Okla. Stat. tit. 68, § 68-2357.8: Qualified venture capital company - Annual report -

Written statement to investors - Violations and penalties -

Registration system.

A. Each qualified venture capital company, as defined in

Section 2357.7 of this title, shall file an annual report within one

hundred twenty (120) days after each successive calendar year end

with the Oklahoma Tax Commission which lists all funds invested in

such company which may qualify for the tax credit allowed by Section

2357.7 of this title. Said report shall state the amount of funds

invested in such company during the taxable year by persons or

corporations, the Social Security number of such person or the

federal identification number of such corporation making such

investments, and shall include a schedule listing the type and

amount of investments made by said venture capital company together

with such other information as the Tax Commission may prescribe.

B. Each qualified venture capital company shall furnish to each

person or corporation who made an investment in such company during

the preceding year a written statement showing the name of the

venture capital company, the name of the investor, the total amount

of investments in the company made by such person or corporation and

such other information as the Tax Commission may require. Said

statement shall be attached to the income tax return of such person

or corporation in order to qualify for said tax credit.

C. Any qualified venture capital company who refuses or fails

to comply with the provisions of this section or is hereafter found

guilty in a court of competent jurisdiction of any violation of any

Oklahoma income tax law shall not be eligible to be a qualified

venture capital company for purposes of Section 2357.7 of this

title. For investments in a venture capital company made prior to

the effective date of this act, if a venture capital company does

not invest its funds in a business that meets the definition of an

“Oklahoma business venture” or the Oklahoma business venture fails

to expend the proceeds of the investment, as provided for in Section

2357.7 of this title, the venture capital company shall pay to the

Tax Commission a penalty equal to the aggregate amount of tax credit

provided to investors in such venture capital company multiplied by

a fraction, the numerator of which is a percentage equal to the

difference between the percentage of capitalization required to be

invested in Oklahoma business ventures and the percentage of funds

invested in Oklahoma business ventures calculated in accordance with

subparagraph b of paragraph 1 of subsection B of Section 2357.7 of

this title and the denominator of which is the percentage of

capitalization required to be invested in Oklahoma business

ventures. Provided, to the extent that the penalty cannot be

collected from the venture capital company, the penalty shall be

collected from the taxpayers to whom the tax credits have been

granted or transferred. Tax credits granted for investments in

venture capital companies made on or after the effective date of

this act shall be subject to the provisions of Section 5 of this

act.

D. Any taxpayer who refuses or fails to comply with the

provisions of this section or is hereafter found guilty in a court

of competent jurisdiction of any violation of any Oklahoma income

tax law shall not be eligible for the tax credit granted in Section

2357.7 of this title.

E. The Tax Commission is directed to immediately develop a

system for registration of any income tax credits issued pursuant to

Section 2357.7 et seq. of this title and a system which permits

verification that any tax credit claimed upon an income tax return

is validly issued and properly taken in the year of claim and

ensures that any transfers of the income tax credit are not unduly

restricted or hindered.