{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2357.28","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2357.28","heading":"Tax credit for investment in certain enterprises","body":"A. For tax years beginning after December 31, 1999, and ending\n\nbefore January 1, 2006, there shall be allowed to an investor making\n\nan eligible investment a credit against the tax imposed by Section\n\n2355 of this title or Section 624 or 628 of Title 36 of the Oklahoma\n\nStatutes. The credit may be used in the payment of estimated tax\n\npayments for the tax imposed by Section 624 or 628 of Title 36 of\n\nthe Oklahoma Statutes. The credit shall be in the amount as set\n\nforth in subsection F or subsection G of this section.\n\nB. The amount of the credit shall be freely transferable to\n\nsubsequent transferees.\n\nC. As used in this section:\n\n1. “Capitalization commitment” means a commitment by a local\n\ngovernmental entity or the beneficiary thereof or a private entity,\n\nwhether by contract, letter agreement, terms sheet, resolution,\n\nordinance or indenture, to provide funds, personal property or real\n\nproperty. “Capitalization commitment” shall also mean, in\n\ncircumstances limited to local governmental entities or the\n\nbeneficiaries thereof, a moral obligation to provide future funds,\n\npersonal property or real property. To provide funds, personal\n\nproperty or real property shall include but not be limited to\n\nproviding funds, personal property or real property in the form of\n\nsecurity or collateral to a financial lending institution in support\n\nof a revenue bond, financial obligation or other evidence of\n\nindebtedness issued by a local governmental entity;\n\n2. “Consideration” means, but is not limited to, funds,\n\npersonal property or real property and a capitalization commitment.\n\nThe source of the funds or other consideration for the investment by\n\none or more investors, whether borrowed or otherwise, is irrelevant\n\nto the determination of investment. The fact that the source of\n\nfunds is from a financial lending institution is also irrelevant;\n\n3. “Eligible investment” means an investment made during a\n\nperiod not earlier than January 1, 1999, and not later than December\n\n31, 2002, in an establishment that:\n\na. is headquartered in this state or is ultimately\n\ncontrolled by an entity headquartered in this state,\n\nand\n\nb. has been certified by the Tax Commission as meeting\n\nthe following minimum qualifications:\n\n(1) is included within the definition of “basic\n\nindustry” as set forth in division (7) of\n\nsubparagraph a of paragraph 1 of subsection A of\n\nSection 3603 of this title and has been\n\npreapproved by the Oklahoma Department of\n\nCommerce to receive incentive payments pursuant\n\nto the Oklahoma Quality Jobs Program Act. The\n\nDepartment shall establish a process for\n\npreapproval of applicants for the Oklahoma\n\nQuality Jobs Program Act for purposes of this\n\ndivision. The establishment shall agree to\n\nsubmit such information as may be required under\n\nthis section and the Oklahoma Quality Jobs\n\nProgram Act to allow the Tax Commission to\n\ndetermine the amount of the tax credit allowed\n\npursuant to the provisions of this section and\n\nthe amount of incentive payments allowed pursuant\n\nto the Oklahoma Quality Jobs Program Act for\n\npurposes of subsection K of this section,\n\n(2) can demonstrate commitments from not fewer than\n\ntwenty entities doing business in this state,\n\nwith such entities having in the aggregate not\n\nfewer than two thousand (2,000) employees in this\n\nstate, to utilize the services of the\n\nestablishment in providing nonstop air\n\ntransportation from this state to either the west\n\ncoast or the east coast of the continental United\n\nStates, or both. Such commitments, at a minimum,\n\nmay be in the form of letters of intent from\n\nauthorized officers of such entities which\n\ndemonstrate a best efforts intention to utilize\n\nsuch air transportation, and\nstate, to utilize the services of the\n\nestablishment in providing nonstop air\n\ntransportation from this state to either the west\n\ncoast or the east coast of the continental United\n\nStates, or both. Such commitments, at a minimum,\n\nmay be in the form of letters