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1 STATE OF OKLAHOMA
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2 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 923 By: Nice
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6 AS INTRODUCED
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7 An Act relating to revenue and taxation; amending 68
7 O.S. 2021, Section 2357.403, as last amended by
8 Section 1, Chapter 66, O.S.L. 2024 (68 O.S. Supp.
8 2024, Section 2357.403), which relates to affordable
9 housing tax credits; defining terms; expanding
9 requirement for certain eligible qualifying projects
10 placed in service after certain date; adjusting
10 annual cap; making tax credit nonrefundable; and
11 providing an effective date.
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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15 SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.403, as
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16 last amended by Section 1, Chapter 66, O.S.L. 2024 (68 O.S. Supp.
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17 2024, Section 2357.403), is amended to read as follows:
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18 Section 2357.403. A. This act shall be known and may be cited
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19 as the "Oklahoma Affordable Housing Act".
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20 B. As used in this section:
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21 1. "Allocation year" means the year for which the Oklahoma
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22 Housing Finance Agency allocates credits pursuant to this section;
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23 2. "Eligibility statement" means a statement authorized and
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24 issued by the Oklahoma Housing Finance Agency certifying that a
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1 given project qualifies for the Oklahoma Affordable Housing Tax
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2 Credit authorized by this section. The Oklahoma Housing Finance
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3 Agency, under Title 330, Oklahoma Housing Finance Agency, Chapter
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4 36, Affordable Housing Tax Credit Program Rules, shall promulgate
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5 rules establishing criteria upon which the eligibility statements
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6 will be issued. The eligibility statement shall specify the amount
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7 of Oklahoma Affordable Housing Tax Credits allocated to a qualified
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8 project. The Oklahoma Housing Finance Agency shall only authorize
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9 the tax credits created by this section to qualified projects which
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10 are placed in service after July 1, 2015, but which shall not be
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11 used to reduce tax liability accruing prior to January 1, 2016. For
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12 qualifying projects placed in service after January 1, 2026, the
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13 Oklahoma Housing Finance Authority shall only authorize the tax
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14 credits created by this section to low-income buildings that meet
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15 the definition of workforce housing;
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16 3. "Federal low-income housing tax credit" means the federal
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17 tax credit as provided in Section 42 of the Internal Revenue Code of
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18 1986, as amended;
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19 4. "Oklahoma Affordable Housing Tax Credit" means the tax
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20 credit created by this section;
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21 5. "Qualified project" means a qualified low-income building as
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22 that term is defined in Section 42 of the Internal Revenue Code of
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23 1986, as amended; and
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1 6. "Taxpayer" means a person, firm or corporation subject to
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2 the tax imposed by Section 2355 of this title or an insurance
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3 company subject to the tax imposed by Section 624 or 628 of Title 36
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4 of the Oklahoma Statutes or other financial institution subject to
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5 the tax imposed by Section 2370 of this title; and
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6 7. "Workforce housing" means housing occupied or reserved for
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7 occupancy by households with a gross household income between sixty
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8 percent (60%) and one hundred twenty percent (120%) of the median
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9 gross income for households of the same size in the county in which
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10 the municipality is located.
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11 C. For qualified projects placed in service after July 1, 2015,
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12 the amount of state tax credits created by this section which are
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13 allocated to a project shall not exceed that of the federal low-
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14 income housing tax credits for a qualified project. The total
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15 Oklahoma Affordable Housing Tax Credits allocated to all qualified
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16 projects for an allocation year shall not exceed Fifteen Million
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17 Dollars ($15,000,000.00) for allocation years 2026 through 2030, and
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18 Four Million Dollars ($4,000,000.00) for allocation years 2016
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19 through 2025 and 2031 and subsequent allocation years. For purposes
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20 of this section, the "credit period" shall mean the period of ten
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21 (10) taxable years and "placed in service" shall have the same
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22 meaning as is applicable under the federal credit program.
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23 Reallocated and rolled over credits will count against the four-
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24 million-dollar limit of annual limits prescribed by this subsection
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1 for their original allocation year and not count against the limit
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2 of the year in which they are allocated.
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3 D. A taxpayer owning an interest in an investment in a
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4 qualified project shall be allowed Oklahoma Affordable Housing Tax
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5 Credits under this section for tax years beginning on or after
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6 January 1, 2016, if the Oklahoma Housing Finance Agency issues an
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7 eligibility statement for such project, which tax credit shall be
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8 allocated among some or all of the partners, members or shareholders
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9 of the taxpayer owning such interest in any manner agreed to by such
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10 partners, members or shareholders. Such taxpayer may assign its
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11 interest in the investment.
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12 E. An insurance company claiming a credit against state premium
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13 tax or retaliatory tax or any other tax imposed by Section 624 or
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14 628 of Title 36 of the Oklahoma Statutes shall not be required to
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15 pay any additional retaliatory tax under Section 628 of Title 36 of
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16 the Oklahoma Statutes as a result of claiming the credit. The
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17 credit may fully offset any retaliatory tax imposed by Section 628
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18 of Title 36 of the Oklahoma Statutes.
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19 F. The credit authorized by this section shall not be used to
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20 reduce the tax liability of the taxpayer to less than zero ($0.00).
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21 G. Any credit claimed but not used in a taxable year may be
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22 carried forward two (2) subsequent taxable years.
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23 H. The owner of a qualified project eligible for the credit
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24 authorized by this section shall submit, at the time of filing the
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1 tax return with the Oklahoma Tax Commission, an eligibility
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2 statement from the Oklahoma Housing Finance Agency. In the case of
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3 failure to attach the eligibility statement, no credit under this
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4 section shall be allowed with respect to such project for that year
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5 until required documents are provided to the Tax Commission.
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6 I. If under Section 42 of the Internal Revenue Code of 1986, as
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7 amended, a portion of any federal low-income housing credits taken
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8 on a qualified project is required to be recaptured during the first
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9 ten (10) years after a project is placed in service, the taxpayer
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10 claiming Oklahoma Affordable Housing Tax Credits with respect to
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11 such project shall also be required to recapture a portion of such
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12 credits. The amount of Oklahoma Affordable Housing Tax Credits
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13 subject to recapture shall be proportionally equal to the amount of
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14 federal low-income housing credits subject to recapture.
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15 J. The Oklahoma Housing Finance Agency or the Oklahoma Tax
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16 Commission may require the filing of additional documentation
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17 necessary to determine the accuracy of a tax credit claimed.
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18 K. The Oklahoma Affordable Housing Act shall undergo a review
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19 every five (5) years by a committee of nine (9) persons, to be
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20 appointed three persons each by the Governor, President Pro Tempore
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21 of the Senate, and the Speaker of the House of Representatives.
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22 SECTION 2. This act shall become effective January 1, 2026.
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24 60-1-1384 MSBB 1/19/2025 5:46:04 AM
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Req. No. 1384 Page 5Every fact on this page links to its source, starting with the official bill record.