OK SB234

Creates the Adaptive Reuse Housing Development Program allowing establishments to claim income tax credits for up to 50% of qualified expenditures on projects converting obsolete structures (at least 30 years old, vacant or underutilized for 3+ years) into residential use.

Limits annual credit approvals to $5,000,000 per fiscal year beginning in fiscal year 2026, with unused amounts carrying forward to subsequent years, and establishes a preference rating system based on rental vacancy rates, rent rates, area median income, and affordable housing availability when applications exceed the cap.

Qualified expenditures include environmental remediation, building code compliance, efficiency upgrades, and plumbing/electrical/climate control improvements not typically incurred in new construction or modern structure rehabilitation.

Credits may be carried forward for up to 10 subsequent tax years if they exceed the taxpayer's annual income tax liability, but cannot reduce liability below zero.

Program administered jointly by the Oklahoma Department of Commerce and Oklahoma Tax Commission, effective July 1, 2025.