Okla. Stat. tit. 68, § 68-2357.42

vehicle providers.

A. For tax years beginning after December 31, 2000, and ending

before January 1, 2009, there shall be allowed to an investor making

an eligible investment a credit against the tax imposed by Section

2355 or 2370 of this title or Section 624 or 628 of Title 36 of the

Oklahoma Statutes. The credit may be used in the payment of

estimated tax payments for the tax imposed by Section 624 or 628 of

Title 36 of the Oklahoma Statutes. The credit shall be in the

amount as set forth in subsection G of this section.

B. The amount of the credit shall be transferable to subsequent

transferees.

C. As used in this section:

1. “Eligible investment” means an investment made during a

period not earlier than January 1, 2001, and not later than December

31, 2003, in a qualified space transportation vehicle provider that:

a. is headquartered in this state or is ultimately

controlled by an entity headquartered in this state,

b. has been certified by the Oklahoma Tax Commission as

meeting the following minimum qualifications:

(1) is included within the definition of “basic

industry” as set forth in division (1) of

subparagraph a of paragraph 1 of subsection A of

Section 3603 of this title and has been

preapproved by the Oklahoma Department of

Commerce to receive incentive payments pursuant

to the Oklahoma Quality Jobs Program Act or the

Former Military Facility Development Act. The

Department shall establish a process for

preapproval of applicants for the Oklahoma

Quality Jobs Program Act or the Former Military

Facility Development Act for purposes of this

division. The qualified space transportation

vehicle provider shall agree to submit such

information as may be required under this section

and the Oklahoma Quality Jobs Program Act or the

Former Military Facility Development Act to allow

the Tax Commission to determine the amount of the

tax credit allowed pursuant to the provisions of

this section and the amount of incentive payments

allowed pursuant to the Oklahoma Quality Jobs

Program Act or the Former Military Facility

Development Act for purposes of subsection K of

this section,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 817

(2) has equity capitalization of not less than Ten

Million Dollars ($10,000,000.00), and

(3) has received a commitment by a local governmental

entity, whether by contract, letter agreement,

terms sheet, resolution, ordinance or indenture,

to provide funds, personal property or real

property in the aggregate amount of Fifteen

Million Dollars ($15,000,000.00) or more which

will be utilized by one or more qualified space

transportation vehicle providers. For purposes

of this division, such property may include

personal or real property owned by a local

governmental entity which has been leased to a

state authority pursuant to a long-term lease or

personal or real property which a local

governmental entity has transferred to a state

authority. If such property has been so

transferred, the commitment required by this

division may be satisfied if the state authority

agrees in writing to make the property so

transferred available for use by one or more

qualified space transportation vehicle providers;

2. “Qualified space transportation vehicle provider” means any

commercial provider organized under the laws of this state as a

corporation or a limited liability company and engaged in designing,

developing, producing, or operating commercial space transportation

vehicles in this state;

3. “Space transportation vehicle” includes all types of

vehicles or orbital or suborbital spacecraft, whether now in

existence, developed in the future, or currently under design,

development, construction, reconstruction, or reconditioning,

constructed in this state and owned by a qualified space

transportation vehicle provider, for the purpose of operating in, or

transporting a payload to, from, or within, outer space, or in
cludes all types of

vehicles or orbital or suborbital spacecraft, whether now in

existence, developed in the future, or currently under design,

development, construction, reconstruction, or reconditioning,

constructed in this state and owned by a qualified space

transportation vehicle provider, for the purpose of operating in, or

transporting a payload to, from, or within, outer space, or in

suborbital trajectory, and includes any component of such vehicle or

spacecraft not specifically designed or adapted for a payload; and

4. "Subsequently refunded or returned", when used in reference

to an eligible investment, means an actual redemption by the

qualified space transportation vehicle provider of the securities or

other indicia of ownership in the qualified space transportation

vehicle provider received by the investor from the investor's

investment. The failure to allow the tax credits or the recapture

of the tax credits shall not affect the validity of the tax credits

in the hands of a transferee of the initial investor or subsequent

transferees. Provided, an investor to whom an eligible investment,

or portion thereof, is subsequently refunded or returned shall

Oklahoma Statutes - Title 68. Revenue and Taxation Page 818

reimburse the Tax Commission the amount of any credits claimed by a

transferee with respect to any such amount.

