ENGROSSED HOUSE
BILL NO. 1948	By:	Benge, Dorman, Inman, Walker, Tibbs and Shumate of the House

			    and

		Bingman of the Senate

( revenue and taxation - tax credits – codification - 	effective date )

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 2357.206 of Title 68, unless there is created a duplication in numbering, reads as follows:
A.  1.  For the taxable years beginning after December 31, 2009, and ending December 31, 2014, any taxpayer having a geothermal heating and cooling system installed on residential property in this state may claim a credit against the tax imposed by Section 2355 of Title 68 of the Oklahoma Statutes.  In determining the amount of credit allowed, the taxpayer may include in the total costs of the geothermal heat and air system such direct expenses incurred for equipment, construction, and installation of the system, less all seller rebates and remunerations of any type resulting from the installation.
2.  Five percent (5%) of the qualified geothermal heating and cooling system expenditures shall be allowed as a credit under the provisions of this subsection for the taxable year in which the cost is incurred.
B.  If the tax credit allowable to the taxpayer for the cost of a geothermal heating and cooling system pursuant to subsection A of this section exceeds the taxes due on the income of the taxpayer, the amount of the claim not used as an offset against the income taxes of a taxable year may be carried forward as a credit against subsequent income tax liabilities for up to ten (10) years.
C.  1.  For the taxable years beginning after December 31, 2009, and ending December 31, 2014, any taxpayer having a geothermal heating and cooling system installed on nonresidential property in this state may claim a credit against the tax imposed by Section 2355 of Title 68 of the Oklahoma Statutes.  In determining the amount of credit allowed, the taxpayer may include in the total costs of the geothermal heat and air system such direct expenses incurred for equipment, construction, and installation of the system, less all seller rebates and remunerations of any type resulting from the installation.
2.  Five percent (5%) of the qualified geothermal heating and cooling system expenditures shall be allowed as a credit under the provisions of this subsection for the taxable year in which the cost is incurred.
D.  If the tax credit allowable to the taxpayer for the cost of a geothermal heating and cooling system pursuant to subsection C of this section exceeds the taxes due on the income of the taxpayer, the amount of the claim not used as an offset against the income taxes of a taxable year may be carried forward as a credit against subsequent income tax liabilities for up to ten (10) years.
E.  An itemized accounting of the cost and an affidavit attesting to the facts thereof shall be furnished to the taxpayer by the supplier of the geothermal heating and cooling system.  The itemized accounting shall include the amounts properly attributable to the cost of acquisition, construction, and installation of the renewable energy system.  The taxpayer shall include a copy of said accounting when claiming either credit provided for in this section.
F.  Geothermal heating and cooling systems shall be rated in accordance with the latest performance rating standards published or endorsed by the American Refrigeration Institute (ARI) and the manufacturer and installing contractor must be a member in good standing of the International Ground Source Heat Pump Association (IGSHPA) in order to qualify for the credits provided for in this section.
G.  For the purpose of either credit provided for in this section, qualifying geothermal heat and air systems shall carry, as a minimum, a five-year limited warranty covering defects in design and manufacture.  For other than owner-installed systems, qualifying renewable energy systems shall also carry, as a minimum, a five-year limited warranty covering defects in installation.
SECTION 2.  This act shall become effective January 1, 2010.
Passed the House of Representatives the 2nd day of March, 2009.

	
Presiding Officer of the House of
	Representatives

Passed the Senate the ____ day of __________, 2009.

	
Presiding Officer of the Senate