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Oklahoma Legislature· SB 475Coauthored by Representative Olsen (principal House author)

An act relating to tax procedure, the official text

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1                  STATE OF OKLAHOMA

1

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

2

3 SENATE BILL 475              By: Prieto
3

4

4

5

5

6                  AS INTRODUCED

6

7   An Act relating to tax procedure; amending 68 O.S.

7   2021, Section 205, as last amended by Section 1,

8   Chapter 208, O.S.L. 2024 (68 O.S. Supp. 2024, Section

8   205), which relates to the confidential nature of

9   records and files of the Oklahoma Tax Commission;

9   excepting the disclosure of information pertaining to

10  the claim of certain tax credit; amending 68 O.S.

10  2021, Section 2357.22, as last amended by Section

11  153, Chapter 452, O.S.L. 2024 (68 O.S. Supp. 2024,

11  Section 2357.22), which relates to the one-time

12  credit against income tax for investments in

12  qualified clean-burning motor fuel property;

13  requiring the Oklahoma Tax Commission to verify

13  whether a credit has been claimed for certain vehicle

14  upon request; updating statutory references; updating

14  statutory language; and providing an effective date.

15

15

16

16

17

17

18 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
18

19  SECTION 1.     AMENDATORY  68 O.S. 2021, Section 205, as last

19

20 amended by Section 1, Chapter 208, O.S.L. 2024 (68 O.S. Supp. 2024,
20

21 Section 205), is amended to read as follows:
21

22  Section 205. A. The records and files of the Oklahoma Tax

22

23 Commission concerning the administration of the Uniform Tax
23

24 Procedure Code or of any state tax law shall be considered
24

    Req. No. 832                                                Page 1
1 confidential and privileged, except as otherwise provided for by
1

2 law, and neither the Tax Commission nor any employee engaged in the
2

3 administration of the Tax Commission or charged with the custody of
3

4 any such records or files nor any person who may have secured
4

5 information from the Tax Commission shall disclose any information
5

6 obtained from the records or files or from any examination or
6

7 inspection of the premises or property of any person.
7

8   B. Except as provided in paragraph 26 of subsection C of this

8

9 section, neither the Tax Commission nor any employee engaged in the
9

10 administration of the Tax Commission or charged with the custody of
10

11 any such records or files shall be required by any court of this
11

12 state to produce any of the records or files for the inspection of
12

13 any person or for use in any action or proceeding, except when the
13

14 records or files or the facts shown thereby are directly involved in
14

15 an action or proceeding pursuant to the provisions of the Uniform
15

16 Tax Procedure Code or of the state tax law, or when the
16

17 determination of the action or proceeding will affect the validity
17

18 or the amount of the claim of the state pursuant to any state tax
18

19 law, or when the information contained in the records or files
19

20 constitutes evidence of violation of the provisions of the Uniform
20

21 Tax Procedure Code or of any state tax law.
21

22  C. The provisions of this section shall not prevent the Tax

22

23 Commission, or with respect to the Oklahoma Department of Commerce
23

24 in administration of the Oklahoma Rural Jobs Act as provided by
24

    Req. No. 832                                            Page 2
1 paragraph 22 of this subsection, from disclosing the following
1

2 information and no liability whatsoever, civil or criminal, shall
2

3 attach to any member of the Tax Commission, or the Oklahoma
3

4 Department of Commerce as applicable, or any employee thereof for
4

5 any error or omission in the disclosure of such information:
5

6   1. The delivery to a taxpayer or a duly authorized

6

7 representative of the taxpayer of a copy of any report or any other
7

8 paper filed by the taxpayer pursuant to the provisions of the
8

9 Uniform Tax Procedure Code or of any state tax law;
9

10  2. The exchange of information that is not protected by the

10

11 federal Privacy Protection Act, 42 U.S.C., Section 2000aa et seq.,
11

12 pursuant to reciprocal agreements entered into by the Tax Commission
12

13 and other state agencies or agencies of the federal government;
13

14  3. The publication of statistics so classified as to prevent

14

15 the identification of a particular report and the items thereof;
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16  4. The examination of records and files by the State Auditor

