Okla. Admin. Code § 710:50-15-77

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

Section 710:50-15-77 - Venture capital company credit

(a) Each qualified Venture Capital Company, as defined in Section 2357.7 of Oklahoma Income Tax statutes, shall file a complete annual report with the Tax Commission and list all funds invested in such company which may qualify for the tax credit allowed by the act. The report shall state the amount of funds the Venture Capital Company invested in each business during the taxable year, the name of such business and its Taxpayer/Employer Identification Number (EIN), date of investment and type of investment.

(b) Each qualified Venture Capital Company shall furnish to each investor in the Company during the preceding year, a written statement showing the name and EIN number of the Venture Capital Company, the name and Taxpayer/Employer Identification Number of the investor and the total amount of the investment of the investor. This statement will be furnished no later than January 31st of the year following the year of their investment in the Venture Capital Company. A copy of this statement is to be attached to the Oklahoma Income Tax Return of the investor in order to qualify for the tax credit.

(c) The credit may be used in the year of the original investment m the Venture Capital Company and for the three succeeding years. This is a non-refundable credit and may not be carried back to a year prior to obtaining the credit.

(d) The original investor may transfer the credit without any limitation. This credit may also be transferred by the transferee at any time during the period that the credit is available for use. The transferred credit may only be used from the time of the transfer forward and is limited to the original qualifying period. [See: 68 O.S. § 2357 ]

(e) An example of the application of the venture capital company credit is as follows:

Example: A makes an investment in a Qualified Venture Capital Plan in 1989 of $20,000.00, receiving a tax credit of $4,000.00. In 1989, A utilizes $1,000 of the tax credit, and has available $3,000.00 for the succeeding three years. In 1990, A transfers to B $1,000.00 of the remaining credit, leaving A with a remaining credit of $2,000.00, which can be utilized in 1990 - 1992. In 1990, B utilizes $250.00 of the $1,000.00 credit. (B cannot use any of the credit for a prior year, however, B may now transfer this credit to C or to any other taxpayer if B is unable to utilize the remaining credit.) B may use the remaining $750.00 credit only in the years 1991 and 1992, the remainder of the original qualifying period. A may utilize or transfer all or any portion of A's remaining credit in the years 1990 - 1992.

Okla. Admin. Code § 710:50-15-77

Amended at 9 Ok Reg 3031, eff 7-13-92