of intent from\n\nauthorized officers of such entities which\n\ndemonstrate a best efforts intention to utilize\n\nsuch air transportation, and\n\n(3) has received, or its parent has received, in\n\ncalendar year 2000, a capitalization commitment\n\nin the amount of Fifteen Million Dollars\n\n($15,000,000.00) or more from a local\n\ngovernmental entity, including, but not limited\n\nto, proceeds from the issuance of revenue bonds,\n\nfinancial obligations or other evidences of\n\nindebtedness. For purposes of this section and\n\nnotwithstanding the provisions of Section 5063.4\n\nof Title 74 of the Oklahoma Statutes or any other\n\nlaws to the contrary, credit enhancement by the\n\nOklahoma Development Finance Authority through\n\nthe Oklahoma Credit Enhancement Reserve Fund up\n\nto a maximum of Ten Million Dollars\n\n($10,000,000.00) is hereby authorized, subject to\n\nthe approval of the Executive and Legislative\n\nBond Oversight Commissions pursuant to Section\n\n695.8 of Title 62 of the Oklahoma Statutes.\n\nThe tax credit provided for in this section shall not be allowed\n\nor, if already claimed, shall be subject to recapture as to the\n\ninitial investor or investors, with respect to any amount of an\n\neligible investment made which is subsequently refunded or returned\n\nto any such investor. Any such recapture shall only apply as to\n\nthat part of the tax credit as is associated with the investment\n\nrefunded or returned.\n\nNothing in this subsection is intended to preclude an\n\nestablishment from utilizing a wholly owned operating subsidiary to\n\nperform its flight and related operations to meet the requirements\n\nof this subsection;\n\n4. “Financial lending institution” means a bank, credit union,\n\nsavings and loan association, commercial finance company,\n\ngovernmental agency, including a local governmental entity, or other\n\nentity principally engaged in investment, finance or the extension\n\nof credit;\n\n5. “Investment” means:\n\na. consideration in exchange for “equity and near-\n\nequity”, which means common stock, preferred stock,\n\nwarrants or other rights to subscribe to stock or its\n\nequivalent, or an interest in a partnership, or debt\n\nthat is convertible into or entitles the holder to\n\nreceive upon its exercise, common stock, preferred\n\nstock, royalty interest, or an interest in a\n\npartnership,\n\nb. consideration in exchange for “subordinated debt”,\n\nwhich means indebtedness that is subordinated to other\n\nindebtedness of the issuer that has been issued or is\n\nto be issued by a financial lending institution, or\n\nc. in the event of a capitalization commitment in\n\naccordance with the provisions of division (3) of\n\nsubparagraph b of paragraph 3 of this subsection,\n\nwhere a local governmental entity is issuing revenue\n\nbonds, financial obligations or other evidences of\n\nindebtedness, the receipt of the proceeds of revenue\n\nbonds, financial obligations or other evidences of\n\nindebtedness issued by a local governmental entity by\n\na parent and the subsequent transfer of such proceeds\n\nto a subsidiary.\n\nActions of the establishment to use such investment as security for\n\nindebtedness, even as security for that of another party, or other\n\nuses, in compliance with loan covenants as may be part of the\n\nissuance of revenue bonds, financial obligations or other evidences\n\nof indebtedness, shall not affect its determination as investment.\n\nFor purposes of this section, investment in an establishment which\n\nhas, prior to February 1, 2002, been certified as an eligible\n\nestablishment by the Oklahoma Tax Commission shall be treated as an\n\neligible investment in such establishment for the purposes of this\n\nsection with respect to investment made at any time prior to\nes\n\nof indebtedness, shall not affect its determination as investment.