{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2357.46","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2357.46","heading":"Tax credit for contractor expenditures for","body":"construction of certain energy efficient residential properties\n\nA. Except as otherwise provided by subsection G of this\n\nsection, for the time period beginning on or after January 1, 2006,\n\nand ending on July 1, 2016, there shall be allowed a credit against\n\nthe tax imposed by Section 2355 of this title for eligible\n\nexpenditures incurred by a contractor in the construction of energy\n\nefficient residential property of two thousand (2,000) square feet\n\nor less. The amount of the credit shall be based upon the\n\nfollowing:\n\n1. For any eligible energy efficient residential property\n\nconstructed and certified as forty percent (40%) or more above the\n\nInternational Energy Conservation Code 2003 and any supplement in\n\neffect at the time of completion, the amount of the credit shall be\n\nequal to the eligible expenses, not to exceed Four Thousand Dollars\n\n($4,000.00) for the taxpayer who is the contractor; and\n\n2. For any eligible energy efficient residential property\n\nconstructed and certified as between twenty percent (20%) and\n\nthirty-nine percent (39%) above the International Energy\n\nConservation Code 2003 and any supplement in effect at the time of\n\ncompletion, the credit shall be equal to the eligible expenditures,\n\nnot to exceed Two Thousand Dollars ($2,000.00) for the taxpayer who\n\nis the contractor.\n\nB. As used in this section:\n\n1. \"Eligible expenditure\" means any:\n\na. energy efficient heating or cooling system,\n\nb. insulation material or system which is specifically\n\nand primarily designed to reduce the heat gain or loss\n\nof a residential property when installed in or on such\n\nproperty,\n\nc. exterior windows, including skylights,\n\nd. exterior doors, and\n\ne. any metal roof installed on a residential property,\n\nbut only if such roof has appropriate pigmented\n\ncoatings which are specifically and primarily designed\n\nto reduce the heat gain of such dwelling unit and\n\nwhich meet Energy Star program requirements;\n\n2. \"Contractor\" means the taxpayer who constructed the\n\nresidential property or manufactured home, or if more than one\n\ntaxpayer qualifies as the contractor, the primary contractor; and\n\n3. \"Eligible energy efficient residential property\" means a\n\nnewly constructed residential property or manufactured home property\n\nwhich is located in the State of Oklahoma and substantially complete\n\nafter December 31, 2005, and which is two thousand (2,000) square\n\nfeet or less:\n\na. for the credit provided pursuant to paragraph 1 of\n\nsubsection A of this section, which is certified by an\n\naccredited Residential Energy Services Network\n\nProvider using the Home Energy Rating System to have:\n\n(1) a level of annual heating and cooling energy\n\nconsumption which is at least forty percent (40%)\n\nbelow the annual level of heating and cooling\n\nenergy consumption of a comparable residential\n\nproperty constructed in accordance with the\n\nstandards of Chapter 4 of the 2003 International\n\nEnergy Conservation Code, as such code is in\n\neffect on November 1, 2005,\n\n(2) heating and cooling equipment efficiencies which\n\ncorrespond to the minimum allowed under the\n\nregulations established by the Department of\n\nEnergy pursuant to the National Appliance Energy\n\nConservation Act of 1987 and in effect at the\n\ntime of construction of the property, and\n\n(3) building envelope component improvements which\n\naccount for at least one-fifth of the reduced\n\nannual heating and cooling energy consumption\n\nlevels,\n\nb. for the credit provided pursuant to paragraph 2 of\n\nsubsection A of this section, which is certified by an\n\naccredited Residential Energy Services Network\n\nProvider using the Home Energy Rating System to have:\nnstruction of the property, and\n\n(3) building envelope component improvements which\n\naccount for at least one-fifth of the reduced\n\nannual heating and cooling energy consumption\n\nlevels,\n\nb. for the credit provided pursuant to paragraph 2 of\n\nsubsection A of this section, which is certified by an\n\naccredited Residential Energy Services Network\n\nProvider using the Home Energy Rating System to have:\n\n(1) a level of annual heating and cooling energy\n\nconsumption which is between twenty percent (20%)\n\nand thirty-nine percent (39%) below the annual\n\nlevel of heating and cooling energy consumption\n\nof a comparable residential property constructed\n\nin accordance with the standards of Chapter 4 of\n\nthe 2003 International Energy Conservation Code,\n\nas such code is in effect on November 1, 2005,\n\n(2) heating and cooling equipment efficiencies which\n\ncorrespond to the minimum allowed under the\n\nregulations established by the Department of\n\nEnergy pursuant to the National Appliance Energy\n\nConservation Act of 1987 and in effect at the\n\ntime of construction of the property, and\n\n(3) building envelope component improvements which\n\naccount for at least one-third of the reduced\n\nannual heating and cooling energy consumption\n\nlevels.\n\nC. The credit provided for in subsection A of this section may\n\nonly be claimed once for the contractor of any eligible residential\n\nenergy efficient property during the taxable year when the property\n\nis substantially complete.\n\nD. If the credit allowed pursuant to this section exceeds the\n\namount of income taxes due or if there are no state income taxes due\n\non the income of the taxpayer, the amount of credit allowed but not\n\nused in any taxable year may be carried forward as a credit against\n\nsubsequent income tax liability for a period not exceeding four (4)\n\nyears following the qualified expenditures.\n\nE. For credits earned on or after July 1, 2006, the credits\n\nauthorized by this section shall be freely transferable to\n\nsubsequent transferees.\n\nF. The Oklahoma Tax Commission shall promulgate rules necessary\n\nto implement this act.\n\nG. No credit otherwise authorized by the provisions of this\n\nsection may be claimed for any event, transaction, investment,\n\nexpenditure or other act occurring on or after July 1, 2010 for\n\nwhich the credit would otherwise be allowable. The provisions of\n\nthis subsection shall cease to be operative on July 1, 2012.\n\nBeginning July 1, 2012, the credit authorized by this section may be\n\nclaimed for any event, transaction, investment, expenditure or other\n\nact occurring on or after July 1, 2012, according to the provisions\n\nof this section.\n\nH. No credit otherwise authorized by the provisions of this\n\nsection may be claimed for any event, transaction, investment,\n\nexpenditure or other act occurring on or after July 1, 2016, for\n\nwhich the credit would otherwise be allowable.","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":"20f9b2c79ef226d3581fbec6fe7c0949c918f68d027a30bc919689fa2670ed6b","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2357.45","next":"us-ok/okla.-stat.-tit.-68-68-2357.47"},"notice":"GroundRules: Original legal text. Not legal advice."}