{"data":{"id":"us-ok/okla.-stat.-tit.-74-74-5064.7","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 74, § 74-5064.7","heading":"Incentives for inventors and businesses","body":"A. The following incentives shall be available to inventors for\n\nproducts developed and manufactured in this state and to instate\n\nmanufacturers of said products; provided, to qualify for the\n\nincentives, the product shall be patented or have patent pending\n\npursuant to federal law and shall be registered with the Oklahoma\n\nCenter for the Advancement of Science and Technology (OCAST):\n\n1. Royalty earned by an inventor from a product developed and\n\nmanufactured in this state shall be exempt from state income tax for\n\na period of seven (7) years from January 1 of the first year in\n\nwhich such royalty is received as long as the manufacturer remains\n\nin the state; and\n\n2. An instate manufacturer of a product developed in this state\n\nby an inventor shall be eligible for a tax credit, as provided for\n\nin Section 2357.4 of Title 68 of the Oklahoma Statutes. In addition\n\nsuch manufacturer may exclude from Oklahoma taxable income, or in\n\nthe case of an individual, the Oklahoma adjusted gross income,\n\nsixty-five percent (65%) of the cost of depreciable property\n\npurchased and utilized directly in manufacturing the product. The\n\nmaximum exclusion shall not exceed Five Hundred Thousand Dollars\n\n($500,000.00). If the exclusion allowed by this paragraph exceeds\n\nthe Oklahoma taxable income, or in the case of an individual, the\n\nOklahoma adjusted gross income, the amount of the exclusion that is\n\nin excess of such income may be carried forward as an exclusion\n\nagainst subsequent Oklahoma taxable income or in the case of an\n\nindividual, subsequent Oklahoma adjusted gross income, for a period\n\nnot to exceed four (4) years. For the purposes of this paragraph,\n\n\"depreciable property\" means machinery, fixtures, equipment,\n\nbuildings, or substantial improvements thereto, placed in service in\n\nthis state during the taxable year.\n\nB. The Oklahoma Tax Commission, in conjunction with the\n\nOklahoma Center for the Advancement of Science and Technology, shall\n\npromulgate rules to implement the provisions of this section.","path":["OK Code","Title 74"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os74.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"ca94b3e95ab788a17f746f14c2581f2c2404db8a70b2b384ff946ef71caf795f","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-74-74-5064.6","next":"us-ok/okla.-stat.-tit.-74-74-5064.8"},"notice":"GroundRules: Original legal text. Not legal advice."}