16

17 and Inspector or the duly authorized agents of the State Auditor and
17

18 Inspector;
18

19  5. The disclosing of information or evidence to the Oklahoma

19

20 State Bureau of Investigation, Attorney General, Oklahoma State
20

21 Bureau of Narcotics and Dangerous Drugs Control, any district
21

22 attorney or agent of any federal law enforcement agency when the
22

23 information or evidence is to be used by such officials to
23

24 investigate or prosecute violations of the criminal provisions of
24

    Req. No. 832                                               Page 3
1 the Uniform Tax Procedure Code or of any state tax law or of any
1

2 federal crime committed against this state. Any information
2

3 disclosed to the Oklahoma State Bureau of Investigation, Attorney
3

4 General, Oklahoma State Bureau of Narcotics and Dangerous Drugs
4

5 Control, any district attorney or agent of any federal law
5

6 enforcement agency shall be kept confidential by such person and not
6

7 be disclosed except when presented to a court in a prosecution for
7

8 violation of the tax laws of this state or except as specifically
8

9 authorized by law, and a violation by the Oklahoma State Bureau of
9

10 Investigation, Attorney General, Oklahoma State Bureau of Narcotics
10

11 and Dangerous Drugs Control, district attorney or agent of any
11

12 federal law enforcement agency by otherwise releasing the
12

13 information shall be a felony;
13

14  6. The use by any division of the Tax Commission of any

14

15 information or evidence in the possession of or contained in any
15

16 report or return filed with any other division of the Tax
16

17 Commission;
17

18  7. The furnishing, at the discretion of the Tax Commission, of

18

19 any information disclosed by its records or files to any official
19

20 person or body of this state, any other state, the United States or
20

21 foreign country who is concerned with the administration or
21

22 assessment of any similar tax in this state, any other state or the
22

23 United States. The provisions of this paragraph shall include the
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24 furnishing of information by the Tax Commission to a county assessor
24

    Req. No. 832                                                Page 4
1 to determine the amount of gross household income pursuant to the
1

2 provisions of Section 8C of Article X of the Oklahoma Constitution
2

3 or Section 2890 of this title. The Tax Commission shall promulgate
3

4 rules to give guidance to the county assessors regarding the type of
4

5 information which may be used by the county assessors in determining
5

6 the amount of gross household income pursuant to Section 8C of
6

7 Article X of the Oklahoma Constitution or Section 2890 of this
7

8 title. The provisions of this paragraph shall also include the
8

9 furnishing of information to the State Treasurer for the purpose of
9

10 administration of the Uniform Unclaimed Property Act;
10

11  8. The furnishing of information to other state agencies for

11

12 the limited purpose of aiding in the collection of debts owed by
12

13 individuals to such requesting agencies;
13

14  9. The furnishing of information requested by any member of the

14

15 general public and stated in the sworn lists or schedules of taxable
15

16 property of public service corporations organized, existing, or
16

17 doing business in this state which are submitted to and certified by
17

18 the State Board of Equalization pursuant to the provisions of
18

19 Section 2858 of this title and Section 21 of Article X of the
19

20 Oklahoma Constitution, provided such information would be a public
20

21 record if filed pursuant to Sections 2838 and 2839 of this title on
21

22 behalf of a corporation other than a public service corporation;
22

23  10. The furnishing of information requested by any member of

23

24 the general public and stated in the findings of the Tax Commission
24

    Req. No. 832                                          Page 5
1 as to the adjustment and equalization of the valuation of real and
1

2 personal property of the counties of the state, which are submitted
2

3 to and certified by the State Board of Equalization pursuant to the
3

4 provisions of Section 2865 of this title and Section 21 of Article X
4

5 of the Oklahoma Constitution;
5

6   11. The furnishing of information as to the issuance or

6

7 revocation of any tax permit, license or exemption by the Tax
7

8 Commission as provided for by law. Such information shall be
8

9 limited to the name of the person issued the permit, license or
9

10 exemption, the name of the business entity authorized to engage in
10

11 business pursuant to the permit, license or exemption, the address
11

12 of the business entity and the grounds for revocation;
12

13  12. The posting of notice of revocation of any tax permit or

13

14 license upon the premises of the place of business of any business
14

15 entity which has had any tax permit or license revoked by the Tax
15

16 Commission as provided for by law. Such notice shall be limited to
16

17 the name of the person issued the permit or license, the name of the
17

18 business entity authorized to engage in business pursuant to the
18

19 permit or license, the address of the business entity and the
19

20 grounds for revocation;
20

21  13. The furnishing of information upon written request by any

21

22 member of the general public as to the outstanding and unpaid amount
22

23 due and owing by any taxpayer of this state for any delinquent tax,
23

24

24

    Req. No. 832                                           Page 6
1 together with penalty and interest, for which a tax warrant or a
1

