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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 99 By: Boren
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6 AS INTRODUCED
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7 An Act relating to income tax credit; amending 68
7 O.S. 2021, Section 2357.46, which relates to tax
8 credit for construction of energy efficient property;
8 modifying tax year for which credit can be claimed;
9 requiring property to be completed in the year in
9 which the credit is claimed; updating statutory
10 language; updating statutory reference; and providing
10 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 2357.46, is
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15 amended to read as follows:
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16 Section 2357.46. A. Except as otherwise provided by subsection
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17 G of this section, for the time period beginning on or after January
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18 1, 2006, and ending on July 1, 2016 tax years 2006 through 2016 and
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19 tax year 2025 and subsequent tax years, there shall be allowed a
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20 credit against the tax imposed by Section 2355 of this title for
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21 eligible expenditures incurred by a contractor in the construction
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22 of energy efficient residential property of two thousand (2,000)
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23 square feet or less. The amount of the credit shall be based upon
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24 the following:
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Req. No. 1095 Page 1
1 1. For any eligible energy efficient residential property
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2 constructed and certified as forty percent (40%) or more above the
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3 2003 International Energy Conservation Code 2003 and any supplement
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4 in effect at the time of completion, the amount of the credit shall
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5 be equal to the eligible expenses, not to exceed Four Thousand
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6 Dollars ($4,000.00) for the taxpayer who is the contractor; and
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7 2. For any eligible energy efficient residential property
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8 constructed and certified as between twenty percent (20%) and
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9 thirty-nine percent (39%) above the 2003 International Energy
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10 Conservation Code 2003 and any supplement in effect at the time of
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11 completion, the credit shall be equal to the eligible expenditures,
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12 not to exceed Two Thousand Dollars ($2,000.00) for the taxpayer who
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13 is the contractor.
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14 B. As used in this section:
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15 1. "Eligible expenditure" means any:
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16 a. energy efficient heating or cooling system,
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17 b. insulation material or system which is specifically
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18 and primarily designed to reduce the heat gain or loss
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19 of a residential property when installed in or on such
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20 property,
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21 c. exterior windows, including skylights,
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22 d. exterior doors, and
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23 e. any metal roof installed on a residential property,
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24 but only if such roof has appropriate pigmented
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1 coatings which are specifically and primarily designed
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2 to reduce the heat gain of such dwelling unit and
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3 which meet Energy Star program requirements;
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4 2. "Contractor" means the taxpayer who constructed the
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5 residential property or manufactured home, or if more than one
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6 taxpayer qualifies as the contractor, the primary contractor; and
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7 3. "Eligible energy efficient residential property" means a
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8 newly constructed residential property or manufactured home property
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9 which is located in the State of Oklahoma this state and
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10 substantially complete after December 31, 2005 completed in the
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11 calendar year corresponding to the tax year in which the credit is
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12 claimed, and which is two thousand (2,000) square feet or less:
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13 a. for the credit provided pursuant to paragraph 1 of
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14 subsection A of this section, which is certified by an
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15 accredited Residential Energy Services Network
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16 Provider using the Home Energy Rating System to have:
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17 (1) a level of annual heating and cooling energy
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18 consumption which is at least forty percent (40%)
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19 below the annual level of heating and cooling
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20 energy consumption of a comparable residential
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21 property constructed in accordance with the
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22 standards of Chapter 4 of the 2003 International
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23 Energy Conservation Code, as such code is in
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24 effect on November 1, 2005,
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1 (2) heating and cooling equipment efficiencies which
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2 correspond to the minimum allowed under the
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3 regulations established by the United States
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4 Department of Energy pursuant to the National
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5 Appliance Energy Conservation Act of 1987 and in
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6 effect at the time of construction of the
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7 property, and
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8 (3) building envelope component improvements which
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9 account for at least one-fifth (1/5) of the
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10 reduced annual heating and cooling energy
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11 consumption levels, and
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12 b. for the credit provided pursuant to paragraph 2 of
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13 subsection A of this section, which is certified by an
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14 accredited Residential Energy Services Network
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15 Provider using the Home Energy Rating System to have:
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16 (1) a level of annual heating and cooling energy
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17 consumption which is between twenty percent (20%)
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18 and thirty-nine percent (39%) below the annual
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19 level of heating and cooling energy consumption
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20 of a comparable residential property constructed
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21 in accordance with the standards of Chapter 4 of
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22 the 2003 International Energy Conservation Code,
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23 as such code is in effect on November 1, 2005,
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1 (2) heating and cooling equipment efficiencies which
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2 correspond to the minimum allowed under the
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3 regulations established by the United States
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4 Department of Energy pursuant to the National
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5 Appliance Energy Conservation Act of 1987 and in
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6 effect at the time of construction of the
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7 property, and
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8 (3) building envelope component improvements which
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9 account for at least one-third (1/3) of the
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10 reduced annual heating and cooling energy
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11 consumption levels.
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12 C. The credit provided for in subsection A of this section may
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13 only be claimed once for the contractor of any eligible residential
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14 energy efficient property during the taxable year when the property
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15 is substantially complete.
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16 D. If the credit allowed pursuant to this section exceeds the
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17 amount of income taxes due or if there are no state income taxes due
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18 on the income of the taxpayer, the amount of credit allowed but not
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19 used in any taxable year may be carried forward as a credit against
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20 subsequent income tax liability for a period not exceeding four (4)
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21 tax years following the qualified expenditures.
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22 E. For credits earned on or after July 1, 2006, the credits
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23 authorized by this section shall be freely transferable to
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24 subsequent transferees.
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1 F. The Oklahoma Tax Commission shall promulgate rules necessary
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2 to implement this act this section.
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3 G. No credit otherwise authorized by the provisions of this
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4 section may be claimed for any event, transaction, investment,
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5 expenditure or other act occurring on or after July 1, 2010, for
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6 which the credit would otherwise be allowable. The provisions of
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7 this subsection shall cease to be operative on July 1, 2012.
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8 Beginning July 1, 2012, the credit authorized by this section may be
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9 claimed for any event, transaction, investment, expenditure or other
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10 act occurring on or after July 1, 2012, according to the provisions
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11 of this section.
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12 H. No credit otherwise authorized by the provisions of this
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13 section may be claimed for any event, transaction, investment,
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14 expenditure or other act occurring on or after July 1, 2016, for
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15 which the credit would otherwise be allowable.
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16 SECTION 2. This act shall become effective November 1, 2025.
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18 60-1-1095 QD 1/19/2025 5:47:20 AM
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Req. No. 1095 Page 6Every fact on this page links to its source, starting with the official bill record.