SB 1289 Summary

• Limits the ability to claim energy efficiency tax credits for residential construction to tax years ending before January 1, 2022 (previously had no end date).

• Reduces the maximum allowable credits: up to $4,000 for properties 40% or more above 2003 International Energy Conservation Code standards, and up to $2,000 for properties 20-39% above standards.

• Makes unused credits generated on or after January 1, 2015 refundable at 85% of face value through the Oklahoma Tax Commission, with the refund amount exempted from income tax.

• Allows pass-through entities (S corporations, partnerships, LLCs, trusts) to either claim the refund directly or allocate credits to their shareholders, partners, or members.

• Establishes November 1, 2014 as the effective date for these changes.