2 certificate of indebtedness has been filed pursuant to law;
2

3   14. After the filing of a tax warrant pursuant to law, the

3

4 furnishing of information upon written request by any member of the
4

5 general public as to any agreement entered into by the Tax
5

6 Commission concerning a compromise of tax liability for an amount
6

7 less than the amount of tax liability stated on such warrant;
7

8   15. The disclosure of information necessary to complete the

8

9 performance of any contract authorized by this title to any person
9

10 with whom the Tax Commission has contracted;
10

11  16. The disclosure of information to any person for a purpose

11

12 as authorized by the taxpayer pursuant to a waiver of
12

13 confidentiality. The waiver shall be in writing and shall be made
13

14 upon such form as the Tax Commission may prescribe;
14

15  17. The disclosure of information required in order to comply

15

16 with the provisions of Section 2369 of this title;
16

17  18. The disclosure to an employer, as defined in Sections

17

18 2385.1 and 2385.3 of this title, of information required in order to
18

19 collect the tax imposed by Section 2385.2 of this title;
19

20  19. The disclosure to a plaintiff of a corporation's last-known

20

21 address shown on the records of the Franchise Tax Division of the
21

22 Tax Commission in order for such plaintiff to comply with the
22

23 requirements of Section 2004 of Title 12 of the Oklahoma Statutes;
23

24

24

    Req. No. 832                                               Page 7
1   20. The disclosure of information directly involved in the

1

2 resolution of the protest by a taxpayer to an assessment of tax or
2

3 additional tax or the resolution of a claim for refund filed by a
3

4 taxpayer, including the disclosure of the pendency of an
4

5 administrative proceeding involving such protest or claim, to a
5

6 person called by the Tax Commission as an expert witness or as a
6

7 witness whose area of knowledge or expertise specifically addresses
7

8 the issue addressed in the protest or claim for refund. Such
8

9 disclosure to a witness shall be limited to information pertaining
9

10 to the specific knowledge of that witness as to the transaction or
10

11 relationship between taxpayer and witness;
11

12  21. The disclosure of information necessary to implement an

12

13 agreement authorized by Section 2702 of this title when such
13

14 information is directly involved in the resolution of issues arising
14

15 out of the enforcement of a municipal sales tax ordinance. Such
15

16 disclosure shall be to the governing body or to the municipal
16

17 attorney, if so designated by the governing body;
17

18  22. The furnishing of information regarding incentive payments

18

19 made pursuant to the provisions of Sections 3601 through 3609 of
19

20 this title, incentive payments made pursuant to the provisions of
20

21 Sections 3501 through 3508 of this title, or tax credits claimed
21

22 pursuant to the provisions of Sections 1 through 8 of this act
22

23 Sections 3930 through 3937 of this title;
23

24

24

    Req. No. 832                                            Page 8
1   23. The furnishing to a prospective purchaser of any business,

