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 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 234 By: Rader
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6 AS INTRODUCED
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7 An Act relating to income tax credit; creating the
7 Adaptive Reuse Housing Development Program; defining
8 terms; directing the Oklahoma Department of Commerce
8 and the Oklahoma Tax Commission to administer the
9 program; authorizing establishments to apply for tax
9 credit for certain qualified expenditures on an
10 adaptive reuse project; stipulating credit amount;
10 authorizing the Department to approve applications
11 for credit; limiting approval amount for fiscal year;
11 requiring reallocation of unused approval amounts to
12 subsequent fiscal year limitation; requiring the
12 Department to develop a preference rating system;
13 authorizing the establishment to claim credit upon
13 application approval and project completion;
14 requiring the Department to verify qualification;
14 requiring the Department to provide notification to
15 the Commission when credit is awarded; stipulating
15 the tax year in which credit is awarded; prohibiting
16 refundability of credit; authorizing the carry
16 forward of credit; authorizing the promulgation of
17 rules; providing for codification; providing an
17 effective date; and declaring an emergency.
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20 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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21 SECTION 1. NEW LAW A new section of law to be codified
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22 in the Oklahoma Statutes as Section 2357.413 of Title 68, unless
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23 there is created a duplication in numbering, reads as follows:
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Req. No. 785 Page 1
1 A. There is hereby created the Adaptive Reuse Housing
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2 Development Program.
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3 B. As used in this section:
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4 1. "Adaptive reuse" means the process of adapting obsolete
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5 structures for residential use;
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6 2. "Obsolete structure" means a structure that:
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7 a. is at least thirty (30) years old,
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8 b. has been vacant or underutilized for at least three
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9 (3) years, and
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10 c. generates rental from an underutilized structure
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11 income that is less than fifty percent (50%) of the
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12 local market rate income for a property of similar
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13 class and size;
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14 3. "Program" means the Adaptive Reuse Housing Development
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15 Program;
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16 4. "Qualified expenditures" means additional costs related to
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17 the development of an obsolete structure not typically incurred in
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18 the construction of new structures or the rehabilitation of
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19 relatively more modern structures, including:
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20 a. environmental remediation,
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21 b. bringing the structure into compliance with applicable
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22 building codes and regulations,
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23 c. efficiency upgrades, and
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Req. No. 785 Page 2
1 d. plumbing, electrical, and climate control upgrades;
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2 and
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3 5. "Underutilized" means a structure where at least fifty
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4 percent (50%) of rentable square footage is vacant, or a structure
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5 that is utilized for a use for which the structure was not
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6 originally designed or intended.
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7 C. The program shall be administered by the Oklahoma Department
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8 of Commerce and the Oklahoma Tax Commission.
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9 D. An establishment may apply for credit against the tax
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10 imposed pursuant to Section 2355 of Title 68 of the Oklahoma
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11 Statutes for up to fifty percent (50%) of qualified expenditures for
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12 an adaptive reuse project. Applications for credit shall be made on
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13 a form prescribed by the Department.
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14 E. Beginning fiscal year 2026 and in subsequent fiscal years,
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15 the Department is authorized to approve applications for credit, not
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16 to exceed Five Million Dollars ($5,000,000.00) in any fiscal year.
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17 Partial approval for credit due to the fiscal year limitations
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18 provided in this subsection may be awarded by the Department. In
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19 any fiscal year where the credit amount approved is less than the
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20 limitation provided in this subsection, the difference shall be
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21 added to the limitation in subsequent fiscal years. Credits
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22 approved but not claimed pursuant to subsection G of this section
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23 shall be added to the limitation in subsequent fiscal years.
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Req. No. 785 Page 3
1 F. For a fiscal year where applications for credit exceed the
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2 fiscal year limitations pursuant to subsection E of this section,
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3 the Department shall develop a preference rating system for approval
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4 based on the following:
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5 a. rental vacancy rates in the area of the proposed
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6 project,
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7 b. rent rates in the area of the proposed project,
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8 c. area median income, and
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9 d. availability of affordable housing in the area of the
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10 proposed project.
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11 G. Upon approval of an application and the completion of the
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12 adaptive reuse project, the establishment shall be eligible to claim
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13 the credit for tax year 2026 and subsequent tax years, not to exceed
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14 the approved amount, for qualified expenditures. The Department
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15 shall verify the project is completed and meets all prescribed
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16 requirements before approving the claim for credit.
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17 H. Upon approval of the claim for credit, the Department shall
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18 notify the Commission of the credit amount awarded to the
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19 establishment. The credit shall be awarded for the tax year
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20 corresponding to the calendar year in which the claim is approved.
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21 I. Credit awarded pursuant to this section shall not be used to
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22 reduce the income tax liability of the taxpayer to less than zero
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23 (0). If the amount of the credit allowed pursuant to subsection D
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24 of this section exceeds the income tax liability, the amount of
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Req. No. 785 Page 4
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 Department and the Commission may promulgate rules to
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4 effectuate the provisions of this section.
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5 SECTION 2. This act shall become effective July 1, 2025.
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6 SECTION 3. It being immediately necessary for the preservation
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7 of the public peace, health or safety, an emergency is hereby
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8 declared to exist, by reason whereof this act shall take effect and
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9 be in full force from and after its passage and approval.
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11 60-1-785 QD 12/30/2024 5:13:36 PM
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Req. No. 785 Page 5Every fact on this page links to its source, starting with the official bill record.