{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2357.7","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2357.7","heading":"Credit for investments in qualified venture capital","body":"companies.\n\nA. For taxable years beginning after December 31, 1986, and\n\nbefore January 1, 2009, there shall be allowed a credit against the\n\ntax imposed by Section 2355 of this title or Section 624 of Title 36\n\nof the Oklahoma Statutes for investments in qualified venture\n\ncapital companies whose purpose is to establish or expand the\n\ndevelopment of business and industry within Oklahoma. Provided, tax\n\ncredits against liabilities imposed pursuant to Section 624 of Title\n\n36 of the Oklahoma Statutes shall be limited to the amount that\n\nwould otherwise be collected and allocated to the General Revenue\n\nFund of the State Treasury.\n\nB. For purposes of this section:\n\n1. \"Qualified venture capital company\" means a C corporation,\n\nas defined by the Internal Revenue Code of 1986, as amended,\n\nincorporated pursuant to the laws of Oklahoma or a registered\n\nbusiness partnership with a certificate of partnership filed as\n\nrequired by law if such corporation or partnership is organized to\n\nprovide the direct investment of debt and equity funds to companies\n\nwithin this state, with its principal place of business located\n\nwithin this state and which meets the following criteria:\n\na. capitalization of not less than Five Million Dollars\n\n($5,000,000.00),\n\nb. having a purpose and objective of investing at least\n\nseventy-five percent (75%) of its capitalization in\n\nOklahoma business ventures. The temporary investment\n\nof funds by a qualified venture capital company in\n\nobligations of the United States, state and municipal\n\nbonds, bank certificates of deposit, or money market\n\nsecurities pending investment in Oklahoma business\n\nventures is hereby authorized, and\n\nc. investment of not more than ten percent (10%) of its\n\nfunds in any one company;\n\n2. \"Oklahoma business venture\" means a business, incorporated\n\nor unincorporated, which:\n\na. has or will have, within one hundred eighty (180) days\n\nafter an investment is made by a qualified venture\n\ncapital company, at least fifty percent (50%) of its\n\nemployees or assets located in Oklahoma,\n\nb. needs financial assistance in order to commence or\n\nexpand such business which provides or intends to\n\nprovide goods or services,\n\nc. is not engaged in oil and gas exploration, real estate\n\ndevelopment, real estate sales, retail sales of food\n\nor clothing, farming, ranching, banking, or lending or\n\ninvesting funds in other businesses. Provided,\n\nhowever, businesses which provide or intend to provide\n\ngoods or services, including, but not limited to,\n\ngoods or services involving new technology, equipment,\n\nor techniques to such businesses listed in this\n\nsubparagraph, and investments in the development of\n\ntourism facilities in the form of amusement parks,\n\nentertainment parks, theme parks, golf courses, or\n\nmuseums shall not be subject to said prohibition, and\n\nd. expends within eighteen (18) months after the date of\n\nthe investment at least fifty percent (50%) of the\n\nproceeds of the investment for the acquisition of\n\ntangible or intangible assets which are used in the\n\nactive conduct of the trade or business of the\n\nOklahoma business venture or to provide working\n\ncapital for the active conduct of such trade or\n\nbusiness. For purposes of this subparagraph, “working\n\ncapital” shall not include consulting, brokerage or\n\ntransaction fees. Provided, that the Oklahoma Tax\n\nCommission, upon request and demonstration of need by\n\na qualified venture capital company or an Oklahoma\n\nbusiness venture, may extend the eighteen-month period\n\notherwise required by this subparagraph for a period\n\nnot to exceed six (6) months. Provided, the\n\nexpenditure of the invested funds by the Oklahoma\n\nbusiness venture shall otherwise comply with the\n\nrequirements applicable to the usage of tax credits\n\nfor investment in the Oklahoma business venture. As\n\nused in this subparagraph, “tangible assets” shall\n\ninclude the acquisition of real property and the\nise required by this subparagraph for a period\n\nnot to exceed six (6) months. Provided, the\n\nexpenditure of the invested funds by the Oklahoma\n\nbusiness venture shall otherwise comply with the\n\nrequirements applicable to the usage of tax credits\n\nfor investment in the Oklahoma business venture. As\n\nused in this subparagraph, “tangible assets” shall\n\ninclude the acquisition of real property and the\n\nconstruction of improvements upon real property if\n\nsuch acquisition and construction otherwise complies\n\nwith the requirements applicable to the usage of tax\n\ncredits