Oklahoma § 68-2357.202 - Definitions – Amount of credit

§ 68-2357.202. Definitions – Amount of credit

A. As used in this act:

1. “Qualified business enterprise” means an entity:

a.

organized as a corporation, partnership, limited

partnership, limited liability company, business trust

or other entity, if such entity is registered to do

business within the state, or is otherwise lawfully

conducting business within the state,

b.

whose principal business activity in the state is

described by the North American Industry

Classification System by Industry No. 336413, as

reflected in the 1997 edition of such publication, and

is engaged in the manufacture of wing components for

large commercial aircraft and other aerospace

Oklahoma Statutes - Title 68. Revenue and Taxation

structures and components for commercial and

government aerospace products, and

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 determining eligibility for the incentive

payment pursuant to the Oklahoma Quality Jobs Program

Act;

2. “Qualified expenditures” means:

a.

costs incurred by the qualified business

enterprise during the taxable year for the

acquisition of personal property used, or to

be used, in business operations within the

state, to the extent a depreciation deduction

is allowed or allowable for federal income

tax purposes with respect to such property

pursuant to Section 167, Section 168 or

Section 179 of the Internal Revenue Code of

1986, as amended, in the taxable year for

which the credit authorized by this section

is claimed, and

b.

costs incurred during the taxable year to

refurbish, repair or maintain any existing

personal property located within the state

whether or not such costs are capitalized by

the taxpayer;

3. “Qualified wages” means gross compensation and benefits paid

by the taxpayer during the taxable year, 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 this state as of the time the services for which such

qualified wages are received are performed; 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 during the taxable year

to locate, interview, hire and train employees and prospective

employees of the qualified business enterprise who:

a.

have not previously been employed as employees by the

qualified business enterprise, either full-time or

part-time, at any time within the five (5) prior

taxable years, and

b.

are full-time residents of the state as of

the end of the taxable year for which the

credit authorized by this section is claimed.

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

ending not later than December 31, 2008, there shall be allowed as a

credit against the tax imposed by Section 2355 of Title 68 of the

Oklahoma Statutes - Title 68. Revenue and Taxation

Oklahoma Statutes, subject to the limitations imposed by subsection

C of this section, an amount equal to fifteen percent (15%) of:

1. Qualified 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

combined in any order or considered independently, but the total

credit amount shall not exceed One Hundred Fifty Thousand Dollars

($150,000.00) each year for the fiscal year ending June 30, 2007,

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

June 30, 2009.

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, 2008,

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 two (2) 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 One Hundred Fifty

Thousand Dollars ($150,000.00) each year for the fiscal year ending

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

year ending June 30, 2009.

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, § 2, eff. July 1, 2005.