D. The tax credit provided for in this section shall not be

allowed or, if already claimed, shall be subject to recapture as to

the initial investor or investors with respect to any amount of an

eligible investment made which is subsequently refunded or returned

to such investor. Further, a tax credit shall not be allowed to an

investor making an eligible investment in a qualified space

transportation vehicle provider or shall be subject to recapture as

to the initial investor or investors if previously allowed if the

qualified space transportation vehicle provider in which the

investment was made fails to make use of such funds or property

within three (3) years of the date the tax credit was allowed. Any

recapture under this subsection shall only apply as to that part of

the tax credit as is associated with the amount of the investment

which is subsequently refunded or returned or which is not utilized.

E. The Tax Commission shall:

1. Certify, upon request of an authorized agent or

representative of a qualified space transportation vehicle provider,

that the qualified space transportation vehicle provider for which

the certification is sought meets the qualifications prescribed by

subparagraph b of paragraph 1 of subsection C of this section. The

certification shall be in writing and signed by an authorized

representative of the Tax Commission and, for purposes of

determining qualifications of a qualified space transportation

vehicle provider in which an investment may be eligible for the

credit authorized by this section, shall be binding upon the Tax

Commission; and

2. Issue a certificate to an investor that provides adequate

documentation of qualification for the credit authorized by this

section even if the credit may not be claimed until after the date

upon which the certificate is requested. Upon issuance, the

certificate shall be evidence that an investor or a transferee of

the original tax credit claimant submitting the certificate, or a

certified copy thereof, with the relevant tax return or other form,

has the legal right to exercise the credit in order to reduce the

relevant tax liability for the period authorized by this section.

F. The maximum amount of all eligible investments for which tax

credits may be claimed under this section shall be Thirty Million

Dollars ($30,000,000.00). If more than one qualified space

transportation vehicle provider has been certified by the Tax

Commission pursuant to the provisions of subsection E of this

section, the investors in the first such approved qualified space
y this section.

F. The maximum amount of all eligible investments for which tax

credits may be claimed under this section shall be Thirty Million

Dollars ($30,000,000.00). If more than one qualified space

transportation vehicle provider has been certified by the Tax

Commission pursuant to the provisions of subsection E of this

section, the investors in the first such approved qualified space

transportation vehicle provider shall be entitled to a credit based

on their investment of the lesser of their eligible investment or

Thirty Million Dollars ($30,000,000.00). The investors in the

second such approved qualified space transportation vehicle provider

Oklahoma Statutes - Title 68. Revenue and Taxation Page 819

shall then be entitled to a credit based on their investment of the

lesser of their eligible investment or the difference between the

total eligible investments in previously approved qualified space

transportation vehicle providers and Thirty Million Dollars

($30,000,000.00). This same procedure will apply for all

subsequently approved qualified space transportation vehicle

providers. If the amount of eligible investments exceeds the amount

upon which the tax credit may be claimed as provided herein,

investors shall be allowed a share of the amount of the available

tax credit in order of the dates of receipt of certification

therefor by the Tax Commission pursuant to the provisions of

paragraph 1 of subsection E of this section.

G. The amount of the tax credit allowed pursuant to the

provisions of subsection A of this section shall be deemed fully

earned as of the date of the investment and shall be fully

redeemable as follows:

Period for Which

Tax Liability Determined Credit Allowed

Tax year subsequent to year of

eligible investment 10.6% of eligible

investment

Second tax year subsequent to year

of eligible investment 11.236% of eligible

investment

Third tax year subsequent to year

of eligible investment 11.910% of eligible

investment

Fourth tax year subsequent to year

of eligible investment 12.624% of eligible

investment

Fifth tax year subsequent to year

of eligible investment 13.381% of eligible

investment

H. The amount of a tax credit allowed pursuant to the

provisions of this section not used in payment of taxes due in the

year in which such credit is allowed pursuant to subsection G of

this section may be used as a credit against subsequent tax

liability of the investor or a subsequent transferee for a period

not to exceed three (3) years from the year in which such credit is

originally allowed.

I. The Tax Commission shall develop and issue appropriate forms

and instructions to enable investors to claim the tax credit

provided for in this section.

J. A qualified space transportation vehicle provider in which

an eligible investment qualifies for a credit authorized by this

section shall maintain a record of investment made in the qualified

space transportation vehicle provider for the period beginning

Oklahoma Statutes - Title 68. Revenue and Taxation Page 820

January 1, 2001, and ending December 31, 2003. The qualified space

transportation vehicle provider shall notify the Tax Commission not

later than January 31, 2004, of the total investment amount for such

period. Any such qualified space transportation vehicle provider

which refunds or returns any amount of an eligible investment to the

investor shall notify the Tax Commission in writing of the amount

and recipient of such refunds or returns. The Tax Commission shall

compute the maximum amount of credits available pursuant to this

section based upon notification of the investment amount transmitted

to the Tax Commission by the qualified space transportation vehicle

provider.