1

2 or his or her authorized representative, of information relating to
2

3 any liabilities, delinquencies, assessments or warrants of the
3

4 prospective seller of the business which have not been filed of
4

5 record, established or become final and which relate solely to the
5

6 seller's business. Any disclosure under this paragraph shall only
6

7 be allowed upon the presentment by the prospective buyer, or the
7

8 buyer's authorized representative, of the purchase contract and a
8

9 written authorization between the parties;
9

10  24. The furnishing of information as to the amount of state

10

11 revenue affected by the issuance or granting of any tax permit,
11

12 license, exemption, deduction, credit or other tax preference by the
12

13 Tax Commission as provided for by law. Such information shall be
13

14 limited to the type of permit, license, exemption, deduction, credit
14

15 or other tax preference issued or granted, the date and duration of
15

16 such permit, license, exemption, deduction, credit or other tax
16

17 preference and the amount of such revenue. The provisions of this
17

18 paragraph shall not authorize the disclosure of the name of the
18

19 person issued such permit, license, exemption, deduction, credit or
19

20 other tax preference, or the name of the business entity authorized
20

21 to engage in business pursuant to the permit, license, exemption,
21

22 deduction, credit or other tax preference;
22

23  25. The examination of records and files of a person or entity

23

24 by the Oklahoma State Bureau of Narcotics and Dangerous Drugs
24

    Req. No. 832                               Page 9
 1 Control, district attorney or the Attorney General pursuant to a
 1

 2 court order by a magistrate in whose territorial jurisdiction the
 2

 3 person or entity resides, or where the Tax Commission records and
 3

 4 files are physically located. Such an order may only be issued upon
 4

 5 a sworn application by an agent of the Oklahoma State Bureau of
 5

 6 Narcotics and Dangerous Drugs Control or the Attorney General,
 6

 7 certifying that the person or entity whose records and files are to
 7

 8 be examined is the target of an ongoing investigation of a felony
 8

 9 violation of the Uniform Controlled Dangerous Substances Act and
 9

10 that information resulting from such an examination would likely be
10

11 relevant to that investigation. Any records or information obtained
11

12 pursuant to such an order may only be used by the Oklahoma State
12

13 Bureau of Narcotics and Dangerous Drugs Control, district attorney
13

14 or the Attorney General in the investigation and prosecution of a
14

15 felony violation of the Uniform Controlled Dangerous Substances Act
15

16 or money laundering pursuant to Section 2001 of Title 21 of the
16

17 Oklahoma Statutes. Any such order issued pursuant to this
17

18 paragraph, along with the underlying application, shall be sealed
18

19 and not disclosed to the person or entity whose records were
19

20 examined, for a period of ninety (90) days. The issuing magistrate
20

21 may grant extensions of such period upon a showing of good cause in
21

22 furtherance of the investigation. Upon the expiration of ninety
22

23 (90) days and any extensions granted by the magistrate, a copy of
23

24 the application and order shall be served upon the person or entity
24

Req. No. 832  Page 10
1 whose records were examined, along with a copy of the records or
1

2 information actually provided by the Tax Commission;
2

3   26. The disclosure of information, as prescribed by this

3

4 paragraph, which is related to the proposed or actual usage of tax
4

5 credits pursuant to Section 2357.7 of this title, the Small Business
5

6 Capital Formation Incentive Act or the Rural Venture Capital
6

7 Formation Incentive Act. Unless the context clearly requires
7

8 otherwise, the terms used in this paragraph shall have the same
8

9 meaning as defined by Section 2357.7, 2357.61 or 2357.72 of this
9

10 title. The disclosure of information authorized by this paragraph
10

11 shall include:
11

12  a. the legal name of any qualified venture capital

12

13                company, qualified small business capital company or

13

14                qualified rural small business capital company,

14

15  b. the identity or legal name of any person or entity

15

16                that is a shareholder or partner of a qualified

16

17                venture capital company, qualified small business

17

18                capital company or qualified rural small business

18

19                capital company,

19

20  c. the identity or legal name of any Oklahoma business

20

21                venture, Oklahoma small business venture or Oklahoma

21

22                rural small business venture in which a qualified

22

23                investment has been made by a capital company, or

23

24

24

    Req. No. 832                                        Page 11
1   d. the amount of funds invested in a qualified venture

1

2                 capital company, the amount of qualified investments

2

3                 in a qualified small business capital company or

3

4                 qualified rural small business capital company and the

4

5                 amount of investments made by a qualified venture

5

6                 capital company, qualified small business capital

6

7                 company, or qualified rural small business capital

7

8                 company;

