{"data":{"id":"us-ok/okla.-stat.-tit.-74-74-5078","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 74, § 74-5078","heading":"State income tax exemption for tenant","body":"A. For a period of up to ten (10) years from the date of\n\ntenant’s occupancy in an incubator, income earned by the tenant as a\n\nresult of activities conducted as an occupant in an incubator,\n\nincluding income distributed to partners, shareholders of a\n\ncorporation for which a Subchapter S election is in effect and to\n\nthe members of a limited liability company, shall be exempt from\n\nstate income tax. The exemption provided by this section shall\n\nremain in effect for such activities by such tenant after the date\n\nthe tenant is no longer an occupant in an incubator, but not to\n\nexceed a total duration of ten (10) years for any tenant.\n\nB. For tax years ending before January 1, 2020, in order to\n\nqualify for the income tax exemption for the sixth through tenth\n\nyear as authorized by this section, the tenant must make at least\n\nseventy-five percent (75%) of its gross sales constituting the\n\nprincipal business activity of the business to buyers located\n\noutside the state or to buyers whose principal business activity is\n\nconducted outside the state or to the federal government or to\n\nbuyers located within the state if the product or service is resold\n\nto an out-of-state customer or buyer for ultimate use. Provided, if\n\na tenant does not achieve the qualifying percentage for any one of\n\nthe above tax years, the tenant shall not be disqualified for\n\nsubsequent tax years in which the qualifying percentage is achieved.\n\nC. For tax year 2026 and subsequent tax years, following the\n\nfirst tax year a tenant is provided the exemption pursuant to\n\nsubsection A of this section, in order to continue to qualify for\n\nthe exemption, the tenant shall submit information on a form\n\nprescribed by the Oklahoma Department of Commerce which shall\n\ninclude, but not be limited to, the following:\n\n1. Employment levels, including full-time-equivalent levels and\n\nthe ratio of part-time employees to full-time employees;\n\n2. Interns employed;\n\n3. Payments to subcontractors and their purpose;\n\n4. Estimated gross annual revenues;\n\n5. Estimated annual costs for property and services;\n\n6. A statement of any additional financial assistance,\n\nincentives, credits, or exemptions provided by this state or any\n\npolitical subdivision of this state; and\n\n7. A statement of any taxable income exempted pursuant to this\n\nsubsection in the previous tax year.\n\nThe Oklahoma Tax Commission shall promulgate rules to implement\n\nthe 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":"66857a309fd5d69c3c453e0981134c8c2788df93571d4f94da8780791a256aab","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-74-74-5077","next":"us-ok/okla.-stat.-tit.-74-74-5079"},"notice":"GroundRules: Original legal text. Not legal advice."}