{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2357.74a","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2357.74A","heading":"Requirements for funds invested in rural 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 2357.73 and 2357.74 of Title 68 of the Oklahoma Statutes,\n\nany funds invested in an Oklahoma rural small business venture shall\n\nbe subject to the following requirements:\n\n1. The Oklahoma rural small business venture must issue its\n\nequity securities 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 rural small business capital company or any\n\nentity making an investment in conjunction with investment by a\n\nqualified rural small business capital company pursuant to Section\n\n2357.74 of Title 68 of the Oklahoma Statutes must reflect the\n\ndocumented qualified investment in the Oklahoma rural small business\n\nventure as an asset in its accounting system;\n\n3. The qualified rural small business capital company shall not\n\nmake a 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 rural small business\n\nventure in which a qualified investment is to be made by the\n\nqualified rural small business capital company;\n\n4. The qualified rural small business capital company cannot\n\nenter into 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 rural small business venture to the qualified rural\n\nsmall business capital company or the purpose of which is to cause\n\nor require the transfer of such specific amount of qualified\n\ninvestment to any other entity within five (5) years of the date the\n\nqualified investment is made available to the Oklahoma rural small\n\nbusiness venture; and\n\n5. The Oklahoma rural small business venture cannot enter into\n\nany agreement, 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 rural\n\nsmall business capital company or the purpose of which is to cause\n\nor require the transfer of such specific amount of qualified\n\ninvestment to any other entity within five (5) years of the date the\n\nqualified investment is made available to the Oklahoma rural 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 2357.73 and\n\n2357.74 of Title 68 of the Oklahoma Statutes are for a legitimate\n\nbusiness purpose of the Oklahoma rural small business venture and\n\nnot for the primary purpose of obtaining the tax credits authorized\n\nby such sections on the basis of activity which does not have\n\nsubstantial economic profit-based potential.\n\nC. The Tax Commission shall be authorized to recapture the\n\ncredits otherwise authorized by the provisions of Sections 2357.73\n\nand 2357.74 of Title 68 of the Oklahoma Statutes according to the\n\nprovisions of Section 22 of this act if it finds that the\n\ntransaction does not meet the requirements of the Rural Venture\n\nCapital Formation Incentive Act.\n\nD. The provisions of this section shall not prohibit a\n\nqualified rural small business capital company from using near\n\nequity or subordinated debt, as those terms are defined by Section\n\n2357.72 of Title 68 of the Oklahoma Statutes, if the near equity or\n\nsubordinated debt is a contractual obligation owed by the Oklahoma\n\nrural small business venture directly to the qualified rural small\nve Act.\n\nD. The provisions of this section shall not prohibit a\n\nqualified rural small business capital company from using near\n\nequity or subordinated debt, as those terms are defined by Section\n\n2357.72 of Title 68 of the Oklahoma Statutes, if the near equity or\n\nsubordinated debt is a contractual obligation owed by the Oklahoma\n\nrural small business venture directly to the qualified rural small\n\nbusiness capital company and if the agreement governing the\n\nobligation complies with all of the other requirements of this\n\nsection.\n\nE. The provisions of this section shall not prohibit the\n\nshareholders or partners of a qualified rural small business capital\n\ncompany from using near equity or subordinated debt, as those terms\n\nare defined by Section 2357.72 of Title 68 of the Oklahoma Statutes,\n\nif the near equity or subordinated debt is a contractual obligation\n\nowed by the Oklahoma rural small business venture directly to a\n\nshareholder or partner of a qualified rural small business capital\n\ncompany that has invested funds in an Oklahoma rural small business\n\nventure pursuant to Section 2357.74 of Title 68 of the Oklahoma\n\nStatutes and if the agreement governing the obligation complies with\n\nall of the other 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 Rural Venture Capital Formation Incentive Act.\n\nIn the event applicable provisions of the Rural Venture Capital\n\nFormation Incentive Act are violated, the Tax Commission may require\n\nforfeiture of unused tax credits and recapture or repayment of tax\n\ncredits 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":"9ffb9dbf44eac3774fe22d8463a3415fab094cca2f2863d9d51a6ce8d0509c89","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2357.74","next":"us-ok/okla.-stat.-tit.-68-68-2357.74b"},"notice":"GroundRules: Original legal text. Not legal advice."}