{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2357.105","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2357.105","heading":"Credit for qualified economic development","body":"expenditures.\n\nA. As used in this section:\n\n1. “Eligible entity” means an entity incorporated and located\n\nin the state with a qualifying project in a qualifying project\n\nlocation;\n\n2. “Qualifying project” means the new construction or expansion\n\nof an eligible entity or the development of qualified initial\n\ninfrastructure to serve an eligible entity in a qualifying project\n\nlocation;\n\n3. “Qualifying project location” means a project located in an\n\nindustrial park, economic development zone, or port located within a\n\ncounty in this state with a population of less than one hundred\n\nthousand (100,000) persons (“Qualified Area”), or a project located\n\nadjacent to a terminal, switching, or Class II or III railroad as\n\ndefined by the federal Surface Transportation Board;\n\n4. “Project sponsor” means a local economic development\n\norganization or authority, port authority, qualified industrial\n\npark, or a terminal, switching, or Class II or III railroad;\n\n5. “Project application” means an application submitted by a\n\nproject sponsor on behalf of a qualifying project for an allocation\n\nof qualifying strategic industrial development enhancement (SIDE)\n\ntax credits. Project applications must include a description of the\n\nqualifying project, project location, detailed project costs, and a\n\nsummary of expected economic benefits and job creation;\n\n6. “Qualified economic development expenditures” means\n\nexpenditures for land improvements, building construction, building\n\nimprovements and expansion, port terminal improvements, and the\n\npurchase of certain machinery and equipment;\n\n7. “Qualified initial infrastructure expenditures” means\n\nexpenditures for new rail infrastructure and improvements, which\n\nincludes the acquisition of right-of-way, engineering,\n\nrehabilitation of existing inactive track to reinstate operation,\n\nconstruction of new track such as industrial leads, switches, spurs,\n\nand sidings, loading dock improvements, and transloading structures\n\ninvolved with providing rail service to a qualifying project; and\n\n8. “Project tax credit amount” means the amount of tax credits\n\nallocated by Oklahoma Department of Commerce to a qualifying project\n\nfor qualified economic development and initial infrastructure\n\nexpenditures.\n\nB. For tax years beginning after December 31, 2022, and ending\n\nnot later than December 31, 2027, there shall be allowed a credit\n\nagainst the tax imposed pursuant to Section 2355 of this title in an\n\namount not to exceed ten percent (10%) of an eligible entity’s\n\nqualified economic development expenditures, subject to limitations,\n\ndetermination, and allocation by the Oklahoma Department of\n\nCommerce.\n\nC. The total project tax credit amount may not exceed ten\n\npercent (10%) of the qualified economic development expenditures,\n\nexcept for qualified initial infrastructure expenditures the project\n\ntax credit amount is earned at the rate of fifty percent (50%) of\n\nqualified initial infrastructure expenditures.\n\nD. 1. The project tax credit amount for qualified economic\n\ndevelopment expenditures may not exceed Six Million Dollars\n\n($6,000,000.00) per qualifying project.\n\n2. The project tax credit amount for qualified initial\n\ninfrastructure expenditures may not exceed Three Million Dollars\n\n($3,000,000.00) per qualifying project.\n\nProjects are eligible to combine qualified economic development\n\nand qualified initial infrastructure expenditures, but the total\n\nproject tax credit amount may not exceed Six Million Dollars\n\n($6,000,000.00) per qualifying project in aggregate.\n\nE. The issuance of the project tax credit amount shall be\n\nsubject to review of eligible expenditures and qualifying project\n\nstatus by the Oklahoma Department of Commerce.\n\nF. The credits authorized pursuant to this section may not be\n\nused to reduce the tax liability of the taxpayer to less than zero\namount may not exceed Six Million Dollars\n\n($6,000,000.00) per qualifying project in aggregate.\n\nE. The issuance of the project tax credit amount shall be\n\nsubject to review of eligible expenditures and qualifying project\n\nstatus by the Oklahoma Department of Commerce.\n\nF. The credits authorized pursuant to this section may not be\n\nused to reduce the tax liability of the taxpayer to less than zero\n\n(0).\n\nG. The credits allowed pursuant to this section that are not\n\nused may be assigned to a qualifying project affiliate by written\n\nagreement at any time during the tax year in which the credit is\n\nearned or the five (5) years following the tax year the qualified\n\nexpenditures are incurred. For purposes of this subsection, a\n\n“qualifying project affiliate” shall include a customer, vendor,\n\nproject investor, or strategic finance partner of the eligible\n\nentity subject to the Oklahoma corporate or individual income tax.\n\nThe eligible taxpayer and the qualifying project affiliate must\n\njointly file a copy of the written assignment agreement with the\n\nOklahoma Tax Commission within thirty (30) days of the assignment.\n\nThe written agreement must contain the name, address, and taxpayer\n\nidentification number of the parties to the assignment, the tax year\n\nthe eligible taxpayer incurred the qualified expenditures, the\n\namount of credit being assigned, and the tax year or years for which\n\nthe credit may be claimed.\n\nH. To the extent not used, the tax credit authorized by this\n\nsection may be carried over, in order, to each of the five (5)\n\nsubsequent taxable years.\n\nI. Credits allocated by the Department shall not exceed Twelve\n\nMillion Dollars ($12,000,000.00) in a tax year. Qualifying projects\n\nthat have submitted an application and are not allocated all or part\n\nof credit for qualified economic development expenditures or\n\nqualified initial infrastructure expenditures shall be eligible for\n\ncredit in subsequent tax years.\n\nJ. 1. The Oklahoma Tax Commission may promulgate rules, forms,\n\nand regulations as are necessary to implement and administer the\n\nprovisions of this section and certify the tax credit amount\n\ngenerated by each qualifying project annually.\n\n2. The Oklahoma Department of Commerce shall promulgate rules\n\nto permit verification of the eligibility of a qualifying project\n\nfor the purpose of claiming the credit. The rules shall provide for\n\nthe approval of qualified economic development expenditures prior to\n\ncommencement of a project and provide a certificate of verification\n\nupon completion of a project that uses qualified economic\n\ndevelopment expenditures. The certificate of verification shall\n\nsatisfy all requirements of the Oklahoma Tax Commission pertaining\n\nto the eligibility of the eligible taxpayer claiming the credit.","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"716b3630907b4bd122b6fffded9405255a0575e6b5f027975bbc416b43eeface","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2357.104","next":"us-ok/okla.-stat.-tit.-68-68-2357.11"},"notice":"GroundRules: Original legal text. Not legal advice."}