{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2397","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2397","heading":"Inducement claim forms - Sales tax credits","body":"A. Upon receiving notification from the Executive Director of\n\nthe Oklahoma Department of Commerce that an approved company has\n\nentered into a tourism project agreement and is entitled to the\n\ninducements provided by the Oklahoma Tourism Development Act, the\n\nOklahoma Tax Commission shall provide the approved company with\n\nforms and instructions as necessary to claim or receive or pass-\n\nthrough those inducements.\n\nB. An approved company whose agreement provides that it shall\n\nexpend approved costs of more than Five Hundred Thousand Dollars\n\n($500,000.00) for a tourism attraction project but less than One\n\nMillion Dollars ($1,000,000.00) shall be entitled to a sales tax\n\ncredit if the company certifies to the Tax Commission that it has\n\nexpended at least the minimum amount in approved costs, and the\n\nExecutive Director certifies that the approved company is in\n\ncompliance with the Oklahoma Tourism Development Act. The Tax\n\nCommission shall then issue a tax credit memorandum to the approved\n\ncompany granting a sales tax credit in the amount of up to ten\n\npercent (10%) of the approved costs, but limited to the percent of\n\nthe approved costs that will result in the project being revenue-\n\nneutral to this state as determined by the Oklahoma Department of\n\nCommerce. Subsequent requests for credit for additional certified\n\napproved costs in excess of the minimum amount for each project as\n\nlisted in this subsection but less than One Million Dollars\n\n($1,000,000.00) shall result in a sales tax credit in the amount of\n\nup to ten percent (10%) of the approved costs, but limited to the\n\npercent of the approved costs that will result in the project being\n\nrevenue-neutral to this state as determined by the Oklahoma\n\nDepartment of Commerce. Sales tax credits allowed pursuant to the\n\nprovisions of the Oklahoma Tourism Development Act shall not be\n\ntransferable or assignable; provided that, with respect to a tourism\n\nattraction project that is an Entertainment District, the approved\n\ncompany can elect to pass-through all or a portion of the sales tax\n\ncredit to one or more Entertainment District Tenant Parties. The\n\napproved company and the Entertainment District Tenant Party shall\n\njointly file a copy of the written credit pass-through agreement\n\nwith the Oklahoma Tax Commission within thirty (30) days of the\n\neffective date of the agreement. Such filing of the agreement with\n\nthe Oklahoma Tax Commission shall perfect such agreement. The\n\nwritten agreement shall contain the name, address and taxpayer\n\nidentification number of the parties to the agreement, the amount of\n\ncredit being passed-through, the month and year the credit was\n\noriginally allowed to the approved company, the month and tax year\n\nor years for which the credit may be claimed, and a representation\n\nby the approved company that the approved company has neither\n\nclaimed for its own behalf nor conveyed such credits to any other\n\nEntertainment District Tenant Party. The Tax Commission shall\n\ndevelop a standard form for use by an approved company and an\n\nEntertainment District Tenant Party demonstrating eligibility for\n\nthe Entertainment District Tenant Party to utilize the sales tax\n\ncredit. The Tax Commission shall develop a system to record and\n\ntrack the pass-through of the sales tax credit and certify the\n\nownership of the sales tax credit and may promulgate rules to permit\n\nverification of the validity and timeliness of a sales tax credit\n\nclaimed upon a sales tax return pursuant to this subsection but\n\nshall not promulgate any rules which unduly restrict or hinder the\n\npass-through of such sales tax credit to an Entertainment District\n\nTenant Party.\n\nAn approved company whose agreement provides that it shall\n\nexpend approved costs in excess of One Million Dollars\n\n($1,000,000.00) shall be entitled to a sales tax credit if the\nion but\n\nshall not promulgate any rules which unduly restrict or hinder the\n\npass-through of such sales tax credit to an Entertainment District\n\nTenant Party.