{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2357.63a","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2357.63A","heading":"Requirements for funds invested in Oklahoma small","body":"business ventures - Recapture of credits - Use of near equity or\n\nsubordinated debt - Offering material statement.\n\nA. For purposes of claiming any tax credits authorized by\n\nSections 2357.62 and 2357.63 of Title 68 of the Oklahoma Statutes,\n\nany funds invested in an Oklahoma small business venture shall be\n\nsubject to the following requirements:\n\n1. The Oklahoma small business venture must issue its equity\n\nsecurities or subordinated debt instruments in exchange for a\n\nqualified investment within thirty (30) days of the date as of which\n\nthe investment occurs;\n\n2. The qualified small business capital company or any entity\n\nmaking an investment in conjunction with investment by a qualified\n\nsmall business capital company pursuant to Section 2357.63 of this\n\ntitle must reflect the documented qualified investment in the\n\nOklahoma small business venture as an asset in its accounting\n\nsystem;\n\n3. The qualified small business capital company shall not make\n\na qualified investment in an Oklahoma small business venture in\n\nwhich it has, at any time, more than fifty percent (50%) ownership,\n\nwhether directly or indirectly, of the voting interest entitled to\n\nelect the governing board of any Oklahoma small business venture;\n\n4. The qualified small business capital company cannot enter\n\ninto any agreement, whether formal or informal, written or\n\nunwritten, the purpose of which is to control, directly or\n\nindirectly, the return of a specific amount of qualified investment\n\nby the Oklahoma small business venture to the qualified small\n\nbusiness capital company or the purpose of which is to cause or\n\nrequire the transfer of such specific amount of qualified investment\n\nto any other entity within five (5) years from the date the\n\nqualified investment is made available to the Oklahoma small\n\nbusiness venture; and\n\n5. The Oklahoma small business venture cannot enter into any\n\nagreement, whether formal or informal, written or unwritten, the\n\npurpose of which is to control, directly or indirectly, the return\n\nof a specific amount of qualified investment to the qualified small\n\nbusiness capital company or the purpose of which is to cause or\n\nrequire the transfer of such specific amount of qualified investment\n\nto any other entity within five (5) years from the time the\n\nqualified investment is made available to the Oklahoma small\n\nbusiness venture.\n\nB. The Oklahoma Tax Commission shall have the authority to make\n\nan independent determination that any proposed use of monies,\n\nassets, funds or other things of value which are to be used for\n\npurposes of claiming any credits authorized by Sections 2357.62 and\n\n2357.63 of Title 68 of the Oklahoma Statutes are for a legitimate\n\nbusiness purpose of the Oklahoma small business venture and not for\n\nthe primary purpose of obtaining the tax credits authorized by such\n\nsections on the basis of activity which does not have substantial\n\neconomic profit-based potential.\n\nC. The Tax Commission shall be authorized to recapture the\n\ncredits otherwise authorized by the provisions of Sections 2357.62\n\nand 2357.63 of Title 68 of the Oklahoma Statutes according to the\n\nprovisions of Section 11 of this act if it finds that the\n\ntransaction does not meet the requirements of the Small Business\n\nCapital Formation Incentive Act.\n\nD. The provisions of this section shall not prohibit a\n\nqualified small business capital company from using near equity or\n\nsubordinated debt, as those terms are defined by Section 2357.61 of\n\nTitle 68 of the Oklahoma Statutes, if the near equity or\n\nsubordinated debt is a contractual obligation owed by the Oklahoma\n\nsmall business venture directly to the qualified small business\n\ncapital company and if the agreement governing the obligation\n\ncomplies with all of the other requirements of this section.\n\nE. The provisions of this section shall not prohibit the\n\nshareholders or partners of a qualified small business capital\nf the near equity or\n\nsubordinated debt is a contractual obligation owed by the Oklahoma\n\nsmall business venture directly to the qualified small business\n\ncapital company and if the agreement governing the obligation\n\ncomplies with all of the other requirements of this section.\n\nE. The provisions of this section shall not prohibit the\n\nshareholders or partners of a qualified small business capital\n\ncompany from using near equity or subordinated debt, as those terms\n\nare defined by Section 2357.61 of Title 68 of the Oklahoma Statutes,\n\nif the near equity or subordinated debt is a contractual obligation\n\nowed by the Oklahoma small business venture directly to a\n\nshareholder or partner of a qualified small business capital company\n\nthat has invested funds in an Oklahoma small business venture\n\npursuant to Section 2357.63 of Title 68 of the Oklahoma Statutes and\n\nif the agreement governing the obligation complies with all of the\n\nother requirements of this section.\n\nF. Any offering material involving the solicitation of\n\nqualified investments in exchange for equity securities or\n\nsubordinated debt instruments of the qualified small business\n\ncapital company shall include the following statement:\n\n“Any favorable determination letter obtained from the Oklahoma\n\nTax Commission does not guarantee the granting of tax credits under\n\nthe provisions of the Small Business Capital Formation Incentive\n\nAct. In the event applicable provisions of the Small Business\n\nCapital Formation Incentive Act are violated, the Tax Commission may\n\nrequire forfeiture of unused tax credits and recapture or repayment\n\nof tax credits as provided by law.”","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":"7572fc677e9019e7a545952341b21e567993375210a958753f2a60b99843c113","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2357.63","next":"us-ok/okla.-stat.-tit.-68-68-2357.63b"},"notice":"GroundRules: Original legal text. Not legal advice."}