{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2357.42","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2357.42","heading":"Tax credit for investments by space transportation","body":"vehicle providers.\n\nA. For tax years beginning after December 31, 2000, and ending\n\nbefore January 1, 2009, there shall be allowed to an investor making\n\nan eligible investment a credit against the tax imposed by Section\n\n2355 or 2370 of this title or Section 624 or 628 of Title 36 of the\n\nOklahoma Statutes. The credit may be used in the payment of\n\nestimated tax payments for the tax imposed by Section 624 or 628 of\n\nTitle 36 of the Oklahoma Statutes. The credit shall be in the\n\namount as set forth in subsection G of this section.\n\nB. The amount of the credit shall be transferable to subsequent\n\ntransferees.\n\nC. As used in this section:\n\n1. “Eligible investment” means an investment made during a\n\nperiod not earlier than January 1, 2001, and not later than December\n\n31, 2003, in a qualified space transportation vehicle provider that:\n\na. is headquartered in this state or is ultimately\n\ncontrolled by an entity headquartered in this state,\n\nb. has been certified by the Oklahoma Tax Commission as\n\nmeeting the following minimum qualifications:\n\n(1) is included within the definition of “basic\n\nindustry” as set forth in division (1) 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 or the\n\nFormer Military Facility Development Act. The\n\nDepartment shall establish a process for\n\npreapproval of applicants for the Oklahoma\n\nQuality Jobs Program Act or the Former Military\n\nFacility Development Act for purposes of this\n\ndivision. The qualified space transportation\n\nvehicle provider shall agree to submit such\n\ninformation as may be required under this section\n\nand the Oklahoma Quality Jobs Program Act or the\n\nFormer Military Facility Development Act to allow\n\nthe Tax Commission to determine the amount of the\n\ntax credit allowed pursuant to the provisions of\n\nthis section and the amount of incentive payments\n\nallowed pursuant to the Oklahoma Quality Jobs\n\nProgram Act or the Former Military Facility\n\nDevelopment Act for purposes of subsection K of\n\nthis section,\n\n(2) has equity capitalization of not less than Ten\n\nMillion Dollars ($10,000,000.00), and\n\n(3) has received a commitment by a local governmental\n\nentity, whether by contract, letter agreement,\n\nterms sheet, resolution, ordinance or indenture,\n\nto provide funds, personal property or real\n\nproperty in the aggregate amount of Fifteen\n\nMillion Dollars ($15,000,000.00) or more which\n\nwill be utilized by one or more qualified space\n\ntransportation vehicle providers. For purposes\n\nof this division, such property may include\n\npersonal or real property owned by a local\n\ngovernmental entity which has been leased to a\n\nstate authority pursuant to a long-term lease or\n\npersonal or real property which a local\n\ngovernmental entity has transferred to a state\n\nauthority. If such property has been so\n\ntransferred, the commitment required by this\n\ndivision may be satisfied if the state authority\n\nagrees in writing to make the property so\n\ntransferred available for use by one or more\n\nqualified space transportation vehicle providers;\n\n2. “Qualified space transportation vehicle provider” means any\n\ncommercial provider organized under the laws of this state as a\n\ncorporation or a limited liability company and engaged in designing,\n\ndeveloping, producing, or operating commercial space transportation\n\nvehicles in this state;\n\n3. “Space transportation vehicle” includes all types of\n\nvehicles or orbital or suborbital spacecraft, whether now in\n\nexistence, developed in the future, or currently under design,\n\ndevelopment, construction, reconstruction, or reconditioning,\n\nconstructed in this state and owned by a qualified space\n\ntransportation vehicle provider, for the purpose of operating in, or\n\ntransporting a payload to, from, or within, outer space, or in\ncludes all types of\n\nvehicles or orbital or suborbital spacecraft, whether now in\n\nexistence, developed in the future, or currently under design,\n\ndevelopment, construction, reconstruction, or reconditioning,\n\nconstructed in this state and owned by a qualified space\n\ntransportation vehicle provider, for the purpose of operating in, or\n\ntransporting a payload to, from, or within, outer space, or in\n\nsuborbital trajectory, and includes any component of such vehicle or\n\nspacecraft not specifically designed or adapted for a payload; and\n\n4. \"Subsequently refunded or returned\", when used in reference\n\nto an eligible investment, means an actual redemption by the\n\nqualified space