reglab/statecodes huggingface dataset:
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2357.76A. Federally regulated investment company exemption.

A. As used in this section:
1. "Federally regulated investment company" means a qualified rural small business capital company as defined by Section 2357.72 of this title and that is licensed by the United States Small Business Administration or the United States Department of Agriculture and which qualifies as one of the following types of entities:
a.
a Small Business Investment Company, or
b.
a Specialized Small Business Investment Company, or
c.
a Rural Business Investment Company, or
d.
a Community Development Entity as defined by Section 45D of the Internal Revenue Code of 1986, as amended; and
2. "Qualified rural small business capital company" means an entity meeting the requirements of Section 2357.72 of this title.
B. Federally regulated investment companies shall be exempt from the requirements of subsections C and G of Section 2357.75 of this title.
C. As a condition of the exemption authorized by this section, the federally regulated investment company shall provide to the Oklahoma Tax Commission not later than March 15 each year:
1. A copy of the federal license issued by the applicable federal regulatory entity;
2. A copy of all reports and compliance documents required by the federal regulators; and
3. A copy of the annual financial audit of the federally regulated investment company.
D. A federally regulated investment company shall also prepare an annual summary report that discloses:
1. All investments made in for-profit business entities during the preceding calendar year;
2. The primary business address of each for-profit business entity in which any investment was made;
3. A statement of the business activity of each of the for-profit business entities described in paragraphs 1 and 2 of this subsection;
4. The type of investment instrument used to make the investment; and
5. A status report of all investments made by the federally regulated investment company.
E. The federally regulated investment company shall transmit a copy of the annual summary prescribed by subsection D of this section to the committees or subcommittees of the Oklahoma House of Representatives and the Oklahoma State Senate having primary jurisdiction over the Rural Venture Capital Formation Incentive Act, the State Treasurer, the State Auditor and Inspector, the Director of the Office of Management and Enterprise Services and the Oklahoma Tax Commission.
F. The report required by subsection D of this section shall be prepared and submitted until all of the monies available to the federally regulated investment fund have been fully invested, all of the investments have been completed and the proceeds from the investment have been disbursed to the equity investors.
Added by Laws 2007, c. 353, § 9, eff. Nov. 1, 2007. Amended by Laws 2012, c. 304, § 548.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2357.103. Short title.

A. Sections 7 and 8 of this act shall be known and may be cited as the “Railroad Modernization Act of 2005”.
B. The exercise of the powers granted to the Department of Transportation and the Oklahoma Tax Commission by the Railroad Modernization Act of 2005 shall be in all respects for the benefit of the people of this state and for the increase of their commerce and prosperity.
Added by Laws 2005, c. 413, § 7, eff. July 1, 2005.
NOTE: Editorially renumbered from § 2357.101 of this title to avoid duplication in numbering.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2357.205. Cost of sulfur regulation compliance – Election and allocation.

A. A refiner who is:
1. A small business refiner; or
2. One or more persons directly holding an ownership interest in the refiner,
may elect to allocate all or a portion of the cost of complying with sulfur regulations issued by the Environmental Protection Agency as a deduction allowable to such persons. The allocation for each person shall be equal to the ratable share of the total amount allocated, determined on the basis of the ownership interest of the person. The taxable income of the refiner shall not be reduced by reason of any amount allowed pursuant to this section.
B. An election made pursuant to subsection A of this section for any taxable year shall be made on a timely filed return for such year. The election, once made, shall be irrevocable for the taxable year.
C. If any portion of the deduction available under subsection A of this section is allocated to an owner, the cooperative shall provide the owner receiving the allocation written notice of the amount of the allocation. Notice shall be provided before the date on which the return described in subsection B of this section is due.
D. The provisions of this section shall apply to refinery properties placed in service after the effective date of this act.
Added by Laws 2006, c. 261, § 10, eff. July 1, 2006.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2357.302. Credit for employee tuition reimbursement.

A. Except as provided in subsection F of this section, for taxable years beginning after December 31, 2008, and ending before January 1, 2026, a qualified employer shall be allowed a credit against the tax imposed pursuant to Section 2355 of this title for tuition reimbursed to a qualified employee.
B. The credit authorized by subsection A of this section may be claimed only if the qualified employee has been awarded an undergraduate or graduate degree within one (1) year of commencing employment with the qualified employer.
C. The credit authorized by subsection A of this section shall be in the amount of fifty percent (50%) of the tuition reimbursed to a qualified employee for the first through fourth years of employment. In no event shall this credit exceed fifty percent (50%) of the average annual amount paid by a qualified employee for enrollment and instruction in a qualified program at a public institution in Oklahoma.
D. The credit authorized by subsection A of this section shall not be used to reduce the tax liability of the qualified employer to less than zero (0).
E. No credit authorized by this section shall be claimed after the fourth year of employment.
F. No credit otherwise authorized by the provisions of this section may be claimed for any event, transaction, investment, expenditure or other act occurring on or after July 1, 2010, for which the credit would otherwise be allowable. The provisions of this subsection shall cease to be operative on July 1, 2011. Beginning July 1, 2011, the credit authorized by this section may be claimed for any event, transaction, investment, expenditure or other act occurring on or after July 1, 2011, according to the provisions of this section.
Added by Laws 2008, c. 417, § 2, eff. Jan. 1, 2009. Amended by Laws 2010, c. 327, § 26, eff. July 1, 2010; Laws 2011, c. 5, § 1; Laws 2014, c. 30, § 2, eff. Nov. 1, 2014; Laws 2017, c. 153, § 1, eff. Nov. 1, 2017.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2357.303. Credit for compensation paid to employees.

