The bill amends the Oklahoma Affordable Housing Act by redefining eligibility criteria for tax credits related to affordable housing projects. It specifies that the Oklahoma Housing Finance Authority will only authorize tax credits for qualifying projects placed in service after January 1, 2026, that meet the definition of "workforce housing," which is defined as housing for households with incomes between 60% and 120% of the median gross income for similar households in the county. Additionally, the annual cap for Oklahoma Affordable Housing 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.

The bill also establishes that the tax credits will be nonrefundable, meaning they cannot reduce tax liability below zero, and allows any unused credits to be carried forward for two subsequent taxable years. Furthermore, it mandates that the Oklahoma Affordable Housing Act undergo a review 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