{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2357.11","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2357.11","heading":"Tax credit","body":"A. For purposes of this section, the term \"person\" means any\n\nlegal business entity including limited and general partnerships,\n\ncorporations, sole proprietorships, and limited liability companies,\n\nbut does not include individuals.\n\nB. 1. Except as otherwise provided by this section, for tax\n\nyears beginning on or after January 1, 1993, and ending on or before\n\nDecember 31, 2021, there shall be allowed a credit against the tax\n\nimposed by Section 1803 or Section 2355 of this title or Section 624\n\nor 628 of Title 36 of the Oklahoma Statutes for every person in this\n\nstate furnishing water, heat, light or power to the state or its\n\ncitizens, or for every person in this state burning coal to generate\n\nheat, light or power for use in manufacturing operations located in\n\nthis state.\n\n2. For tax years beginning on or after January 1, 1993, and\n\nending on or before December 31, 2005, and for the period of January\n\n1, 2006, through June 30, 2006, the credit shall be in the amount of\n\nTwo Dollars ($2.00) per ton for each ton of Oklahoma-mined coal\n\npurchased by such person.\n\n3. For the period of July 1, 2006, through December 31, 2006,\n\nand, except as provided in subsection N of this section, for tax\n\nyears beginning on or after January 1, 2007, and ending on or before\n\nDecember 31, 2021, the credit shall be in the amount of Two Dollars\n\nand eighty-five cents ($2.85) per ton for each ton of Oklahoma-mined\n\ncoal purchased by such person.\n\n4. In addition to the credit allowed pursuant to the provisions\n\nof paragraph 3 of this subsection, for the period of July 1, 2006,\n\nthrough December 31, 2006, and except as provided in subsections M\n\nand N of this section, for tax years beginning on or after January\n\n1, 2007, and ending on or before December 31, 2021, there shall be\n\nallowed a credit in the amount of Two Dollars and fifteen cents\n\n($2.15) per ton for each ton of Oklahoma-mined coal purchased by\n\nsuch person. The credit allowed pursuant to the provisions of this\n\nparagraph may not be claimed or transferred prior to January 1,\n\n2008.\n\nC. For tax years beginning on or after January 1, 1995, and\n\nending on or before December 31, 2005, and for the period beginning\n\nJanuary 1, 2006, through June 30, 2006, there shall be allowed, in\n\naddition to the credits allowed pursuant to subsection B of this\n\nsection, a credit against the tax imposed by Section 1803 or Section\n\n2355 of this title or Section 624 or 628 of Title 36 of the Oklahoma\n\nStatutes for every person in this state which:\n\n1. Furnishes water, heat, light or power to the state or its\n\ncitizens, or burns coal to generate heat, light or power for use in\n\nmanufacturing operations located in this state; and\n\n2. Purchases at least seven hundred fifty thousand (750,000)\n\ntons of Oklahoma-mined coal in the tax year.\n\nThe additional credit allowed pursuant to this subsection shall\n\nbe in the amount of Three Dollars ($3.00) per ton for each ton of\n\nOklahoma-mined coal purchased by such person.\n\nD. Except as otherwise provided by this section, for tax years\n\nbeginning on or after January 1, 2001, and ending on or before\n\nDecember 31, 2021, there shall be allowed a credit against the tax\n\nimposed by Section 1803 or Section 2355 of this title or Section 624\n\nor 628 of Title 36 of the Oklahoma Statutes for every person in this\n\nstate primarily engaged in mining, producing or extracting coal, and\n\nholding a valid permit issued by the Oklahoma Department of Mines.\n\nFor tax years beginning on or after January 1, 2001, and ending on\n\nor before December 31, 2005, and for the period beginning January 1,\n\n2006, through June 30, 2006, the credit shall be in the amount of\n\nninety-five cents ($0.95) per ton and for the period of July 1,\n\n2006, through December 31, 2006, and for tax years beginning on or\n\nafter January 1, 2007, except as provided in subsection N of this\n\nsection, the credit shall be in the amount of Five Dollars ($5.00)\nbefore December 31, 2005, and for the period beginning January 1,\n\n2006, through June 30, 2006, the credit shall be in the amount of\n\nninety-five cents ($0.95) per ton and for the period of July 1,\n\n2006, through December 31, 2006, and for tax years beginning on or\n\nafter January 1, 2007, except as provided in subsection N of this\n\nsection, the credit shall be in the amount of Five Dollars ($5.00)\n\nfor each ton of coal mined, produced or extracted in on, under or\n\nthrough a permit in this state by such person.\n\nE. In addition to the credit allowed pursuant to the provisions\n\nof subsection D of this section and except as otherwise provided in\n\nsubsection F of this section, for tax years beginning on or after\n\nJanuary 1, 2001, and ending on or before December 31, 2005, and for\n\nthe period of January 1, 2006, through June 30, 2006, there shall be\n\nallowed a credit against the tax imposed by Section 1803 or Section\n\n2355 of this title or Section 624 or 628 of Title 36 of the Oklahoma\n\nStatutes for every person in this state primarily engaged in mining,\n\nproducing or extracting coal, and holding a valid permit issued by\n\nthe Oklahoma Department of Mines in the amount of ninety-five cents\n\n($0.95) per ton for each ton of coal mined, produced or extracted\n\nfrom thin seams in this state by such person; provided, the credit\n\nshall not apply to such coal sold to any consumer who purchases at\n\nleast seven hundred fifty thousand (750,000) tons of Oklahoma-mined\n\ncoal per year.