A. Except as provided in subsection F of this section, for taxable years beginning after December 31, 2008, and ending before January 1, 2026, a qualified employer shall be allowed a credit against the tax imposed pursuant to Section 2355 of this title for compensation paid to a qualified employee.
B. The credit authorized by subsection A of this section shall be in the amount of:
1. Ten percent (10%) of the compensation paid for the first through fifth years of employment in the aerospace sector if the qualified employee graduated from an institution located in this state; or
2. Five percent (5%) of the compensation paid for the first through fifth years of employment in the aerospace sector if the qualified employee graduated from an institution located outside this state.
C. The credit authorized by this section shall not exceed Twelve Thousand Five Hundred Dollars ($12,500.00) for each qualified employee annually.
D. The credit authorized by this section shall not be used to reduce the tax liability of the qualified employer to less than zero (0).
E. No credit authorized pursuant to this section shall be claimed after the fifth year of employment.
F. No credit otherwise authorized by the provisions of this section may be claimed for any event, transaction, investment, expenditure or other act occurring on or after July 1, 2010, for which the credit would otherwise be allowable. The provisions of this subsection shall cease to be operative on July 1, 2011. Beginning July 1, 2011, the credit authorized by this section may be claimed for any event, transaction, investment, expenditure or other act occurring on or after July 1, 2011, according to the provisions of this section.
Added by Laws 2008, c. 417, § 3, eff. Jan. 1, 2009. Amended by Laws 2010, c. 327, § 27, eff. July 1, 2010; Laws 2011, c. 5, § 2; Laws 2014, c. 30, § 3, eff. Nov. 1, 2014; Laws 2017, c. 153, § 2, eff. Nov. 1, 2017.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2357.304. Credit for employees.

A. Except as provided in subsection D of this section, for taxable years beginning after December 31, 2008, and ending before January 1, 2026, a qualified employee shall be allowed a credit against the tax imposed pursuant to Section 2355 of this title of up to Five Thousand Dollars ($5,000.00) per year for a period of time not to exceed five (5) years.
B. The credit authorized by this section shall not be used to reduce the tax liability of the taxpayer to less than zero (0).
C. Any credit claimed, but not used, may be carried over, in order, to each of the five (5) subsequent taxable years.
D. No credit otherwise authorized by the provisions of this section may be claimed for any event, transaction, investment, expenditure or other act occurring on or after July 1, 2010, for which the credit would otherwise be allowable. The provisions of this subsection shall cease to be operative on July 1, 2011. Beginning July 1, 2011, the credit authorized by this section may be claimed for any event, transaction, investment, expenditure or other act occurring on or after July 1, 2011, according to the provisions of this section.
Added by Laws 2008, c. 417, § 4, eff. Jan. 1, 2009. Amended by Laws 2010, c. 327, § 28, eff. July 1, 2010; Laws 2011, c. 5, § 3; Laws 2014, c. 30, § 4, eff. Nov. 1, 2014; Laws 2017, c. 153, § 3, eff. Nov. 1, 2017.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2357.401. Electronic fund transfer tax credit.

A. Except as otherwise provided by subsections B and C of this section, for taxable years beginning January 1, 2009, and ending before January 1, 2017, there shall be allowed a credit against the tax imposed pursuant to Section 2355 of this title in the amount of all electronic funds transfers fees paid by an individual or entity pursuant to Section 2-503.1j of Title 63 of the Oklahoma Statutes.
B. For any fees paid by a person or entity for the taxable year beginning January 1, 2009, the credit otherwise authorized by this section shall not be claimed for an individual prior to January 1, 2011. Subject to the requirements of this subsection, an individual taxpayer shall be able to claim the credit authorized by this section for all fees paid during the tax year ending December 31, 2009, and the tax year ending December 31, 2010, on the income tax return filed for the tax year ending December 31, 2010.
C. For any fees paid by an entity other than a natural person for the taxable year beginning January 1, 2009, the credit otherwise authorized by this section shall not be claimed on an income tax return prior to January 1, 2011. Subject to the requirements of this subsection, an entity other than a natural person shall be able to claim the credit authorized by this section for all fees paid during a tax year ending at any time during calendar year 2009 and for all fees paid during calendar year 2010 on the income tax return filed for the tax year ending not later than December 31, 2010.
D. The credit authorized by this section shall not be used to reduce the income tax liability of the taxpayer to less than zero (0).
E. To the extent not used in any taxable year, the credit authorized by this section may be carried over, in order, to each of the five (5) succeeding taxable years.
Added by Laws 2009, c. 442, § 16, eff. July 1, 2009. Amended by Laws 2014, c. 34, § 1, eff. Nov. 1, 2014.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2357.406. Tax credit for blood donations by employees.

