Oklahoma § 74-5085.7 - Tax credits

§ 74-5085.7. Tax credits

A. The State of Oklahoma hereby issues tax credits that may be

used to reduce the tax liability of a person, firm or corporation if

such liability is imposed pursuant to the provisions of Section 2355

of Title 68 of the Oklahoma Statutes or Section 624 of Title 36 of

the Oklahoma Statutes. Provided, tax credits against liabilities

imposed pursuant to Section 624 of Title 36 of the Oklahoma Statutes

shall be limited to the amount that would otherwise be collected and

allocated to the General Revenue Fund of the State Treasury. Tax

credits issued and transferred to the Oklahoma Development Finance

Oklahoma Statutes - Title 74. State Government

Authority pursuant to the provisions of this section and prior to

July 1, 1991, are hereby transferred to the Oklahoma Capital

Investment Board, created pursuant to the provisions of the Oklahoma

Capital Formation Act. The total amount of tax credits that are

hereby issued, or are transferred pursuant to this section to the

Board, is One Hundred Million Dollars ($100,000,000.00). The

credits shall be freely transferable to subsequent transferees;

however, no such tax credit shall be exercisable before July 1,

1990, nor, except as otherwise provided by subsection B of this

section, after July 1, 2020.

B. Tax credits may be exercised after July 1, 2020, if such tax

credits were purchased or were agreed to be purchased based upon a

contractual commitment to the Board made by a person or entity

pursuant to an agreement originally entered into no later than

December 31, 1995. Any such credits may be exercised until fully

utilized by the person or entity having entered into such

contractual commitment or by any person or entity having obtained

tax credits from a person or entity having made such a contractual

commitment or by any subsequent transferee if such tax credit

transfer occurred prior to the effective date of this act.

C. The Board shall not transfer tax credits except in

conjunction with a legitimate call on a Board guarantee. The Board

shall immediately notify the President Pro Tempore of the Senate,

the Speaker of the House of Representatives and the Governor in

writing if any tax credit is transferred in conjunction with a

legitimate call on a Board guarantee; provided, the Board shall not

be required to make such notification for transfers to subsequent

transferees.

D. The Board shall determine the amount of individual tax

credits to be transferred pursuant to the Oklahoma Capital Formation

Act and may negotiate for sale of such credits subject only to the

limits imposed by the Oklahoma Capital Formation Act, including the

provisions of subsections F and G of Section 5085.8 of this title.

E. The Board shall ensure that no more than Twenty Million

Dollars ($20,000,000.00) in tax credits has been transferred which

may be claimed and used to reduce the tax otherwise imposed by

Section 2355 of Title 68 of the Oklahoma Statutes or Section 624 of

Title 36 of the Oklahoma Statutes for any one (1) fiscal year.

F. The Board shall clearly indicate upon the face of the

certificate or other document transferring the tax credit the

principal amount of the tax credit and the taxable year or years for

which the credit may be claimed.

G. Any original sale of tax credits by the Board shall be by

competitive bidding unless the sale is for full-face value.

H. The Board shall, in conjunction with the Oklahoma Tax

Commission, develop a system for registration of any tax credits

issued or transferred pursuant to the Oklahoma Capital Formation Act

Oklahoma Statutes - Title 74. State Government

and a system of certificates that permits verification that any tax

credit claimed upon a tax return is validly issued, properly taken

in the year of claim and that any transfers of the tax credit are

made in accordance with the requirements of the Oklahoma Capital

Formation Act.

I. The Board may pay a fee in connection with the purchase by

the Board of an option or other agreement pursuant to which a

transfer of tax credits authorized by the Oklahoma Capital Formation

Act may be made.

J. Except as otherwise provided by this section and by

subsections F and G of Section 5085.8 of this title, the Board shall

have the power to make any contract, execute any document, charge

reasonable fees for services rendered, perform any act or enter into

any financial or other transaction necessary in order to carry out

its mission.

K. The Board may employ such persons as may be required for the

proper implementation of the Oklahoma Capital Formation Act, the

management of its assets, or the performance of any function

authorized or required by the Oklahoma Capital Formation Act or

necessary for the accomplishment of any such function. Such persons

shall be selected by the Board based upon outstanding knowledge and

leadership in the field for which the person performs services for

the Board.

Added by Laws 1987, c. 222, § 46, operative July 1, 1987. Amended

by Laws 1990, c. 150, § 1; Laws 1991, c. 188, § 7, eff. July 1,

1991. Renumbered from § 5061.7 of this title by Laws 1991, c. 188,

§ 16, eff. July 1, 1991. Amended by Laws 1995, c. 337, § 15, emerg.

eff. June 9, 1995; Laws 2000, c. 201, § 1, eff. Nov. 1, 1999; Laws

2012, c. 361, § 1, emerg. eff. June 8, 2012.