transportation vehicle provider of the securities or\n\nother indicia of ownership in the qualified space transportation\n\nvehicle provider 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 tax credit provided for in this section shall not be\n\nallowed or, if already claimed, shall be subject to recapture as to\n\nthe initial investor or investors with respect to any amount of an\n\neligible investment made which is subsequently refunded or returned\n\nto such investor. Further, a tax credit shall not be allowed to an\n\ninvestor making an eligible investment in a qualified space\n\ntransportation vehicle provider or shall be subject to recapture as\n\nto the initial investor or investors if previously allowed if the\n\nqualified space transportation vehicle provider in which the\n\ninvestment was made fails to make use of such funds or property\n\nwithin three (3) years of the date the tax credit was allowed. Any\n\nrecapture under this subsection shall only apply as to that part of\n\nthe tax credit as is associated with the amount of the investment\n\nwhich is subsequently refunded or returned or which is not utilized.\n\nE. The Tax Commission shall:\n\n1. Certify, upon request of an authorized agent or\n\nrepresentative of a qualified space transportation vehicle provider,\n\nthat the qualified space transportation vehicle provider for which\n\nthe certification is sought meets the qualifications prescribed by\n\nsubparagraph b of paragraph 1 of subsection C of this section. The\n\ncertification shall be in writing and signed by an authorized\n\nrepresentative of the Tax Commission and, for purposes of\n\ndetermining qualifications of a qualified space transportation\n\nvehicle provider in which an investment may be eligible for the\n\ncredit authorized by this section, shall be binding upon the Tax\n\nCommission; 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\nF. The maximum amount of all eligible investments for which tax\n\ncredits may be claimed under this section shall be Thirty Million\n\nDollars ($30,000,000.00). If more than one qualified space\n\ntransportation vehicle provider has been certified by the Tax\n\nCommission pursuant to the provisions of subsection E of this\n\nsection, the investors in the first such approved qualified space\ny this section.\n\nF. The maximum amount of all eligible investments for which tax\n\ncredits may be claimed under this section shall be Thirty Million\n\nDollars ($30,000,000.00). If more than one qualified space\n\ntransportation vehicle provider has been certified by the Tax\n\nCommission pursuant to the provisions of subsection E of this\n\nsection, the investors in the first such approved qualified space\n\ntransportation vehicle provider shall be entitled to a credit based\n\non their investment of the lesser of their eligible investment or\n\nThirty Million Dollars ($30,000,000.00). The investors in the\n\nsecond such approved qualified space transportation vehicle provider\n\nshall then be entitled to a credit based on their investment of the\n\nlesser of their eligible investment or the difference between the\n\ntotal eligible investments in previously approved qualified space\n\ntransportation vehicle providers and Thirty Million Dollars\n\n($30,000,000.00). This same procedure will apply for all\n\nsubsequently approved qualified space transportation vehicle\n\nproviders. If the amount of eligible investments exceeds the amount\n\nupon 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 E of this section.\n\nG. 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 of\n\neligible investment 10.6% of eligible\n\ninvestment\n\nSecond tax year subsequent to year\n\nof eligible investment 11.236% of eligible\n\ninvestment\n\nThird tax year subsequent to year\n\nof eligible investment 11.910% of eligible\n\ninvestment\n\nFourth tax year subsequent to year\n\nof eligible investment 12.624% of eligible\n\ninvestment\n\nFifth tax year subsequent to year\n\nof eligible investment 13.381% of eligible\n\ninvestment\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 G of\n\nthis section may be used as a credit against subsequent tax\n\nliability of the investor or a subsequent transferee for a period\n\nnot to exceed three (3) years from the year in which such credit is\n\noriginally 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. A qualified space transportation vehicle provider in which\n\nan eligible investment qualifies for a credit authorized by this\n\nsection shall maintain a record of investment made in the qualified\n\nspace transportation vehicle provider for the period beginning\n\nJanuary 1, 2001, and ending December 31, 2003. The qualified space\n\ntransportation vehicle provider shall notify the Tax Commission not\n\nlater than January 31, 2004, of the total investment amount for such\n\nperiod. Any such qualified space transportation vehicle provider\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 qualified space transportation vehicle\n\nprovider.