A. As used in this section:
1. "Blood donation" means the voluntary and uncompensated donation of whole blood, or specific components of blood, by an employee, drawn for use by a nonprofit blood bank organization as part of a blood drive;
2. "Blood drive" means a function held at a specific date and time which is organized by a nonprofit blood bank organization in coordination with an employer or group of employers and is closed to nonemployees;
3. "Employee" means an individual employed by an employer authorized to claim a credit pursuant to this section;
4. "Employer" means a sole proprietor, general partnership, limited partnership, limited liability company, corporation or other legally recognized business entity; and
5. "Verified donation" means a blood donation by an employee, made during a blood drive as defined in paragraph 2 of this subsection, which can be documented by an employer.
B. For tax years 2022 through 2027, an employer shall be allowed a credit against the tax imposed pursuant to Section 2355 or 2355.1P-4 of Title 68 of the Oklahoma Statutes, for each verified donation of blood made by an employee as part of a blood drive by an Oklahoma nonprofit blood donation organization.
C. The credit authorized by subsection B of this section shall be equal to Twenty Dollars ($20.00) for each verified donation.
D. The credit authorized by this section shall not be used to reduce the tax liability of the taxpayer to less than zero (0).
E. The total amount of credits authorized by this section used to offset tax shall be adjusted annually to limit the annual amount of credits to Five Hundred Thousand Dollars ($500,000.00). The Oklahoma Tax Commission shall annually calculate and publish a percentage by which the credits authorized by this section shall be reduced so the total amount of credits used to offset tax does not exceed Five Hundred Thousand Dollars ($500,000.00) per year. The formula to be used for the percentage adjustment shall be Five Hundred Thousand Dollars ($500,000.00) divided by the credits claimed in the second preceding year.
F. The Oklahoma Tax Commission may determine, by rule, documentation required to implement this section.
Added by Laws 2021, c. 541, § 1, eff. Nov. 1, 2021.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2357.601. XXX.

A. As used in this section, "nonrecurring adoption expenses" means adoption fees, court costs, medical expenses, attorney fees, and expenses which are directly related to the legal process of adoption of a child including, but not limited to, costs relating to the adoption study, health and psychological examinations, transportation, and reasonable costs of lodging and food for the child or adoptive parents which are incurred to complete the adoption process and are not reimbursed by other sources. The term nonrecurring adoption expenses shall not include attorney fees incurred for the purpose of litigating a contested adoption, from and after the point of the initiation of the contest, costs associated with physical remodeling, renovation, and alteration of the adoptive parents' home or property, except for a special needs child as authorized by the court.
B. For taxable years beginning on or after January 1, 2023, there shall be allowed a credit against the tax imposed pursuant to Section 2355 of Title 68 of the Oklahoma Statutes for nonrecurring adoption expenses paid by a resident individual taxpayer in connection with:
1. The adoption of a minor; or
2. A proposed adoption of a minor which did not result in a decreed adoption.
C. The amount of the tax credit authorized by this section shall be equal to ten percent (10%) of the qualified expenses but the credit amount shall not exceed Two Thousand Dollars ($2,000.00) per calendar year with respect to single filing status or married filing separate income tax returns and shall not exceed Four Thousand Dollars ($4,000.00) per calendar year with respect to married filing joint return filing status.
D. The Oklahoma Tax Commission shall promulgate rules to implement the provisions of this section which shall contain a specific list of nonrecurring adoption expenses which may be presumed to qualify for the tax credit. The Tax Commission shall prescribe necessary requirements for verification.
Added by Laws 2022, c. 341, § 1, eff. Nov. 1, 2022.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2358.1. Prisoners of war - Missing in action - Exceptions - Refunds.

The income of a member of the Armed Forces of the United States or a civilian who has been or is detained as a prisoner of war or listed as missing in action in a conflict with the enemy in the Southeast Asia and Vietnam war or conflict, and in any future war or conflict with an enemy of the United States, and the income of the spouse or dependent of such person shall be exempt from Oklahoma income tax for and during the time in which such person was or is detained as a prisoner of war or as confirmed missing in action, and for the remainder of such taxpayer's income tax year following the release of such prisoner of war or, if a person missing in action, until he is declared deceased by the Armed Forces.
In any case where an income tax has been paid upon the income, irrespective of the source of such income, of any such person who was or is a prisoner of war or missing in action, or upon the income of such person's spouse or dependent for any year during the time in which such person was or is a prisoner of war or missing in action, the tax monies shall be refunded to the person or persons having paid such tax. Such refund shall be made by the Oklahoma Tax Commission out of the Oklahoma Income Tax Adjustment Fund, and so much of such fund as is necessary for such purpose is hereby appropriated. The provisions of this act shall be liberally construed to accomplish its purpose and the statute of limitations in respect to refunds of income taxes shall not apply to taxpayers covered by this act.
Laws 1973, c. 128, § 1, emerg. eff. May 9, 1973.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2358.1A. Death of member of armed forces in combat zone - Exemptions - refunds.