\n\nFor purposes of this section, investment in an establishment which\n\nhas, prior to February 1, 2002, been certified as an eligible\n\nestablishment by the Oklahoma Tax Commission shall be treated as an\n\neligible investment in such establishment for the purposes of this\n\nsection with respect to investment made at any time prior to\n\nDecember 31, 2002;\n\n6. “Investor” means one or more persons or entities making an\n\ninvestment and may include one or more persons or entities which\n\nwholly or partially own the establishment;\n\n7. “Local governmental entity” includes, but is not limited to,\n\na county, municipality or public authority or trust created pursuant\n\nto the provisions of Title 60 of the Oklahoma Statutes of which the\n\nstate or a county or municipality or combination thereof, is a\n\nbeneficiary, or a state public authority or trust;\n\n8. “Parent” means an entity owning fifty-one percent (51%) or\n\nmore of the establishment and providing fifty-one percent (51%) or\n\nmore of the investment in the establishment; and\n\n9. “Subsequently refunded or returned”, when used in reference\n\nto an eligible investment, means an actual redemption by the\n\nestablishment of the securities or other indicia of ownership in the\n\nestablishment received by the investor from the investor’s\n\ninvestment. The failure to allow the tax credits or the recapture\n\nof the tax credits shall not affect the validity of the tax credits\n\nin the hands of a transferee of the initial investor or subsequent\n\ntransferees. Provided, an investor to whom an eligible investment,\n\nor portion thereof, is subsequently refunded or returned shall\n\nreimburse the Tax Commission the amount of any credits claimed by a\n\ntransferee with respect to any such amount.\n\nD. The Oklahoma Tax Commission shall:\n\n1. Certify, upon request of an authorized agent or\n\nrepresentative of an establishment described by paragraph 3 of\n\nsubsection C of this section, that the establishment for which the\n\ncertification is sought meets the qualifications prescribed by\n\nsubparagraphs a and b of paragraph 3 of subsection C of this\n\nsection. The certification shall be in writing and signed by an\n\nauthorized representative of the Tax Commission and, for purposes of\n\ndetermining qualifications of an establishment in which an\n\ninvestment may be eligible for the credit authorized by this\n\nsection, shall be binding upon the Tax Commission; and\n\n2. Issue a certificate to an investor that provides adequate\n\ndocumentation of qualification for the credit authorized by this\n\nsection even if the credit may not be claimed until after the date\n\nupon which the certificate is requested. Upon issuance, the\n\ncertificate shall be evidence that an investor or a transferee of\n\nthe original tax credit claimant submitting the certificate, or a\n\ncertified copy thereof, with the relevant tax return or other form,\n\nhas the legal right to exercise the credit in order to reduce the\n\nrelevant tax liability for the period authorized by this section.\n\nE. Except as otherwise provided by subsection G of this\n\nsection, the maximum amount of all eligible investments for which\n\ntax credits may be claimed under this section shall be Thirty\n\nMillion Dollars ($30,000,000.00). If more than one establishment\n\nhas been certified by the Tax Commission pursuant to the provisions\n\nof subsection D of this section, the investors in the first such\n\napproved establishment shall be entitled to a credit based on their\n\ninvestment of the lesser of their eligible investment or Thirty\n\nMillion Dollars ($30,000,000.00). The investors in the second such\n\napproved establishment shall then be entitled to a credit based on\n\ntheir investment of the lesser of their eligible investment or the\n\ndifference between the total eligible investments in previously\n\napproved establishments and Thirty Million Dollars ($30,000,000.00).\nvestment of the lesser of their eligible investment or Thirty\n\nMillion Dollars ($30,000,000.00). The investors in the second such\n\napproved establishment shall then be entitled to a credit based on\n\ntheir investment of the lesser of their eligible investment or the\n\ndifference between the total eligible investments in previously\n\napproved establishments and Thirty Million Dollars ($30,000,000.00).\n\nThis same procedure will apply for all subsequently approved\n\nestablishments. If the amount of eligible investments exceeds the\n\namount upon which the tax credit may be claimed as provided herein,\n\ninvestors shall be allowed a share of the amount of the available\n\ntax credit in order of the dates of receipt of certification\n\ntherefor by the Tax Commission pursuant to the provisions of\n\nparagraph 1 of subsection D of this section.