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Title 68. Revenue and Taxation

Oklahoma Statutes Citationized
  Title 68. Revenue and Taxation
    Chapter 1 - Tax Codes
      Small Business Capital Formation Incentive Act
        Article 23 - Income Tax
        Section 2357.63 - Tax Credit for Qualified Investments in Oklahoma Small Business Ventures - Pass-Through Entities
Cite as: O.S. §, __ __




A. For taxable years beginning after December 31, 1997, and before January 1, 2012, there shall be allowed a credit against the tax imposed by Section 2355 or, effective January 1, 2001, Section 2370 of this title or, effective July 1, 2001, against the tax imposed by Section 624 or 628 of Title 36 of the Oklahoma Statutes, for qualified investment made in Oklahoma small business ventures in conjunction with investment in such ventures made by a qualified small business capital company.

B. The credit provided for in this section shall be twenty percent (20%) of the qualified investment made in Oklahoma small business ventures in conjunction with qualified investment in such ventures made by a qualified small business capital company and shall be allowed for the taxable year during which the qualified investment is made in an Oklahoma small business venture. If the tax credit allowed pursuant to subsection A of this section exceeds the amount of taxes due or if there are no state taxes due of the taxpayer, the amount of the claim not used as an offset against the taxes of a taxable year may be carried forward for a period not to exceed three (3) taxable years. To qualify for the credit authorized by this section, a qualified investment shall be:

1. Made by a shareholder, member or partner of a qualified small business capital company that has made a qualified investment in an Oklahoma small business venture;

2. Invested in the purchase of equity or near-equity in an Oklahoma small business venture;

3. Made under the same terms and conditions as the qualified investment made by the qualified small business capital company; and

4. Limited to the lesser of:

a. two hundred percent (200%) of any qualified investment by the taxpayer in the qualified small business capital company, or

b. two hundred percent (200%) of the qualified investment made by the qualified small business capital company in the Oklahoma small business venture.

C. No taxpayer may claim the credit provided for in this section for a qualified investment made prior to January 1, 1998.

D. No taxpayer may claim the credit authorized by this section for the same qualified investment amount for which any credit is claimed pursuant to either Section 2357.73 or 2357.74 of this title.

E. If a pass-through entity is entitled to a credit under this section, the pass-through entity shall allocate such credit to one or more of the shareholders, partners or members of the pass-through entity; provided, the total of all credits allocated shall not exceed the amount of the credit to which the pass-through entity is entitled. The credit may only be claimed for funds borrowed by the pass-through entity to make a qualified investment if a shareholder, partner or member to whom the credit is allocated has an unlimited and continuing legal obligation to repay the borrowed funds but the allocation may not exceed such shareholder's, partner's or member's pro-rata equity share of the pass-through entity even if the taxpayer's legal obligation to repay the borrowed funds is in excess of such amount. For purposes of the Oklahoma Small Business Capital Formation Incentive Act, "pass-through entity" means a corporation that for the applicable tax years is treated as an S corporation under the Internal Revenue Code, general partnership, limited partnership, limited liability partnership, trust, or limited liability company that for the applicable tax year is not taxed as a corporation for federal income tax purposes.

Historical Data


Added by Laws 1997, HB 1253, c. 167, § 4, eff. January 1, 1998; Amended by Laws 1998, HB 3205, c. 226, § 4, emerg. eff. May 20, 1998 (superseded document available ); Amended by Laws 2000, SB 1324, c. 241, § 2, eff. July 1, 2001 (effective date repealed by Laws 2001, HB 1904, c. 382, § 10, emerg. eff. June 4, 2001) (superseded document available ); Amended by Laws 2001, HB 1904, c. 382, § 6, emerg. eff. June 4, 2001 (superseded document available ); Amended by Laws 2004, HB 2124, c. 508, § 3, emerg. eff. June 9, 2004 ( superseded document available ); Amended by Laws 2005, HB 1680, c. 299, § 4, eff. July 1, 2006 (superseded document available ); Amended by Laws 2006, SB 1577, c. 281, § 9, emerg. eff. June 7, 2006 (superseded document available ); Amended by Laws 2008, SB 2129, c. 440, § 5, eff. August 22, 2008 (superseded document available ).

Citationizer© Summary of Documents Citing This Document
Cite Name Level
Oklahoma Court of Civil Appeals Cases
 CiteNameLevel
  2007 OK CIV APP 32, <159 P.3d 1142 , < IN RE: PROTEST TO DENIAL OF APPLIC. OF OKLA. METAFUND COMMUNITY DEVELOPMENT CORP. Cited
Citationizer: Table of Authority
Cite Name Level
Title 68. Revenue and Taxation
 CiteNameLevel
  68 O.S. 2357. , Credit against Tax for Qualified Investments in Oklahoma Small Business Ventures Cited
 68 O.S. 2357. , Credit Against Tax for Qualified Investments in Oklahoma Small Business Ventures Cited
  68 O.S. 2357. , Credit against Tax for Qualified Investments in Oklahoma Small Business Ventures Cited