The bill amends the Oklahoma Affordable Housing Act, specifically Section 2357.403 of the Oklahoma Statutes, to enhance the framework for affordable housing tax credits. Key changes include the definition of "workforce housing" and the stipulation that only low-income buildings meeting this definition will qualify for tax credits if placed in service after January 1, 2026. The annual cap for tax credits is adjusted to $15 million for allocation years 2026 through 2030, and $4 million for allocation years 2016 through 2025 and 2031 onward. Additionally, the tax credit is made nonrefundable, meaning it cannot reduce tax liability below zero.

The bill also outlines the process for issuing eligibility statements by the Oklahoma Housing Finance Agency, which certifies that a project qualifies for the tax credit. It mandates that taxpayers must attach this eligibility statement when filing tax returns to claim the credit. Furthermore, the bill establishes a review process for the Oklahoma Affordable Housing Act every five years by a committee appointed by state leaders. The effective date for these changes is set for January 1, 2026.

Statutes affected:
Introduced: 68-2357.403