{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2357.204","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2357.204","heading":"Costs associated with qualified refinery property –","body":"Election and allocation against capital account – Definitions.\n\nA. A taxpayer may elect to treat one hundred percent (100%) of\n\nthe cost of a qualified refinery property as an expense that is not\n\nchargeable to a capital account. Any cost so treated shall be\n\nallowed as a deduction for the year in which the qualified refinery\n\nproperty expense is incurred.\n\nB. 1. An election under this section for any taxable year\n\nshall be made on the taxpayer's return of the tax imposed by this\n\nchapter for the taxable year. The election shall be made in a\n\nmanner as the Oklahoma Tax Commission may by rule prescribe.\n\n2. An election made pursuant to this section shall not be\n\nrevoked except with the consent of the Tax Commission.\n\nC. 1. As used in this section, the term “qualified refinery\n\nproperty” means any portion of a qualified refinery:\n\na. the original use of which commences with the taxpayer,\n\nb. which is placed in service by the taxpayer after the\n\neffective date of this act and before January 1, 2012,\n\nc. which meets the requirements of subsection E of this\n\nsection, other than a qualified refinery which is\n\nseparate from any existing refinery,\n\nd. which meets all applicable environmental laws in\n\neffect on the date the portion was placed in service,\n\ne. for which no written binding contract for the\n\nconstruction of was in effect on or before June 14,\n\n2005, and\n\nf. (1) the construction of which is subject to a written\n\nbinding construction contract entered into before\n\nJanuary 1, 2008,\n\n(2) which is placed in service before January 1,\n\n2008, or\n\n(3) in the case of self-constructed property, the\n\nconstruction of which began after June 14, 2005,\n\nand before January 1, 2008.\n\n2. For purposes of subparagraph a of paragraph 1 of this\n\nsubsection, if property is:\n\na. originally placed in service after the effective date\n\nof this act by a person, and\n\nb. sold and leased back to the person within three (3)\n\nmonths after the date the property was originally\n\nplaced in service,\n\nthe property shall be treated as originally placed in service not\n\nearlier than the date on which the property is used under the\n\nleaseback provision referred to in subparagraph b of paragraph 1 of\n\nthis subsection.\n\n3. A waiver under the federal Clean Air Act shall not be taken\n\ninto account in determining whether the requirements of subparagraph\n\nd of paragraph 1 of this subsection are met.\n\nD. For purposes of this section, the term “qualified refinery”\n\nmeans any refinery located in the State of Oklahoma that is designed\n\nto serve the primary purpose of processing liquid fuel from crude\n\noil or qualified fuels.\n\nE. The requirements of this section shall be met if the portion\n\nof the qualified refinery:\n\n1. Enables the existing qualified refinery to increase total\n\nvolume output, determined without regard to asphalt or lube oil, by\n\nfive percent (5%) or more on an average daily basis; or\n\n2. Enables the existing qualified refinery to process qualified\n\nfuels at a rate that is equal to or greater than twenty-five percent\n\n(25%) of the total throughput of such qualified refinery on an\n\naverage daily basis.\n\nF. No deduction shall be allowed under this section for any\n\nqualified refinery property the primary purpose of which is for use\n\nas a topping plant, asphalt plant, lube oil facility, or crude or\n\nproduct terminal.\n\nG. 1. The taxpayer may elect to allocate all or a portion of\n\nthe deduction allowable under subsection A of this section to\n\nqualified persons. The allocation shall be equal to the ratable\n\nshare of the total amount allocated for each qualified person,\n\ndetermined on the basis of the ownership interest the person has in\n\nthe taxpayer. The taxable income of the taxpayer shall not be\n\nreduced under Section 10 of this act by reason of any amount to\n\nwhich this subsection applies.\nable under subsection A of this section to\n\nqualified persons. The allocation shall be equal to the ratable\n\nshare of the total amount allocated for each qualified person,\n\ndetermined on the basis of the ownership interest the person has in\n\nthe taxpayer. The taxable income of the taxpayer shall not be\n\nreduced under Section 10 of this act by reason of any amount to\n\nwhich this subsection applies.\n\n2. An election under paragraph 1 of this subsection for any\n\ntaxable year shall be made on a timely filed return for that year.\n\nThe election, once made, shall be irrevocable for the taxable year.\n\n3. If any portion of the deduction available under subsection A\n\nof this section is allocated to an owner under paragraph 1 of this\n\nsubsection, the cooperative shall provide the owner receiving the\n\nallocation written notice of the amount of the allocation. Notice\n\nshall be provided before the date on which the return described in\n\nparagraph 2 of this subsection is due.\n\nH. No deduction shall be allowed under subsection A of this\n\nsection to any taxpayer for any taxable year unless the taxpayer\n\nfiles with the Tax Commission a report containing information with\n\nrespect to the operation of the refineries as shall be required by\n\nthe Tax Commission.\n\nI. The provisions of this section shall apply to qualified\n\nrefinery properties placed in service after the effective date of\n\nthis act.","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":"d68c908959d4f59a75c1d9c3fd9247f88ba4ac67576d66f6adc845fa65cad0c8","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2357.202","next":"us-ok/okla.-stat.-tit.-68-68-2357.205"},"notice":"GroundRules: Original legal text. Not legal advice."}