{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2358.110","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2358.110","heading":"Qualified equity investment deduction – Tax years","body":"2022 through 2026.\n\nA. As used in this section:\n\n1. \"Accredited investor\" means a person or entity as defined\n\npursuant to Section 230.501 of Title 17 of the Code of Federal\n\nRegulations;\n\n2. \"Eligible Oklahoma business venture\" means a lawful business\n\nentity that is determined by the Oklahoma Center for the Advancement\n\nof Science and Technology (OCAST) for receipt of an equity\n\ninvestment by an eligible Oklahoma venture capital company. In\n\ndetermining whether an investment is a qualified equity investment,\n\nOCAST shall consider the potential impact the investment would have\n\non the local and state economy and shall consider the following\n\nfactors:\n\na. the primary location of the entity,\n\nb. the number of employees located or to be located in\n\nthis state,\n\nc. state and local revenues generated from the\n\ninvestment,\n\nd. the economic benefits to the state,\n\ne. the type and amount of the investment,\n\nf. the current capitalization level and strategy, and\n\ng. the industry classification of the entity;\n\n3. \"Eligible Oklahoma venture capital company\" means a lawfully\n\nrecognized business entity the primary business purpose of which is\n\nto accumulate funds for making investments in lawful for profit\n\nbusiness entities and which is organized in any of the following\n\nforms:\n\na. general partnership,\n\nb. limited partnership,\n\nc. limited liability partnership,\n\nd. limited liability company,\n\ne. corporation, or\n\nf. other lawfully recognized business entity;\n\n4. \"Lawful business entity\" means the following:\n\na. a person,\n\nb. a general partnership,\n\nc. a limited partnership,\n\nd. a limited liability partnership,\n\ne. a limited liability company, or\n\nf. a corporation; and\n\n5. \"Qualified equity investment\" means a transfer of cash or\n\nits equivalent by an accredited investor to an eligible Oklahoma\n\nventure capital company and for purposes of the deduction authorized\n\nby this section in an amount not in excess of Twenty-five Million\n\nDollars ($25,000,000.00) by an accredited investor during a taxable\n\nyear.\n\nB. For tax years 2022 through 2026, there shall be allowed a\n\ndeduction from Oklahoma taxable income or Oklahoma adjusted gross\n\nincome as determined pursuant to Section 2358 of this title equal to\n\nthe amount of qualified equity investment in an eligible Oklahoma\n\nventure capital entity made by an accredited investor.\n\nC. The maximum amount of qualified equity investment made by an\n\naccredited investor for purposes of the deduction authorized by this\n\nsection shall not exceed Twenty-five Million Dollars\n\n($25,000,000.00) for any taxable year of the investor.\n\nD. Any qualified equity investment made for purposes of the\n\ndeduction authorized by this section shall be documented by the\n\nissuance of shares of stock, membership interest or other evidence\n\nof the equity interest acquired by the accredited investor. Such\n\nevidence may take the form of physical shares or the electronic\n\nequivalent of physical shares.\n\nE. Records of the equity interest acquired by an accredited\n\ninvestor shall be maintained by the accredited investor and the\n\neligible Oklahoma venture capital company for a period of at least\n\nfive (5) years from the date the equity investment is made by an\n\naccredited investor.\n\nF. A qualified equity investment made by an accredited investor\n\nfor purposes of the deduction authorized by this section shall not\n\nbe returned by the eligible Oklahoma venture capital company to the\n\naccredited investor, if the accredited investor is a natural person,\n\nor to any person related to such natural person within the third\n\ndegree of consanguinity or affinity, for a period of three (3) years\n\nfrom the date of the qualified equity investment unless the return\n\nis in the form of a dividend or other payment agreed to prior to or\n\nsimultaneously with the equity investment transfer from the\ncredited investor, if the accredited investor is a natural person,\n\nor to any person related to such natural person within the third\n\ndegree of consanguinity or affinity, for a period of three (3) years\n\nfrom the date of the qualified equity investment unless the return\n\nis in the form of a dividend or other payment agreed to prior to or\n\nsimultaneously with the equity investment transfer from the\n\naccredited investor to the eligible Oklahoma venture capital company\n\nand only if the return of some part of the qualified equity\n\ninvestment is based on the financial performance of either the\n\neligible Oklahoma venture capital company or the financial\n\nperformance of one or more for profit business entities in which the\n\naccumulated equity funds of the eligible Oklahoma venture capital\n\ncompany are further invested or both such measures of financial\n\nperformance.\n\nG. A qualified equity investment made by an accredited investor\n\nfor purposes of the deduction authorized by this section shall not\n\nbe returned by the eligible Oklahoma venture capital company to the\n\naccredited investor if the accredited investor is a lawful business\n\nentity, or to any entity which owns fifty-one percent (51%) or more\n\nof the voting equity interest of the accredited investor or to any\n\nlawful business entity with respect to which the accredited investor\n\nowns fifty-one percent (51%) or more of the voting equity interest,\n\nwithin a period of five (5) years from the date of the equity\n\ninvestment unless the return is in the form of a dividend or other\n\npayment agreed to prior to or simultaneously with the equity\n\ninvestment transfer from the accredited investor to the eligible\n\nOklahoma venture capital company and only if the return of some part\n\nof the qualified equity investment is based on the financial\n\nperformance of either the eligible Oklahoma venture capital company\n\nor the financial performance of one or more for profit business\n\nentities in which the accumulated equity funds of the eligible\n\nOklahoma venture capital company are further invested or both such\n\nmeasures of financial performance.\n\nH. The deduction authorized by the provisions of this section\n\nshall not be used to reduce the Oklahoma taxable income amount or\n\nthe Oklahoma adjusted gross income amount to less than zero (0).\n\nThere shall not be any carryover with respect to a deduction\n\nauthorized by the provisions of this section.\n\nI. If the Oklahoma Tax Commission determines, either from\n\ninformation accompanying any applicable income tax return or\n\nschedule, form or supporting documentation filed in order to claim\n\nthe deduction authorized by this section, that the requirements of\n\nthis section were not fulfilled, the Oklahoma Tax Commission shall\n\nnotify the taxpayer claiming the deduction that the deduction has\n\nbeen disallowed and the income tax liability for the taxpayer shall\n\nbe recalculated. The taxpayer shall retain all rights authorized\n\npursuant to the provisions of the Uniform Tax Procedure Code and the\n\nOklahoma Income Tax Code in order to contest the disallowance of\n\npart or all of such deductions.\n\nJ. OCAST may promulgate rules to enforce the provisions of this\n\nact. OCAST shall annually publish a report on the program created\n\nin this section.","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":"781835ca1999bad206a46c325b970e60f31991f582ddf437403cb56073fa1370","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2358.100","next":"us-ok/okla.-stat.-tit.-68-68-2358.1a"},"notice":"GroundRules: Original legal text. Not legal advice."}