An act relating to revenue and taxation, the official text

1                            STATE OF OKLAHOMA

2   1st Session of the 60th Legislature (2025)

3 HOUSE BILL 1477                By: Fugate

4

5

6                            AS INTRODUCED

7   An Act relating to revenue and taxation; creating

    income tax credit for owners of certain property;

8   defining terms; providing taxpayer to have qualified

    for homestead exemption to be eligible for credit;

9   providing for credit to be fully refundable;

    providing for codification; and providing an

10  effective date.

11

12

13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

14  SECTION 1.      NEW LAW  A new section of law to be codified

15 in the Oklahoma Statutes as Section 2357.701 of Title 68, unless

16 there is created a duplication in numbering, reads as follows:

17  A. As used in this section:

18  1. "Qualified property" means a single family home less than

19 one thousand five hundred one (1,501) square feet in size in an

20 established neighborhood that completed construction at least fifty

21 (50) years prior to the tax year for which the taxpayer is claiming

22 the credit pursuant to subsection B of this section; and

23  2. "Taxpayer" means a natural person.

24

    Req. No. 10728                                                 Page 1
1   B. For taxable years beginning on or after January 1, 2026,

2 there shall be allowed as a credit against the tax imposed pursuant

3 to Section 2355 of Title 68 of the Oklahoma Statutes in the amount

4 of Two Thousand Dollars ($2,000.00) for taxpayers who have owned a

5 qualified property for at least four (4) years, but not more than

6 eight (8) years. To be eligible to claim the credit, the taxpayer

7 must have qualified for the homestead exemption pursuant to Section

8 2889 of Title 68 of the Oklahoma Statutes for the three (3) tax

9 years preceding the tax year for which they are claiming the credit.

10  C. For credits generated pursuant to subsection B of this

11 section, but not used, on or after January 1, 2026, the Oklahoma Tax

12 Commission shall refund, at the taxpayer's election, directly to the

13 taxpayer one hundred percent (100%) of the face amount of such

14 credit. The amount of any direct refund of credits actually

15 received by the taxpayer pursuant to this paragraph shall not be

16 subject to the tax imposed by Section 2355 of Title 68 of the

17 Oklahoma Statutes.

18  SECTION 2. This act shall become effective November 1, 2025.

19

20  60-1-10728         AO  01/14/25

21

22

23

24

    Req. No. 10728                                                 Page 2