A. Any payment made by the United States Department of Defense as a result of the death of a member of the Armed Forces of the United States who has been killed in action in a United States Department of Defense designated combat zone shall be exempt from Oklahoma income tax during the taxable year in which the individual is declared deceased by the Armed Forces. Any income earned by the spouse of a member of the Armed Forces of the United States who has been killed in action in a United States Department of Defense designated combat zone shall be exempt from Oklahoma income tax during the taxable year in which the individual is declared deceased by the Armed Forces.
B. In any case where income tax has been paid upon any income exempt pursuant to subsection A of this section, the tax monies shall be refunded to the person or personal representative of the person. The refund shall be made by the Oklahoma Tax Commission out of the Oklahoma Income Tax Adjustment Fund, and so much of such fund as is necessary for such purpose is hereby appropriated. The provisions of this section shall be liberally construed to accomplish its purpose and the statute of limitations with respect to refunds of income taxes shall not apply to taxpayers covered by this section.
Added by Laws 2009, c. 217, § 1, eff. Jan. 1, 2010.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2358.4. Adjustment for individuals engaged in farming business.

A. For taxable years beginning after December 31, 2000, at the election of an individual engaged in a farming business, the tax imposed by Section 2355 of Title 68 of the Oklahoma Statutes for such taxable year shall be equal to the sum of:
1. A tax computed under such section on taxable income reduced by elected farm income; and
2. The increase in tax imposed by Section 2355 of Title 68 of the Oklahoma Statutes which would result if taxable income for each of the three (3) prior taxable years were increased by an amount equal to one-third (1/3) of the elected farm income.
Any adjustment under this section for any taxable year shall be taken into account in applying this section for any subsequent taxable year.
B. As used in this section:
1. "Elected farm income" means so much of the taxable income for the taxable year which is attributable to any farming business, and which is specified in the election under subsection A of this section. For purposes of this paragraph, a gain from the sale or other disposition of property, other than land, regularly used by the taxpayer in such a farming business for a substantial period shall be treated as attributable to such a farming business;
2. "Individual" shall not mean or include any estate or trust; and
3. "Farming business" shall have the same meaning as the term is defined in the Internal Revenue Code, 26 U.S.C., Section 263A(e)(4).
C. The Oklahoma Tax Commission shall promulgate any necessary rules to implement the provisions of this section.
Added by Laws 2000, c. 290, § 1, eff. Jan. 1, 2001.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2358.5. Interest on certain governmental obligations exempt from income tax.

A. Interest on local governmental obligations issued after the effective date of this act for purposes other than to provide financing for projects for nonprofit corporations shall be exempt from Oklahoma income taxation. For these purposes, local governmental obligations shall include bonds or notes issued by, or on behalf of, or for the benefit of Oklahoma educational institutions, cities, towns, or counties or by public trusts of which any of the foregoing is a beneficiary.
B. Interest on governmental obligations issued by the Oklahoma Department of Transportation after the effective date of this act for purposes of highway construction and maintenance shall be exempt from Oklahoma income taxation.
Added by Laws 2000, c. 351, § 12, eff. July 1, 2001. Amended by Laws 2002, c. 290, § 1, eff. July 1, 2002.
NOTE: Editorially renumbered from § 2358.4 of this title to avoid duplication in numbering.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2358.5-1. Deduction for fostering children.

For taxable years beginning on or after January 1, 2019, there shall be allowed a deduction for a taxpayer who contracts with a child-placing agency, as defined in Section 402 of Title 10 of the Oklahoma Statutes, in the amount of Five Thousand Dollars ($5,000.00) for expenses incurred to provide care for a foster child. Provided:
1. In order to qualify, a taxpayer shall have been under contract and providing care for at least six (6) months, regardless of the tax year during which the care occurs;
2. If the time period during which a taxpayer is under contract and providing care is equal to less than six (6) months of the tax year for which the deduction is being claimed, the taxpayer shall only claim a monthly pro rata share of the annual Five Thousand Dollars ($5,000.00) deduction; and
3. Any married persons filing separately in a year in which they could have filed a joint return may each claim only one-half (1/2) of the tax deduction that would have been allowed for a joint return.
Added by Laws 2013, c. 352, § 1, eff. Jan. 1, 2014. Amended by Laws 2014, c. 412, § 1, emerg. eff. June 3, 2014; Laws 2019, c. 264, § 1, eff. Nov. 1, 2019.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2358.5A. Obligations issued by state and certain state agencies exempt from taxation.

