Altus Venture $126 million View
Scissortail $90 million View
Foxborough $300 million View
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Venture capital (also known as VC or Venture) is a type of private equity capital typically provided to early-stage, high-potential, growth companies where the rewards are years out and carry a high risk. Venture capital is a special kind of funding to create a foundation for building the businesses that will replace today's diminishing industry and jobs. Oklahoma's venture tax credit program was intended to incentivize that venture capital funding needed by rewarding investors tax credits worth 20 to 30% of their at risk investment. |
Note: Artificial loans are similar to a counterfiet loan.
Misrepresenting investments to get $2 in tax credits for each $1 invested.
| Sections | Loophole elements in the Rural Capital Formation Incentive Act |
| Section 18.2.d | "Capitalization" means the amount of any funds loaned to the qualified rural small business capital company |
| Section 20.B.4.a & b |
1. Authorizing taking tax credits worth 200% of what is claimed to be invested in new business. Note: The area of the law addressing the 200% limitations is ambiguous leaving it unclear, what, if anything, is in fact limited to 200%. |
| SECTION 2.G |
The credit allowed on funds borrowed by the pass-through entity to make a qualified investment. Failing to prevent the use of artificial, dummy or fake loans. An act of omission -- failure to include language clarifying how a loan can to be used. Leaving it "not illegal" to use artificial loans to inflate the claimed investment up to nearly 7 times the actual money invested at risk. 6.66 times the allowed 30% in tax credits comes to 200%. Note: The area of the law addressing the 200% limitations is ambiguous leaving it unclear, what, if anything, is in fact limited to 200%. |
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Section 2.B & G Section 19.B & G Section 20.B & E |
Authorizing the use of borrowed funds Subtley changing the investment requirement from cash (money at risk) to a new term "qualified investment" and defining "qualified investment" to include using borrowed money. What was "not illegal" was using artificial loans to inflate the claimed investment up to nearly 7 times the actual money invested at risk. |
| Section 19 | Specifies 30% tax credits. |