Okla. Stat. tit. 74, § 74-5064.7
This is the official text of Okla. Stat. tit. 74, § 74-5064.7, part of Oklahoma’s Stat. tit. 74, — part of the compiled statutory law of Oklahoma, published by the state as "Stat. tit. 74,." Browse the sections below, each linked to its official government source.
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Incentives for inventors and businesses
Official statutory text
A. The following incentives shall be available to inventors for
products developed and manufactured in this state and to instate
manufacturers of said products; provided, to qualify for the
incentives, the product shall be patented or have patent pending
pursuant to federal law and shall be registered with the Oklahoma
Center for the Advancement of Science and Technology (OCAST):
1. Royalty earned by an inventor from a product developed and
manufactured in this state shall be exempt from state income tax for
a period of seven (7) years from January 1 of the first year in
which such royalty is received as long as the manufacturer remains
in the state; and
2. An instate manufacturer of a product developed in this state
by an inventor shall be eligible for a tax credit, as provided for
in Section 2357.4 of Title 68 of the Oklahoma Statutes. In addition
such manufacturer may exclude from Oklahoma taxable income, or in
the case of an individual, the Oklahoma adjusted gross income,
sixty-five percent (65%) of the cost of depreciable property
purchased and utilized directly in manufacturing the product. The
maximum exclusion shall not exceed Five Hundred Thousand Dollars
($500,000.00). If the exclusion allowed by this paragraph exceeds
the Oklahoma taxable income, or in the case of an individual, the
Oklahoma adjusted gross income, the amount of the exclusion that is
in excess of such income may be carried forward as an exclusion
against subsequent Oklahoma taxable income or in the case of an
individual, subsequent Oklahoma adjusted gross income, for a period
not to exceed four (4) years. For the purposes of this paragraph,
"depreciable property" means machinery, fixtures, equipment,
buildings, or substantial improvements thereto, placed in service in
this state during the taxable year.
Oklahoma Statutes - Title 74. State Government Page 1155
B. The Oklahoma Tax Commission, in conjunction with the
Oklahoma Center for the Advancement of Science and Technology, shall
promulgate rules to implement the provisions of this section.
products developed and manufactured in this state and to instate
manufacturers of said products; provided, to qualify for the
incentives, the product shall be patented or have patent pending
pursuant to federal law and shall be registered with the Oklahoma
Center for the Advancement of Science and Technology (OCAST):
1. Royalty earned by an inventor from a product developed and
manufactured in this state shall be exempt from state income tax for
a period of seven (7) years from January 1 of the first year in
which such royalty is received as long as the manufacturer remains
in the state; and
2. An instate manufacturer of a product developed in this state
by an inventor shall be eligible for a tax credit, as provided for
in Section 2357.4 of Title 68 of the Oklahoma Statutes. In addition
such manufacturer may exclude from Oklahoma taxable income, or in
the case of an individual, the Oklahoma adjusted gross income,
sixty-five percent (65%) of the cost of depreciable property
purchased and utilized directly in manufacturing the product. The
maximum exclusion shall not exceed Five Hundred Thousand Dollars
($500,000.00). If the exclusion allowed by this paragraph exceeds
the Oklahoma taxable income, or in the case of an individual, the
Oklahoma adjusted gross income, the amount of the exclusion that is
in excess of such income may be carried forward as an exclusion
against subsequent Oklahoma taxable income or in the case of an
individual, subsequent Oklahoma adjusted gross income, for a period
not to exceed four (4) years. For the purposes of this paragraph,
"depreciable property" means machinery, fixtures, equipment,
buildings, or substantial improvements thereto, placed in service in
this state during the taxable year.
Oklahoma Statutes - Title 74. State Government Page 1155
B. The Oklahoma Tax Commission, in conjunction with the
Oklahoma Center for the Advancement of Science and Technology, shall
promulgate rules to implement the provisions of this section.
Status: in_force · Read it on the official government site
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