the county in which
the municipality is located.
C. For qualified projects placed in service after July 1, 2015,
the amount of state tax credits created by this section which are
allocated to a project shall not exceed that of the federal low -
income housing tax credits for a qualified project. The total
Oklahoma Affordable Housing Tax Credits allocated to all qualified
projects for an allocation year shall not exceed Fifteen Million
Dollars ($15,000,000.00) for allocation years 2026 through 2030 , and
Four Million Dollars ($4,000,000.0 0) for allocation years 2016
through 2025 and 2031 and subsequent allocation years . For purposes
of this section, the “credit period” shall mean the period of ten
(10) taxable years and “placed in service” shall have the same
meaning as is applicable under the federal credit program.
Reallocated and rolled over credits will count against the four-
million-dollar limit of annual limits prescribed by this subsection
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for their original allocation year and not count against the limit
of the year in which they are allocated.
D. A taxpayer owning an interest in an investment in a
qualified project shall be allowed Oklahoma Affordable Housing Tax
Credits under this section for tax years beginning on or after
January 1, 2016, if the Oklahoma Housing Finance Agency issues an
eligibility statement for such project, which tax credit shall be
allocated among some or all of the partners, members or shareholders
of the taxpayer owning such inte rest in any manner agreed to by such
partners, members or shareholders. Such taxpayer may assign its
interest in the investment.
E. An insurance company claiming a credit against state premium
tax or retaliatory tax or any other tax imposed by Section 62 4 or
628 of Title 36 of the Oklahoma Statutes shall not be required 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 imposed by Section 628
of Title 36 of the Oklahoma Statutes.
F. The credit authorized b y this section shall not be used to
reduce the tax liability of the taxpayer to less than zero ($0.00).
G. Any credit claimed but not used in a taxable year may be
carried forward two (2) subsequent taxable years.
H. The owner of a qualified project eligible for the credit
authorized by this section shall submit, at the time of filing the
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tax return with the Oklahoma Tax Commission, an eligibility
statement from the Oklahoma Hou sing Finance Agency. In the case of
failure to attach the eligibility stateme nt, no credit under this
section shall be allowed with respect to such project for that year
until required documents are provided to the Tax Commission.
I. If under Section 42 of the Internal Revenue Code of 1986, as
amended, a portion of any federal low -income housing 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 Affordable Housing Tax Credits with respect to
such project shall also be required to recapture a portion of such
credits. The amount of Oklahoma Affordable Housing Tax Credits
subject to recapture shall be proportionally equal to the amount of
federal low-income housing credits subject to recapture.
J. The Oklahoma Housing Finance Agency or the Oklahoma Tax
Commission may require the filing of additional documentation
necessary to determine the accuracy of a tax credit claimed.
K. The Oklahoma Affo rdable Housing Act shall undergo a review
every five (5) years by a committee of nine (9) persons, to be
appointed three persons each by the Governor, President Pro Tempore
of the Senate, and the Speaker of the House of Representatives.
SECTION 2. This act shall become effective January 1, 2026.
60-1-1384 MSBB 1/16/2025 11:26:50 AM