\n\nAn approved company whose agreement provides that it shall\n\nexpend approved costs in excess of One Million Dollars\n\n($1,000,000.00) shall be entitled to a sales tax credit if the\n\ncompany certifies to the Tax Commission that it has expended at\n\nleast One Million Dollars ($1,000,000.00) in approved costs and the\n\nExecutive Director certifies that the approved company is in\n\ncompliance with the Oklahoma Tourism Development Act. The Tax\n\nCommission shall then issue a tax credit memorandum to the approved\n\ncompany granting a sales tax credit in the amount of up to twenty-\n\nfive percent (25%) of the approved costs, but limited to the percent\n\nof the approved costs that will result in the project being revenue-\n\nneutral to this state as determined by the Oklahoma Department of\n\nCommerce. The credit on all subsequent additional certified\n\napproved costs shall be in the amount of up to twenty-five percent\n\n(25%) of the costs, but limited to the percent of the approved costs\n\nthat will result in the project being revenue-neutral to this state\n\nas determined by the Oklahoma Department of Commerce. For a tourism\n\nattraction project that is an Entertainment District, an approved\n\ncompany may elect to receive an incentive payment based on sales tax\n\ncollections of Entertainment District Tenant Parties rather than a\n\nsales tax credit. The incentive payment shall be in the amount of\n\nup to twenty-five percent (25%) of the approved costs but limited to\n\nthe percent of the approved costs that will result in the project\n\nbeing revenue-neutral to this state as determined by the Oklahoma\n\nDepartment of Commerce; provided that, (A) in no event shall the\n\nincentive payments exceed the increased state sales tax liability of\n\nthe approved company and the Entertainment District Tenant Parties\n\nthat is actually received by the Tax Commission, and (B) the\n\napproved company shall be entitled to receive only ten percent (10%)\n\nof the incentive payment amount during each calendar year. The Tax\n\nCommission shall issue an incentive payment memorandum to the\n\napproved company granting a right to receive an incentive payment\n\nfrom the Tax Commission in the amount of up to twenty-five percent\n\n(25%) of the approved costs but limited to the percent of the\n\napproved costs that will result in the project being revenue-neutral\n\nto this state as determined by the Oklahoma Department of Commerce.\n\nAs soon as practicable after the end of each calendar year during\n\nthe term of the agreement, the approved company shall file a claim\n\nfor the incentive payment with the Tax Commission, and the Tax\n\nCommission shall be responsible for ensuring that the amount of the\n\nincentive payment claimed does not exceed the increased state sales\n\ntax liability of the approved company and the Entertainment District\n\nTenant Parties that has been actually received by the Tax\n\nCommission, which may include accessing the Oklahoma sales tax\n\nreturns of the Entertainment District Tenant Parties as permitted by\n\nthis section.\n\nThe cumulative inducements provided pursuant to the Oklahoma\n\nTourism Development Act shall not exceed Thirty Million Dollars\n\n($30,000,000.00) per year.\n\nThe Tax Commission shall require proof of expenditures prior to\n\nissuing a tax credit memorandum or incentive payment memorandum to\n\nthe approved company which may be satisfied by a report from an\n\nindependent certified public accountant. Additional credit\n\nmemoranda or incentive memoranda may be issued as the approved\n\ncompany certifies additional expenditures of approved costs.\n\nNo tax credit memorandum or incentive payment memorandum shall\n\nbe issued for any approved costs expended after the expiration of\nment memorandum to\n\nthe approved company which may be satisfied by a report from an\n\nindependent certified public accountant. Additional credit\n\nmemoranda or incentive memoranda may be issued as the approved\n\ncompany certifies additional expenditures of approved costs.\n\nNo tax credit memorandum or incentive payment memorandum shall\n\nbe issued for any approved costs expended after the expiration of\n\nthree (3) years from the date the agreement was signed by the\n\nExecutive Director and the approved company. However, the Executive\n\nDirector, with the advice and consent of the Tax Commission, may\n\nauthorize inducements for approved costs expended up to five (5)\n\nyears from the date the agreement was signed if the Executive\n\nDirector determines that the failure to complete the tourism\n\nattraction project within three (3) years resulted from:\n\n1. Unanticipated and unavoidable delay in the construction of\n\nthe tourism attraction;\n\n2. An original completion date for the tourism attraction, as\n\noriginally planned, which will be more than three (3) years from the\n\ndate construction began; or\n\n3. A change in business ownership or business structure\n\nresulting from a merger or acquisition.