\n\nF. In addition to the credit allowed pursuant to the provisions\n\nof subsection D of this section and except as otherwise provided in\n\nsubsection G of this section, for tax years beginning on or after\n\nJanuary 1, 2005, and ending on or before December 31, 2005, and for\n\nthe period of January 1, 2006, through June 30, 2006, there shall be\n\nallowed a credit against the tax imposed by Section 1803 or Section\n\n2355 of this title or that portion of the tax imposed by Section 624\n\nor 628 of Title 36 of the Oklahoma Statutes, which is actually paid\n\nto and placed into the General Revenue Fund, in the amount of\n\nninety-five cents ($0.95) per ton for each ton of coal mined,\n\nproduced or extracted from thin seams in this state by such person\n\non or after July 1, 2005.\n\nG. The credits provided in subsections D and E of this section\n\nshall not be allowed for coal mined, produced or extracted in any\n\nmonth in which the average price of coal is Sixty-eight Dollars\n\n($68.00) or more per ton, excluding freight charges, as determined\n\nby the Tax Commission.\n\nH. The additional credits allowed pursuant to subsections B, C,\n\nD and E of this section but not used shall be freely transferable\n\nafter January 1, 2002, but not later than December 31, 2013, by\n\nwritten agreement to subsequent transferees at any time during the\n\nfive (5) years following the year of qualification; provided, the\n\nadditional credits allowed pursuant to the provisions of paragraph 4\n\nof subsection B of this section but not used shall be freely\n\ntransferable after January 1, 2008, but not later than December 31,\n\n2013, by written agreement to subsequent transferees at any time\n\nduring the five (5) years following the year of qualification. An\n\neligible transferee shall be any taxpayer subject to the tax imposed\n\nby Section 1803 or Section 2355 of this title or Section 624 or 628\n\nof Title 36 of the Oklahoma Statutes. The person originally allowed\n\nthe credit and the subsequent transferee shall jointly file a copy\n\nof the written credit transfer agreement with the Tax Commission\n\nwithin thirty (30) days of the transfer. The written agreement\n\nshall contain the name, address and taxpayer identification number\n\nof the parties to the transfer, the amount of credit being\n\ntransferred, the year the credit was originally allowed to the\nintly file a copy\n\nof the written credit transfer agreement with the Tax Commission\n\nwithin thirty (30) days of the transfer. The written agreement\n\nshall contain the name, address and taxpayer identification number\n\nof the parties to the transfer, the amount of credit being\n\ntransferred, the year the credit was originally allowed to the\n\ntransferring person and the tax year or years for which the credit\n\nmay be claimed. The Tax Commission may promulgate rules to permit\n\nverification of the validity and timeliness of a tax credit claimed\n\nupon a tax return pursuant to this subsection but shall not\n\npromulgate any rules which unduly restrict or hinder the transfers\n\nof such tax credit.\n\nI. The additional credit allowed pursuant to subsection F of\n\nthis section but not used shall be freely transferable on or after\n\nJuly 1, 2006, but not later than December 31, 2013, by written\n\nagreement to subsequent transferees at any time during the five (5)\n\nyears following the year of qualification. An eligible transferee\n\nshall be any taxpayer subject to the tax imposed by Section 1803 or\n\nSection 2355 of this title or Section 624 or 628 of Title 36 of the\n\nOklahoma Statutes. The person originally allowed the credit and the\n\nsubsequent transferee shall jointly file a copy of the written\n\ncredit transfer agreement with the Tax Commission within thirty (30)\n\ndays of the transfer. The written agreement shall contain the name,\n\naddress and taxpayer identification number of the parties to the\n\ntransfer, the amount of credit being transferred, the year the\n\ncredit was originally allowed to the transferring person and the tax\n\nyear or years for which the credit may be claimed. The Tax\n\nCommission may promulgate rules to permit verification of the\n\nvalidity and timeliness of a tax credit claimed upon a tax return\n\npursuant to this subsection but shall not promulgate any rules which\n\nunduly restrict or hinder the transfers of such tax credit.\n\nJ. Any person receiving tax credits pursuant to the provisions\n\nof this section shall apply the credits against taxes payable or,\n\nsubject to the limitation that credits earned after December 31,\n\n2013, shall not be transferred, shall transfer the credits as\n\nprovided in this section or, for credits earned on or after January\n\n1, 2014, shall receive a refund pursuant to the provisions of\n\nsubsection L of this section. Credits shall not be used to lower\n\nthe price of any Oklahoma-mined coal sold that is produced by a\n\nsubsidiary of the person receiving a tax credit under this section\n\nto other buyers of the Oklahoma-mined coal.