\n\nK. A qualified space transportation vehicle provider in which\n\neligible investments qualify for the tax credit authorized by this\n\nsection shall not receive incentive payments pursuant to the\nthe 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 qualified space transportation vehicle\n\nprovider.\n\nK. A qualified space transportation vehicle provider in which\n\neligible investments qualify for the tax credit authorized by this\n\nsection shall not receive incentive payments pursuant to the\n\nOklahoma Quality Jobs Program Act or the Former Military Facility\n\nDevelopment Act until the total of such incentive payments the\n\nqualified space transportation vehicle provider would otherwise\n\nreceive exceeds the total amount of the credit authorized by this\n\nsection as computed by the Tax Commission pursuant to subsection J\n\nof this section. The amount of incentive payments for any year\n\nwhich would otherwise be paid to the qualified space transportation\n\nvehicle provider shall be distributed 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 or\n\n2370 of this title or Section 624 or 628 of Title 36 of the Oklahoma\n\nStatutes according to the tax against which the credit was claimed.\n\nThe amount of such payments which is in excess of the amount of the\n\ntax credit 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 qualified space transportation vehicle\n\nprovider;\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 to the Department of\n\nTransportation by the Oklahoma Transportation Authority pursuant to\n\nthe provisions 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.\n\nThe Tax Commission shall apportion all funds collected pursuant\n\nto the provisions of this paragraph as if collected from the tax\n\nimposed by Section 2355 or 2370 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\nqualified space transportation vehicle provider shall be apportioned\n\nby the Tax Commission to the Department of Transportation until such\n\ntime as all amounts paid pursuant to the provisions of paragraph 2\n\nof this subsection are repaid.\n\nL. A qualified space transportation vehicle provider in which\n\ninvestments qualify for the credit allowed by this section shall not\n\nbe entitled to payment of any incentive payments accrued prior to\n\nJanuary 1, 2001, under the Oklahoma Quality Jobs Program Act or the\n\nFormer Military Facility Development Act.\n\nM. Notwithstanding the provisions of this section, a qualified\n\nspace transportation vehicle provider may, prior to the issuance of\n\na tax credit with respect to the qualified space transportation\n\nvehicle provider pursuant to the provisions of this section, elect\n\nto receive incentive payments pursuant to the provisions of the\n\nOklahoma Quality Jobs Program Act or the Former Military Facility\n\nDevelopment Act in lieu of allowing the tax credit provided for\n\nherein, in which case it shall so notify the Tax Commission in\nnce of\n\na tax credit with respect to the qualified space transportation\n\nvehicle provider pursuant to the provisions of this section, elect\n\nto receive incentive payments pursuant to the provisions of the\n\nOklahoma Quality Jobs Program Act or the Former Military Facility\n\nDevelopment Act in lieu of allowing the tax credit provided for\n\nherein, in which case it shall so notify the Tax Commission in\n\nwriting and the provisions of this section shall not be applicable.\n\nN. Except as provided by subsection M of this section, no\n\nqualified space transportation vehicle provider which would\n\notherwise qualify for incentive payments pursuant to the provisions\n\nof the Oklahoma Quality Jobs Program Act or the Former Military\n\nFacility Development Act may receive such incentive payments prior\n\nto January 1, 2003.\n\nO. No qualified space transportation vehicle provider which has\n\nmade application 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 the Former\n\nMilitary Facility Development Act or which has received any\n\nincentive payment pursuant to the Oklahoma Quality Jobs Program Act\n\nor the Former Military Facility Development Act prior to May 24,\n\n2001, may be certified for purposes of determining eligibility for\n\nthe credit authorized 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":"3c7a90906e4ac5883f59ca7bb794d30ddb6de0bedf817e537783bd74e2dc149d","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2357.41","next":"us-ok/okla.-stat.-tit.-68-68-2357.43"},"notice":"GroundRules: Original legal text. Not legal advice."}