8

9   27. The disclosure of specific information as required by

9

10 Section 46 of Title 62 of the Oklahoma Statutes;
10

11  28. The disclosure of specific information as required by

11

12 Section 205.5 of this title;
12

13  29. The disclosure of specific information as required by

13

14 Section 205.6 of this title;
14

15  30. The disclosure of information to the State Treasurer

15

16 necessary to implement Section 2368.27 of this title;
16

17  31. The disclosure of specific information to the Oklahoma

17

18 Health Care Authority for purposes of determining eligibility for
18

19 current or potential recipients of assistance from the Oklahoma
19

20 Medicaid Program;
20

21  32. The disclosure of information to the Oklahoma Department of

21

22 Veterans Affairs including but not limited to the name and basis for
22

23 eligibility of each individual who qualifies for the sales tax
23

24

24

    Req. No. 832                                          Page 12
1 exemption authorized in paragraph 34 of Section 1357 of this title;
1

2 or
2

3     33. The disclosure of information to the Oklahoma Medical

3

4 Marijuana Authority for the purposes of compliance with the Oklahoma
4

5 Medical Marijuana and Patient Protection Act or Section 420 et seq.
5

6 of Title 63 of the Oklahoma Statutes; or
6

7     34. The disclosure of information required in order to comply

7

8 with the provisions of subsection H of Section 2357.22 of this
8

9 title.
9

10    D. The Tax Commission shall cause to be prepared and made

10

11 available for public inspection in the office of the Tax Commission
11

12 in such manner as it may determine an annual list containing the
12

13 name and post office address of each person, whether individual,
13

14 corporate or otherwise, making and filing an income tax return with
14

15 the Tax Commission.
15

16    It is specifically provided that no liability whatsoever, civil

16

17 or criminal, shall attach to any member of the Tax Commission or any
17

18 employee thereof for any error or omission of any name or address in
18

19 the preparation and publication of the list.
19

20    E. The Tax Commission shall prepare or cause to be prepared a

20

21 report on all provisions of state tax law that reduce state revenue
21

22 through exclusions, deductions, credits, exemptions, deferrals or
22

23 other preferential tax treatments. The report shall be prepared not
23

24 later than October 1 of each even-numbered year and shall be
24

    Req. No. 832                                 Page 13
1 submitted to the Governor, the President Pro Tempore of the Senate
1

2 and the Speaker of the House of Representatives. The Tax Commission
2

3 may prepare and submit supplements to the report at other times of
3

4 the year if additional or updated information relevant to the report
4

5 becomes available. The report shall include, for the previous
5

6 fiscal year, the Tax Commission's best estimate of the amount of
6

7 state revenue that would have been collected but for the existence
7

8 of each such exclusion, deduction, credit, exemption, deferral or
8

9 other preferential tax treatment allowed by law. The Tax Commission
9

10 may request the assistance of other state agencies as may be needed
10

11 to prepare the report. The Tax Commission is authorized to require
11

12 any recipient of a tax incentive or tax expenditure to report to the
12

13 Tax Commission such information as requested so that the Tax
13

14 Commission may fulfill its obligations as required by this
14

15 subsection. The Tax Commission may require this information to be
15

16 submitted in an electronic format. The Tax Commission may disallow
16

17 any claim of a person for a tax incentive due to its failure to file
17

18 a report as required under the authority of this subsection.
18

19  F. It is further provided that the provisions of this section

19

20 shall be strictly interpreted and shall not be construed as
20

21 permitting the disclosure of any other information contained in the
21

22 records and files of the Tax Commission relating to income tax or to
22

23 any other taxes.
23

24

24

    Req. No. 832                                               Page 14
1   G. Unless otherwise provided for in this section, any violation

