Oklahoma § 68-2357.201 - Definitions - Amount of credit

§ 68-2357.201. Definitions - Amount of credit

A. As used in this act:

1. “Qualified business enterprise” means an entity or

affiliated group of entities electing to file a consolidated

Oklahoma income tax return:

a. organized as a corporation, partnership, limited

liability company or other entity having limited

liability pursuant to the laws of the State of Oklahoma

or the laws of another state, if such entity is

registered to do business within the state, a general

partnership, limited liability partnership, limited

liability limited partnership or other legal entity

having the right to conduct lawful business within the

state,

b. whose principal business activities are described by

the North American Industry Classification System by

Industry No. 514210, or Industry No. 541512 or Industry

No. 541519 as reflected in the 1997 edition of such

publication,

Oklahoma Statutes - Title 68. Revenue and Taxation

c.

that makes at least seventy-five percent (75%) of its

sales to out-of-state customers or buyers which shall

be determined in the same manner as provided for

purposes of the Oklahoma Quality Jobs Program Act,

d. that is a high-speed processing facility in Oklahoma

utilizing systems such as TPF, zTPF or other advanced

technical systems,

e. that, as of July 1, 2005, maintains an Oklahoma annual

payroll of at least Eighty-five Million Dollars

($85,000,000.00), and

f. that, as of July 1, 2005, maintains an Oklahoma labor

force of one thousand (1,000) or more persons;

2. “Qualified capital expenditures” means those costs incurred

by the qualified business enterprise for acquisition of personal

property to be used in business operations within the state that

qualifies for depreciation and/or amortization pursuant to the

Internal Revenue Code of 1986, as amended, during the taxable year

for which the credit authorized by this section is claimed, or costs

incurred to refurbish, repair or maintain any existing personal

property located within the state;

3. “Qualified wages” means compensation, including any

employer-paid health care benefits, to full-time or part-time

employees of the qualified business enterprise if such employees are

full-time residents of the state; and

4. “Qualified training expenses” means those costs, whether or

not deductible as a business expense pursuant to the Internal

Revenue Code of 1986, as amended, incurred to locate, interview,

hire and educate an employee of the enterprise who has not

previously been employed by the enterprise and who is a resident of

the state.

B. For taxable years beginning after December 31, 2005, and

ending not later than December 31, 2013, there shall be allowed as a

credit against the tax imposed by Section 2355 of this title,

subject to the limitations imposed by subsection C of this section,

an amount equal to fifteen percent (15%) of:

1. Qualified capital expenditures; or

2. Qualified wages; or

3. Qualified training expenses; or

4. The sum of any of the expenses identified in paragraphs 1

through 3 of this subsection, in any combination.

C. For purposes of computing the credit amount prescribed by

subsection B of this section, the expenses described by paragraphs

1, 2 and 3 of subsection B of this section may be added together or

considered independently, but the total credit amount shall not

exceed Three Hundred Fifty Thousand Dollars ($350,000.00) each year

for the fiscal year ending June 30, 2007, the fiscal year ending

Oklahoma Statutes - Title 68. Revenue and Taxation

June 30, 2008, the fiscal year ending June 30, 2009, and for all

subsequent fiscal years.

D. For purposes of the expenditures described by subsection B

of this section a qualified business enterprise may incur

expenditures beginning January 1, 2005, through December 31, 2013,

for purposes of computing the credit amount. The claim for such

credits earned for the fiscal year ending June 30, 2007, shall not

be filed earlier than July 1, 2006, and the claims for each

subsequent taxable year may be filed no earlier than July 1 of each

of the applicable succeeding years.

E. For purposes of the limitation on the credit amount that may

be claimed by a qualified business enterprise, an extension of time

for filing of an income tax return shall not extend the time period

for purposes of claiming the credit authorized by this section.

F. If the amount of the credit allowable is in excess of the

tax liability, the amount of the credit not used shall be refunded

to the taxpayer subject to the total limit of Three Hundred Fifty

Thousand Dollars ($350,000.00) each year for the fiscal year ending

June 30, 2007, the fiscal year ending June 30, 2008, the fiscal year

ending June 30, 2009, and each of the applicable subsequent fiscal

years.

G. No credit for any fiscal year as otherwise authorized by

this section shall be based upon any qualified expenditure used to

compute a credit amount for any preceding taxable year.

H. The credit authorized by the provisions of this section

shall not be transferable.

I. The Tax Commission may prescribe forms for purposes of

claiming the credit authorized by this section and for verifying

eligibility for the credit.

Added by Laws 2005, c. 458, § 1, eff. July 1, 2005. Amended by Laws

2008, c. 440, § 11.