A. All bonds, notes, debentures, evidences of indebtedness, lease purchase agreements, certificates of participation, commercial paper, or other obligations issued by the State of Oklahoma, the Oklahoma Capitol Improvement Authority, the Oklahoma Municipal Power Authority, the Oklahoma Student Loan Authority, and the Oklahoma Transportation Authority, the income therefrom, including, without limitation, any profit made on the sale thereof, and the transfer thereof, including, without limitation, estate or inheritance taxes, shall at all times be free from taxation within this state.
B. The provisions of this section shall be supplemental to, and not limiting or restrictive of, any law involving the taxation of such obligations within the State of Oklahoma.
Added by Laws 2006, c. 327, § 6, eff. July 1, 2006.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2358.6. Bonus depreciation received under federal law - Addition to federal taxable income - Subtraction in later years.

A. For income tax returns filed after September 10, 2001, by corporations and fiduciaries, federal taxable income shall be increased by eighty percent (80%) of any amount of bonus depreciation received under the federal Job Creation and Worker Assistance Act of 2002, under Section 168(k) or Section 1400L of the Internal Revenue Code of 1986, as amended, for assets placed in service after September 10, 2001, and before September 11, 2004.
B. For income tax returns filed after December 31, 2007, by corporations and fiduciaries, federal taxable income shall be increased by eighty percent (80%) of any amount of bonus depreciation received under the federal Economic Stimulus Act of 2008, or under the American Recovery and Reinvestment Act of 2009, under Section 168(k) or Section 1400L of the Internal Revenue Code of 1986, as amended, for assets placed in service after December 31, 2007, and before January 1, 2010.
C. For a corporation with a unitary business having activity both inside and outside the state, the increase shall be apportioned to Oklahoma in the same manner as income is apportioned to the state under Section 2358 and Section 2362 of this title.
D. The amount of bonus depreciation added to federal taxable income by this section shall be subtracted in a later taxable year as herein provided. Twenty-five percent (25%) of the total amount of bonus depreciation added back may be subtracted in the first taxable year following the year of the addition and twenty-five percent (25%) may be subtracted in each of the next three following taxable years.
E. A corporation or fiduciary filing a return for which federal taxable income is not increased as provided in subsection A of this section prior to October 1, 2002, shall file an amended return reflecting such increase not later than June 30, 2003. The Oklahoma Tax Commission shall not assess penalties or interest with respect to the failure to reflect such increase if a correct amended return is filed as required herein. A corporation or fiduciary filing a return for which federal taxable income is not increased as provided for in subsection B of this section prior to October 1, 2008, shall file an amended return reflecting such increase not later than June 30, 2009. The Tax Commission shall not assess penalties or interest with respect to the failure to reflect such increase if a correct amended return is filed as required herein.
Added by Laws 2002, c. 503, § 3, emerg. eff. June 7, 2002. Amended by Laws 2008, c. 395, § 2, emerg. eff. June 3, 2008; Laws 2009, c. 426, § 11, emerg. eff. June 1, 2009.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2358.100. Filing of amended income tax return for 2004 or 2005.

Notwithstanding any other provision of law to the contrary, any taxpayer who has filed an income tax return for the 2004 or 2005 income tax year or who requested an extension, whether or not the extension was granted, and whether or not the extension has expired prior to the effective date of this act, or will expire at any time prior to January 1, 2006, may file an amended return in order to recompute adjusted gross income or taxable income, as applicable, based upon the amendments as contained in Enrolled House Bill No. 1547 of the 1st Session of the 50th Oklahoma Legislature with respect to allocation of capital or ordinary gains from the sale of a publicly traded partnership as provided by division (2) of subparagraph b of paragraph 4 of subsection A of Section 2358 of Title 68 of the Oklahoma Statutes.
Added by Laws 2005, c. 458, § 3, eff. July 1, 2005.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2359. Exempted organizations.

A. A person or organization exempt from federal income taxation under the provisions of the Internal Revenue Code shall also be exempt from the tax imposed by Section 2351 et seq. of this title in each year in which such person or organization satisfies the requirements of the Internal Revenue Code for exemption from federal income taxation. If the exemption applicable to any person or organization under the provisions of the Internal Revenue Code is limited or qualified in any manner, the exemption from taxes imposed by this article shall be limited or qualified in a similar manner.
B. Notwithstanding the provisions of subsection A of this section, the unrelated business taxable income or other income subject to tax, as computed under the provisions of the Internal Revenue Code, of any person or organization exempt from the tax imposed by Section 2351 et seq. of this title and subject to the tax imposed on such income by the Internal Revenue Code shall be subject to the tax which would have been imposed by this act but for the provisions of subsection A of this section.
C. Insurance companies paying, during or for the taxable year, a tax to this state on gross premium income shall be exempt from the provisions of this article and the taxes levied thereby.
D. Royalty earned by an inventor from products developed and manufactured in this state shall be exempt from the tax imposed by Section 2355 of this title for a seven-year period, pursuant to the provisions of Section 5064.7 of Title 74 of the Oklahoma Statutes.
E. Tenants of small business incubators shall be exempt for the tax imposed by Section 2355 of this title, pursuant to the provisions of Section 5078 of Title 74 of the Oklahoma Statutes.
Added by Laws 1971, c. 137, § 9, emerg. eff. May 11, 1971. Amended by Laws 1975, c. 122, § 1, emerg. eff. May 13, 1975; Laws 1987, c. 121, § 10, eff. Nov. 1, 1987; Laws 1987, c. 228, § 11, eff. Jan. 1, 1988; Laws 1988, c. 313, § 1, emerg. eff. July 1, 1988; Laws 2019, c. 320, § 4.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2360. Accounting periods and methods.