\n\nC. A sales tax credit allowed pursuant to the provisions of\n\nthis section may be used to offset a portion of the reported state\n\nsales tax liability of the approved company or an Entertainment\n\nDistrict Tenant Party, if applicable, for all sales tax reporting\n\nperiods following the issuance of the credit memorandum subject to\n\nthe following limitations:\n\n1. Only increased state sales tax liability may be offset by\n\nthe issued credit;\n\n2. An approved company whose agreement provides that it shall\n\nexpend approved costs in excess of One Million Dollars\n\n($1,000,000.00) or an Entertainment District Party, if applicable,\n\nshall be entitled to use only ten percent (10%) of the amount of\n\neach issued credit to offset increased state sales tax liability\n\nduring each calendar year, plus the amount of any unused credit\n\ncarried forward from a prior calendar year, and an approved company\n\nwhose agreement provides that it shall expend approved costs of more\n\nthan the minimum amount for each project as listed in this\n\nsubsection but less than One Million Dollars ($1,000,000.00) shall\n\nbe entitled to use only twenty percent (20%) of the amount of each\n\nissued credit to offset increased state sales tax liability during\n\neach calendar year, plus the amount of any unused credit carried\n\nforward from a prior calendar year; and\n\n3. All issued credit memoranda or incentive payment memoranda\n\nshall expire at the end of the month following the expiration of the\n\nagreement as provided in Section 2396 of this title.\n\nThe approved company or an Entertainment District Tenant Party,\n\nif applicable, shall have no obligation to refund or otherwise\n\nreturn any amount of this inducement to the person from whom the\n\nsales tax was collected.\n\nD. The Tax Commission shall promulgate rules as are necessary\n\nfor the proper administration of the Oklahoma Tourism Development\n\nAct. The Tax Commission may also develop forms and instructions as\n\nnecessary for an approved company or Entertainment District Tenant\n\nParty, if applicable, to claim or receive or pass-through the\n\ninducements provided by the Oklahoma Tourism Development Act.\n\nE. The Tax Commission shall have the authority to obtain any\n\ninformation necessary from or regarding the approved company or an\n\nEntertainment District Tenant Party, if applicable, and the\n\nExecutive Director to verify that approved companies or an\n\nEntertainment District Tenant Party, if applicable, have received\n\nthe proper amounts of inducements as authorized by the Oklahoma\n\nTourism Development Act. The Oklahoma Tax Commission shall demand\n\nthe repayment of any inducements taken or received in excess of the\n\ninducements allowed by the Oklahoma Tourism Development Act.\ne, and the\n\nExecutive Director to verify that approved companies or an\n\nEntertainment District Tenant Party, if applicable, have received\n\nthe proper amounts of inducements as authorized by the Oklahoma\n\nTourism Development Act. The Oklahoma Tax Commission shall demand\n\nthe repayment of any inducements taken or received in excess of the\n\ninducements allowed by the Oklahoma Tourism Development Act.\n\nF. No sales tax credit or incentive payment right authorized by\n\nthis section shall be granted on or after January 1, 2032.\n\nNotwithstanding the foregoing, an approved company that has entered\n\ninto a tourism attraction project agreement with the Oklahoma\n\nDepartment of Commerce pursuant to Section 2396 of this title prior\n\nto January 1, 2032, shall continue to be entitled to claim or\n\nreceive any inducements authorized by this section as contemplated\n\nby the tourism project agreement.\n\nG. All currently approved tourism project agreements executed\n\nby the Oklahoma Tourism and Recreation Department are hereby\n\ntransferred to the Oklahoma Department of Commerce upon November 1,\n\n2021.\n\nH. On November 1, 2021, all administrative rules promulgated by\n\nthe Oklahoma Tourism and Recreation Department regarding the\n\nOklahoma Tourism Development Act shall be transferred to and become\n\na part of the administrative rules of the Oklahoma Department of\n\nCommerce. The Office of Administrative Rules in the Office of the\n\nSecretary of State shall provide adequate notice in the Oklahoma\n\nRegister of the transferred rules and shall place the transferred\n\nrules under the Administrative Code section of the Oklahoma\n\nDepartment of Commerce. On November 1, 2021, any amendment, repeal,\n\nor addition to the transferred rules shall be under the jurisdiction\n\nof the Oklahoma Department of Commerce, who shall have the authority\n\nto enact rules in order to carry out the provisions of the Oklahoma\n\nTourism Development Act.","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":"731ecf4f46dd4631f0eed4c698dc63b5acee207e04ce8c6b2b6054ad8e855807","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2396","next":"us-ok/okla.-stat.-tit.-68-68-240"},"notice":"GroundRules: Original legal text. Not legal advice."}