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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
SENATE BILL 1393 By: Kirt
AS INTRODUCED
An Act relating to income tax credit; creating the
Revitalizing Empty Structures Through Ownership,
Renovation, and Enterprise (RESTORE) Act; providing
short title; creating the Revitalizing Empty
Structures Through Ownership, Renovation, and
Enterprise (RESTORE) Program; defining terms;
directing the Oklahoma Housing Finance Agency and the
Oklahoma Tax Commission to administer the program;
authorizing establishments to apply for tax credit
for certain qualified expenditures on an adaptive
reuse project; stipulating credit amount; authorizing
the Agency to approve applications for credit for
certain fiscal years; limiting approval amount for
fiscal year; requiring reallocation of unused
approval amounts to subsequent fiscal year
limitation; requiring the Agency to develop a
preference rating system; authorizing the
establishment to claim credit upon application
approval and project completion; requiring the Agency
to verify qualification; requiring the Agency to
provide notification to the Tax Commission when
credit is awarded; stipulating the tax year in which
credit is awarded; prohibiting refundability of
credit; authorizing the carry forward of credit;
requiring the Agency to submit annual report;
authorizing the promulgation of rules; providing for
noncodification; providing for codification;
providing an effective date; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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SECTION 1. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows:
This act shall be known and may be cited as the “Revitalizing
Empty Structures Through Ownership, Renovation, and Enterprise
(RESTORE) Act”.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.413 of Title 68, unless
there is created a duplication in numbering, reads as follows:
A. There is hereby created the Revitalizing Empty Structures
Through Ownership, Renovation, and Enterprise (RESTORE) Program.
B. As used in this section:
1. “Adaptive reuse” means the substantial conversion of an
obsolete structure to a new use, while retaining at least some of
the elements of the original building envelope. Provided, that
after conversion it meets all health and safety requirements for
residential occupancy pursuant to state law and local building
codes;
2. “Obsolete structure” means a structure that:
a. is any nonresidential structure including, but not
limited to, a commercial, retail, office,
institutional, or industrial building, regardless of
previous use or condition,
b. is at least fifty (50) years old,
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c. has been vacant or underutilized for at least three
(3) years,
d. is not eligible to receive historic preservation tax
credits, pursuant to 26 U.S.C., Section 47, and
e. if the structure includes an underutilized structure,
generates rental income from an underutilized
structure that is less than fifty percent (50%) of the
local market rate income for a property of similar
class and size;
3. “Program” means the Revitalizing Empty Structures Through
Ownership, Renovation, and Enterprise (RESTORE) Program;
4. “Qualified expenditures” means additional costs related to
the development of an obsolete structure into housing not typically
incurred in the construction of new structures or the rehabilitation
of relatively more modern structures, including:
a. environmental remediation,
b. bringing the structure into compliance with applicable
building codes and regulations,
c. efficiency upgrades, and
d. plumbing, electrical, and climate control upgrades;
and
5. “Underutilized” means a structure where at least fifty
percent (50%) of rentable square footage is vacant, or a structure
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that is utilized for a use for which the structure was not
originally designed or intended.
C. The program shall be administered by the Oklahoma Housing
Finance Agency and the Oklahoma Tax Commission.
D. An establishment may apply for credit against the tax
imposed pursuant to Section 2355 of Title 68 of the Oklahoma
Statutes for up to fifty percent (50%) of qualified expenditures for
an adaptive reuse project. Applications for credit shall be made on
a form prescribed by the Agency.
E. For fiscal years 2027 through 2037, the Agency is authorized
to approve applications for credit, not to exceed Five Million
Dollars ($5,000,000.00) in any fiscal year. Partial approval for
credit due to the fiscal year limitations provided in this
subsection may be awarded by the Agency. In any fiscal year in
which the credit amount approved is less than the limitation
provided in this subsection, the difference shall be added to the
limitation in subsequent fiscal years until fiscal year 2037.
Credits approved but not claimed pursuant to subsection G of this
section shall be added to the limitation in subsequent fiscal years
until fiscal year 2037.
F. The Agency shall certify projects and develop a preference
rating system for approval based on the following:
a. availability of and need for workforce and affordable
housing in the area of the proposed project,
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b. establishment of new workforce or affordable rental
units based on United States Department of Housing and
Urban Development definitions for twenty percent (20%)
or more of the units for at least ten (10) years,
c. access to established municipal or county
infrastructure, and
d. location in a designated or associate Main Street
District, and/or location in an Oklahoma Certified
Cultural District.
G. Upon approval of an application and the completion of the
adaptive reuse project, the establishment shall be eligible to claim
the credit for tax year 2027 and subsequent tax years, not to exceed
the approved amount, for qualified expenditures. The Agency shall
verify the project is completed and meets all prescribed
requirements before approving the claim for credit.
H. Upon approval of the claim for credit, the Agency shall
notify the Tax Commission of the credit amount awarded to the
establishment. The credit shall be awarded for the tax year
corresponding to the calendar year in which the claim is approved.
I. Credit awarded pursuant to this section shall not be used to
reduce the income tax liability of the taxpayer to less than zero
(0). If the amount of the credit allowed pursuant to subsection D
of this section exceeds the income tax liability, the amount of
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credit not used in any tax year may be carried forward, in order, to
each of the ten (10) subsequent tax years.
J. The Agency shall electronically submit to the Governor, the
President Pro Tempore of the Senate, and the Speaker of the House of
Representatives and publish on the website of the Agency an annual
report detailing the credits approved pursuant to the RESTORE
Program, including information on project locations, housing units
produced, public and private investment levels arising from the
approved projects, and the estimated economic impact on project
areas.
K. The Agency and the Tax Commission may promulgate rules to
effectuate the provisions of this section.
SECTION 3. This act shall become effective July 1, 2026.
SECTION 4. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
60-2-2750 QD 12/30/2025 10:40:19 PM