Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1 STATE OF OKLAHOMA
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2 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 573 By: Rader
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6 AS INTRODUCED
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7 An Act relating to small business incubators;
7 amending 74 O.S. 2021, Section 5078, which relates to
8 state income tax exemption and annual reports;
8 requiring tenant to submit certain information to
9 receive certain exemption; requiring the Oklahoma
9 Department of Commerce to prescribe certain form;
10 requiring certain information to be included in
10 annual report provided by the Department; and
11 providing an effective date.
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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15 SECTION 1. AMENDATORY 74 O.S. 2021, Section 5078, is
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16 amended to read as follows:
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17 Section 5078. A. For a period of up to ten (10) years from the
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18 date of tenant's occupancy in an incubator, income earned by the
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19 tenant as a result of activities conducted as an occupant in an
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20 incubator, including income distributed to partners, shareholders of
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21 a corporation for which a Subchapter S election is in effect and to
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22 the members of a limited liability company, shall be exempt from
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23 state income tax. The exemption provided by this section shall
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24 remain in effect for such activities by such tenant after the date
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1 the tenant is no longer an occupant in an incubator, but not to
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2 exceed a total duration of ten (10) years for any tenant.
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3 B. For tax years ending before January 1, 2020, in order to
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4 qualify for the income tax exemption for the sixth through tenth
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5 year as authorized by this section, the tenant must make at least
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6 seventy-five percent (75%) of its gross sales constituting the
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7 principal business activity of the business to buyers located
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8 outside the state or to buyers whose principal business activity is
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9 conducted outside the state or to the federal government or to
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10 buyers located within the state if the product or service is resold
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11 to an out-of-state customer or buyer for ultimate use. Provided, if
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12 a tenant does not achieve the qualifying percentage for any one of
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13 the above tax years, the tenant shall not be disqualified for
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14 subsequent tax years in which the qualifying percentage is achieved.
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15 C. For tax year 2026 and subsequent tax years, following the
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16 first tax year a tenant is provided the exemption pursuant to
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17 subsection A of this section, in order to continue to qualify for
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18 the exemption, the tenant shall submit information on a form
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19 prescribed by the Oklahoma Department of Commerce which shall
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20 include, but not be limited to, the following:
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21 1. Employment levels, including full-time-equivalent levels and
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22 the ratio of part-time employees to full-time employees;
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23 2. Interns employed;
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24 3. Payments to subcontractors and their purpose;
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1 4. Estimated gross annual revenues;
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2 5. Estimated annual costs for property and services;
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3 6. A statement of any additional financial assistance,
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4 incentives, credits, or exemptions provided by this state or any
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5 political subdivision of this state; and
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6 7. A statement of any taxable income exempted pursuant to this
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7 subsection in the previous tax year.
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8 The Oklahoma Tax Commission shall promulgate rules to implement
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9 the provisions of this section.
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10 SECTION 2. This act shall become effective November 1, 2025.
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12 60-1-1290 QD 1/19/2025 5:39:00 AM
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Req. No. 1290 Page 3Every fact on this page links to its source, starting with the official bill record.