{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-3934","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-3934","heading":"Right to credit against entity's state tax liability –","body":"Carry forward - Recapture.\n\nA. Upon making a capital investment in a rural fund, a rural\n\ninvestor shall have a right to a credit against such entity's state\n\ntax liability that may be utilized on each credit allowance date of\n\nsuch capital investment in an amount equal to the applicable\n\npercentage for such credit allowance date multiplied by the purchase\n\nprice paid to the rural fund for the capital investment. The amount\n\nof the credit claimed by a rural investor shall not exceed the\n\namount of such entity's state tax liability for the tax year for\n\nwhich the credit is claimed. Any amount of credit that a rural\n\ninvestor is prohibited from claiming in a tax year as a result of\n\nthis section may be carried forward for use in any of the five (5)\n\nsubsequent tax years, but shall not be carried back to prior tax\n\nyears. It is the intent of this act that a rural investor claiming\n\na credit under this act is not required to pay any additional tax\n\nthat may arise as a result of claiming such credit.\n\nB. No credit claimed under the provisions of this act shall be\n\nrefundable or saleable on the open market. Credits earned by or\n\nallocated to a partnership, limited liability company, or S-\n\ncorporation may be allocated to the partners, members, or\n\nshareholders of such entity for their direct use in accordance with\n\nthe provisions of any agreement among such partners, members, or\n\nshareholders, and a rural fund shall notify the Department of the\n\nnames of the entities that are eligible to utilize transfer of a\n\ncapital investment upon such allocation, change, or transfer. Such\n\nallocation shall not be considered a sale for the purpose of this\n\nsection.\n\nC. The Department may recapture credits from a taxpayer that\n\nclaimed a credit authorized under this section if:\n\n1. The rural fund does not invest sixty percent (60%) of its\n\ncapital investment authority in qualified investments in this state\n\nwithin two (2) years of the credit allowance date, and one hundred\n\npercent (100%) of its capital investment authority in qualified\n\ninvestments in this state within three (3) years of the credit\n\nallowance date; provided, that at least seventy percent (70%) of\n\nthese initial qualified investments must be made in eligible\n\nbusinesses located in rural areas;\n\n2. The rural fund fails to maintain qualified investments equal\n\nto ninety percent (90%) of its capital investment authority from the\n\nthird anniversary until the sixth anniversary of the credit\n\nallowance date, with seventy percent (70%) of such investments\n\nmaintained in eligible businesses located in rural areas. For each\n\nyear the rural fund fails to maintain such investments, the\n\nDepartment may recapture an amount of such year's allowed credits\n\nequal to the percentage difference between ninety percent (90%) of a\n\nrural fund's capital investment authority and the actual amount of\n\nqualified investments maintained for such year. For the purposes of\n\nthis subsection, a qualified investment is considered even if the\n\nqualified investment was sold or repaid so long as the rural fund\n\nreinvests an amount equal to the capital returned or recovered or\n\nrepaid by the rural fund from the original investment, exclusive of\n\nany profits realized, in other qualified investments in this state\n\nwithin twelve (12) months of receipt of such capital. Amounts\n\nreceived periodically by a rural fund shall be treated as\n\ncontinually invested in qualified investments if the amounts are\n\nreinvested in one or more qualified investments by the end of the\n\nfollowing calendar year. A rural fund shall not be required to\n\nreinvest capital returned from qualified investments after the fifth\n\nanniversary of the credit allowance date, and such qualified\n\ninvestments shall be considered held continuously by the rural fund\n\nthrough the sixth anniversary of the credit allowance date;\nnts are\n\nreinvested in one or more qualified investments by the end of the\n\nfollowing calendar year. A rural fund shall not be required to\n\nreinvest capital returned from qualified investments after the fifth\n\nanniversary of the credit allowance date, and such qualified\n\ninvestments shall be considered held continuously by the rural fund\n\nthrough the sixth anniversary of the credit allowance date;\n\n3. Prior to the earlier of exiting the program in accordance\n\nwith this act or thirty (30) days after the sixth anniversary of the\n\ncredit allowance date, the rural fund makes a distribution or\n\npayment that results in the rural fund having less than one hundred\n\npercent (100%) of its capital investment authority invested in\n\nqualified investments in the state or held in cash or other\n\nmarketable securities; or\n\n4. The rural fund violates the provisions of Section 6 of this\n\nact, in which case the Department may recapture an amount equal to\n\nthe amount of the rural fund's capital investment authority found to\n\nbe in violation of such provisions.\n\nFor the purposes of meeting and maintaining the objectives\n\nestablished for investment in paragraphs 1 and 2 of this subsection,\n\na rural fund's qualified investments shall be multiplied by a factor\n\nof one and one-quarter (1 1/4) in counties with less than thirty\n\nthousand (30,000) in population and more than thirteen thousand\n\n(13,000) in population and shall be multiplied by a factor of one\n\nand one-half (1 1/2) in counties with a population of thirteen\n\nthousand (13,000) or less.\n\nD. Recaptured credits and related capital investment authority\n\nshall revert to the Department and shall be reissued pro rata to\n\napplicants whose capital investment allocations were reduced in\n\naccordance with the application process provided under subsection D\n\nof Section 3 of this act.\n\nE. No recapture shall occur until the rural fund has been given\n\nnotice of noncompliance and afforded six (6) months from the date of\n\nsuch notice to cure the noncompliance.","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":"8254984bd32dfee5414903a415a9f3df0a731c54defc23334963fac6feeb3304","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-3933","next":"us-ok/okla.-stat.-tit.-68-68-3935"},"notice":"GroundRules: Original legal text. Not legal advice."}