{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2357.8a","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2357.8A","heading":"Qualified venture capital company investment credit -","body":"Recaptured credit amount - Tax increase.\n\nA. The provisions of this section shall only be applicable to\n\ninvestments in qualified venture capital companies made on or after\n\nJune 7, 2006, pursuant to Section 2357.7 of this title. As used in\n\nthis section, “recapture event” means that with respect to an\n\ninvestment in an Oklahoma business venture by a qualified venture\n\ncapital company:\n\n1. The Oklahoma business venture fails to expend at least fifty\n\npercent (50%) of the proceeds of qualified investments for\n\nacquisition of tangible or intangible assets to be used in the\n\nactive conduct of the trade or business of the Oklahoma business\n\nventure or for working capital for the active conduct of such trade\n\nor business within eighteen (18) months after the investment is made\n\nor within an extension of such period as provided in Section 2357.7\n\nof this title. For purposes of this paragraph, “working capital”\n\nshall not include consulting, brokerage or transaction fees;\n\n2. The investment in the Oklahoma business venture is\n\ntransferred, withdrawn or otherwise returned within five (5) years;\n\nprovided, a “recapture event” shall not include the transfer,\n\nwithdrawal or return of an investment as a result of a “market-based\n\nliquidity event”. As used in Section 2351 et seq. of this title, a\n\n“market-based liquidity event” means that an Oklahoma business\n\nventure:\n\na. sells all or substantially all of its assets to, or is\n\nacquired by share acquisition, share exchange, merger,\n\nconsolidation or other similar transaction by another\n\nperson or entity other than a person or entity\n\ncontrolled by a person that made an investment in the\n\nqualified venture capital company that provided funds\n\nfor use by the Oklahoma business venture,\n\nb. conducts an initial public offering of a class of its\n\nequity securities pursuant to the requirements of the\n\nUnited States Securities Act of 1933 or other\n\napplicable federal law governing the sale of\n\nsecurities in interstate commerce,\n\nc. makes an amortization payment under the terms of a\n\ndebt instrument, or\n\nd. repays indebtedness from net income as determined in\n\naccordance with generally accepted accounting\n\nprinciples or proceeds of the sale of assets in the\n\nordinary course of business; or\n\n3. The Oklahoma Tax Commission finds that the investment does\n\nnot meet the requirements of Section 2357.7 of this title.\n\nB. If a recapture event occurs with respect to an investment\n\nfor which a credit authorized by Section 2357.7 of this title was\n\nclaimed, the tax imposed pursuant to the applicable provisions of\n\nTitle 36 of the Oklahoma Statutes or this title shall be increased\n\nto the extent of the recaptured credit amount.\n\nC. For purposes of this section, the recapture amount shall be\n\nequal to the sum of:\n\n1. The aggregate decrease in the credits previously allowed to\n\nthe taxpayer pursuant to Section 2357.7 of this title for all prior\n\ntaxable periods which would have resulted if no credit had been\n\nauthorized with respect to the qualified investment; plus\n\n2. Interest at the rate prescribed by Section 217 of this title\n\non the amount determined pursuant to paragraph 1 of this subsection\n\nfor each prior taxable period for the period beginning on the due\n\ndate for filing the applicable report or return for the prior\n\ntaxable period.\n\nD. The tax for the taxable period shall be increased pursuant\n\nto this section only with respect to credits which were used to\n\nreduce tax liability. In the case of credits not used to reduce tax\n\nliability, the carryforwards allowed shall be adjusted accordingly.\n\nE. For any transaction that is audited by the Tax Commission\n\nafter such credits have been allowed, but which is subsequently\n\ndetermined to constitute a recapture event, the Tax Commission shall\n\nbe required to disallow any and all credits claimed in violation of\nduce tax liability. In the case of credits not used to reduce tax\n\nliability, the carryforwards allowed shall be adjusted accordingly.\n\nE. For any transaction that is audited by the Tax Commission\n\nafter such credits have been allowed, but which is subsequently\n\ndetermined to constitute a recapture event, the Tax Commission shall\n\nbe required to disallow any and all credits claimed in violation of\n\nthe requirements of this section or any other provision of Section\n\n2357.7 or 2357.8 of this title for a period of ten (10) years after\n\nthe date as of which any applicable tax report or return utilizing\n\nsuch credits is filed.\n\nF. The provisions of subsection E of this section shall\n\nsupersede any other provision of the Uniform Tax Procedure Code or\n\nany other state tax law that would prohibit the disallowance of such\n\ncredits based upon an otherwise applicable statute of limitations.","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":"5a9b22ff6b56d6faf16c4731c20364f9782940be24d5c72db6a4000eb5f37853","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2357.801","next":"us-ok/okla.-stat.-tit.-68-68-2358"},"notice":"GroundRules: Original legal text. Not legal advice."}