Okla. Stat. tit. 68, § 68-2357.25

cooperatives, ventures and marketing associations.

A. Except as provided in subsection K of this section, there

shall be allowed a credit against the tax imposed by Section 2355 of

this title for direct investments by Oklahoma agricultural producers

in Oklahoma producer-owned agricultural processing cooperatives,

Oklahoma producer-owned agricultural processing ventures, or

Oklahoma producer-owned agricultural processing marketing

associations or Oklahoma-owned and -based corporations or

partnerships created and designed to develop and advance the

production, processing, handling and marketing of agricultural

commodities grown, made or manufactured in Oklahoma. For calendar

years 1997 and 1998, the amount of the credit shall be thirty

percent (30%) of the amount of the investment by the Oklahoma

agricultural producer in Oklahoma producer-owned agricultural

processing cooperatives, ventures, or marketing associations.

B. For calendar year 2006, and all subsequent years, the credit

percentage, not to exceed thirty percent (30%), shall be adjusted

annually so that the total estimate of credits does not exceed Two

Million Dollars ($2,000,000.00) annually. The formula to be used

for the percentage adjustment shall be thirty percent (30%) times

Two Million Dollars ($2,000,000.00) divided by the credits claimed

in the preceding year. In no event shall the credit be claimed more

than once by a taxpayer each taxable year.

C. In the event the total tax credits authorized by this

section exceed Two Million Dollars ($2,000,000.00) in any calendar

year, the Oklahoma Tax Commission shall permit any excess over Two

Million Dollars ($2,000,000.00) but shall factor such excess into

the percentage adjustment formula for subsequent years.

D. The credits authorized by this act may only be claimed for

taxable years beginning after December 31, 2006, and ending before

January 1, 2010. The provisions of this subsection shall not be

applicable to any credits earned, but not utilized, prior to the

effective date of this act.

E. If the credit allowed pursuant to this section exceeds the

amount of state income taxes due or if there are no state income

taxes due on the income of the taxpayer, the amount of credit

allowed but not used in any taxable year may be carried forward as a

credit against subsequent income tax liability for a period not

exceeding six (6) years following the year in which the investment

was originally made.

F. The Oklahoma Tax Commission shall have the authority to

prescribe forms for purposes of claiming the credit authorized by

this section. The Oklahoma Tax Commission shall be authorized to

conduct an investigation of the relevant facts as may be required in

Oklahoma Statutes - Title 68. Revenue and Taxation Page 795

order to verify the eligibility of a claimant to receive a credit

for any applicable income tax year.

G. 1. For any taxable year during which a taxpayer sells or

otherwise disposes of the ownership interest for which a tax credit

has previously been allowed to the taxpayer or for which a tax

credit will be allowed to the taxpayer for the year in which the

sale or other disposition of the ownership interest is made, the

taxpayer shall be required to reduce the cost of the ownership

interest in the Oklahoma producer-owned agricultural processing

cooperative, venture, or marketing association, as reported upon the

applicable income tax return, by the amount of the tax credit which

has previously been granted or for which the taxpayer is claiming

credit if the credit is allowable for the year during which the sale

or other disposition is made.

2. If a taxpayer sells or otherwise disposes of an ownership

interest in the Oklahoma producer-owned agricultural processing

cooperative, venture, or marketing association for which the tax

credit authorized by this section may be taken in a taxable year
ed or for which the taxpayer is claiming

credit if the credit is allowable for the year during which the sale

or other disposition is made.

2. If a taxpayer sells or otherwise disposes of an ownership

interest in the Oklahoma producer-owned agricultural processing

cooperative, venture, or marketing association for which the tax

credit authorized by this section may be taken in a taxable year

following the year in which the ownership interest in the Oklahoma

producer-owned agricultural processing cooperative, venture, or

marketing association is sold or otherwise disposed of, the credit

authorized by this section shall be reduced to account for the prior

sale or other disposition.

H. The tax credit authorized by this section shall not be

available or taken for any calendar year during which the claimant

of the credit received any incentive payments pursuant to the

Oklahoma Quality Jobs Program Act or the Saving Quality Jobs Act.