1

2 of the provisions of this section shall constitute a misdemeanor and
2

3 shall be punishable by the imposition of a fine not exceeding One
3

4 Thousand Dollars ($1,000.00) or by imprisonment in the county jail
4

5 for a term not exceeding one (1) year, or by both such fine and
5

6 imprisonment, and the offender shall be removed or dismissed from
6

7 office.
7

8   H. Offenses described in Section 2376 of this title shall be

8

9 reported to the appropriate district attorney of this state by the
9

10 Tax Commission as soon as the offenses are discovered by the Tax
10

11 Commission or its agents or employees. The Tax Commission shall
11

12 make available to the appropriate district attorney or to the
12

13 authorized agent of the district attorney its records and files
13

14 pertinent to prosecutions, and such records and files shall be fully
14

15 admissible as evidence for the purpose of such prosecutions.
15

16  SECTION 2.    AMENDATORY  68 O.S. 2021, Section 2357.22, as

16

17 last amended by Section 153, Chapter 452, O.S.L. 2024 (68 O.S. Supp.
17

18 2024, Section 2357.22), is amended to read as follows:
18

19  Section 2357.22. A. For tax years 2028 and before, there shall

19

20 be allowed a one-time credit against the income tax imposed by
20

21 Section 2355 of this title for investments in qualified clean-
21

22 burning motor vehicle fuel property placed in service on or after
22

23 January 1, 1991, or with respect to a hydrogen fuel cell, on or
23

24 after the effective date of this act July 1, 2023.
24

    Req. No. 832                                           Page 15
1   B. As used in this section, "qualified clean-burning motor

1

2 vehicle fuel property" means:
2

3   1. Equipment installed to modify a motor vehicle which is

3

4 propelled by gasoline or diesel fuel so that the vehicle may be
4

5 propelled by compressed natural gas, a hydrogen fuel cell, liquefied
5

6 natural gas, or liquefied petroleum gas. The equipment covered by
6

7 this paragraph must:
7

8   a. be new, not previously used to modify or retrofit any

8

9                 vehicle propelled by gasoline or diesel fuel and be

9

10                installed by an alternative fuels equipment technician

10

11                who is certified in accordance with the Alternative

11

12                Fuels Technician Certification Act,

12

13  b. meet all Federal Motor Vehicle Safety Standards set

13

14                forth in 49 CFR 571, or

14

15  c. for any commercial motor vehicle (CMV), follow the

15

16                Federal Motor Carrier Safety Regulations or Oklahoma

16

17                Intrastate Motor Carrier Regulations;

17

18  2. A motor vehicle originally equipped so that the vehicle may

18

19 be propelled by compressed natural gas, a hydrogen fuel cell, or
19

20 liquefied natural gas or liquefied petroleum gas but only to the
20

21 extent of the portion of the basis of such motor vehicle which is
21

22 attributable to the storage of such fuel, the delivery to the engine
22

23 of such motor vehicle of such fuel, and the exhaust of gases from
23

24 combustion of such fuel;
24

    Req. No. 832                                         Page 16
1   3. Property, not including a building and its structural

1

2 components, which is:
2

3   a. directly related to the delivery of compressed natural

3

4                 gas, liquefied natural gas or liquefied petroleum gas,

4

5                 or hydrogen for commercial purposes or for a fee or

5

6                 charge, into the fuel tank of a motor vehicle

6

7                 propelled by such fuel including compression equipment

7

8                 and storage tanks for such fuel at the point where

8

9                 such fuel is so delivered but only if such property is

9

10                not used to deliver such fuel into any other type of

10

11                storage tank or receptacle and such fuel is not used

11

12                for any purpose other than to propel a motor vehicle,

12

13                or

13

14  b. a metered-for-fee, public access recharging system for

14

15                motor vehicles propelled in whole or in part by

15

16                electricity. The property covered by this paragraph

16

17                must be new, and must not have been previously

17

18                installed or used to refuel vehicles powered by

18

19                compressed natural gas, liquefied natural gas or

19

20                liquefied petroleum gas, hydrogen, or electricity;

20

21  4. Property which is directly related to the compression and

21

22 delivery of natural gas from a private home or residence, for
22

23 noncommercial purposes, into the fuel tank of a motor vehicle
23

24 propelled by compressed natural gas. The property covered by this
24

    Req. No. 832         Page 17
1 paragraph must be new and must not have been previously installed or
1

2 used to refuel vehicles powered by natural gas; or
2

3   5. For tax years 2010 and 2023 through 2028, a motor vehicle

3

4 originally equipped so that the vehicle may be propelled by a
4

5 hydrogen fuel cell electric fueling system.
5

6   C. As used in this section, "motor vehicle" means a motor

6

7 vehicle originally designed by the manufacturer to operate lawfully
7

8 and principally on streets and highways.
8

9   D. The credit provided for in subsection A of this section

9

10 shall be as follows:
10

11  1. For the qualified clean-burning motor vehicle fuel property

11

12 defined in paragraphs 1, 2, or 5 of subsection B of this section,
12

13 the amount of the credit shall be as follows based upon gross
13

14 vehicle weight of the qualified vehicle:
14

15  a. for vehicles up to or below six thousand (6,000)

