The proposed bill establishes the Adaptive Reuse Housing Development Program, which will be administered by the Oklahoma Department of Commerce and the Oklahoma Tax Commission. This program allows establishments to apply for a tax credit of up to fifty percent (50%) of qualified expenditures related to adaptive reuse projects involving obsolete structures. To qualify, a structure must be at least thirty years old, have been vacant or underutilized for at least three years, and generate rental income below fifty percent (50%) of the local market rate. The bill outlines the criteria for qualified expenditures, which include costs for environmental remediation, compliance with building codes, efficiency upgrades, and necessary plumbing, electrical, and climate control improvements.

The bill sets a cap of Five Million Dollars ($5,000,000.00) for tax credits approved in any fiscal year, starting from fiscal year 2026, with provisions for reallocating unused credit amounts to subsequent years. A preference rating system will be developed to prioritize applications based on local rental vacancy rates, rent rates, area median income, and the availability of affordable housing. The tax credit cannot reduce a taxpayer's liability below zero, but any unused credit can be carried forward for up to ten years. The act is set to take effect on July 1, 2025, and includes an emergency clause for immediate implementation upon passage.