Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1 STATE OF OKLAHOMA
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2 2nd Session of the 60th Legislature (2026)
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3 SENATE BILL 1393 By: Kirt
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6 AS INTRODUCED
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7 An Act relating to income tax credit; creating the
7 Revitalizing Empty Structures Through Ownership,
8 Renovation, and Enterprise (RESTORE) Act; providing
8 short title; creating the Revitalizing Empty
9 Structures Through Ownership, Renovation, and
9 Enterprise (RESTORE) Program; defining terms;
10 directing the Oklahoma Housing Finance Agency and the
10 Oklahoma Tax Commission to administer the program;
11 authorizing establishments to apply for tax credit
11 for certain qualified expenditures on an adaptive
12 reuse project; stipulating credit amount; authorizing
12 the Agency to approve applications for credit for
13 certain fiscal years; limiting approval amount for
13 fiscal year; requiring reallocation of unused
14 approval amounts to subsequent fiscal year
14 limitation; requiring the Agency to develop a
15 preference rating system; authorizing the
15 establishment to claim credit upon application
16 approval and project completion; requiring the Agency
16 to verify qualification; requiring the Agency to
17 provide notification to the Tax Commission when
17 credit is awarded; stipulating the tax year in which
18 credit is awarded; prohibiting refundability of
18 credit; authorizing the carry forward of credit;
19 requiring the Agency to submit annual report;
19 authorizing the promulgation of rules; providing for
20 noncodification; providing for codification;
20 providing an effective date; and declaring an
21 emergency.
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23 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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Req. No. 2750 Page 1
1 SECTION 1. NEW LAW A new section of law not to be
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2 codified in the Oklahoma Statutes reads as follows:
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3 This act shall be known and may be cited as the "Revitalizing
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4 Empty Structures Through Ownership, Renovation, and Enterprise
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5 (RESTORE) Act".
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6 SECTION 2. NEW LAW A new section of law to be codified
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7 in the Oklahoma Statutes as Section 2357.413 of Title 68, unless
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8 there is created a duplication in numbering, reads as follows:
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9 A. There is hereby created the Revitalizing Empty Structures
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10 Through Ownership, Renovation, and Enterprise (RESTORE) Program.
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11 B. As used in this section:
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12 1. "Adaptive reuse" means the substantial conversion of an
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13 obsolete structure to a new use, while retaining at least some of
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14 the elements of the original building envelope. Provided, that
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15 after conversion it meets all health and safety requirements for
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16 residential occupancy pursuant to state law and local building
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17 codes;
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18 2. "Obsolete structure" means a structure that:
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19 a. is any nonresidential structure including, but not
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20 limited to, a commercial, retail, office,
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21 institutional, or industrial building, regardless of
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22 previous use or condition,
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23 b. is at least fifty (50) years old,
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Req. No. 2750 Page 2
1 c. has been vacant or underutilized for at least three
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2 (3) years,
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3 d. is not eligible to receive historic preservation tax
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4 credits, pursuant to 26 U.S.C., Section 47, and
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5 e. if the structure includes an underutilized structure,
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6 generates rental income from an underutilized
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7 structure that is less than fifty percent (50%) of the
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8 local market rate income for a property of similar
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9 class and size;
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10 3. "Program" means the Revitalizing Empty Structures Through
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11 Ownership, Renovation, and Enterprise (RESTORE) Program;
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12 4. "Qualified expenditures" means additional costs related to
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13 the development of an obsolete structure into housing not typically
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14 incurred in the construction of new structures or the rehabilitation
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15 of relatively more modern structures, including:
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16 a. environmental remediation,
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17 b. bringing the structure into compliance with applicable
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18 building codes and regulations,
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19 c. efficiency upgrades, and
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20 d. plumbing, electrical, and climate control upgrades;
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21 and
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22 5. "Underutilized" means a structure where at least fifty
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23 percent (50%) of rentable square footage is vacant, or a structure
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Req. No. 2750 Page 3
1 that is utilized for a use for which the structure was not
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2 originally designed or intended.
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3 C. The program shall be administered by the Oklahoma Housing
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4 Finance Agency and the Oklahoma Tax Commission.
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5 D. An establishment may apply for credit against the tax
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6 imposed pursuant to Section 2355 of Title 68 of the Oklahoma
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7 Statutes for up to fifty percent (50%) of qualified expenditures for
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8 an adaptive reuse project. Applications for credit shall be made on
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9 a form prescribed by the Agency.
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10 E. For fiscal years 2027 through 2037, the Agency is authorized
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11 to approve applications for credit, not to exceed Five Million
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12 Dollars ($5,000,000.00) in any fiscal year. Partial approval for
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13 credit due to the fiscal year limitations provided in this
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14 subsection may be awarded by the Agency. In any fiscal year in
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15 which the credit amount approved is less than the limitation
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16 provided in this subsection, the difference shall be added to the
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17 limitation in subsequent fiscal years until fiscal year 2037.
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18 Credits approved but not claimed pursuant to subsection G of this
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19 section shall be added to the limitation in subsequent fiscal years
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20 until fiscal year 2037.
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21 F. The Agency shall certify projects and develop a preference
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22 rating system for approval based on the following:
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23 a. availability of and need for workforce and affordable
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24 housing in the area of the proposed project,
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Req. No. 2750 Page 4
1 b. establishment of new workforce or affordable rental
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2 units based on United States Department of Housing and
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3 Urban Development definitions for twenty percent (20%)
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4 or more of the units for at least ten (10) years,
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5 c. access to established municipal or county
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6 infrastructure, and
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7 d. location in a designated or associate Main Street
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8 District, and/or location in an Oklahoma Certified
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9 Cultural District.
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10 G. Upon approval of an application and the completion of the
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11 adaptive reuse project, the establishment shall be eligible to claim
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12 the credit for tax year 2027 and subsequent tax years, not to exceed
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13 the approved amount, for qualified expenditures. The Agency shall
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14 verify the project is completed and meets all prescribed
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15 requirements before approving the claim for credit.
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16 H. Upon approval of the claim for credit, the Agency shall
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17 notify the Tax Commission of the credit amount awarded to the
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18 establishment. The credit shall be awarded for the tax year
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19 corresponding to the calendar year in which the claim is approved.
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20 I. Credit awarded pursuant to this section shall not be used to
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21 reduce the income tax liability of the taxpayer to less than zero
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22 (0). If the amount of the credit allowed pursuant to subsection D
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23 of this section exceeds the income tax liability, the amount of
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Req. No. 2750 Page 5
1 credit not used in any tax year may be carried forward, in order, to
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2 each of the ten (10) subsequent tax years.
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3 J. The Agency shall electronically submit to the Governor, the
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4 President Pro Tempore of the Senate, and the Speaker of the House of
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5 Representatives and publish on the website of the Agency an annual
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6 report detailing the credits approved pursuant to the RESTORE
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7 Program, including information on project locations, housing units
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8 produced, public and private investment levels arising from the
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9 approved projects, and the estimated economic impact on project
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10 areas.
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11 K. The Agency and the Tax Commission may promulgate rules to
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12 effectuate the provisions of this section.
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13 SECTION 3. This act shall become effective July 1, 2026.
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14 SECTION 4. It being immediately necessary for the preservation
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15 of the public peace, health or safety, an emergency is hereby
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16 declared to exist, by reason whereof this act shall take effect and
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17 be in full force from and after its passage and approval.
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19 60-2-2750 QD 12/30/2025 10:40:19 PM
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Req. No. 2750 Page 6Every fact on this page links to its source, starting with the official bill record.