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53	53	STATE OF OKLAHOMA
54	54
55	55	1st Session of the 60th Legislature (2025)
56	56
57	57	SENATE BILL 923 By: Nice
58	58
59	59
60	60
61	61
62	62
63	63	AS INTRODUCED
64	64
65	65	An Act relating to revenue and taxation; amending 68
66	66	O.S. 2021, Section 2357.403, as last amended by
67	67	Section 1, Chapter 66, O.S.L. 2024 (68 O.S. Supp.
68	68	2024, Section 2357.403), which relates to affordable
69	69	housing tax credits; defining terms; expanding
70	70	requirement for certain eligible qualifying projects
71	71	placed in service after certain date; adjusting
72	72	annual cap; making tax credit nonrefundable ; and
73	73	providing an effective date .
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75	75
76	76
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79	79	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
80	80	SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.403, as
81	81	last amended by Section 1, Chapter 66, O.S.L. 2024 (68 O.S. Supp.
82	82	2024, Section 2357.403), is amended to read as follows:
83	83	Section 2357.403. A. This act shall be known and may be cited
84	84	as the “Oklahoma Affordable Housing Act ”.
85	85	B. As used in this section:
86	86	1. “Allocation year” means the year for which the Oklahoma
87	87	Housing Finance Agency allocates credits pursuant to this section;
88	88	2. “Eligibility statement” means a statement authorized and
89	89	issued by the Oklahoma Housing Finance Agency certifying that a
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141	141	given project qualifies for the Oklahoma Affordable Housing Tax
142	142	Credit authorized by this section. The Oklahoma Housing Finance
143	143	Agency, under Title 330, Oklahoma Housing Finance Agency, Chapter
144	144	36, Affordable Housing Tax Credit Program Rules, shall promulgate
145	145	rules establishing criteria upon which the eligibility statements
146	146	will be issued. The eligibility statement shall specify the amount
147	147	of Oklahoma Affordable Housing Tax Credits allocated to a qualified
148	148	project. The Oklahoma Housing Finance Agency shall only authorize
149	149	the tax credits created by this section to qualified pro jects which
150	150	are placed in service after July 1, 2015, but which shall not be
151	151	used to reduce tax liability accruing prior to January 1, 2016 . For
152	152	qualifying projects placed in service after January 1, 2026, the
153	153	Oklahoma Housing Finance Authority shall only authorize the tax
154	154	credits created by this section to low -income buildings tha t meet
155	155	the definition of workforce housing ;
156	156	3. “Federal low-income housing tax credit ” means the federal
157	157	tax credit as provided in Section 42 of the Internal Revenue Code of
158	158	1986, as amended;
159	159	4. “Oklahoma Affordable Housing Tax Credit ” means the tax
160	160	credit created by this section;
161	161	5. “Qualified project” means a qualified low -income building as
162	162	that term is defined in Section 42 of the Internal Revenue Code of
163	163	1986, as amended; and
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215	215	6. “Taxpayer” means a person, firm or corporation subject to
216	216	the tax imposed by Section 2355 of this title or an insurance
217	217	company subject to the tax imposed by Section 624 or 628 of Title 36
218	218	of the Oklahoma Statutes or other financial institution sub ject to
219	219	the tax imposed by Section 2370 of this title ; and
220	220	7. “Workforce housing” means housing occupied or reserved for
221	221	occupancy by households with a gross household income between sixty
222	222	percent (60%) and one hundred twenty percent (120%) of the median
223	223	gross income for households of the same size in the county in which
224	224	the municipality is located.
225	225	C. For qualified projects placed in service after July 1, 2015,
226	226	the amount of state tax credits created by this section which are
227	227	allocated to a project shall not exceed that of the federal low -
228	228	income housing tax credits for a qualified project. The total
229	229	Oklahoma Affordable Housing Tax Credits allocated to all qualified
230	230	projects for an allocation year shall not exceed Fifteen Million
231	231	Dollars ($15,000,000.00) for allocation years 2026 through 2030 , and
232	232	Four Million Dollars ($4,000,000.0 0) for allocation years 2016
233	233	through 2025 and 2031 and subsequent allocation years . For purposes
234	234	of this section, the “credit period” shall mean the period of ten
235	235	(10) taxable years and “placed in service” shall have the same
236	236	meaning as is applicable under the federal credit program.
237	237	Reallocated and rolled over credits will count against the four-
238	238	million-dollar limit of annual limits prescribed by this subsection
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290	290	for their original allocation year and not count against the limit
291	291	of the year in which they are allocated.
292	292	D. A taxpayer owning an interest in an investment in a
293	293	qualified project shall be allowed Oklahoma Affordable Housing Tax
294	294	Credits under this section for tax years beginning on or after
295	295	January 1, 2016, if the Oklahoma Housing Finance Agency issues an
296	296	eligibility statement for such project, which tax credit shall be
297	297	allocated among some or all of the partners, members or shareholders
298	298	of the taxpayer owning such inte rest in any manner agreed to by such
299	299	partners, members or shareholders. Such taxpayer may assign its
300	300	interest in the investment.
301	301	E. An insurance company claiming a credit against state premium
302	302	tax or retaliatory tax or any other tax imposed by Section 62 4 or
303	303	628 of Title 36 of the Oklahoma Statutes shall not be required to
304	304	pay any additional retaliatory tax under Section 628 of Title 36 of
305	305	the Oklahoma Statutes as a result of claiming the credit. The
306	306	credit may fully offset any retaliatory tax imposed by Section 628
307	307	of Title 36 of the Oklahoma Statutes.
308	308	F. The credit authorized b y this section shall not be used to
309	309	reduce the tax liability of the taxpayer to less than zero ($0.00).
310	310	G. Any credit claimed but not used in a taxable year may be
311	311	carried forward two (2) subsequent taxable years.
312	312	H. The owner of a qualified project eligible for the credit
313	313	authorized by this section shall submit, at the time of filing the
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365	365	tax return with the Oklahoma Tax Commission, an eligibility
366	366	statement from the Oklahoma Hou sing Finance Agency. In the case of
367	367	failure to attach the eligibility stateme nt, no credit under this
368	368	section shall be allowed with respect to such project for that year
369	369	until required documents are provided to the Tax Commission.
370	370	I. If under Section 42 of the Internal Revenue Code of 1986, as
371	371	amended, a portion of any federal low -income housing credits taken
372	372	on a qualified project is required to be recaptured during the first
373	373	ten (10) years after a project is placed in service, the taxpayer
374	374	claiming Oklahoma Affordable Housing Tax Credits with respect to
375	375	such project shall also be required to recapture a portion of such
376	376	credits. The amount of Oklahoma Affordable Housing Tax Credits
377	377	subject to recapture shall be proportionally equal to the amount of
378	378	federal low-income housing credits subject to recapture.
379	379	J. The Oklahoma Housing Finance Agency or the Oklahoma Tax
380	380	Commission may require the filing of additional documentation
381	381	necessary to determine the accuracy of a tax credit claimed.
382	382	K. The Oklahoma Affo rdable Housing Act shall undergo a review
383	383	every five (5) years by a committee of nine (9) persons, to be
384	384	appointed three persons each by the Governor, President Pro Tempore
385	385	of the Senate, and the Speaker of the House of Representatives.
386	386	SECTION 2. This act shall become effective January 1, 2026.
387	387
388	388	60-1-1384 MSBB 1/16/2025 11:26:50 AM

Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB923 Compare Versions