1 STATE OF OKLAHOMA
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2 1st Session of the 59th Legislature (2023)
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3 SENATE BILL 1071 By: Montgomery
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6 AS INTRODUCED
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7 An Act relating to income tax; providing exemption
7 for certain hydrogen manufacturing facilities;
8 providing period for eligibility; stating
8 qualifications; requiring the Oklahoma Tax Commission
9 to determine eligibility on an annual basis;
9 requiring the Commission to provide application;
10 authorizing the Commission to require certain
10 information; providing for codification; and
11 providing 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. NEW LAW A new section of law to be codified
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15 in the Oklahoma Statutes as Section 2357.91 of Title 68, unless
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16 there is created a duplication in numbering, reads as follows:
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17 A. For tax years 2024 through 2034, revenues generated from the
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18 operation of a newly constructed establishment in this state placed
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19 in service after the effective date of this act, primarily engaged
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20 in the manufacture of hydrogen classified in the NAICS Manual under
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21 U.S. Industry No. 325120, shall be exempt from the tax imposed by
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22 Section 2355 of Title 68 of the Oklahoma Statutes for the first five
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23 (5) years of operations.
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 1 B. To qualify for the exemption provided in subsection A of
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2 this section, an establishment shall meet the following
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3 requirements:
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4 1. The natural gas used in the production of the hydrogen shall
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5 be produced in this state; and
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6 2. Payment of wages or salaries at a wage that equals or
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7 exceeds the average wage requirements in the Oklahoma Quality Jobs
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8 Program Act, Section 3601 et seq. of Title 68 of the Oklahoma
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9 Statutes.
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10 C. Eligibility for an establishment pursuant to this section
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11 for each tax year shall be determined by the Oklahoma Tax
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12 Commission, upon the annual filing of an application provided by the
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13 Commission stating that the establishment qualifies and containing
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14 information as may be required by Commission.
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15 SECTION 2. This act shall become effective November 1, 2023.
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17 59-1-657 QD 1/19/2023 1:35:22 PM
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