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 1574 By: Murdock
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6 AS INTRODUCED
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7 An Act relating to income tax; amending 68 O.S. 2021,
7 Section 2357.403, as last amended by Section 1,
8 Chapter 66, O.S.L. 2024 (68 O.S. Supp. 2025, Section
8 2357.403), which relates to the Oklahoma Affordable
9 Housing Act; increasing the limit on tax credits
9 allocated for certain allocation years; updating
10 statutory reference; updating statutory language; and
10 providing an effective date.
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13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14 SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.403, as
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15 last amended by Section 1, Chapter 66, O.S.L. 2024 (68 O.S. Supp.
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16 2025, Section 2357.403), is amended to read as follows:
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17 Section 2357.403. A. This act shall be known and may be cited
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18 as the "Oklahoma Affordable Housing Act".
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19 B. As used in this section:
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20 1. "Allocation year" means the year for which the Oklahoma
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21 Housing Finance Agency allocates credits pursuant to this section;
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22 2. "Eligibility statement" means a statement authorized and
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23 issued by the Oklahoma Housing Finance Agency certifying that a
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24 given project qualifies for the Oklahoma Affordable Housing Tax
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Req. No. 3094 Page 1
1 Credit authorized by this section. The Oklahoma Housing Finance
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2 Agency, under Title 330, Oklahoma Housing Finance Agency, Chapter
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3 36, Affordable Housing Tax Credit Program Rules of the Oklahoma
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4 Administrative Code, shall promulgate rules establishing criteria
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5 upon which the eligibility statements will be issued. The
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6 eligibility statement shall specify the amount of Oklahoma
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7 Affordable Housing Tax Credits allocated to a qualified project.
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8 The Oklahoma Housing Finance Agency shall only authorize the tax
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9 credits created by this section to qualified projects which are
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10 placed in service after July 1, 2015, but which shall not be used to
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11 reduce tax liability accruing prior to January 1, 2016;
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12 3. "Federal low-income housing tax credit" means the federal
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13 tax credit as provided in Section 42 of the Internal Revenue Code of
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14 1986, as amended;
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15 4. "Oklahoma Affordable Housing Tax Credit" means the tax
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16 credit created by this section;
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17 5. "Qualified project" means a qualified low-income building as
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18 that term is defined in Section 42 of the Internal Revenue Code of
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19 1986, as amended; and
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20 6. "Taxpayer" means a person, firm, or corporation subject to
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21 the tax imposed by Section 2355 of this title or an insurance
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22 company subject to the tax imposed by Section 624 or 628 of Title 36
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23 of the Oklahoma Statutes or other financial institution subject to
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24 the tax imposed by Section 2370 of this title.
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Req. No. 3094 Page 2
1 C. For qualified projects placed in service after July 1, 2015,
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2 the amount of state tax credits created by this section which are
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3 allocated to a project shall not exceed that of the federal low-
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4 income housing tax credits for a qualified project. The total
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5 Oklahoma Affordable Housing Tax Credits allocated to all qualified
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6 projects for an allocation year shall not exceed Four Million
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7 Dollars ($4,000,000.00) for allocation years beginning prior to July
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8 1, 2026, and Eight Million Dollars ($8,000,000.00) for allocation
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9 years beginning on and after July 1, 2026. For purposes of this
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10 section, the "credit period" shall mean the period of ten (10)
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11 taxable years and "placed in service" shall have the same meaning as
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12 is applicable under the federal credit program. Reallocated and
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13 rolled over credits will count against the four-million-dollar
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14 allocation limit of their original allocation year and not count
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15 against the limit of the year in which they are allocated.
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16 D. A taxpayer owning an interest in an investment in a
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17 qualified project shall be allowed Oklahoma Affordable Housing Tax
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18 Credits under this section for tax years beginning on or after
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19 January 1, 2016, if the Oklahoma Housing Finance Agency issues an
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20 eligibility statement for such project, which tax credit shall be
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21 allocated among some or all of the partners, members, or
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22 shareholders of the taxpayer owning such interest in any manner
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23 agreed to by such partners, members, or shareholders. Such taxpayer
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24 may assign its interest in the investment.
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Req. No. 3094 Page 3
1 E. An insurance company claiming a credit against state premium
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2 tax or retaliatory tax or any other tax imposed by Section 624 or
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3 628 of Title 36 of the Oklahoma Statutes shall not be required to
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4 pay any additional retaliatory tax under Section 628 of Title 36 of
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5 the Oklahoma Statutes as a result of claiming the credit. The
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6 credit may fully offset any retaliatory tax imposed by Section 628
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7 of Title 36 of the Oklahoma Statutes.
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8 F. The credit authorized by this section shall not be used to
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9 reduce the tax liability of the taxpayer to less than zero ($0.00)
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10 (0).
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11 G. Any credit claimed but not used in a taxable year may be
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12 carried forward two (2) subsequent taxable years.
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13 H. The owner of a qualified project eligible for the credit
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14 authorized by this section shall submit, at the time of filing the
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15 tax return with the Oklahoma Tax Commission, an eligibility
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16 statement from the Oklahoma Housing Finance Agency. In the case of
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17 failure to attach the eligibility statement, no credit under this
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18 section shall be allowed with respect to such project for that year
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19 until required documents are provided to the Tax Commission.
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20 I. If under Section 42 of the Internal Revenue Code of 1986, as
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21 amended, a portion of any federal low-income housing credits taken
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22 on a qualified project is required to be recaptured during the first
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23 ten (10) years after a project is placed in service, the taxpayer
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24 claiming Oklahoma Affordable Housing Tax Credits with respect to
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Req. No. 3094 Page 4
1 such project shall also be required to recapture a portion of such
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2 credits. The amount of Oklahoma Affordable Housing Tax Credits
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3 subject to recapture shall be proportionally equal to the amount of
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4 federal low-income housing credits subject to recapture.
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5 J. The Oklahoma Housing Finance Agency or the Oklahoma Tax
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6 Commission may require the filing of additional documentation
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7 necessary to determine the accuracy of a tax credit claimed.
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8 K. The Oklahoma Affordable Housing Act shall undergo a review
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9 every five (5) years by a committee of nine (9) persons, to be
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10 appointed three persons each by the Governor, President Pro Tempore
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11 of the Senate, and the Speaker of the House of Representatives.
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12 SECTION 2. This act shall become effective November 1, 2026.
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14 60-2-3094 QD 1/12/2026 10:21:50 PM
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Req. No. 3094 Page 5Every fact on this page links to its source, starting with the official bill record.