| 39 | 48 | | |
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| 40 | 49 | | [ revenue and taxation - Oklahoma taxable income – |
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| 41 | 50 | | adjusted gross income - itemized deductions - |
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| 42 | 51 | | effective date ] |
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| 43 | 52 | | |
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| 44 | 53 | | |
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| 45 | 54 | | |
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| 46 | 55 | | |
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| 47 | 56 | | BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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| 48 | 57 | | SECTION 1. AMENDATORY 68 O.S. 2021, Section 2358, is |
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| 49 | 58 | | amended to read as follow s: |
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| 50 | 59 | | Section 2358. For all tax years beginning after December 31, |
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| 51 | 60 | | 1981, taxable income a nd adjusted gross income shall be adjusted to |
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| 52 | 61 | | arrive at Oklahoma taxable income and Oklahoma adjusted gross inco me |
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| 53 | 62 | | as required by this section. |
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| 86 | 96 | | such interest is not included in taxable income and adjusted gross |
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| 87 | 97 | | income. |
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| 88 | 98 | | 2. There shall be deducted amounts inc luded in such income that |
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| 89 | 99 | | the state is prohibited from ta xing because of the provisions of the |
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| 90 | 100 | | Federal Constitution, the State Constitution, fed eral laws or laws |
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| 91 | 101 | | of Oklahoma. |
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| 92 | 102 | | 3. The amount of any federal net operating loss deduction shall |
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| 93 | 103 | | be adjusted as follows: |
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| 94 | 104 | | a. For carryovers and carrybacks to taxable years |
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| 95 | 105 | | beginning before January 1, 1981, the amount of any |
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| 96 | 106 | | net operating loss deduction allow ed to a taxpayer for |
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| 97 | 107 | | federal income tax purposes shall be reduced to an |
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| 98 | 108 | | amount which is the same portion thereof as the loss |
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| 99 | 109 | | from sources within this state, as determine d pursuant |
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| 100 | 110 | | to this section and Section 2362 of this title, for |
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| 101 | 111 | | the taxable year in whic h such loss is sustained is of |
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| 102 | 112 | | the total loss for such year; |
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| 136 | 147 | | the Internal Revenue Code, 26 U.S.C., Section 172, as |
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| 137 | 148 | | modified by the Oklahoma I ncome Tax Act, Section 2351 |
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| 138 | 149 | | et seq. of this title, and shall be allowed without |
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| 139 | 150 | | regard to the existence of a fed eral net operating |
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| 140 | 151 | | loss. For tax years beginning after D ecember 31, |
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| 141 | 152 | | 2000, and ending before January 1, 2008, the years to |
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| 142 | 153 | | which such losses may be carried shall be determined |
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| 143 | 154 | | solely by reference to Section 172 of the Intern al |
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| 144 | 155 | | Revenue Code, 26 U.S.C., Sect ion 172, with the |
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| 145 | 156 | | exception that the terms "net operating loss" and |
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| 146 | 157 | | "taxable income" shall be replaced with "Oklahoma net |
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| 147 | 158 | | operating loss" and "Oklahoma taxable income ". For |
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| 148 | 159 | | tax years beginning after December 31, 2007, and |
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| 149 | 160 | | ending before January 1, 2009, ye ars to which such |
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| 150 | 161 | | losses may be carried back shall be lim ited to two (2) |
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| 151 | 162 | | years. For tax years beginning after December 31, |
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| 152 | 163 | | 2008, the years to w hich such losses may be carried |
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| 185 | 197 | | 4. Items of the following nat ure shall be allocated as |
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| 186 | 198 | | indicated. Allowable deductions attributable to items separate ly |
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| 187 | 199 | | allocable in subparagraphs a, b and c of this paragraph, whether or |
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| 188 | 200 | | not such items of income were actually received, shall be allocated |
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| 189 | 201 | | on the same basis as those i tems: |
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| 190 | 202 | | a. Income from real and ta ngible personal property, such |
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| 191 | 203 | | as rents, oil and mining p roduction or royalti es, and |
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| 192 | 204 | | gains or losses from sales of such property, shall be |
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| 193 | 205 | | allocated in accordance with the situs of such |
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| 194 | 206 | | property; |
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| 195 | 207 | | b. Income from intangible pe rsonal property, such as |
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| 196 | 208 | | interest, dividends, patent or copyright royalties, |
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| 197 | 209 | | and gains or losses from sales of such property, shall |
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| 198 | 210 | | be allocated in accordance with the domicili ary situs |
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| 199 | 211 | | of the taxpayer, except that: |
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| 200 | 212 | | (1) where such property has acquired a n onunitary |
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| 201 | 213 | | business or commercial situs apart from the |
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| 202 | 214 | | domicile of the taxpayer such incom e shall be |
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| 235 | 248 | | separate commercial or business situs insofar as |
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| 236 | 249 | | undistributed income is concerned, but shall not |
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| 237 | 250 | | be treated as having a separate commercial or |
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| 238 | 251 | | business situs insofar as di stributed income is |
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| 239 | 252 | | concerned, |
