Okla. Admin. Code § 710:50-15-113

Current through Vol. 42, No. 1, September 16, 2024

Section 710:50-15-113 - Qualified independent biomedical research institute or qualified cancer research center credit

(a)General provisions. For tax years beginning after December 31, 2004, there is allowed a credit against the tax imposed by 68 O.S. Section 2355 to any taxpayer who makes a donation to a qualified independent biomedical research institute. For tax years beginning after December 31, 2010 any taxpayer who makes a donation to a qualified cancer research institute is also eligible for the credit.

(b)Definitions.

(1)"Qualified cancer research institute"means an organization which is exempt from taxation pursuant to the Internal Revenue Code whose primary focus is raising the standard of cancer clinical care in Oklahoma through peer-reviewed cancer research and education. The organization must be either an independent research institute or a program that is part of a state university which is a member of the Oklahoma State System of Higher Education and must receive at least Four Million Dollars ($4,000,000) in National Cancer Institute funding per year.

(2)"Qualified independent biomedical research institute"means an organization which is exempt from taxation under the Internal Revenue Code section 501(c)(3) whose primary focus is conducting peer-reviewed basic biomedical research. The organization shall have a board of directors, be able to accept grants in its own name, be an identifiable institute that has its own employees and administrative staff, and receive at least Fifteen Million Dollars ($15,000,000) in National Institute of Health funding each year.

(c)Qualification. In order to qualify for the credit, taxpayers must make a donation to either a qualified independent biomedical research institute or a qualified cancer research institute

(d)Computation of credit and limitations. The credit is fifty percent (50%) of the amount donated, but may not exceed $1,000 ($2,000 for a married filing joint return) for each taxpayer for each type of donation. Taxpayers may not claim more than one credit for a donation to a qualified independent biomedical research institute and one credit for a donation to a qualified cancer research institute.

(e)For donations made between January 1, 2007 and December 31, 2010. If the total credit allowed results in the reduction in total Oklahoma income tax of more than Two Million Dollars ($2,000,000.00) in any previous calendar year, the percentage of the credit for qualified donations will be adjusted. The adjusted percentage allowable will be determined by multiplying fifty percent (50%) times Two Million Dollars ($2,000,000.00) and then dividing the result by the credits claimed in the preceding calendar year.

(f)Special limits for tax year 2011.

(1) For tax year 2011 only, no more than Fifty Thousand Dollars ($50,000.00) in credits for donations to a qualified cancer research institute will be allowed. The qualified cancer research institute will notify donors if their donations are eligible for the tax credit. The qualified cancer research institute will also provide the donor with written acknowledgement of the donation and the amount of the credit, and will provide this information to the Oklahoma Tax Commission as well.

(2) If the total credit allowed for qualified donations to qualified independent biomedical research institutes results in the reduction in total Oklahoma income tax of more than One Million Dollars ($1,000,000.00) in tax year 2011, the percentage of the credit for qualified donations will be adjusted for tax year 2012.

(A) The percentage of credit allowable for donations to qualified independent biomedical research institutes for tax year 2012 will be determined by multiplying fifty percent (50%) times One Million Dollars ($1,000,000.00), then dividing the result by the amount of credit allowed for tax year 2011.

(B) Since the total credit for donations to qualified cancer research institutes is capped at Fifty Thousand Dollars ($50,000.00) for tax year 2011, the credit for donations to qualified cancer research institutes will remain fifty percent (50%) for tax year 2012.

(g)For donations made on or after January 1, 2012. The qualified cancer research institute and the qualified biomedical research institute will provide their donors with written acknowledgement of the donation and the amount of the credit, and will provide this information to the Oklahoma Tax Commission as well. If the total tax credits authorized by this Section exceed One Million Dollars ($1,000,000.00) in tax year 2012 or any subsequent tax year for donations to either a cancer research institute or an independent biomedical research institute, the Oklahoma Tax Commission shall permit any excess over One Million Dollars ($1,000,000.00) but will factor such excess into the percentage adjustment formula for subsequent tax years for each type of credit. For credits based on donations to qualified independent biomedical research institutes the adjusted percentage allowable will be determined by multiplying fifty percent (50%) times One Million Dollars ($1,000,000.00), then dividing the result by the credits allowed for donations to qualified independent biomedical research institutes claimed in the preceding tax year. For credits based on donations to qualified cancer research institutes the adjusted percentage allowable will be determined by multiplying fifty percent (50%) times One Million Dollars ($1,000,000.00), then dividing the result by the credits allowed for donations to qualified cancer research institutes claimed in the preceding tax year.

(h)Credit non-refundable, nontransferable; carryover provision. This credit may not be taken as a refund; nor may it be transferred. If the credit exceeds a taxpayer's liability, unused credits may be carried over for four (4) years.

Okla. Admin. Code § 710:50-15-113

Added at 28 Ok Reg 935, eff 6-1-11