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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
SENATE BILL 99 By: Boren
AS INTRODUCED
An Act relating to income tax credit; amending 68
O.S. 2021, Section 2357.46, which relates to tax
credit for construction of energy effici ent property;
modifying tax year for which credit can be claimed;
requiring property to be completed in the year in
which the credit is claimed; updating statutory
language; updating statutory reference; and providing
an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.46, is
amended to read as follows:
Section 2357.46. A. Except as otherwise provided by subsection
G of this section, for the time period beginning on or after January
1, 2006, and ending on July 1, 2016 tax years 2006 through 2016 and
tax year 2025 and subsequent tax years , there shall be allowed a
credit against the tax imposed by Section 2355 of this title for
eligible expenditures i ncurred by a contractor in the construction
of energy efficient residential p roperty of two thousand (2,000)
square feet or less. The amount of the credit shall be based upon
the following:
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1. For any eligible energy efficient residential property
constructed and certified as forty percent (40%) or more above the
2003 International Energy Conservation Code 2003 and any supplement
in effect at the time of completion, the amount of the credit shall
be equal to the eligible expenses, not to exceed Four Thous and
Dollars ($4,000.00) for the taxpayer who is the contractor; and
2. For any eligible energy efficient residential property
constructed and certified as between twenty percent (20%) and
thirty-nine percent (39%) above the 2003 International Energy
Conservation Code 2003 and any supplement in effect at the time of
completion, the credit shall be equal to the eligible expenditures,
not to exceed Two Thousand Dollars ($2,000.00) for the taxpayer who
is the contractor.
B. As used in this section:
1. “Eligible expenditure” means any:
a. energy efficient heating or cooling system,
b. insulation material or system which is specifically
and primarily designed to reduce the heat gain or loss
of a residential property when installed in or on such
property,
c. exterior windows, including skylights,
d. exterior doors, and
e. any metal roof installed on a residential property,
but only if such roof has appropriate pigmented
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coatings which are specifically and primarily designed
to reduce the heat gain of such dwellin g unit and
which meet Energy Star program requirements;
2. “Contractor” means the taxpayer who constructed the
residential property or manufactured home, or if more than one
taxpayer qualifies as the contractor, the primary contractor; and
3. “Eligible energy efficient residential property ” means a
newly constructed residential property or manufactured home property
which is located in the State of Oklahoma this state and
substantially complete after December 31, 2005 completed in the
calendar year corres ponding to the tax year in which the credit is
claimed, and which is two thou sand (2,000) square feet or less:
a. for the credit provided pursuant to paragraph 1 of
subsection A of this section, which is certified by an
accredited Residential Energy Servic es Network
Provider using the Home Energy Rating System to have:
(1) a level of annual heating and cooling energy
consumption which is at least forty percent (40%)
below the annual level of heating and cooling
energy consumption of a comparable residential
property constructed in accordance with the
standards of Chapter 4 of the 20 03 International
Energy Conservation Code, as such code is in
effect on November 1, 2005,
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(2) heating and cooling equipment efficiencies which
correspond to the minimum allowed un der the
regulations established by the United States
Department of Energy pursuant to the National
Appliance Energy Conservation Act of 1987 and in
effect at the time of construction of the
property, and
(3) building envelope component improvements which
account for at least one -fifth (1/5) of the
reduced annual heating and cooling energy
consumption levels, and
b. for the credit provided pursuant to paragraph 2 of
subsection A of this section, which is certified by an
accredited Residential Energy Services Network
Provider using the Home Energy Rating System to have:
(1) a level of annual heating and cooling energy
consumption which is between twenty percent (20%)
and thirty-nine percent (39%) below the annual
level of heating and cooling energy consumption
of a comparable residential property constructed
in accordance with the stan dards of Chapter 4 of
the 2003 International Energy Conservation Code,
as such code is in effect on November 1, 2005,
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(2) heating and cooling equipment efficiencies which
correspond to the minimum allowed under the
regulations established by the United States
Department of Energy pursuant to the National
Appliance Energy Conservation Act of 1987 and in
effect at the time of construction of the
property, and
(3) building envelope co mponent improvements which
account for at least one -third (1/3) of the
reduced annual heating and cooling energy
consumption levels.
C. The credit provided for in subsection A of this section may
only be claimed once for the contractor of any eligible res idential
energy efficient property during the taxable year when the property
is substantially complete.
D. If the credit allowed pursuant to this section exceeds the
amount of income taxes due or if there are no state income taxes due
on the income of the taxpayer, the amount of credit allowed but not
used in any taxable year may be carried forward as a credit against
subsequent income tax liability for a period not exceeding four (4)
tax years following the qualified expenditures.
E. For credits earned o n or after July 1, 2006, the credits
authorized by this section shall be freely transferable to
subsequent transferees.
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F. The Oklahoma Tax Commission shall promulgate rules necessary
to implement this act this section.
G. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
expenditure or other act occurring on or after July 1, 2010 , for
which the credit would otherwise be allowable. The provisions of
this subsection shall cease to be op erative on July 1, 2012.
Beginning July 1, 2012, the credit authorized by this section may be
claimed for any event, transaction, investment, expenditure or other
act occurring on or after July 1, 2012, according to the provisions
of this section.
H. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
expenditure or other act occurring on or after July 1, 2016, for
which the credit would otherwise be allowable.
SECTION 2. This act shall become effective November 1, 2025.
60-1-1095 QD 12/20/2024 6:50:20 PM