An act relating to income tax credit, the official text

1                  STATE OF OKLAHOMA

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

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3 SENATE BILL 221              By: Howard
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6                  AS INTRODUCED

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7   An Act relating to income tax credit; amending

7   Section 4, Chapter 354, O.S.L. 2022 (68 O.S. Supp.

8   2024, Section 3933), which relates to the Oklahoma

8   Rural Jobs Act; providing expanded annual credit

9   limitation for certain applications; stipulating that

9   rural funds certified during the initial application

10  period are eligible for certification in subsequent

10  application period; updating statutory references;

11  providing an effective date; and declaring an

11  emergency.

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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15  SECTION 1.     AMENDATORY  Section 4, Chapter 354, O.S.L.

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16 2022 (68 O.S. Supp. 2024, Section 3933), is amended to read as
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17 follows:
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18  Section 3933. A. The Department shall certify capital

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19 investment authority under the provisions of this act the Oklahoma
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20 Rural Jobs Act in amounts that would not authorize more than Fifteen
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21 Million Dollars ($15,000,000.00) in state tax credits to be claimed
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22 against state tax liability in any calendar year for applications
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23 approved before the effective date of this act and Thirty Million
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24 Dollars ($30,000,000.00) in state tax credits to be claimed against
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    Req. No. 618                                              Page 1
1 state tax liability in any calendar year for applications approved
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2 on or after the effective date of this act, excluding any credit
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3 amounts carried forward as provided under subsection A of Section 5
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4 of this act Section 3934 of this title. A rural fund receiving
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5 certification for an application approved prior to the effective
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6 date of this act shall be eligible to receive certification on an
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7 application submitted after the effective date of this act. Within
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8 ninety (90) days of the applicant receiving notice of certification,
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9 the rural fund shall issue the capital investment to and receive
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10 cash in the amount of the certified amount from a rural investor.
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11 At least ten percent (10%) of the rural investor's capital
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12 investment shall be composed of capital raised by the rural investor
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13 directly or indirectly from sources including directors, members,
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14 employees, officers, and affiliates of the rural investor, other
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15 than the amount invested by the allocatee claiming the tax credits
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16 in exchange for such allocation of tax credits. The rural fund
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17 shall provide the Department with evidence of the receipt of the
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18 cash investment within ninety-five (95) days of the applicant
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19 receiving notice of certification.
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20  B. If the rural fund does not receive the cash investment and

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21 issue the capital investment within such time period following
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22 receipt of the certificate notice, the certification shall lapse and
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23 the rural fund shall not issue the capital investment without
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24 reapplying to the Department for certification. Lapsed
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    Req. No. 618                                               Page 2
1 certifications shall revert to the Department and shall be reissued
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2 pro rata to applicants whose capital investment allocations were
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3 reduced in accordance with the application process provided under
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4 subsection D of Section 3 of this act Section 3932 of this title.
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5   C. A rural fund, before making a qualified investment, may

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6 request from the Department a written opinion as to whether the
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7 business in which it proposes to invest is an eligible business.
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8 The Department, no later than fifteen (15) business days after the
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9 date of receipt of such request, shall notify the rural fund of its
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10 determination. If the Department fails to notify the rural fund of
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11 its determination by the twentieth business day, the business in
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12 which the rural fund proposes to invest shall be deemed an eligible
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13 business.
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14  SECTION 2. This act shall become effective July 1, 2025.

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15  SECTION 3. It being immediately necessary for the preservation

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16 of the public peace, health or safety, an emergency is hereby
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17 declared to exist, by reason whereof this act shall take effect and
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18 be in full force from and after its passage and approval.
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20  60-1-618      QD  12/30/2024 4:48:25 PM

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    Req. No. 618                                              Page 3