Oklahoma § 68-2357.403 - Oklahoma Affordable Housing Act

§ 68-2357.403. Oklahoma Affordable Housing Act

A. This act shall be known and may be cited as the "Oklahoma

Affordable Housing Act".

B. As used in this section:

1. "Allocation year" means the year for which the Oklahoma

Housing Finance Agency allocates credits pursuant to this section;

2. "Eligibility statement" means a statement authorized and

issued by the Oklahoma Housing Finance Agency certifying that a

given project qualifies for the Oklahoma Affordable Housing Tax

Credit authorized by this section. The Oklahoma Housing Finance

Agency, under Title 330, Oklahoma Housing Finance Agency, Chapter

36, Affordable Housing Tax Credit Program Rules, shall promulgate

Oklahoma Statutes - Title 68. Revenue and Taxation

rules establishing criteria upon which the eligibility statements

will be issued. The eligibility statement shall specify the amount

of Oklahoma Affordable Housing Tax Credits allocated to a qualified

project. The Oklahoma Housing Finance Agency shall only authorize

the tax credits created by this section to qualified projects which

are placed in service after July 1, 2015, but which shall not be

used to reduce tax liability accruing prior to January 1, 2016;

3. "Federal low-income housing tax credit" means the federal

tax credit as provided in Section 42 of the Internal Revenue Code of

1986, as amended;

4. "Oklahoma Affordable Housing Tax Credit" means the tax

credit created by this section;

5. "Qualified project" means a qualified low-income building as

that term is defined in Section 42 of the Internal Revenue Code of

1986, as amended; and

6. "Taxpayer" means a person, firm or corporation subject to

the tax imposed by Section 2355 of this title or an insurance

company subject to the tax imposed by Section 624 or 628 of Title 36

of the Oklahoma Statutes or other financial institution subject to

the tax imposed by Section 2370 of this title.

C. For qualified projects placed in service after July 1, 2015,

the amount of state tax credits created by this section which are

allocated to a project shall not exceed that of the federal lowincome housing tax credits for a qualified project. The total

Oklahoma Affordable Housing Tax Credits allocated to all qualified

projects for an allocation year shall not exceed Four Million

Dollars ($4,000,000.00). For purposes of this section, the "credit

period" shall mean the period of ten (10) taxable years and "placed

in service" shall have the same meaning as is applicable under the

federal credit program. Reallocated and rolled over credits will

count against the four-million-dollar limit of their original

allocation year and not count against the limit of the year in which

they are allocated.

D. A taxpayer owning an interest in an investment in a

qualified project shall be allowed Oklahoma Affordable Housing Tax

Credits under this section for tax years beginning on or after

January 1, 2016, if the Oklahoma Housing Finance Agency issues an

eligibility statement for such project, which tax credit shall be

allocated among some or all of the partners, members or shareholders

of the taxpayer owning such interest in any manner agreed to by such

partners, members or shareholders. Such taxpayer may assign its

interest in the investment.

E. An insurance company claiming a credit against state premium

tax or retaliatory tax or any other tax imposed by Section 624 or

628 of Title 36 of the Oklahoma Statutes shall not be required to

pay any additional retaliatory tax under Section 628 of Title 36 of

the Oklahoma Statutes as a result of claiming the credit. The

Oklahoma Statutes - Title 68. Revenue and Taxation

credit may fully offset any retaliatory tax imposed by Section 628

of Title 36 of the Oklahoma Statutes.

F. The credit authorized by this section shall not be used to

reduce the tax liability of the taxpayer to less than zero ($0.00).

G. Any credit claimed but not used in a taxable year may be

carried forward two (2) subsequent taxable years.

H. The owner of a qualified project eligible for the credit

authorized by this section shall submit, at the time of filing the

tax return with the Oklahoma Tax Commission, an eligibility

statement from the Oklahoma Housing Finance Agency. In the case of

failure to attach the eligibility statement, no credit under this

section shall be allowed with respect to such project for that year

until required documents are provided to the Tax Commission.

I. If under Section 42 of the Internal Revenue Code of 1986, as

amended, a portion of any federal low-income housing credits taken

on a qualified project is required to be recaptured during the first

ten (10) years after a project is placed in service, the taxpayer

claiming Oklahoma Affordable Housing Tax Credits with respect to

such project shall also be required to recapture a portion of such

credits. The amount of Oklahoma Affordable Housing Tax Credits

subject to recapture shall be proportionally equal to the amount of

federal low-income housing credits subject to recapture.

J. The Oklahoma Housing Finance Agency or the Oklahoma Tax

Commission may require the filing of additional documentation

necessary to determine the accuracy of a tax credit claimed.

K. The Oklahoma Affordable Housing Act shall undergo a review

every five (5) years by a committee of nine (9) persons, to be

appointed three persons each by the Governor, President Pro Tempore

of the Senate, and the Speaker of the House of Representatives.

Added by Laws 2014, c. 421, § 1, eff. Jan. 1, 2015. Amended by Laws

2019, c. 190, § 1, eff. Nov. 1, 2019; Laws 2022, c. 139, § 1, eff.

Nov. 1, 2022; Laws 2024, c. 66, § 1, eff. Nov. 1, 2024.