Okla. Stat. tit. 68, § 68-2357.74

ventures in conjunction with investment made by qualified rural

small business capital company.

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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 853

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

made in Oklahoma rural small business ventures in conjunction with

investment in such ventures made by a qualified rural small business

capital company. No amount of a qualified investment made in

conjunction with investment made by 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 conjunction with 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 this section shall be thirty

percent (30%) of the qualified investment made in Oklahoma rural

small business ventures in conjunction with qualified investment in

such ventures made by a qualified rural small business capital

company and shall be allowed for the taxable year during which the

qualified investment is made in an Oklahoma rural small business

venture. If the tax credit allowed pursuant to subsection A of this

section 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. To qualify for

the credit authorized by this section, a qualified investment shall

be:

1. Made by a shareholder or partner of a qualified rural small

business capital company that has made a qualified investment in an

Oklahoma rural small business venture;

2. Invested in the purchase of equity or near-equity in an

Oklahoma rural small business venture;

3. Made under the same terms and conditions as the qualified

investment made by the qualified rural small business capital

company; and

4. Limited to the lesser of:

a. two hundred percent (200%) of any qualified investment

by the taxpayer in the qualified rural small business

capital company, or

b. two hundred percent (200%) of the qualified investment

made by the qualified rural small business capital

company in the Oklahoma rural small business venture.

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

section for qualified investment made prior to January 1, 2001.

D. 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.

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E. 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 also 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 also 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.