15

16                pounds, the credit shall be a maximum of Five Thousand

16

17                Five Hundred Dollars ($5,500.00),

17

18  b. for vehicles between six thousand one (6,001) pounds

18

19                to ten thousand (10,000) pounds, the credit shall be a

19

20                maximum amount of Nine Thousand Dollars ($9,000.00),

20

21  c. for vehicles of ten thousand one (10,001) pounds, but

21

22                not in excess of twenty-six thousand five hundred

22

23                (26,500) pounds, the credit shall be a maximum amount

23

24                of Twenty-six Thousand Dollars ($26,000.00), and

24

    Req. No. 832                                      Page 18
1   d. for vehicles in excess of twenty-six thousand five

1

2                 hundred one (26,501) pounds, the credit shall be a

2

3                 maximum amount of One Hundred Thousand Dollars

3

4                 ($100,000.00);

4

5   2. For qualified clean-burning motor vehicle fuel property

5

6 defined in paragraph 3 of subsection B of this section, a per-
6

7 location credit of forty-five percent (45%) of the cost of the
7

8 qualified clean-burning motor vehicle fuel property; and
8

9   3. For qualified clean-burning motor vehicle fuel property

9

10 defined in paragraph 4 of subsection B of this section, a per-
10

11 location credit of the lesser of fifty percent (50%) of the cost of
11

12 the qualified clean-burning motor vehicle fuel property or Two
12

13 Thousand Five Hundred Dollars ($2,500.00).
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14  E. In cases where no credit has been claimed pursuant to

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15 paragraph 1 of subsection D of this section by any prior owner and
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16 in which a motor vehicle is purchased by a taxpayer with qualified
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17 clean-burning motor vehicle fuel property installed by the
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18 manufacturer of such motor vehicle and the taxpayer is unable or
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19 elects not to determine the exact basis which is attributable to
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20 such property, the taxpayer may claim a credit in an amount not
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21 exceeding the lesser of ten percent (10%) of the cost of the motor
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22 vehicle or One Thousand Five Hundred Dollars ($1,500.00).
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23  F. If the tax credit allowed pursuant to subsection A of this

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24 section exceeds the amount of income taxes due or if there are no
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    Req. No. 832                                               Page 19
1 state income taxes due on the income of the taxpayer, the amount of
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2 the credit not used as an offset against the income taxes of a
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3 taxable year may be carried forward, in order, as a credit against
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4 subsequent income tax liability for a period not to exceed five (5)
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5 years. The tax credit authorized pursuant to the provisions of this
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6 section shall not be used to reduce the tax liability of the
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7 taxpayer to less than zero (0).
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8   G. A husband and wife who file separate returns for a taxable

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9 year in which they could have filed a joint return may each claim
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10 only one-half (1/2) of the tax credit that would have been allowed
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11 for a joint return.
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12  H. The Oklahoma Tax Commission is herein empowered to

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13 promulgate rules by which the purpose of this section shall be
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14 administered including the power to establish and enforce penalties
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15 for violations thereof. Upon the request of an individual, the
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16 Commission shall, in a reasonably timely manner, verify whether a
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17 credit authorized pursuant to subsection A of this section has been
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18 previously claimed for a vehicle, as identified by its vehicle
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19 identification number.
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20  I. Notwithstanding the provisions of Section 2352 of this

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21 title, for the fiscal year beginning on July 1, 2014, through fiscal
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22 year 2023, the Tax Commission shall calculate an amount that equals
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23 five percent (5%) of the cost of qualified clean-burning motor
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24 vehicle fuel property as provided for in paragraph 1 of subsection D
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    Req. No. 832                                           Page 20
1 of this section for tax year 2012. For each subsequent fiscal year
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2 thereafter, the Tax Commission shall perform the same computation
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3 with respect to the second tax year preceding the beginning of each
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4 subsequent fiscal year. For fiscal year 2024, the Tax Commission
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5 shall calculate an amount that equals twelve percent (12%) of the
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6 credit for qualified clean-burning motor vehicle fuel property as
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7 provided in paragraph 1 of subsection D of this section for tax year
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8 2021. For each subsequent fiscal year, the Tax Commission shall
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9 perform the same calculation for credits claimed in the second
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10 preceding tax year. The Tax Commission shall then transfer an
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11 amount equal to the amount calculated in this subsection from the
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12 revenue derived pursuant to the provisions of subsections A, B and E
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13 of Section 2355 of this title to the Compressed Natural Gas
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14 Conversion Safety and Regulation Fund created in Section 130.25 of
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15 Title 74 of the Oklahoma Statutes.
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16  J. For the tax years 2020 through 2022, the total amount of

