Bill > SB234

This bill establishes the Adaptive Reuse Housing Development Program, which provides a tax credit for businesses that convert older, underutilized buildings into residential spaces. The program, to be administered by the Oklahoma Department of Commerce and Oklahoma Tax Commission, allows businesses to claim up to 50% of qualified expenditures as a tax credit. "Qualified expenditures" include costs like environmental remediation, bringing structures up to building code, and upgrading plumbing, electrical, and climate control systems. The program targets structures at least 30 years old that have been vacant or underutilized for three years and generate less than half the local market rate rental income. Starting in fiscal year 2026, the program will limit total credits to $5 million annually, with any unused credits carrying forward to subsequent years. When demand exceeds the annual limit, the Department will use a preference rating system considering factors like local rental vacancy rates, rent prices, area median income, and affordable housing availability. Businesses can carry forward unused credits for up to ten subsequent tax years, though the credit cannot reduce income tax liability below zero. The bill is set to become effective on July 1, 2025, with an emergency clause indicating its immediate importance for public welfare.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb234&Session=2500