{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2357.73","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2357.73","heading":"Credits for investments in qualified rural small","body":"business capital companies.\n\nA. Except as provided in Section 4 of this act, for taxable\n\nyears beginning after December 31, 2000, 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 rural small business capital companies. No amount of a\n\nqualified investment made in a qualified rural small business\n\ncapital company which has not been invested in one or more Oklahoma\n\nrural small business ventures prior to the effective date of the\n\nmoratorium provided for in Section 4 of this act shall be eligible\n\nfor any credit otherwise authorized pursuant to this section. No\n\nqualified investment made in a qualified rural small business\n\ncapital company or qualified investment made by a qualified rural\n\nsmall business capital company in one or more Oklahoma rural small\n\nbusiness ventures during the period of the moratorium pursuant to\n\nSection 4 of this act shall be eligible for any credit otherwise\n\nauthorized pursuant to this section.\n\nB. The credit provided for in subsection A of this section\n\nshall be thirty percent (30%) of the amount of a qualified\n\ninvestment in qualified rural small business capital companies which\n\nis subsequently invested in an Oklahoma rural small business venture\n\nby the qualified rural small business capital company and may only\n\nbe claimed for a taxable year during which the qualified rural small\n\nbusiness capital company makes the qualified investment in an\n\nOklahoma rural small business venture if the funds are used in\n\npursuit of a legitimate business purpose of the Oklahoma rural small\n\nbusiness venture consistent with its organizational instrument,\n\nbylaws or other agreement responsible for the governance of the\n\nrural small business venture. The qualified rural small business\n\ncapital company shall issue such reports as the Oklahoma Tax\n\nCommission may require attributing the source of funds of each\n\nqualified investment it makes in an Oklahoma rural small business\n\nventure. If the tax credit 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 for a period not to exceed three (3) taxable\n\nyears.\n\nC. No taxpayer may claim the credit provided for in this\n\nsection for qualified investments in qualified rural small business\n\ncapital companies made prior to January 1, 2001.\n\nD. No taxpayer may claim the credit provided for in this\n\nsection if the capital provided by a qualified rural small business\n\ncapital company is used by an Oklahoma rural small business venture\n\nfor the 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 rural small business capital\n\ncompany.\n\nF. No taxpayer may claim the credit authorized by this section\n\nfor the same qualified investment amount for which any credit is\n\nclaimed pursuant to either Section 2357.62 or 2357.63 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 only 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; 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 only 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 amount. For purposes of the Rural Venture Capital Formation\n\nIncentive Act, “pass-through entity” means a corporation that for\n\nthe applicable 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":"c9ccd1349f800cf94f95392786592acad83d558d64338716144018f7d25a1b77","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2357.72a","next":"us-ok/okla.-stat.-tit.-68-68-2357.74"},"notice":"GroundRules: Original legal text. Not legal advice."}