K. A qualified space transportation vehicle provider in which

eligible investments qualify for the tax credit authorized by this

section shall not receive incentive payments pursuant to the
the maximum amount of credits available pursuant to this

section based upon notification of the investment amount transmitted

to the Tax Commission by the qualified space transportation vehicle

provider.

K. A qualified space transportation vehicle provider in which

eligible investments qualify for the tax credit authorized by this

section shall not receive incentive payments pursuant to the

Oklahoma Quality Jobs Program Act or the Former Military Facility

Development Act until the total of such incentive payments the

qualified space transportation vehicle provider would otherwise

receive exceeds the total amount of the credit authorized by this

section as computed by the Tax Commission pursuant to subsection J

of this section. The amount of incentive payments for any year

which would otherwise be paid to the qualified space transportation

vehicle provider shall be distributed as follows:

1. If the amount of such incentive payments equals or exceeds

the amount of the tax credit for the year, the amount of such

payments which is equal to the amount of the tax credit shall be

apportioned as if collected from the tax imposed by Section 2355 or

2370 of this title or Section 624 or 628 of Title 36 of the Oklahoma

Statutes according to the tax against which the credit was claimed.

The amount of such payments which is in excess of the amount of the

tax credit shall be retained by the Tax Commission to be paid as

provided for in this paragraph for subsequent years for which the

tax credit is allowed to the qualified space transportation vehicle

provider;

2. If the amount of such incentive payments and any amount

retained by the Tax Commission pursuant to the provisions of

paragraph 1 of this subsection is less than the amount of the tax

credit for the year, notwithstanding the provisions of Section 1727

of Title 69 of the Oklahoma Statutes, the Tax Commission shall

withhold a portion of the taxes levied and collected pursuant to the

provisions of paragraph 1 of subsection A of Section 500.4 of this

title which would otherwise be paid to the Department of

Transportation by the Oklahoma Transportation Authority pursuant to

the provisions of paragraph (2) of subsection (d) of Section 1730 of

Title 69 of the Oklahoma Statutes equal to the amount of the

deficit.

The Tax Commission shall apportion all funds collected pursuant

to the provisions of this paragraph as if collected from the tax

Oklahoma Statutes - Title 68. Revenue and Taxation Page 821

imposed by Section 2355 or 2370 of this title or Section 624 or 628

of Title 36 of the Oklahoma Statutes according to the tax against

which the credit was claimed; and

3. If any amount is withheld by or paid to the Tax Commission

pursuant to the provisions of paragraph 2 of this subsection, the

amount of incentive payments to be subsequently paid to the

qualified space transportation vehicle provider shall be apportioned

by the Tax Commission to the Department of Transportation until such

time as all amounts paid pursuant to the provisions of paragraph 2

of this subsection are repaid.

L. A qualified space transportation vehicle provider in which

investments qualify for the credit allowed by this section shall not

be entitled to payment of any incentive payments accrued prior to

January 1, 2001, under the Oklahoma Quality Jobs Program Act or the

Former Military Facility Development Act.

M. Notwithstanding the provisions of this section, a qualified

space transportation vehicle provider may, prior to the issuance of

a tax credit with respect to the qualified space transportation

vehicle provider pursuant to the provisions of this section, elect

to receive incentive payments pursuant to the provisions of the

Oklahoma Quality Jobs Program Act or the Former Military Facility

Development Act in lieu of allowing the tax credit provided for

herein, in which case it shall so notify the Tax Commission in
nce of

a tax credit with respect to the qualified space transportation

vehicle provider pursuant to the provisions of this section, elect

to receive incentive payments pursuant to the provisions of the

Oklahoma Quality Jobs Program Act or the Former Military Facility

Development Act in lieu of allowing the tax credit provided for

herein, in which case it shall so notify the Tax Commission in

writing and the provisions of this section shall not be applicable.

N. Except as provided by subsection M of this section, no

qualified space transportation vehicle provider which would

otherwise qualify for incentive payments pursuant to the provisions

of the Oklahoma Quality Jobs Program Act or the Former Military

Facility Development Act may receive such incentive payments prior

to January 1, 2003.

O. No qualified space transportation vehicle provider which has

made application to the Oklahoma Department of Commerce or which has

executed any agreement with the Oklahoma Department of Commerce with

respect to the receipt of incentive payments pursuant to the

provisions of the Oklahoma Quality Jobs Program Act or the Former

Military Facility Development Act or which has received any

incentive payment pursuant to the Oklahoma Quality Jobs Program Act

or the Former Military Facility Development Act prior to May 24,

2001, may be certified for purposes of determining eligibility for

the credit authorized by this section.