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17 credits authorized by this section used to offset tax shall be
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18 adjusted annually to limit the annual amount of credits to Twenty
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19 Million Dollars ($20,000,000.00). The Tax Commission shall annually
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20 calculate and publish by the first day of the affected taxable year
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21 a percentage by which the credits authorized by this section shall
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22 be reduced so the total amount of credits used to offset tax does
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23 not exceed Twenty Million Dollars ($20,000,000.00) per year. The
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24 formula to be used for the percentage adjustment shall be Twenty
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    Req. No. 832                       Page 21
1 Million Dollars ($20,000,000.00) divided by the credits claimed in
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2 the second preceding year, with respect to any changes to the future
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3 of the credit.
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4   K. Pursuant to subsection J of this section, in the event the

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5 total tax credits authorized by this section exceed Twenty Million
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6 Dollars ($20,000,000.00) in any calendar year, the Tax Commission
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7 shall permit any excess over Twenty Million Dollars ($20,000,000.00)
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8 but shall factor such excess into the percentage adjustment formula
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9 for subsequent years with respect to any changes to the future of
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10 the credit.
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11  L. For the tax years 2023 through 2028, the total amount of

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12 credits authorized by this section used to offset tax shall be
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13 adjusted annually to limit the annual amount of credits to:
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14  1. Ten Million Dollars ($10,000,000.00) for qualified clean

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15 burning fuel property propelled by compressed natural gas, liquefied
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16 natural gas, or liquefied petroleum gas, property related to the
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17 delivery of compressed natural gas, liquefied natural gas or
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18 liquefied petroleum gas, and property directly related to the
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19 compression and delivery of natural gas;
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20  2. Ten Million Dollars ($10,000,000.00) for property originally

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21 equipped so that the vehicle may be propelled by a hydrogen fuel
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22 cell electric fueling system and property directly related to the
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23 delivery of hydrogen; and
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    Req. No. 832                             Page 22
1   3. Ten Million Dollars ($10,000,000.00) for property which is a

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2 metered-for-fee, public access recharging system for motor vehicles
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3 propelled in whole or in part by electricity.
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4   The Tax Commission shall annually calculate and publish by the

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5 first day of the affected taxable year a percentage by which the
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6 credits authorized by this section shall be reduced so the total
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7 amount of credits used to offset tax does not exceed each of the
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8 limits provided in paragraphs 1 through 3 of this subsection. The
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9 formula to be used for the percentage adjustment shall be Ten
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10 Million Dollars ($10,000,000.00) divided by the credits claimed in
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11 the second preceding year, with respect to any changes to the future
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12 of the credit.
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13  M. Pursuant to subsection L of this section, in the event the

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14 tax credits authorized by this section exceed any of the limits
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15 provided in paragraphs 1 through 3 of subsection L of this section
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16 in any year, the Tax Commission shall permit any excess over Ten
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17 Million Dollars ($10,000,000.00) but shall factor such excess into
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18 the percentage adjustment formula for subsequent years with respect
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19 to any changes to the future of the credit.
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20  N. The Tax Commission shall notify the Office of the State

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21 Secretary of Energy and Environment at any time when the amount of
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22 claims for credits allowed pursuant to this section reaches eighty
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23 percent (80%) of the total annual limit provided in subsection J of
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24 this section. Upon such notification, the Secretary shall provide
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    Req. No. 832                                 Page 23
1 notice to the Governor, President Pro Tempore of the Senate and
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2 Speaker of the House of Representatives.
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3   SECTION 3. This act shall become effective November 1, 2025.

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    Req. No. 832                            Page 24
Every fact on this page links to its source, starting with the official bill record.