Oklahoma § 68-3658 - Irrevocable election to transfer incentive payments to

§ 68-3658. Irrevocable election to transfer incentive payments to

Fund - Claim and use of tax credits - Ineligibility for certain

exemptions.

A. An establishment, as defined in Section 3653 of this title,

which has been authorized to receive incentive payments pursuant to

the Oklahoma Quality Jobs Program Act prior to the effective date of

this act, and that intends to use proceeds derived from the sale of

obligations issued pursuant to Section 3654 of this title which

obligations are issued on or after the effective date of this act,

shall, as a condition of being eligible to make use of such

proceeds, file a second irrevocable election with the Oklahoma

Department of Commerce.

B. An establishment shall file its second irrevocable election

with the Oklahoma Department of Commerce not later than one hundred

eighty (180) days prior to the last date that withholding tax

revenues attributable to the payroll of the establishment are

legally required to be used in satisfaction of any debt service

requirements or related costs imposed pursuant to an issuance of

obligations by the Oklahoma Development Finance Authority if such

issuance occurred prior to the effective date of this act. Such

second irrevocable election shall be required in order for the

establishment to be eligible for use of any proceeds from the sale

of additional obligations authorized by Section 3654 of this title

which obligations are issued on or after the effective date of this

act. From the date upon which the second irrevocable election is

filed until the last date upon which withholding tax revenues

attributable to the payroll of the establishment are legally

required to be used in satisfaction of any debt service requirements

or related costs imposed as a result of obligations issued by the

Oklahoma Development Finance Authority prior to the effective date

of this act, the five-year period of time within which the

establishment would otherwise be required to make investment

pursuant to this act shall be extended.

C. Upon filing such second irrevocable election, any incentive

payments which would have been paid to the establishment pursuant to

the Oklahoma Quality Jobs Program Act after such filing shall be

deposited to the Quality Jobs Program Incentive Leverage Fund. Such

incentive payments shall be treated as an asset of the establishment

which has been paid to the State of Oklahoma for purposes of this

act.

D. Beginning upon the later date of July 1, 2009, or the first

date upon which the revenues payable to the Authority from the

Quality Jobs Program Incentive Leverage Fund are no longer committed

to the payment of debt service requirements and related costs in

connection with obligations issued by the Authority pursuant to the

Quality Jobs Incentive Leverage Act prior to the effective date of

this act, and for each fiscal year thereafter as otherwise required

Oklahoma Statutes - Title 68. Revenue and Taxation

by this act, monies transferred to the Quality Jobs Program

Incentive Leverage Fund shall be used for the payment of principal

and interest or other costs associated with the additional issuance

of obligations by the Oklahoma Development Finance Authority

pursuant to the provisions of Section 3654 of this title as a result

of a second irrevocable election. Not later than January 1 and July

1 of each year, the Oklahoma Development Finance Authority shall

certify to the Oklahoma Department of Commerce and the Oklahoma Tax

Commission the amount which will be required for payment of

principal, interest and other costs associated with the issuance of

such obligations for the succeeding six-month period.

E. Beginning on the later date of July 1, 2009, or the first

date upon which the revenues payable to the Authority from the

Quality Jobs Program Incentive Leverage Fund are no longer committed

to the payment of debt service requirements and related costs in

connection with obligations issued by the Authority pursuant to the

Quality Jobs Incentive Leverage Act prior to the effective date of

this act, and for each fiscal year thereafter as otherwise required

by this act, as often as may be necessary for the Oklahoma

Development Finance Authority to make payments with respect to

indebtedness issued pursuant to the provisions of this act as a

result of a second irrevocable election, the Tax Commission shall

transfer from the revenues specified in Section 3659 of this title

an amount required to equal the difference between the incentive

payment deposit and the amount certified pursuant to the provisions

of subsection C of this section. The Tax Commission shall then

transfer the total amount required pursuant to the certification to

the Oklahoma Development Finance Authority.

F. An establishment to which proceeds from the sale of any

obligations issued by the Oklahoma Development Finance Authority are

made available as provided by this act pursuant to a second

irrevocable election shall not claim any tax credits that would

otherwise be authorized pursuant to Section 2357.4 of Title 68 of

the Oklahoma Statutes as a result of jobs created or capital

investment made as a direct result of the use of such bond proceeds.

For purposes of this subsection and for purposes of computing any

tax credit pursuant to Section 2357.4 of Title 68 of the Oklahoma

Statutes, "bond proceeds" shall mean the amount transferred, paid or

made available to the establishment together with the total amount

of principal and interest paid by the Oklahoma Development Finance

Authority with respect to any amount of proceeds transferred, paid

or made available to the establishment.

G. An establishment that files a second irrevocable election

authorized by this section and to which proceeds from the sale of

obligations authorized by Section 3654 of this title are paid or

made available may utilize income tax credits earned prior to the

effective date of this act pursuant to Section 2357.4 of Title 68 of

Oklahoma Statutes - Title 68. Revenue and Taxation

the Oklahoma Statutes for a period of fifteen (15) taxable years

subsequent to the year in which the election is filed.

H. An establishment that files a second irrevocable election

authorized by this section and to which any proceeds from the sale

of obligations authorized by Section 3654 of this title are paid or

made available shall not be eligible to claim any exemption pursuant

to Section 6B of Article X of the Oklahoma Constitution or Section

2902 of Title 68 of the Oklahoma Statutes with respect to real or

personal property constituting the facility described by the

establishment pursuant to the disclosure document as provided by

Section 3655 of this title. The maximum amount of investment in any

facility for purposes of the foregone exemption required by this

subsection shall be Seven Hundred Million Dollars ($700,000,000.00),

inclusive of any amounts invested prior to the effective date of

this act.

I. An establishment that files a second irrevocable election

authorized by this section and to which any proceeds from the sale

of obligations authorized by Section 3654 of this title are paid or

made available shall not be eligible to claim any exemption

otherwise available pursuant to Section 1359 of Title 68 of the

Oklahoma Statutes with respect to the facility constructed,

acquired, improved or equipped with such proceeds. The provisions

of this subsection shall not require any waiver of sales tax

exemption with respect to personal property acquired for the

manufacturing process after completion of construction of the

applicable facility.

Added by Laws 2002, c. 299, § 8, emerg. eff. May 23, 2002. Amended

by Laws 2008, c. 182, § 7, eff. Nov. 1, 2008; Laws 2025, c. 457, §

2.