I. As used in this section:

1. “Direct investment” means the payment of money in an

Oklahoma producer-owned agricultural processing cooperative,

venture, or marketing association or the transfer of any form of

economic value, whether tangible or intangible, other than money;

2. “Oklahoma producer-owned agricultural processing

cooperative” means a legal entity in the nature of a partnership or

business undertaking agricultural transactions or agricultural

commercial enterprises for mutual profit which are owned and

controlled by Oklahoma agricultural producers. An Oklahoma

producer-owned agricultural processing cooperative requires a

community of interest in the performance of the undertaking,

transaction or enterprise, a right to direct and govern the policy

in connection therewith and the duty, which may be altered by

agreement, to share both in profit and losses. The term does not

include a cooperative that provides only, and nothing more than,

storage, cleaning, or transportation of agricultural commodities;

3. “Oklahoma producer-owned agricultural processing venture”

means a legal entity in the nature of a corporation or company

organized to invest in or operate an agricultural commodity

Oklahoma Statutes - Title 68. Revenue and Taxation Page 796

processing facility operated primarily for the processing or

production of marketable products from agricultural commodities.

The term shall include a dairy operation that requires a depreciable

investment of at least Two Hundred Fifty Thousand Dollars

($250,000.00) and which produces milk from dairy cows. The term

does not include a venture that provides only, and nothing more

than, storage, cleaning, or transportation of agricultural

commodities;

4. “Oklahoma producer-owned agricultural processing marketing

association” means:

a. a legal entity owned by Oklahoma producers of

agricultural commodities and organized to jointly

market agricultural commodities and/or natural-

resource-based recreational activities, facilitate the

marketing process and to promote and stimulate the

processing, sales, and marketing of agricultural

commodities, or

b. a legal entity owned by Oklahoma producers of

agricultural commodities and organized for collective

marketing and improvement of land for natural-

resource-based recreational activity;

The term does not include a marketing association that provides

only, and nothing more than, storage, cleaning, or transportation of

agricultural commodities;

5. “Oklahoma agricultural producer” means any person who

produces agricultural commodities in this state;

6. “Oklahoma-based corporation or partnership” means an entity

created pursuant to the Oklahoma General Corporation Act or other

laws of the state authorizing either a corporate entity or an entity

with limited liability or any form of partnership, whether general,

limited or other authorized partnership form having either its

principal place of business within the state or substantial assets
6. “Oklahoma-based corporation or partnership” means an entity

created pursuant to the Oklahoma General Corporation Act or other

laws of the state authorizing either a corporate entity or an entity

with limited liability or any form of partnership, whether general,

limited or other authorized partnership form having either its

principal place of business within the state or substantial assets

located within the state. For the purpose of this section, the

definition contained in this paragraph shall not include an

Oklahoma-based corporation or partnership that engages only in and

nothing more than the storage, cleaning, and transportation or

production of its commodity;

7. “Agricultural commodities” means a farm or ranch product,

including but not limited to, wheat, corn, soybeans, cotton, timber,

cattle, hogs, sheep, horses, poultry, animals of the families

bovidae, cervidae and antilocapridae or birds of the ratite group

produced in farming or ranching operations or a product of such crop

or livestock in its unmanufactured state such as ginned cotton,

wool-dip, maple syrup, milk and eggs, or any other commodity listed

under any Industry Group Number under Major Group 20 of Division D

of the Standard Industrial Classification (SIC) Manual; and

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8. “Dairy operation” means and includes equipment and

facilities to store and prepare feed, dairy cows, milking parlors,

bulk cooling tanks, buildings, and all such depreciable investment

commonly utilized in the dairy industry.

J. For purposes of this section, an agricultural commodity

shall be deemed to be produced within this state if it is

substantially produced, by any person, partnership, company,

association or corporation:

1. Authorized to do and doing business under the laws of this

state;

2. Paying all taxes duly assessed; and

3. Domiciled within this state by having a location of

production within this state.

K. 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, 2012.

Beginning July 1, 2012, the credit authorized by this section may be

claimed for any event, transaction, investment, expenditure or other

act occurring on or after July 1, 2012, according to the provisions

of this section.