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HB 1771

Oklahoma Educational Television Authority; sunset; effective date.

2025 Regular Session Introduced by Anthony Moore

Protects taxpayers from penalties, interest, or additions to tax when a tax balance arises solely from a denied tax credit due to funding/cap limits if they pay or arrange payment

Referred to Administrative Rules
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Bill Summary · HB 1771

Summary — HB 1771 (tax credit denial / notice before penalties) — income tax credit denials

Note: Multiple unrelated bills filed as "HB 1771" in different states are present in the provided materials (Arkansas insurance disclosure language; Illinois housing authority language; Mississippi appropriation amendment). This summary focuses on the income-tax provision that matches the title “Establishes notice requirements of tax credit denials before penalties are issued” — the new Missouri-style section (proposed section 143.512) that addresses tax-credit limit denials and penalties for income tax balances.

Purpose

To protect taxpayers from being assessed interest, penalties, or additions to tax when an otherwise-eligible taxpayer owes an income-tax balance solely because a tax credit they qualified for was fully or partially denied due to the credit program running out of funds or reaching a statutory cap.

Key provisions

  • Creates a new statutory section (proposed 143.512) governing treatment of income-tax balances that arise solely from a "tax credit limit denial."
  • If a tax-credit limit denial is the sole reason a taxpayer has an income-tax balance for a tax year:
    • The taxpayer will not be liable for any addition to tax, penalty, or interest on that portion of the balance, provided the taxpayer either:
    • pays the balance, or
    • enters into Department of Revenue–approved payment arrangements, within 60 days of the initial notice to the taxpayer that the tax credit was fully or partially denied.
    • If the taxpayer fails to comply with the approved payment arrangement in any respect, normal penalty/interest rules apply retroactively (i.e., the taxpayer becomes liable for additions as if the protective rule did not exist).
  • Defines “tax credit limit denial” to mean the full or partial denial of authorization/approval/issuance/redemption of a tax credit to a taxpayer who otherwise fully qualified — the denial must be due to insufficient funds/appropriations or because the cumulative statutory maximum for that credit has been claimed or issued for the relevant fiscal/calendar year.
  • Applicability cutoff: the section applies only to income tax balances that arise on or after August 28, 2026.

Who is affected

  • Primary: individual and business income taxpayers who otherwise qualify for a tax credit but are denied (in whole or part) because the credit program is out of funds or has hit a statutory cap.
  • Secondary: the state Department of Revenue (administration of notices, payment-arrangement approvals, accounting), and state cash flow/revenue timing (potential short-term changes to collections).
  • The provision is limited: it applies only when the credit denial is the sole cause of the tax balance due.

Procedural/timeline aspects / status

  • The provision includes an explicit effective/applicability date: applies to balances arising on or after August 28, 2026.
  • The materials show the measure as introduced and contain mixed legislative-activity records from multiple jurisdictions. For the Missouri-text provision, the bill was introduced in the House (103rd General Assembly) — confirm current Missouri legislative status with the official state legislative site for up-to-date action.

Potential impacts and considerations

  • Taxpayer relief: taxpayers who qualified for credits but were denied due to program caps avoid penalties/interest if they act within the 60-day window, reducing unfair penalty exposure.
  • Administrative burden: the Department of Revenue must (a) timely issue notices explaining the denial, (b) accept and approve payment arrangements, and (c) track compliance within 60 days.
  • Fiscal impact: possible timing effects on state revenue collections (deferral of penalties/interest), though net revenue impact depends on how many taxpayers use the protection and on repayment behavior; no fiscal estimate provided in the text.
  • Anti-abuse / scope limits: protection does not apply if the tax-credit denial was for reasons other than funding/cap limits, nor does it apply if the denial was not the sole cause of the tax balance; taxpayers who default on approved arrangements lose the protection.

Notes

  • If you need a summary tied to one of the other HB 1771 drafts (Arkansas insurance disclosure changes; Illinois housing voucher reimbursement; Mississippi appropriation amendments), say which state/version you want and I will provide a separate concise summary.

Compiled from official sources — confirm details with the bill’s official record.

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