\n\nK. Except as provided by paragraph 2 of subsection L of this\n\nsection, the credits allowed by subsections B, C, D, E and F of this\n\nsection, upon election of the taxpayer, shall be treated and may be\n\nclaimed as a payment of tax, a prepayment of tax or a payment of\n\nestimated tax for purposes of Section 1803 or 2355 of this title or\n\nSection 624 or 628 of Title 36 of the Oklahoma Statutes.\n\nL. 1. With respect to credits allowed pursuant to the\n\nprovisions of subsections B, C, D, E and F of this section earned\n\nprior to January 1, 2014, but not used in any tax year may be\n\ncarried over in order to each of the five (5) years following the\n\nyear of qualification.\n\n2. With respect to credits allowed pursuant to the provisions\n\nof subsections B, C, D, E and F of this section which are earned but\n\nnot used, based upon activity occurring on or after January 1, 2014,\n\nthe Oklahoma Tax Commission shall, at the taxpayer's election,\n\nrefund directly to the taxpayer eighty-five percent (85%) of the\n\nface amount of such credits. The direct refund of the credits\n\npursuant to this paragraph shall be available to all taxpayers,\n\nincluding, without limitation, pass-through entities and taxpayers\n\nsubject to Section 2355 of this title. The amount of any direct\n1, 2014,\n\nthe Oklahoma Tax Commission shall, at the taxpayer's election,\n\nrefund directly to the taxpayer eighty-five percent (85%) of the\n\nface amount of such credits. The direct refund of the credits\n\npursuant to this paragraph shall be available to all taxpayers,\n\nincluding, without limitation, pass-through entities and taxpayers\n\nsubject to Section 2355 of this title. The amount of any direct\n\nrefund of credits actually received at the eighty-five percent (85%)\n\nlevel by the taxpayer pursuant to this paragraph shall not be\n\nsubject to the tax imposed by Section 2355 of this title. If the\n\npass-through entity does not file a claim for a direct refund, the\n\npass-through entity shall allocate the credit to one or more of the\n\nshareholders, partners or members of the pass-through entity;\n\nprovided, the total of all credits refunded or allocated shall not\n\nexceed the amount of the credit or refund to which the pass-through\n\nentity is entitled. For the purposes of this paragraph, \"pass-\n\nthrough entity\" means a corporation that for the applicable tax year\n\nis treated as an S corporation under the Internal Revenue Code of\n\n1986, as amended, general partnership, limited partnership, limited\n\nliability partnership, trust or limited liability company that for\n\nthe applicable tax year is not taxed as a corporation for federal\n\nincome tax purposes.\n\nM. No credit otherwise authorized by the provisions of this\n\nsection may be claimed for any event, transaction, investment,\n\nexpenditure or other act occurring on or after July 1, 2010, for\n\nwhich the credit would otherwise be allowable. The provisions of\n\nthis subsection shall cease to be operative on July 1, 2012.\n\nBeginning July 1, 2012, the credit authorized by this section may be\n\nclaimed for any event, transaction, investment, expenditure or other\n\nact occurring on or after July 1, 2012, according to the provisions\n\nof this section.\n\nN. Except as otherwise provided by this section, any credits\n\ncalculated pursuant to paragraphs 3 or 4 of subsection B or\n\nsubsection D of this section for activities occurring on or after\n\nJanuary 1, 2016, the amount of credit allowed shall be equal to\n\nseventy-five percent (75%) of the amount otherwise provided.\n\nO. For tax years beginning on or after January 1, 2018, the\n\ntotal amount of credits authorized by this section used to offset\n\ntax or paid as a refund shall be adjusted annually to limit the\n\nannual amount of credits to Five Million Dollars ($5,000,000.00).\n\nThe Tax Commission shall annually calculate and publish a percentage\n\nby which the credits authorized by this section shall be reduced so\n\nthe total amount of credits used to offset tax or paid as a refund\n\ndoes not exceed Five Million Dollars ($5,000,000.00) per year. The\n\nformula to be used for the percentage adjustment shall be Five\n\nMillion Dollars ($5,000,000.00) divided by the credits claimed in\n\nthe second preceding year.\n\nP. Pursuant to subsection O of this section, in the event the\n\ntotal tax credits authorized by this section exceed Five Million\n\nDollars ($5,000,000.00) in any calendar year, the Tax Commission\n\nshall permit any excess over Five Million Dollars ($5,000,000.00)\n\nbut shall factor such excess into the percentage adjustment formula\n\nfor subsequent years.\n\nQ. Any credits authorized by this section not used or unable to\n\nbe used because of the provisions of subsection O or P of this\n\nsection may be carried over until such credits are fully used.","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":"bdea18cb49ded4375fd2d95a0b7a66a902999d54f930205cb07e38f3acb407f7","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2357.105","next":"us-ok/okla.-stat.-tit.-68-68-2357.11a"},"notice":"GroundRules: Original legal text. Not legal advice."}