{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2357.25","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2357.25","heading":"Credit for investments in agricultural processing","body":"cooperatives, ventures and marketing associations.\n\nA. Except as provided in subsection K of this section, there\n\nshall be allowed a credit against the tax imposed by Section 2355 of\n\nthis title for direct investments by Oklahoma agricultural producers\n\nin Oklahoma producer-owned agricultural processing cooperatives,\n\nOklahoma producer-owned agricultural processing ventures, or\n\nOklahoma producer-owned agricultural processing marketing\n\nassociations or Oklahoma-owned and -based corporations or\n\npartnerships created and designed to develop and advance the\n\nproduction, processing, handling and marketing of agricultural\n\ncommodities grown, made or manufactured in Oklahoma. For calendar\n\nyears 1997 and 1998, the amount of the credit shall be thirty\n\npercent (30%) of the amount of the investment by the Oklahoma\n\nagricultural producer in Oklahoma producer-owned agricultural\n\nprocessing cooperatives, ventures, or marketing associations.\n\nB. For calendar year 2006, and all subsequent years, the credit\n\npercentage, not to exceed thirty percent (30%), shall be adjusted\n\nannually so that the total estimate of credits does not exceed Two\n\nMillion Dollars ($2,000,000.00) annually. The formula to be used\n\nfor the percentage adjustment shall be thirty percent (30%) times\n\nTwo Million Dollars ($2,000,000.00) divided by the credits claimed\n\nin the preceding year. In no event shall the credit be claimed more\n\nthan once by a taxpayer each taxable year.\n\nC. In the event the total tax credits authorized by this\n\nsection exceed Two Million Dollars ($2,000,000.00) in any calendar\n\nyear, the Oklahoma Tax Commission shall permit any excess over Two\n\nMillion Dollars ($2,000,000.00) but shall factor such excess into\n\nthe percentage adjustment formula for subsequent years.\n\nD. The credits authorized by this act may only be claimed for\n\ntaxable years beginning after December 31, 2006, and ending before\n\nJanuary 1, 2010. The provisions of this subsection shall not be\n\napplicable to any credits earned, but not utilized, prior to the\n\neffective date of this act.\n\nE. If the credit allowed pursuant to this section exceeds the\n\namount of state income taxes due or if there are no state income\n\ntaxes due on the income of the taxpayer, the amount of credit\n\nallowed but not used in any taxable year may be carried forward as a\n\ncredit against subsequent income tax liability for a period not\n\nexceeding six (6) years following the year in which the investment\n\nwas originally made.\n\nF. The Oklahoma Tax Commission shall have the authority to\n\nprescribe forms for purposes of claiming the credit authorized by\n\nthis section. The Oklahoma Tax Commission shall be authorized to\n\nconduct an investigation of the relevant facts as may be required in\n\norder to verify the eligibility of a claimant to receive a credit\n\nfor any applicable income tax year.\n\nG. 1. For any taxable year during which a taxpayer sells or\n\notherwise disposes of the ownership interest for which a tax credit\n\nhas previously been allowed to the taxpayer or for which a tax\n\ncredit will be allowed to the taxpayer for the year in which the\n\nsale or other disposition of the ownership interest is made, the\n\ntaxpayer shall be required to reduce the cost of the ownership\n\ninterest in the Oklahoma producer-owned agricultural processing\n\ncooperative, venture, or marketing association, as reported upon the\n\napplicable income tax return, by the amount of the tax credit which\n\nhas previously been granted or for which the taxpayer is claiming\n\ncredit if the credit is allowable for the year during which the sale\n\nor other disposition is made.\n\n2. If a taxpayer sells or otherwise disposes of an ownership\n\ninterest in the Oklahoma producer-owned agricultural processing\n\ncooperative, venture, or marketing association for which the tax\n\ncredit authorized by this section may be taken in a taxable year\ned or for which the taxpayer is claiming\n\ncredit if the credit is allowable for the year during which the sale\n\nor other disposition is made.\n\n2. If a taxpayer sells or otherwise disposes of an ownership\n\ninterest in the Oklahoma producer-owned agricultural processing\n\ncooperative, venture, or marketing association for which the tax\n\ncredit authorized by this section may be taken in a taxable year\n\nfollowing the year in which the ownership interest in the Oklahoma\n\nproducer-owned agricultural processing cooperative, venture, or\n\nmarketing association is sold or otherwise disposed of, the credit\n\nauthorized by this section shall be reduced to account for the prior\n\nsale or other disposition.\n\nH. The tax credit authorized by this section shall not be\n\navailable or taken for any calendar year during which the claimant\n\nof the credit received any incentive payments pursuant to the\n\nOklahoma Quality Jobs Program Act or the Saving Quality Jobs Act.