A. The taxpayer's taxable year under this act shall be the same as his taxable year for federal income tax purposes. If, on the effective date of this act, the taxpayer's taxable year for Oklahoma income tax purposes is different than his taxable year for federal income tax purposes, the taxpayer shall file a return for the short period ending on the day for which his current taxable year for federal income tax purposes ends. If such taxpayer's taxable year for federal income tax purposes ends after his taxable year for Oklahoma income tax purposes, then the taxpayer shall file a return for such regular Oklahoma taxable year and a return for the short period ending with the federal taxable year.
The Tax Commission shall prescribe and promulgate all necessary rules and regulations for annualizing income and/or deductions for short years necessitated by the transition, if any, to the federal taxable year.
B. If a taxpayer's taxable year is changed for federal income tax purposes, his Oklahoma taxable year shall be similarly changed under the same rules applicable under the Internal Revenue Code.
C. The taxpayer's method of accounting under this act shall be the same as his method of accounting for federal income tax purposes.
D. If a taxpayer's method of accounting is changed for federal income tax purposes, such taxpayer's method for Oklahoma income tax purposes shall be similarly changed under the same rules applicable under the Internal Revenue Code.
Added by Laws 1971, c. 137, § 10, emerg. eff. May 11, 1971.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2361. Filings by married taxpayers - Joint returns - Relief from liability for deficiency.

Married taxpayers shall file joint or separate returns in accordance with the manner in which they file returns to the federal government, or in the event of an adjustment thereto by the federal government, as finally ascertained to be proper under the Internal Revenue Code; except that: where either is a resident and the other is a nonresident, they shall not be entitled to file joint Oklahoma income tax returns, but if a joint return was filed with the federal government, then the adjusted gross income as returned to the federal government, or in the event of an adjustment thereto by the federal government as finally ascertained under the Internal Revenue Code, shall be allocated between the husband and wife. The foregoing exception shall not apply if the nonresident is an active duty service member whose income is not subject to Oklahoma income tax by virtue of the Soldier's and Sailor's Civil Relief Act or if both have net income and they desire to file a joint Oklahoma return and elect to have their Oklahoma income determined and taxed on the basis of a joint Oklahoma return as if both were residents.
If a joint return has been made under this section for a tax year and taking into account all the facts and circumstances, the Tax Commission determines that it is inequitable to hold one of the spouses liable for the deficiency in tax for such tax year, then such spouse shall be relieved of liability for tax, including interest and penalties, for such tax year to the extent that such deficiency is determined to be the liability of the other spouse. For purposes of this section, the determination made by the Tax Commission shall be the same as the determination made by the Internal Revenue Service provided the tax year and circumstances surrounding the liability are the same. If there has been no determination made by the Internal Revenue Service, the Tax Commission shall apply the factors that would have been applied by the Internal Revenue Service had a determination been requested.
Added by Laws 1971, c. 137, § 11, emerg. eff. May 11, 1971. Amended by Laws 1994, c. 278, § 26, eff. Sept. 1, 1994; Laws 1995, c. 337, § 8, emerg. eff. June 9, 1995; Laws 2001, c. 244, § 1, emerg. eff. May 23, 2001.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2363. Partners and Partnerships.

The Oklahoma distributive share of partnership income, gains, losses or deductions of a partnership to be reported by the partners shall be the same portion of that reported for federal income tax purposes, as the Oklahoma income, gain, losses or deduction determined under Sections 2358 and/or 2362 of this title for said partnership, bears to the federal income, gains, losses or deductions.
Laws 1971, c. 137, § 13, emerg. eff. May 11, 1971.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2364. Estates, trusts and beneficiaries.

A. The Oklahoma taxable income or loss of an estate, trust or any beneficiary of either shall be the same portion of that reported for federal income tax purposes as the Oklahoma income, gains, losses or deductions determined under applicable provisions of this act for said estate, trust and/or beneficiary bears to the federal income, gains, losses or deductions. Amounts allowable under the Oklahoma Estate Tax Law as deductions in computing the taxable estate of a decedent shall not be allowed as deductions in computing the taxable income of the estate or of any other person unless there is filed, as provided in Internal Revenue Code, Section 642, or any provisions comparable thereto, the statement required therein and if such waiver is filed then to the extent allowed as a deduction for income tax purposes, such amount shall not be allowed for estate tax purposes.
B. A beneficiary of a trust shall exclude from Oklahoma taxable income any excess distributions by trusts required to be included in the beneficiary's federal taxable income by reason of Sections 665 through 669 of the Internal Revenue Code, or any provisions comparable thereto.
Added by Laws 1971, c. 137, § 14. Amended by Laws 1971, p. 1043, H.J.R. No. 1026, § 2A26, emerg. eff. June 22, 1971.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2365. Subchapter S corporations.

