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Oklahoma Legislature· HB 2755Referred to Appropriations and Budget

An act relating to revenue and taxation, the official text

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1                   STATE OF OKLAHOMA

2          1st Session of the 60th Legislature (2025)

3 HOUSE BILL 2755               By: Caldwell (Trey)

4

5

6                               AS INTRODUCED

7   An Act relating to revenue and taxation; amending 68

    O.S. 2021, Section 2357.45, which relates to tax

8   credits for biomedical and cancer research; modifying

    applicability period for certain tax credit design;

9   creating additional tax credit design for certain

    applicability period; modifying calculations,

10  amounts, and limitations of certain tax credit;

    establishing calculations, amounts, and limitations

11  of certain tax credit; and providing an effective

    date.

12

13

14

15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

16  SECTION 1.      AMENDATORY  68 O.S. 2021, Section 2357.45, is

17 amended to read as follows:

18  Section 2357.45. A. 1. For tax years beginning after December

19 31, 2004, there shall be allowed against the tax imposed by Section

20 2355 of this title, a credit for any taxpayer who makes a donation

21 to an independent biomedical research institute and for tax years

22 beginning after December 31, 2010, a credit for any taxpayer who

23 makes a donation to a cancer research institute.

24

    Req. No. 11006                                         Page 1
1   2. The credit authorized by paragraph 1 of this subsection

2 shall be limited as follows:

3   a. (1) for calendar year 2007 and all subsequent years

4                   tax years 2007 through 2025, the credit

5                   percentage, not to exceed fifty percent (50%),

6                   shall be adjusted annually so that the total

7                   estimate of the credits does not exceed Two

8                   Million Dollars ($2,000,000.00) annually. The

9                   formula to be used for the percentage adjusted

10                  shall be fifty percent (50%) times One Million

11                  Dollars ($1,000,000.00) divided by the credits

12                  claimed in the preceding year for each donation

13                  to an independent biomedical research institute

14                  and fifty percent (50%) times One Million Dollars

15                  ($1,000,000.00) divided by the credits claimed in

16                  the preceding year for each donation to a cancer

17                  research institute, and

18  (2) for tax years 2026 and subsequent tax years:

19                  (a) a credit percentage not to exceed fifty

20                  percent (50%), shall be adjusted annually so

21                  that the total estimate of the credits does

22                  not exceed One Million Five Hundred Thousand

23                  Dollars ($1,500,000.00) annually for

24                  donations to independent biomedical research

    Req. No. 11006                                                Page 2
1                   institutes. The formula to be used for the

2                   percentage adjusted shall be fifty percent

3                   (50%) times One Million Five Hundred

4                   Thousand Dollars ($1,500,000.00) divided by

5                   the credits claimed in the preceding year

6                   for each donation to an independent

7                   biomedical research institute, and

8                   (b) a credit percentage not to exceed fifty

9                   percent (50%), shall be adjusted annually so

10                  that the total estimate of the credits does

11                  not exceed Five Hundred Thousand Dollars

12                  ($500,000.00) annually for donations to

13                  cancer research institutes. The formula to

14                  be used for the percentage adjusted shall be

15                  fifty percent (50%) times Five Hundred

16                  Thousand Dollars ($500,000.00) divided by

17                  the credits claimed in the preceding years

18                  for each donation to a cancer research

19                  institute,

20  b. (1) in no event shall a taxpayer claim more than one

21                  credit for a donation to any independent

22                  biomedical research institute and one credit for

23                  a donation to a cancer research institute in each

24                  taxable year nor for tax years 2005 through 2025

    Req. No. 11006                                               Page 3
1                   shall the credit exceed One Thousand Dollars

2                   ($1,000.00) for each taxpayer for each type of

3                   donation and for tax year 2026 and subsequent tax

4                   years, the credit for donating to a cancer

5                   research institute shall not exceed One Thousand

6                   Dollars ($1,000.00) for single filers and married

7                   filing separate, Two Thousand Dollars ($2,000.00)

