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Oklahoma Legislature· SB 301Becomes law without Governor's signature 05/08/2025

An act relating to income tax, the official text

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1                  STATE OF OKLAHOMA

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

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3 SENATE BILL 301                 By: Hall
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6                                AS INTRODUCED

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7   An Act relating to income tax; amending 68 O.S. 2021,

7   Section 2357.45, which relates to credit for

8   donations to certain research institutes; modifying

8   credit limit for certain institute in certain tax

9   years; modifying credit limit for taxpayer in certain

9   tax years; modifying definition; updating statutory

10  references; updating statutory language; and

10  providing an effective date.

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13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14  SECTION 1.     AMENDATORY    68 O.S. 2021, Section 2357.45, is

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15 amended to read as follows:
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16  Section 2357.45. A. 1. For tax years beginning after December

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17 31, 2004, there shall be allowed against the tax imposed by Section
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18 2355 of this title, a credit for any taxpayer who makes a donation
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19 to an independent biomedical research institute and for tax years
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20 beginning after December 31, 2010, a credit for any taxpayer who
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21 makes a donation to a cancer research institute.
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22  2. The credit authorized by paragraph 1 of this subsection

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23 shall be limited as follows:
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    Req. No. 450                                              Page 1
1   a. for calendar year 2007 and all subsequent years tax

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2                 years 2007 through 2025, the credit percentage, not to

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3                 exceed fifty percent (50%), shall be adjusted annually

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4                 so that the total estimate of the credits does not

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5                 exceed Two Million Dollars ($2,000,000.00) annually.

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6                 The formula to be used for the percentage adjusted

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7                 shall be fifty percent (50%) times One Million Dollars

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8                 ($1,000,000.00) divided by the credits claimed in the

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9                 preceding year for each donation to an independent

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10                biomedical research institute and fifty percent (50%)

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11                times One Million Dollars ($1,000,000.00) divided by

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12                the credits claimed in the preceding year for each

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13                donation to a cancer research institute,

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14  b. for tax year 2026 and subsequent tax years, the credit

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15                percentage, not to exceed fifty percent (50%), shall

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16                be adjusted annually so that the total estimate of the

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17                credits does not exceed One Million Five Hundred

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18                Thousand Dollars ($1,500,000.00) annually for

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19                donations to independent biomedical research

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20                institutes. The formula to be used for the percentage

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21                adjustment shall be fifty percent (50%) times One

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22                Million Five Hundred Thousand Dollars ($1,500,000.00)

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23                divided by the credits claimed in the second preceding

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    Req. No. 450                                                 Page 2
1                 tax year for each donation to an independent

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2                 biomedical research institute,

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3   c. for tax year 2026 and subsequent tax years, the credit

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4                 percentage, not to exceed fifty percent (50%), shall

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5                 be adjusted annually so that the total estimate of the

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6                 credits does not exceed Five Hundred Thousand Dollars

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7                 ($500,000.00) annually for donations to cancer

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8                 research institutes. The formula to be used for the

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9                 percentage adjusted shall be fifty percent (50%) times

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10                Five Hundred Thousand Dollars ($500,000.00) divided by

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11                the credits claimed in the second preceding year for

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12                each donation to a cancer research institute,

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13  d. (1) in no event shall a taxpayer claim more than one

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14                credit for a donation to any independent

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15                biomedical research institute and one credit for

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16                a donation to a cancer research institute in each

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17                taxable year nor for tax years 2005 through 2025

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18                shall the credit exceed One Thousand Dollars

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19                ($1,000.00) for each taxpayer for each type of

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20                donation, and for tax year 2026 and subsequent

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21                tax years, the credit for donating to a cancer

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22                research institute shall not exceed One Thousand

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

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24                filing separate, or Two Thousand Dollars

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    Req. No. 450                                                 Page 3
1                 ($2,000.00) for married filing joint, head of

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2                 household, or qualifying widow, or

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3                 (2) for tax year 2026 and subsequent tax years, the

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4                 credit for donations to any independent

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5                 biomedical research institute shall not exceed

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

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7                 filers and married filing separate; Two Thousand

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

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9                 head of household, and qualifying widow; and

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

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11                taxpayer that is a business entity formed under

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12                the laws of any state, including limited and

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13                general partnerships, corporations, and limited

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14                liability companies,

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

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16                ($50,000.00) in total tax credits for donations to a

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17                cancer research institute shall be allowed,

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18  d. in no event shall more than fifty percent (50%) of the

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

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20                credits authorized by this section, for any calendar

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21                year after the effective date of this act, be

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22                allocated for credits for donations to a cancer

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23                research institute, and

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    Req. No. 450                                                 Page 4
1   e. for tax year 2026 and subsequent tax years, in the

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2                 event the total tax credits authorized by this section

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

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4                 calendar year Five Hundred Thousand Dollars

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5                 ($500,000.00) for either a cancer research institute

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6                 or One Million Five Hundred Thousand Dollars

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7                 ($1,500,000.00) for an independent biomedical research

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8                 institute, the Oklahoma Tax Commission shall permit

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

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10                the applicable limitation amount but shall factor such

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11                excess into the percentage adjustment formula for

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12                subsequent years for that the applicable type of

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13                donation. However, any such adjustment to the formula

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14                for donations to an independent biomedical research

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15                institute shall not affect the formula for donations

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16                to a cancer research institute, and any such

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17                adjustment to the formula for donations to a cancer

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18                research institute shall not affect the formula for

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19                donations to an independent biomedical research

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20                institute.

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

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22 research institute" means an organization in this state which is
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23 exempt from taxation pursuant to the provisions of Section 501(c)(3)
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24 of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section
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    Req. No. 450                                                Page 5
1 501(c)(3), whose primary focus is conducting peer-reviewed basic
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2 biomedical research. The organization shall:
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3   a. have a board of directors,

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

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5   c. be an identifiable institute that has its own

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6                 employees and administrative staff, and

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7   d. receive at least Fifteen Million Dollars

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8                 ($15,000,000.00) Twenty Million Dollars

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9                 ($20,000,000.00) in National Institute Institutes of

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10                Health funding each year.

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

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12 means an organization which is exempt from taxation pursuant to the
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13 Internal Revenue Code of 1986, as amended, and whose primary focus
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14 is raising the standard of cancer clinical care in Oklahoma through
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15 peer-reviewed cancer research and education or a not-for-profit
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16 supporting organization, as that term is defined by the Internal
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17 Revenue Code of 1986, as amended, affiliated with a tax-exempt
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18 organization whose primary focus is raising the standard of cancer
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19 clinical care in Oklahoma through peer-reviewed cancer research and
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20 education. The tax-exempt organization whose primary focus is
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21 raising the standard of cancer clinical care in Oklahoma through
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22 peer-reviewed cancer research and education shall:
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23  a. either be an independent research institute or a

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

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    Req. No. 450                                           Page 6
1                 member of The Oklahoma State System of Higher

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2                 Education, and

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

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4                 in National Cancer Institute funding each year.

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

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6 of any tax liability of the taxpayer.
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7   C. Any credits allowed but not used in any tax year may be

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8 carried over, in order, to each of the four (4) years following the
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9 year of qualification.
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10  D. The Oklahoma Tax Commission shall have the authority to

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11 prescribe forms for purposes of claiming the credit authorized by
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12 this section.
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13  SECTION 2. This act shall become effective November 1, 2025.

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15  60-1-450      QD              12/30/2024 11:44:53 PM

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    Req. No. 450                                          Page 7
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