Senate Bill No. 234 establishes the Adaptive Reuse Housing Development Program in Oklahoma, aimed at incentivizing the conversion of obsolete structures into residential properties. The bill defines "adaptive reuse" as the process of repurposing buildings that are at least 30 years old, have been vacant for three years, and generate rental income below 50% of the local market rate. The program will be administered by the Oklahoma Department of Commerce and the Oklahoma Tax Commission, allowing establishments to apply for a tax credit of up to 50% of qualified expenditures related to adaptive reuse projects, with a cap of $5 million in credits approved per fiscal year starting in 2026.

The bill also outlines a preference rating system for applications exceeding the fiscal year limitations, considering factors such as rental vacancy rates, rent rates, area median income, and the availability of affordable housing. Once a project is completed and approved, establishments can claim the tax credit for the corresponding tax year, with provisions for carrying forward unused credits for up to ten subsequent years. The Department and the Commission are authorized to create rules to implement the program, which is set to take effect on July 1, 2025, with an emergency clause for immediate enactment upon passage.