for investment in the Oklahoma business\n\nventure and “intangible assets” shall be limited to\n\ncomputer software, licenses, patents, copyrights, and\n\nsimilar items;\n\n3. \"Direct investment\" means the purchase of securities of a\n\nprivate company, or securities of a public company if the securities\n\nconstitute a new issue of a public company and such public company\n\nhad previous year sales of less than Ten Million Dollars\n\n($10,000,000.00); and\n\n4. \"Debt and equity funds\" means investments in debt\n\nsecurities; including unsecured, undersecured, subordinated or\n\nconvertible loans or debt securities; and/or equity securities,\n\nincluding common and preferred stock, royalty rights, limited\n\npartnership interest, and any other securities or rights that\n\nevidence ownership in businesses; provided such investment of debt\n\nand equity funds shall not have a repayment schedule that is faster\n\nthan a level principal amortization over five (5) years.\n\nC. The credit provided for in subsection A of this section\n\nshall be twenty percent (20%) of the cash amount invested in\n\nqualified venture capital companies which is subsequently invested\n\nin an Oklahoma business venture by the qualified venture capital\n\ncompany and may only be claimed for a taxable year during which the\n\nqualified venture capital company makes an investment in an Oklahoma\n\nbusiness venture. The credit shall be allowed for the amount of the\n\ninvestment in an Oklahoma business venture if the funds are used in\n\npursuit of a legitimate business purpose of the Oklahoma business\n\nventure consistent with its organizational instrument, bylaws or\n\nother agreement responsible for the governance of the business\n\nventure. The qualified venture capital company shall issue such\n\nreports as the Oklahoma Tax Commission may require attributing the\n\nsource of funds of each investment it makes in an Oklahoma business\n\nventure. The Oklahoma Capital Investment Board shall have the\n\nauthority to certify an entity as a qualified venture capital\n\ncompany and to certify an investment to be a qualifying Oklahoma\n\nbusiness venture for purposes of complying with subsection B of this\n\nsection. Such certification shall be binding on the Oklahoma Tax\n\nCommission. Such certification shall not be mandatory but may be\n\nrequested by any entity that desires to be certified. A reasonable\n\ncertification fee may be charged by the Oklahoma Capital Investment\n\nBoard for this service. If the tax credit allowed pursuant to\n\nsubsection A of this section exceeds the amount of taxes due or if\n\nthere are no state taxes due of the taxpayer, the amount of the\n\nclaim not used as an offset against the taxes of a taxable year may\n\nbe carried forward as a credit against subsequent tax liability for\n\na period not to exceed three (3) years. No investor in a venture\n\ncapital company organized after July 1, 1992, may claim tax credits\n\nunder the provisions of this section.\n\nD. No taxpayer may claim the credit provided for in subsection\n\nA of this section for investments in qualified venture capital\n\ncompanies made prior to January 1, 1987.\n\nE. No investor whose capital is guaranteed by the Oklahoma\n\nCapital Investment Board may claim or transfer the credit provided\n\nfor in subsection A of this section for investments in such\n\nguaranteed portfolio.\ns of this section.\n\nD. No taxpayer may claim the credit provided for in subsection\n\nA of this section for investments in qualified venture capital\n\ncompanies made prior to January 1, 1987.\n\nE. No investor whose capital is guaranteed by the Oklahoma\n\nCapital Investment Board may claim or transfer the credit provided\n\nfor in subsection A of this section for investments in such\n\nguaranteed portfolio.\n\nF. The credit provided for in subsection A of this section, to\n\nthe extent not previously utilized, shall be freely transferable to\n\nand by subsequent transferees for a period of three (3) years from\n\nthe date of investment in the Oklahoma business venture.\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\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 this\n\nact, “pass-through entity” means a corporation that for the\n\napplicable tax years is treated as an S corporation under the\n\nInternal Revenue Code, general partnership, limited partnership,\n\nlimited liability partnership, trust or limited liability company\n\nthat for the applicable tax year is not taxed as a corporation for\n\nfederal 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":"5a34dea98d8b34aec462ce6efaaa7acd182e2ab838a538f12fe8936ca6592f90","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2357.65a","next":"us-ok/okla.-stat.-tit.-68-68-2357.71"},"notice":"GroundRules: Original legal text. Not legal advice."}