\n\nF. Except as otherwise provided by subsection G of this\n\nsection, the amount of the tax credit allowed pursuant to the\n\nprovisions of subsection A of this section shall be deemed fully\n\nearned as of the date of the investment and shall be fully\n\nredeemable as follows:\n\nPeriod for Which\n\nTax Liability Determined Credit Allowed\n\nTax year subsequent to year\n\nof eligible investment 10.6% of eligible\n\ninvestment\n\nSecond tax year subsequent to\n\nyear of eligible investment 11.236% of eligible\n\ninvestment\n\nThird tax year subsequent to\n\nyear of eligible investment 11.910% of eligible\n\ninvestment\n\nFourth tax year subsequent to\n\nyear of eligible investment 12.624% of eligible\n\ninvestment\n\nFifth tax year subsequent to\n\nyear of eligible investment 13.381% of eligible\n\ninvestment\n\nG. An investor or investors in an establishment that has been\n\napproved for eligible investment before February 1, 2002, pursuant\n\nto this section may receive tax credits for additional eligible\n\ninvestment in such establishment during the period February 1, 2002,\n\nto December 31, 2002. The maximum amount of such additional tax\n\ncredits shall be Nine Million Dollars ($9,000,000.00) with One\n\nDollar ($1.00) of tax credit for each dollar of eligible investment.\n\nThe tax credits authorized by this subsection may not be used as to\n\nany tax obligation that is due and payable before July 1, 2003. For\n\nthe fiscal year that begins July 1, 2003, and the fiscal years that\n\nbegin July 1, 2004, and July 1, 2005, the amount of tax credits\n\nauthorized by this subsection which may be used during each such\n\nfiscal year shall not exceed Three Million Dollars ($3,000,000.00).\n\nH. The amount of a tax credit allowed pursuant to the\n\nprovisions of this section not used in payment of taxes due in the\n\nyear in which such credit is allowed pursuant to subsection F or\n\nsubsection G of this section may be used as a credit against\n\nsubsequent tax liability of the investor or a subsequent transferee\n\nfor a period not to exceed three (3) years from the year in which\n\nsuch credit is originally allowed.\n\nI. The Tax Commission shall develop and issue appropriate forms\n\nand instructions to enable investors to claim the tax credit\n\nprovided for in this section.\n\nJ. An establishment in which an eligible investment qualifies\n\nfor a credit authorized by this section shall maintain a record of\n\ninvestment made in the establishment for the period beginning\n\nJanuary 1, 1999, and ending December 31, 2002. The establishment\n\nshall notify the Tax Commission not later than January 31, 2003, of\n\nthe total investment amount for such period. Any such establishment\n\nwhich refunds or returns any amount of an eligible investment to the\n\ninvestor shall notify the Tax Commission in writing of the amount\n\nand recipient of such refunds or returns. The Tax Commission shall\n\ncompute the maximum amount of credits available pursuant to this\n\nsection based upon notification of the investment amount transmitted\n\nto the Tax Commission by the establishment.\nestablishment\n\nwhich refunds or returns any amount of an eligible investment to the\n\ninvestor shall notify the Tax Commission in writing of the amount\n\nand recipient of such refunds or returns. The Tax Commission shall\n\ncompute the maximum amount of credits available pursuant to this\n\nsection based upon notification of the investment amount transmitted\n\nto the Tax Commission by the establishment.\n\nK. An establishment in which eligible investments qualify for\n\nthe tax credit authorized by this section shall not receive\n\nincentive payments pursuant to the Oklahoma Quality Jobs Program Act\n\nuntil the total of such incentive payments the establishment would\n\notherwise receive exceeds the total amount of the credit authorized\n\nby this section as computed by the Tax Commission pursuant to\n\nsubsection J of this section. The amount of incentive payments for\n\nany year which would otherwise be paid to the establishment shall be\n\ndistributed as follows:\n\n1. If the amount of such incentive payments equals or exceeds\n\nthe amount of the tax credit for the year, the