{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2357.62","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2357.62","heading":"Credit for qualified investment in qualified small","body":"business capital companies.\n\nA. Except as provided in Section 1 of this act, for taxable\n\nyears beginning after December 31, 1997, and before January 1, 2012,\n\nthere shall be allowed a credit against the tax imposed by Section\n\n2355 or, effective January 1, 2001, Section 2370 of this title or,\n\neffective July 1, 2001, against the tax imposed by Section 624 or\n\n628 of Title 36 of the Oklahoma Statutes, for qualified investment\n\nin qualified small business capital companies. No amount of a\n\nqualified investment made in a qualified small business capital\n\ncompany which has not been invested in one or more Oklahoma small\n\nbusiness ventures prior to the effective date of the moratorium\n\nprovided for in Section 1 of this act shall be eligible for any\n\ncredit otherwise authorized pursuant to this section. No qualified\n\ninvestment made in a qualified small business capital company or\n\nqualified investment made by a qualified small business capital\n\ncompany in one or more Oklahoma small business ventures during the\n\nperiod of the moratorium pursuant to Section 1 of this act shall be\n\neligible for any credit otherwise authorized pursuant to this\n\nsection.\n\nB. The credit provided for in subsection A of this section\n\nshall be twenty percent (20%) of the qualified investment in\n\nqualified small business capital companies which is subsequently\n\ninvested in an Oklahoma small business venture by the qualified\n\nventure capital company and may only be claimed for a taxable year\n\nduring which the qualified small business capital company makes the\n\nqualified investment in an Oklahoma small business venture. The\n\ncredit shall be allowed for the amount of the qualified investment\n\nin an Oklahoma small business venture if the funds are used in\n\npursuit of a legitimate business purpose of the Oklahoma small\n\nbusiness venture consistent with its organizational instrument,\n\nbylaws or other agreement responsible for the governance of the\n\nsmall business venture. The qualified small business capital\n\ncompany shall issue such reports as the Oklahoma Tax Commission may\n\nrequire attributing the source of funds of each investment it makes\n\nin an Oklahoma business venture. If the tax credit exceeds the\n\namount of taxes due or if there are no state taxes due of the\n\ntaxpayer, the amount of the claim not used as an offset against the\n\ntaxes of a taxable year may be carried forward for a period not to\n\nexceed three (3) taxable years.\n\nC. No taxpayer may claim the credit provided for in this\n\nsection for qualified investments in qualified small business\n\ncapital companies made prior to January 1, 1998.\n\nD. No taxpayer may claim the credit provided for in this\n\nsection if the capital provided by a qualified small business\n\ncapital company is used by an Oklahoma small business venture for\n\nthe acquisition of any other legal entity.\n\nE. No financial lending institution shall be eligible to claim\n\nthe credit provided for in this section except with respect to\n\nqualified investments in a qualified small business capital company.\n\nF. No taxpayer may claim the credit authorized by this section\n\nfor the same qualified investment for which any credit is claimed\n\npursuant to either Section 2357.73 or 2357.74 of this title.\n\nG. If a pass-through entity is entitled to a credit under this\n\nsection, the pass-through entity shall allocate such credit to one\n\nor more of the shareholders, partners or members of the pass-through\n\nentity; provided, the total of all credits allocated shall not\n\nexceed the amount of the credit to which the pass-through entity is\n\nentitled. The credit may also be claimed for funds borrowed by the\n\npass-through entity to make a qualified investment if a shareholder,\n\npartner or member to whom the credit is allocated has an unlimited\n\nand continuing legal obligation to repay the borrowed funds but the\n\nallocation may not exceed such shareholder’s, partner’s or member’s\namount of the credit to which the pass-through entity is\n\nentitled. The credit may also be claimed for funds borrowed by the\n\npass-through entity to make a qualified investment if a shareholder,\n\npartner or member to whom the credit is allocated has an unlimited\n\nand continuing legal obligation to repay the borrowed funds but the\n\nallocation may not exceed such shareholder’s, partner’s or member’s\n\npro-rata equity share of the pass-through entity even if the\n\ntaxpayer’s legal obligation to repay the borrowed funds is in excess\n\nof such pro-rata share of such borrowed funds. For purposes of the\n\nSmall Business Capital Formation Incentive Act, “pass-through\n\nentity” means a corporation that for the applicable tax years is\n\ntreated as an S corporation under the Internal Revenue Code, general\n\npartnership, limited partnership, limited liability partnership,\n\ntrust, or limited liability company that for the applicable tax year\n\nis not taxed as a corporation for federal income tax purposes.","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":"523a6c8b28c14cf176a96a14399076ddc5591a5d000e74ace155a36eb7e7cd6d","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2357.61a","next":"us-ok/okla.-stat.-tit.-68-68-2357.63"},"notice":"GroundRules: Original legal text. Not legal advice."}