Except as otherwise provided for in the Pass-Through Entity Tax Equity Act of 2019, the provisions, applicable to the taxation of income of corporations and stockholders, electing treatment as provided in subchapter S of the Internal Revenue Code, shall apply to taxpayers as provided under this act. A corporation having an election in effect under subchapter S of the Internal Revenue Code shall not be subject to the Oklahoma income tax on corporations and for tax years beginning after December 31, 1996, shall not be subject to the tax imposed by subsection A of Section 2370 of this title, and the shareholders of such corporation shall include in their taxable incomes their proportionate part of the federal income of such corporation, subject to the modifications as set forth in Sections 2358, 2362 and 2370.2 of this title, in the same manner and to the same extent as provided by the Internal Revenue Code. However, if any of the shareholders of such corporation are nonresidents during any part of the taxable year of the corporation, such corporation shall be taxable for such year on that part of the income of the corporation, as determined pursuant to Sections 2358, 2362 and 2370.2 of this title, allocable to the shares of stock owned by such nonresident unless (i) the corporation files with its return for such year an agreement executed by each nonresident stockholder stating that such nonresident will file an Oklahoma income tax return which will include in the adjusted gross income of such nonresident that portion of the Oklahoma taxable income of the corporation allocable to the interest of the nonresident in such corporation, or (ii) the corporation has made a valid election pursuant to the provisions of the Pass-Through Entity Tax Equity Act of 2019 and has paid the applicable tax. For purposes of this section, the term "corporation" shall include state–chartered banks, state and federal savings associations and national banking associations that have total assets of Three Billion Dollars ($3,000,000,000.00) or less and that are organized pursuant to the laws of this state, or the United States, or are located or doing business in this state.
Added by Laws 1971, c. 137, § 15, emerg. eff. May 11, 1971. Amended by Laws 2000, c. 5, § 1, emerg. eff. March 14, 2000; Laws 2001, c. 319, § 1, eff. July 1, 2001; Laws 2019, c. 201, § 6, emerg. eff. April 29, 2019.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2366. Allocation of income and deductions.

The Tax Commission may allocate gross income, gains, losses, deductions, credits or allowances between two or more organizations, trades or businesses (whether or not incorporated, or organized in the United States or affiliated) owned or controlled directly or indirectly by the same interests, if the Tax Commission reasonably determines such allocation is necessary to prevent evasion of taxes or to clearly reflect income of the organizations, trades or businesses. Each such organization shall be deemed to be transacting business in Oklahoma and subject to all the provisions of this act. This section shall apply only with respect to related organizations, trades or businesses which in the aggregate derive income both within and outside the State of Oklahoma and then only with respect to such income, deductions, credits or allowances related thereto.
Added by Laws 1971, c. 137, § 16, emerg. eff. May 11, 1971.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2367. Consolidated returns.

The provisions of the Internal Revenue Code, 26 U.S.C., Section 1 et seq., applicable to consolidated corporate income tax returns, shall not apply to taxpayers under this act, except that:
1. If two or more corporations file federal income tax returns on a consolidated basis, and if all of such corporations derive all of their income from sources within Oklahoma, then such corporations shall be required to file consolidated returns for purposes of determining their Oklahoma income tax liability.
2. If two or more corporations file federal income tax returns on a consolidated basis, and if one or more of such corporations derive a portion of their income from sources outside the State of Oklahoma, then such corporations shall not be required to file consolidated returns for purposes of determining their Oklahoma income tax liability except as hereinafter provided in subsection 3 of this section.
3. The Oklahoma Tax Commission shall permit an affiliated group of corporations described in subsection 2 of this section to elect to file a consolidated return for Oklahoma income tax purposes provided such group files an appropriate election in accordance with regulations to be promulgated by the Tax Commission. If an affiliated group of corporations elects to file a consolidated Oklahoma income tax return under the provisions of this section, such election shall be binding and the affiliated group of corporations shall be required to file a consolidated Oklahoma income tax return for future tax years unless the Oklahoma Tax Commission releases the affiliated group of corporations from such election. If an affiliated group of corporations elects to file a consolidated Oklahoma income tax return under the provisions of this subsection, the group's consolidated income, loss or deductions shall be determined on a component member by component member basis in accordance with the provisions of Sections 2358 and 2362 of this title.
Laws 1971, c. 137, § 17; Laws 1971, p. 1043, H.J.R. No. 1026, § 2A19, emerg. eff. June 22, 1971; Laws 1993, c. 273, § 5, eff. Sept. 1, 1993.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2368.1. Check-off for donation to Oklahoma City National Memorial Foundation.