\n\nI. As used in this section:\n\n1. “Direct investment” means the payment of money in an\n\nOklahoma producer-owned agricultural processing cooperative,\n\nventure, or marketing association or the transfer of any form of\n\neconomic value, whether tangible or intangible, other than money;\n\n2. “Oklahoma producer-owned agricultural processing\n\ncooperative” means a legal entity in the nature of a partnership or\n\nbusiness undertaking agricultural transactions or agricultural\n\ncommercial enterprises for mutual profit which are owned and\n\ncontrolled by Oklahoma agricultural producers. An Oklahoma\n\nproducer-owned agricultural processing cooperative requires a\n\ncommunity of interest in the performance of the undertaking,\n\ntransaction or enterprise, a right to direct and govern the policy\n\nin connection therewith and the duty, which may be altered by\n\nagreement, to share both in profit and losses. The term does not\n\ninclude a cooperative that provides only, and nothing more than,\n\nstorage, cleaning, or transportation of agricultural commodities;\n\n3. “Oklahoma producer-owned agricultural processing venture”\n\nmeans a legal entity in the nature of a corporation or company\n\norganized to invest in or operate an agricultural commodity\n\nprocessing facility operated primarily for the processing or\n\nproduction of marketable products from agricultural commodities.\n\nThe term shall include a dairy operation that requires a depreciable\n\ninvestment of at least Two Hundred Fifty Thousand Dollars\n\n($250,000.00) and which produces milk from dairy cows. The term\n\ndoes not include a venture that provides only, and nothing more\n\nthan, storage, cleaning, or transportation of agricultural\n\ncommodities;\n\n4. “Oklahoma producer-owned agricultural processing marketing\n\nassociation” means:\n\na. a legal entity owned by Oklahoma producers of\n\nagricultural commodities and organized to jointly\n\nmarket agricultural commodities and/or natural-\n\nresource-based recreational activities, facilitate the\n\nmarketing process and to promote and stimulate the\n\nprocessing, sales, and marketing of agricultural\n\ncommodities, or\n\nb. a legal entity owned by Oklahoma producers of\n\nagricultural commodities and organized for collective\n\nmarketing and improvement of land for natural-\n\nresource-based recreational activity;\n\nThe term does not include a marketing association that provides\n\nonly, and nothing more than, storage, cleaning, or transportation of\n\nagricultural commodities;\n\n5. “Oklahoma agricultural producer” means any person who\n\nproduces agricultural commodities in this state;\n\n6. “Oklahoma-based corporation or partnership” means an entity\n\ncreated pursuant to the Oklahoma General Corporation Act or other\n\nlaws of the state authorizing either a corporate entity or an entity\n\nwith limited liability or any form of partnership, whether general,\n\nlimited or other authorized partnership form having either its\n\nprincipal place of business within the state or substantial assets\n6. “Oklahoma-based corporation or partnership” means an entity\n\ncreated pursuant to the Oklahoma General Corporation Act or other\n\nlaws of the state authorizing either a corporate entity or an entity\n\nwith limited liability or any form of partnership, whether general,\n\nlimited or other authorized partnership form having either its\n\nprincipal place of business within the state or substantial assets\n\nlocated within the state. For the purpose of this section, the\n\ndefinition contained in this paragraph shall not include an\n\nOklahoma-based corporation or partnership that engages only in and\n\nnothing more than the storage, cleaning, and transportation or\n\nproduction of its commodity;\n\n7. “Agricultural commodities” means a farm or ranch product,\n\nincluding but not limited to, wheat, corn, soybeans, cotton, timber,\n\ncattle, hogs, sheep, horses, poultry, animals of the families\n\nbovidae, cervidae and antilocapridae or birds of the ratite group\n\nproduced in farming or ranching operations or a product of such crop\n\nor livestock in its unmanufactured state such as ginned cotton,\n\nwool-dip, maple syrup, milk and eggs, or any other commodity listed\n\nunder any Industry Group Number under Major Group 20 of Division D\n\nof the Standard Industrial Classification (SIC) Manual; and\n\n8. “Dairy operation” means and includes equipment and\n\nfacilities to store and prepare feed, dairy cows, milking parlors,\n\nbulk cooling tanks, buildings, and all such depreciable investment\n\ncommonly utilized in the dairy industry.\n\nJ. For purposes of this section, an agricultural commodity\n\nshall be deemed to be produced within this state if it is\n\nsubstantially produced, by any person, partnership, company,\n\nassociation or corporation:\n\n1. Authorized to do and doing business under the laws of this\n\nstate;\n\n2. Paying all taxes duly assessed; and\n\n3. Domiciled within this state by having a location of\n\nproduction within this state.\n\nK. 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.","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":"e953a37957aeec18525f64052614be0d60d46d526b0c732eddc19e2253a82640","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2357.22v2","next":"us-ok/okla.-stat.-tit.-68-68-2357.25a"},"notice":"GroundRules: Original legal text. Not legal advice."}