{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2357.104","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2357.104","heading":"Tax credit for railroad reconstruction or replacement","body":"expenditures.\n\nA. Except as otherwise provided by this section, for taxable\n\nyears beginning after December 31, 2005, and ending before January\n\n1, 2030, there shall be allowed a credit against the tax imposed by\n\nSection 2355 of this title equal to fifty percent (50%) of an\n\neligible taxpayer’s qualified railroad reconstruction or replacement\n\nexpenditures.\n\nB. For tax years 2020 through 2029, the amount of the credit\n\nshall be limited to the product of Five Thousand Dollars ($5,000.00)\n\nand the number of miles of railroad track owned or leased within\n\nthis state by the eligible taxpayer as of the close of the taxable\n\nyear.\n\nC. The credit allowed pursuant to subsection A of this section\n\nbut not used shall be freely transferable, by written agreement, to\n\nsubsequent transferees at any time during the five (5) years\n\nfollowing the year of qualification. An eligible transferee shall\n\nbe any taxpayer subject to the tax imposed by Section 2355 of this\n\ntitle. The person originally allowed the credit and the subsequent\n\ntransferee shall jointly file a copy of the written credit transfer\n\nagreement with the Oklahoma Tax Commission within thirty (30) days\n\nof the transfer. The written agreement shall contain the name,\n\naddress and taxpayer identification number of the parties to the\n\ntransfer, the amount of credit being transferred, the year the\n\ncredit was originally allowed to the transferring person and the tax\n\nyear or years for which the credit may be claimed. The Tax\n\nCommission shall promulgate rules to permit verification of the\n\ntimeliness of a tax credit claimed upon a tax return pursuant to\n\nthis subsection but shall not promulgate any rules which unduly\n\nrestrict or hinder the transfers of such tax credit. The Department\n\nof Transportation shall promulgate rules to permit verification of\n\nthe eligibility of an eligible taxpayer’s expenditures for the\n\npurpose of claiming the credit. The rules shall provide for the\n\napproval of qualified railroad reconstruction or replacement\n\nexpenditures prior to commencement of a project and provide a\n\ncertificate of verification upon completion of a project that uses\n\nqualified railroad reconstruction or replacement expenditures. The\n\ncertificate of verification shall satisfy all requirements of the\n\nTax Commission pertaining to the eligibility of the person claiming\n\nthe credit.\n\nD. Any credits allowed pursuant to the provisions of subsection\n\nA of this section but not used in any tax year may be carried over\n\nin order to each of the five (5) years following the year of\n\nqualification.\n\nE. As used in this section:\n\n1. “Class II and Class III railroad” means a railroad that is\n\nclassified by the United States Surface Transportation Board as a\n\nClass II or Class III railroad;\n\n2. “Eligible taxpayer” means any Class II or Class III\n\nrailroad; and\n\n3. “Qualified railroad reconstruction or replacement\n\nexpenditures” means expenditures for:\n\na. track maintenance, natural disasters, and\n\nreconstruction or replacement of railroad\n\ninfrastructure including track, roadbed, crossings,\n\nbridges, industrial leads and track-related structures\n\nowned or leased by a Class II or Class III railroad as\n\nof January 1, 2006, or\n\nb. new construction of industrial leads, switches, spurs\n\nand sidings and extensions of existing sidings by a\n\nClass II or Class III railroad.\n\nF. The total amount of credits authorized by this section used\n\nto offset tax shall be adjusted annually to limit the annual amount\n\nof credits to Two Million Dollars ($2,000,000.00) for tax years 2018\n\nand 2019 and Five Million Dollars ($5,000,000.00) for tax year 2020\n\nand all subsequent tax years. The Tax Commission shall annually\n\ncalculate and publish a percentage by which the credits authorized\n\nby this section shall be reduced so the total amount of credits used\n\nto offset tax does not exceed the applicable annual limit. The\nredits to Two Million Dollars ($2,000,000.00) for tax years 2018\n\nand 2019 and Five Million Dollars ($5,000,000.00) for tax year 2020\n\nand all subsequent tax years. The Tax Commission shall annually\n\ncalculate and publish a percentage by which the credits authorized\n\nby this section shall be reduced so the total amount of credits used\n\nto offset tax does not exceed the applicable annual limit. The\n\nformula to be used for the percentage adjustment shall be the\n\napplicable annual limit divided by the credits claimed in the second\n\npreceding year.\n\nG. Pursuant to subsection F of this section, in the event the\n\ntotal tax credits authorized by this section exceed the annual\n\napplicable limit in any calendar year, the Tax Commission shall\n\npermit any excess over the annual applicable limit but shall factor\n\nsuch excess into the percentage adjustment formula for subsequent\n\nyears.","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"71209d8200fac85f302a70948e2f767419accdec672ae5df548a22251e9bf35a","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2357.103","next":"us-ok/okla.-stat.-tit.-68-68-2357.105"},"notice":"GroundRules: Original legal text. Not legal advice."}