Okla. Stat. tit. 68, § 68-2358.110

2022 through 2026.

A. As used in this section:

1. "Accredited investor" means a person or entity as defined

pursuant to Section 230.501 of Title 17 of the Code of Federal

Regulations;

2. "Eligible Oklahoma business venture" means a lawful business

entity that is determined by the Oklahoma Center for the Advancement

of Science and Technology (OCAST) for receipt of an equity

investment by an eligible Oklahoma venture capital company. In

determining whether an investment is a qualified equity investment,

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OCAST shall consider the potential impact the investment would have

on the local and state economy and shall consider the following

factors:

a. the primary location of the entity,

b. the number of employees located or to be located in

this state,

c. state and local revenues generated from the

investment,

d. the economic benefits to the state,

e. the type and amount of the investment,

f. the current capitalization level and strategy, and

g. the industry classification of the entity;

3. "Eligible Oklahoma venture capital company" means a lawfully

recognized business entity the primary business purpose of which is

to accumulate funds for making investments in lawful for profit

business entities and which is organized in any of the following

forms:

a. general partnership,

b. limited partnership,

c. limited liability partnership,

d. limited liability company,

e. corporation, or

f. other lawfully recognized business entity;

4. "Lawful business entity" means the following:

a. a person,

b. a general partnership,

c. a limited partnership,

d. a limited liability partnership,

e. a limited liability company, or

f. a corporation; and

5. "Qualified equity investment" means a transfer of cash or

its equivalent by an accredited investor to an eligible Oklahoma

venture capital company and for purposes of the deduction authorized

by this section in an amount not in excess of Twenty-five Million

Dollars ($25,000,000.00) by an accredited investor during a taxable

year.

B. For tax years 2022 through 2026, there shall be allowed a

deduction from Oklahoma taxable income or Oklahoma adjusted gross

income as determined pursuant to Section 2358 of this title equal to

the amount of qualified equity investment in an eligible Oklahoma

venture capital entity made by an accredited investor.

C. The maximum amount of qualified equity investment made by an

accredited investor for purposes of the deduction authorized by this

section shall not exceed Twenty-five Million Dollars

($25,000,000.00) for any taxable year of the investor.

D. Any qualified equity investment made for purposes of the

deduction authorized by this section shall be documented by the

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issuance of shares of stock, membership interest or other evidence

of the equity interest acquired by the accredited investor. Such

evidence may take the form of physical shares or the electronic

equivalent of physical shares.

E. Records of the equity interest acquired by an accredited

investor shall be maintained by the accredited investor and the

eligible Oklahoma venture capital company for a period of at least

five (5) years from the date the equity investment is made by an

accredited investor.

F. A qualified equity investment made by an accredited investor

for purposes of the deduction authorized by this section shall not

be returned by the eligible Oklahoma venture capital company to the

accredited investor, if the accredited investor is a natural person,

or to any person related to such natural person within the third

degree of consanguinity or affinity, for a period of three (3) years

from the date of the qualified equity investment unless the return

is in the form of a dividend or other payment agreed to prior to or

simultaneously with the equity investment transfer from the
credited investor, if the accredited investor is a natural person,

or to any person related to such natural person within the third

degree of consanguinity or affinity, for a period of three (3) years

from the date of the qualified equity investment unless the return

is in the form of a dividend or other payment agreed to prior to or

simultaneously with the equity investment transfer from the

accredited investor to the eligible Oklahoma venture capital company

and only if the return of some part of the qualified equity

investment is based on the financial performance of either the

eligible Oklahoma venture capital company or the financial

performance of one or more for profit business entities in which the

accumulated equity funds of the eligible Oklahoma venture capital

company are further invested or both such measures of financial

performance.

G. A qualified equity investment made by an accredited investor

for purposes of the deduction authorized by this section shall not

be returned by the eligible Oklahoma venture capital company to the

accredited investor if the accredited investor is a lawful business

entity, or to any entity which owns fifty-one percent (51%) or more

of the voting equity interest of the accredited investor or to any

lawful business entity with respect to which the accredited investor

owns fifty-one percent (51%) or more of the voting equity interest,

within a period of five (5) years from the date of the equity

investment unless the return is in the form of a dividend or other

payment agreed to prior to or simultaneously with the equity

investment transfer from the accredited investor to the eligible

Oklahoma venture capital company and only if the return of some part

of the qualified equity investment is based on the financial

performance of either the eligible Oklahoma venture capital company

or the financial performance of one or more for profit business

entities in which the accumulated equity funds of the eligible

Oklahoma venture capital company are further invested or both such

measures of financial performance.

H. The deduction authorized by the provisions of this section

shall not be used to reduce the Oklahoma taxable income amount or

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the Oklahoma adjusted gross income amount to less than zero (0).

There shall not be any carryover with respect to a deduction

authorized by the provisions of this section.

I. If the Oklahoma Tax Commission determines, either from

information accompanying any applicable income tax return or

schedule, form or supporting documentation filed in order to claim

the deduction authorized by this section, that the requirements of

this section were not fulfilled, the Oklahoma Tax Commission shall

notify the taxpayer claiming the deduction that the deduction has

been disallowed and the income tax liability for the taxpayer shall

be recalculated. The taxpayer shall retain all rights authorized

pursuant to the provisions of the Uniform Tax Procedure Code and the

Oklahoma Income Tax Code in order to contest the disallowance of

part or all of such deductions.

J. OCAST may promulgate rules to enforce the provisions of this

act. OCAST shall annually publish a report on the program created

in this section.