Okla. Stat. tit. 68, § 68-2357.46

construction of certain energy efficient residential properties

A. Except as otherwise provided by subsection G of this

section, for the time period beginning on or after January 1, 2006,

and ending on July 1, 2016, there shall be allowed a credit against

the tax imposed by Section 2355 of this title for eligible

expenditures incurred by a contractor in the construction of energy

efficient residential property of two thousand (2,000) square feet

or less. The amount of the credit shall be based upon the

following:

1. For any eligible energy efficient residential property

constructed and certified as forty percent (40%) or more above the

International Energy Conservation Code 2003 and any supplement in

effect at the time of completion, the amount of the credit shall be

equal to the eligible expenses, not to exceed Four Thousand Dollars

($4,000.00) for the taxpayer who is the contractor; and

2. For any eligible energy efficient residential property

constructed and certified as between twenty percent (20%) and

thirty-nine percent (39%) above the International Energy

Conservation Code 2003 and any supplement in effect at the time of

completion, the credit shall be equal to the eligible expenditures,

not to exceed Two Thousand Dollars ($2,000.00) for the taxpayer who

is the contractor.

B. As used in this section:

1. "Eligible expenditure" means any:

a. energy efficient heating or cooling system,

b. insulation material or system which is specifically

and primarily designed to reduce the heat gain or loss

of a residential property when installed in or on such

property,

c. exterior windows, including skylights,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 826

d. exterior doors, and

e. any metal roof installed on a residential property,

but only if such roof has appropriate pigmented

coatings which are specifically and primarily designed

to reduce the heat gain of such dwelling unit and

which meet Energy Star program requirements;

2. "Contractor" means the taxpayer who constructed the

residential property or manufactured home, or if more than one

taxpayer qualifies as the contractor, the primary contractor; and

3. "Eligible energy efficient residential property" means a

newly constructed residential property or manufactured home property

which is located in the State of Oklahoma and substantially complete

after December 31, 2005, and which is two thousand (2,000) square

feet or less:

a. for the credit provided pursuant to paragraph 1 of

subsection A of this section, which is certified by an

accredited Residential Energy Services Network

Provider using the Home Energy Rating System to have:

(1) a level of annual heating and cooling energy

consumption which is at least forty percent (40%)

below the annual level of heating and cooling

energy consumption of a comparable residential

property constructed in accordance with the

standards of Chapter 4 of the 2003 International

Energy Conservation Code, as such code is in

effect on November 1, 2005,

(2) heating and cooling equipment efficiencies which

correspond to the minimum allowed under the

regulations established by the Department of

Energy pursuant to the National Appliance Energy

Conservation Act of 1987 and in effect at the

time of construction of the property, and

(3) building envelope component improvements which

account for at least one-fifth of the reduced

annual heating and cooling energy consumption

levels,

b. for the credit provided pursuant to paragraph 2 of

subsection A of this section, which is certified by an

accredited Residential Energy Services Network

Provider using the Home Energy Rating System to have:
nstruction of the property, and

(3) building envelope component improvements which

account for at least one-fifth of the reduced

annual heating and cooling energy consumption

levels,

b. for the credit provided pursuant to paragraph 2 of

subsection A of this section, which is certified by an

accredited Residential Energy Services Network

Provider using the Home Energy Rating System to have:

(1) a level of annual heating and cooling energy

consumption which is between twenty percent (20%)

and thirty-nine percent (39%) below the annual

level of heating and cooling energy consumption

of a comparable residential property constructed

in accordance with the standards of Chapter 4 of

Oklahoma Statutes - Title 68. Revenue and Taxation Page 827

the 2003 International Energy Conservation Code,

as such code is in effect on November 1, 2005,

(2) heating and cooling equipment efficiencies which

correspond to the minimum allowed under the

regulations established by the Department of

Energy pursuant to the National Appliance Energy

Conservation Act of 1987 and in effect at the

time of construction of the property, and

(3) building envelope component improvements which

account for at least one-third of the reduced

annual heating and cooling energy consumption

levels.

C. The credit provided for in subsection A of this section may

only be claimed once for the contractor of any eligible residential

energy efficient property during the taxable year when the property

is substantially complete.

D. If the credit allowed pursuant to this section exceeds the

amount of income taxes due or if there are no state income taxes due

on the income of the taxpayer, the amount of credit allowed but not

used in any taxable year may be carried forward as a credit against

subsequent income tax liability for a period not exceeding four (4)

years following the qualified expenditures.

E. For credits earned on or after July 1, 2006, the credits

authorized by this section shall be freely transferable to

subsequent transferees.

F. The Oklahoma Tax Commission shall promulgate rules necessary

to implement this act.

G. No credit otherwise authorized by the provisions of this

section may be claimed for any event, transaction, investment,

expenditure or other act occurring on or after July 1, 2010 for

which the credit would otherwise be allowable. The provisions of

this subsection shall cease to be operative on July 1, 2012.

Beginning July 1, 2012, the credit authorized by this section may be

claimed for any event, transaction, investment, expenditure or other

act occurring on or after July 1, 2012, according to the provisions

of this section.

H. No credit otherwise authorized by the provisions of this

section may be claimed for any event, transaction, investment,

expenditure or other act occurring on or after July 1, 2016, for

which the credit would otherwise be allowable.