Okla. Stat. tit. 68, § 68-2357.73

business capital companies.

A. Except as provided in Section 4 of this act, for taxable

years beginning after December 31, 2000, and before January 1, 2012,

there shall be allowed a credit against the tax imposed by Section

2355 or, effective January 1, 2001, Section 2370 of this title or,

effective July 1, 2001, against the tax imposed by Section 624 or

628 of Title 36 of the Oklahoma Statutes, for qualified investment

in qualified rural small business capital companies. No amount of a

qualified investment made in a qualified rural small business

capital company which has not been invested in one or more Oklahoma

rural small business ventures prior to the effective date of the

moratorium provided for in Section 4 of this act shall be eligible

for any credit otherwise authorized pursuant to this section. No

qualified investment made in a qualified rural small business

capital company or qualified investment made by a qualified rural

small business capital company in one or more Oklahoma rural small

business ventures during the period of the moratorium pursuant to

Section 4 of this act shall be eligible for any credit otherwise

authorized pursuant to this section.

B. The credit provided for in subsection A of this section

shall be thirty percent (30%) of the amount of a qualified

investment in qualified rural small business capital companies which

is subsequently invested in an Oklahoma rural small business venture

by the qualified rural small business capital company and may only

be claimed for a taxable year during which the qualified rural small

business capital company makes the qualified investment in an

Oklahoma rural small business venture if the funds are used in

pursuit of a legitimate business purpose of the Oklahoma rural small

business venture consistent with its organizational instrument,

bylaws or other agreement responsible for the governance of the

rural small business venture. The qualified rural small business

capital company shall issue such reports as the Oklahoma Tax

Commission may require attributing the source of funds of each

qualified investment it makes in an Oklahoma rural small business

venture. If the tax credit exceeds the amount of taxes due or if

there are no state taxes due of the taxpayer, the amount of the

claim not used as an offset against the taxes of a taxable year may

be carried forward for a period not to exceed three (3) taxable

years.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 852

C. No taxpayer may claim the credit provided for in this

section for qualified investments in qualified rural small business

capital companies made prior to January 1, 2001.

D. No taxpayer may claim the credit provided for in this

section if the capital provided by a qualified rural small business

capital company is used by an Oklahoma rural small business venture

for the acquisition of any other legal entity.

E. No financial lending institution shall be eligible to claim

the credit provided for in this section except with respect to

qualified investments in a qualified rural small business capital

company.

F. No taxpayer may claim the credit authorized by this section

for the same qualified investment amount for which any credit is

claimed pursuant to either Section 2357.62 or 2357.63 of this title.

G. If a pass-through entity is entitled to a credit under this

section, the pass-through entity shall allocate such credit to one

or more of the shareholders, partners or members of the pass-through

entity; provided, the total of all credits allocated shall not

exceed the amount of the credit to which the pass-through entity is

entitled. The credit may only be claimed for funds borrowed by the

pass-through entity to make a qualified investment if a shareholder,

partner or member to whom the credit is allocated has an unlimited

and continuing legal obligation to repay the borrowed funds but the
; provided, the total of all credits allocated shall not

exceed the amount of the credit to which the pass-through entity is

entitled. The credit may only be claimed for funds borrowed by the

pass-through entity to make a qualified investment if a shareholder,

partner or member to whom the credit is allocated has an unlimited

and continuing legal obligation to repay the borrowed funds but the

allocation may not exceed such shareholder’s, partner’s or member’s

pro-rata equity share of the pass-through entity even if the

taxpayer’s legal obligation to repay the borrowed funds is in excess

of such amount. For purposes of the Rural Venture Capital Formation

Incentive Act, “pass-through entity” means a corporation that for

the applicable tax years is treated as an S corporation under the

Internal Revenue Code, general partnership, limited partnership,

limited liability partnership, trust, or limited liability company

that for the applicable tax year is not taxed as a corporation for

federal income tax purposes.