A. The Oklahoma Tax Commission shall include on each state individual income tax return form for tax years beginning after December 31, 2001, and each state corporate tax return form for tax years beginning after December 31, 2001, an opportunity for the taxpayer to donate from a tax refund for the benefit of the Oklahoma City National Memorial Foundation.
B. The monies generated from donations made pursuant to subsection A of this section shall be collected by the Oklahoma Tax Commission and placed to the credit of the Oklahoma City National Memorial Foundation to help defray the expense to construct and maintain the national memorial created to honor the victims of the bombing of the Alfred P. Murrah Federal Building in Oklahoma City.
Added by Laws 2000, c. 25, § 1, eff. Sept. 1, 2000. Amended by Laws 2001, c. 358, § 28, eff. July 1, 2001.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2368.2. Minimum cumulative donations from check-offs – Removal of check-off from forms.

A. Except as exempted in subsection B of this section, if on September 1 of any year the total contributions to any one of the funds created through donations or contributions from income tax refunds by checking the appropriate box on the income tax return forms do not equal Fifteen Thousand Dollars ($15,000.00) or more for three (3) consecutive years, the explanations and spaces for designating contributions to the fund shall be removed from the income tax return forms for the following and all subsequent years. All contributions to the removed fund after September 1 shall be refunded to the taxpayer.
B. The provisions of this section shall not apply to:
1. The Income Tax Checkoff Revolving Fund for the Support of the Folds of Honor Scholarship Program authorized in Section 2368.19 of this title; or
2. The Oklahoma Silver Haired Legislature - Excellence in State Government Revolving Fund.
Added by Laws 2000, c. 25, § 2, eff. Sept. 1, 2000. Amended by Laws 2017, c. 112, § 1, eff. Nov. 1, 2017; Laws 2019, c. 370, § 1, eff. Nov. 1, 2019.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2368.3. Tax refund donation to Oklahoma School for the Deaf and Oklahoma School for the Blind - Revolving fund.

A. Each state individual income tax return form for tax years which begin after December 31, 2001, and each state corporate tax return form for tax years beginning after December 31, 2001, shall contain a provision to allow a donation from a tax refund for the benefit of the Oklahoma School for the Deaf and the Oklahoma School for the Blind, as follows:
Oklahoma School for the Deaf/Oklahoma School for the Blind. Check if you wish to donate from your tax refund: ( ) $2, ( ) $5, or ( ) $____.
B. Except as otherwise provided for in this section, all monies generated pursuant to subsection A of this section shall be paid to the State Treasurer by the Oklahoma Tax Commission and placed to the credit of the Oklahoma School for the Deaf/Oklahoma School for the Blind Revolving Fund created in subsection C of this section.
C. There is hereby created in the State Treasury a revolving fund for the State Department of Rehabilitation Services to be designated the "Oklahoma School for the Deaf/Oklahoma School for the Blind Revolving Fund". The fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of all monies apportioned to the fund pursuant to the provisions of this section. All monies accruing to the credit of the fund are hereby appropriated and may be budgeted and expended by the State Department of Rehabilitation Services for the purpose of funding programs at the Oklahoma School for the Deaf and the Oklahoma School for the Blind. Such monies shall be equally divided between the two designated schools. Expenditures from the fund shall be made upon warrants issued by the State Treasurer against claims filed as prescribed by law with the Director of the Office of Management and Enterprise Services for approval and payment.
D. If a taxpayer makes a donation pursuant to subsection A of this section in error, such taxpayer may file a claim for refund at any time within three (3) years from the due date of the tax return. Such claims shall be filed pursuant to the provisions of Section 2373 of this title. Prior to the apportionment set forth in this section, an amount equal to the total amount of refunds made pursuant to this subsection during any one (1) year shall be deducted from the total donations received pursuant to this section during the following year and such amount deducted shall be paid to the State Treasurer and placed to the credit of the Income Tax Withholding Refund Account.
Added by Laws 2001, c. 251, § 1, eff. Nov. 1, 2001. Amended by Laws 2012, c. 304, § 549.
2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-2368.3a. Oklahoma Silver Haired Legislature – Excellence in State Government Revolving Fund.

A. There is hereby created in the State Treasury a revolving fund for the Department of Human Services, to be designated the "Oklahoma Silver Haired Legislature – Excellence in State Government Revolving Fund". The fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of any monies transferred thereto by Section 2368.4 of this title.
B. All monies accruing to the credit of said fund are hereby appropriated and shall be budgeted and expended by the Department of Human Services for the purposes specified by Section 2368.4 of this title; provided no monies in the fund shall be expended for salaries or other administrative costs, or any programs or services not authorized by Section 2368.4 of this title.
C. Expenditures from said fund shall be made upon warrants issued by the State Treasurer against claims filed as prescribed by law with the Director of the Office of Management and Enterprise Services for approval and payment.
Added by Laws 2002, c. 321, § 2, eff. Nov. 1, 2002. Amended by Laws 2012, c. 304, § 550.