8                   for married filing joint, head of household, or

9                   qualifying widow, or

10  (2) for tax years 2026 and subsequent tax years, the

11                  credit for donations to any independent

12                  biomedical research institute, shall not exceed

13                  One Thousand Dollars ($1,000.00) for single

14                  filers and married filing separate, Two Thousand

15                  Dollars ($2,000.00) for married filing joint,

16                  head of household, and qualifying widow, and

17                  Twenty-five Thousand Dollars ($25,000.00) for any

18                  taxpayer that is a business entity formed under

19                  the laws of any state, including limited and

20                  general partnerships, corporations, and limited

21                  liability companies, and

22  c. for tax year 2011, no more than Fifty Thousand Dollars

23  ($50,000.00) in total tax credits for donations to a

24  cancer research institute shall be allowed,

    Req. No. 11006                                                Page 4
1   d. in no event shall more than fifty percent (50%) of the

2   Two Million Dollars ($2,000,000.00) in total tax

3   credits authorized by this section, for any calendar

4   year after the effective date of this act, be

5   allocated for credits for donations to a cancer

6   research institute, and

7   e. for tax year 2026 and subsequent tax years, in the

8   event the total tax credits authorized by this section

9   exceed One Million Dollars ($1,000,000.00) in any

10  calendar year Five Hundred Thousand Dollars

11  ($500,000.00) for either a cancer research institute

12  or One Million Five Hundred Thousand Dollars

13  ($1,500,000.00) for an independent biomedical research

14  institute, the Oklahoma Tax Commission shall permit

15  any excess over One Million Dollars ($1,000,000.00)

16  the applicable limitation amount but shall factor such

17  excess into the percentage adjustment formula for

18  subsequent years for that the applicable type of

19  donation. However, any such adjustment to the formula

20  for donations to an independent biomedical research

21  institute shall not affect the formula for donations

22  to a cancer research institute, and any such

23  adjustment to the formula for donations to a cancer

24  research institute shall not affect the formula for

    Req. No. 11006                                     Page 5
1   donations to an independent biomedical research

2   institute.

3   3. For purposes of this section, "independent biomedical

4 research institute" means an organization in this state which is

5 exempt from taxation pursuant to the provisions of Section 501(c)(3)

6 of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3) whose

7 primary focus is conducting peer-reviewed basic biomedical research.

8 The organization shall:

9   a. have a board of directors,

10  b. be able to accept grants in its own name,

11  c. be an identifiable institute that has its own

12  employees and administrative staff, and

13  d. receive at least Fifteen Million Dollars

14  ($15,000,000.00) Twenty Million Dollars

15  ($20,000,000.00) in National Institute Institutes of

16  Health funding each year.

17  4. For purposes of this section, "cancer research institute"

18 means an organization which is exempt from taxation pursuant to the

19 Internal Revenue Code and whose primary focus is raising the

20 standard of cancer clinical care in Oklahoma through peer-reviewed

21 cancer research and education or a not-for-profit supporting

22 organization, as that term is defined by the Internal Revenue Code,

23 affiliated with a tax-exempt organization whose primary focus is

24 raising the standard of cancer clinical care in Oklahoma through

    Req. No. 11006                                               Page 6
1 peer-reviewed cancer research and education. The tax-exempt

2 organization whose primary focus is raising the standard of cancer

3 clinical care in Oklahoma through peer-reviewed cancer research and

4 education shall:

5            a. either be an independent research institute or a

6            program that is part of a state university which is a

7            member of The Oklahoma State System of Higher

8            Education, and

9            b. receive at least Four Million Dollars ($4,000,000.00)

10           in National Cancer Institute funding each year.

11  B. In no event shall the amount of the credit exceed the amount

12 of any tax liability of the taxpayer.

13  C. Any credits allowed but not used in any tax year may be

14 carried over, in order, to each of the four (4) years following the

15 year of qualification.

16  D. The Tax Commission shall have the authority to prescribe

17 forms for purposes of claiming the credit authorized by this

18 section.

19  SECTION 2. This act shall become effective November 1, 2025.

20

21  60-1-11006      JM     01/08/25

22

23

24

    Req. No. 11006                                                Page 7
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