amount of such\n\npayments which is equal to the amount of the tax credit shall be\n\napportioned as if collected from the tax imposed by Section 2355 of\n\nthis title or Section 624 or 628 of Title 36 of the Oklahoma\n\nStatutes according to which tax the credit was claimed against. The\n\namount of such payments which is in excess of the amount of the tax\n\ncredit shall be retained by the Tax Commission to be paid as\n\nprovided for in this paragraph for subsequent years for which the\n\ntax credit is allowed to the establishment;\n\n2. If the amount of such incentive payments and any amount\n\nretained by the Tax Commission pursuant to the provisions of\n\nparagraph 1 of this subsection is less than the amount of the tax\n\ncredit for the year, notwithstanding the provisions of Section 1727\n\nof Title 69 of the Oklahoma Statutes, the Tax Commission shall\n\nwithhold a portion of the taxes levied and collected pursuant to the\n\nprovisions of paragraph 1 of subsection A of Section 500.4 of this\n\ntitle which would otherwise be paid over to the Department of\n\nTransportation by the Oklahoma Turnpike Authority pursuant to the\n\nprovisions of paragraph (2) of subsection (d) of Section 1730 of\n\nTitle 69 of the Oklahoma Statutes equal to the amount of the\n\ndeficit. The Tax Commission shall apportion all funds collected\n\npursuant to the provisions of this paragraph as if collected from\n\nthe tax imposed by Section 2355 of this title or Section 624 or 628\n\nof Title 36 of the Oklahoma Statutes according to the tax against\n\nwhich the credit was claimed; and\n\n3. If any amount is withheld by or paid to the Tax Commission\n\npursuant to the provisions of paragraph 2 of this subsection, the\n\namount of incentive payments to be subsequently paid to the\n\nestablishment shall be apportioned by the Tax Commission to the\n\nDepartment of Transportation until such time as all amounts paid\n\npursuant to the provisions of paragraph 2 of this subsection are\n\nrepaid.\n\nL. No establishment in which investments qualify for the credit\n\nallowed by this section shall be entitled to payment of any\n\nincentive payments accrued prior to the date authorized for the\n\ninitial eligible investments as provided by this subsection.\n\nM. Notwithstanding the provisions of this section, an\n\nestablishment may, prior to the issuance of a tax credit with\n\nrespect to the establishment pursuant to the provisions of this\n\nsection, elect to receive incentive payments pursuant to the\n\nprovisions of the Oklahoma Quality Jobs Program Act in lieu of\n\nallowing the tax credit provided for herein, in which case it shall\n\nso notify the Tax Commission in writing and the provisions of this\n\nsection shall not be applicable.\n\nN. Except as provided by subsection M of this section, no\n\nestablishment defined by this section which would otherwise qualify\nve incentive payments pursuant to the\n\nprovisions of the Oklahoma Quality Jobs Program Act in lieu of\n\nallowing the tax credit provided for herein, in which case it shall\n\nso notify the Tax Commission in writing and the provisions of this\n\nsection shall not be applicable.\n\nN. Except as provided by subsection M of this section, no\n\nestablishment defined by this section which would otherwise qualify\n\nfor incentive payments pursuant to the provisions of the Oklahoma\n\nQuality Jobs Program Act may receive such incentive payments prior\n\nto January 1, 2001.\n\nO. No establishment defined by this section which has made\n\napplication to the Oklahoma Department of Commerce or which has\n\nexecuted any agreement with the Oklahoma Department of Commerce with\n\nrespect to the receipt of incentive payments pursuant to the\n\nprovisions of the Oklahoma Quality Jobs Program Act or which has\n\nreceived any incentive payment pursuant to the Oklahoma Quality Jobs\n\nProgram Act prior to June 9, 1999, may be certified as an\n\nestablishment for purposes of determining eligibility for the credit\n\nauthorized by 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":"a9512ea39408af6491069a5868ab7d9cbf84a3336e7a171e77220c90e97b94e1","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2357.27","next":"us-ok/okla.-stat.-tit.-68-68-2357.29a"},"notice":"GroundRules: Original legal text. Not legal advice."}