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| 240 | 253 | | (2) for taxable years begi nning after December 31, |
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| 241 | 254 | | 2003, capital or ordinary gains or losses from |
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| 242 | 255 | | the sale of an ownership interest in a publicly |
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| 243 | 256 | | traded partnership, as defined by Section 7704( b) |
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| 244 | 257 | | of the Internal Revenue Code, shall be allocated |
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| 245 | 258 | | to this state in the ratio of the ori ginal cost |
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| 246 | 259 | | of such partnership's tangible property in this |
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| 247 | 260 | | state to the original cost o f such partnership's |
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| 248 | 261 | | tangible property everywhere, as determined at |
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| 249 | 262 | | the time of the sale; if more than fifty per cent |
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| 250 | 263 | | (50%) of the value of the partnership 's assets |
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| 251 | 264 | | consists of intangible assets, capital or |
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| 252 | 265 | | ordinary gains or losses from the sale of an |
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| 285 | 299 | | division shall only apply if the capital or |
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| 286 | 300 | | ordinary gains or losses from the sale of an |
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| 287 | 301 | | ownership interest in a partnership do not |
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| 288 | 302 | | constitute qualifying gain receiving capital |
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| 289 | 303 | | treatment as defined in subparagraph a of |
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| 290 | 304 | | paragraph 2 of subsection F of this section, |
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| 291 | 305 | | (3) income from such property which is required to b e |
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| 292 | 306 | | allocated pursuant to the prov isions of paragraph |
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| 293 | 307 | | 5 of this subsection shall be allocat ed as herein |
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| 294 | 308 | | provided; |
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| 295 | 309 | | c. Net income or loss from a business activity which is |
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| 296 | 310 | | not a part of business carried on within or without |
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| 297 | 311 | | the state of a unitary character sha ll be separately |
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| 298 | 312 | | allocated to the state in which such activity is |
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| 299 | 313 | | conducted; |
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| 300 | 314 | | d. In the case of a manufacturing or processing |
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| 301 | 315 | | enterprise the business of which in Oklahoma consis ts |
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| 302 | 316 | | solely of marketing its products by: |
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| 335 | 350 | | tariffs, as prescribed and allowed b y the |
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| 336 | 351 | | Interstate Commerce Commis sion, to a purchaser |
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| 337 | 352 | | within the state, |
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| 338 | 353 | | (3) sales of the product stored in public warehouses |
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| 339 | 354 | | within the state where the shipment to such |
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| 340 | 355 | | warehouses is not covered by "in transit" |
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| 341 | 356 | | tariffs, as prescribed and allowed by the |
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| 342 | 357 | | Interstate Commerce Commission, to a purchaser |
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| 343 | 358 | | within or without the state, |
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| 344 | 359 | | the Oklahoma net income shall, at the option of the |
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| 345 | 360 | | taxpayer, be that portion of the total net income of |
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| 346 | 361 | | the taxpayer for federal income tax purposes derived |
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| 347 | 362 | | from the manufacture and/o r processing and sales |
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| 348 | 363 | | everywhere as determined by the ratio of the sales |
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| 349 | 364 | | defined in this section made to the purchaser within |
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| 350 | 365 | | the state to the total sales everywhere. The term |
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| 351 | 366 | | "public warehouse" as used in this subparagraph means |
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| 352 | 394 | | a licensed public wareho use, the principal business of |
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| 353 | 395 | | which is warehousing merchandise for the public; |
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| 354 | 396 | | e. In the case of insurance companies, Oklahoma taxable |
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| 355 | 397 | | income shall be taxable income of the ta xpayer for |
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| 356 | 398 | | federal tax purposes, as adjusted for the adjustments |
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| 357 | 399 | | provided pursuant to the provisions of paragrap hs 1 |
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| 358 | 400 | | and 2 of this subsection, apportioned as follows: |
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| 385 | 401 | | (1) except as otherwise provided by division (2) of |
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| 386 | 402 | | this subparagraph, taxable income of an insurance |
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| 387 | 403 | | company for a taxable year shall be apportioned |
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| 388 | 404 | | to this state by multiplying such income by a |
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| 389 | 405 | | fraction, the numerator of which is the direct |
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| 390 | 406 | | premiums written for insurance on property or |
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| 391 | 407 | | risks in this state, and the denominator of which |
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| 392 | 408 | | is the direct premiums written for insurance on |
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| 393 | 409 | | property or risks everywhere . For purposes of |
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| 394 | 410 | | this subsection, the te rm "direct premiums |
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| 395 | 411 | | written" means the total amount of di rect |
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| 396 | 412 | | premiums written, assessments and annuity |
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| 397 | 413 | | considerations as reported for the taxab le year |
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| 398 | 414 | | on the annual statement filed by the company with |
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| 399 | 415 | | the Insurance Commissi oner in the form approved |
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| 400 | 416 | | by the National Association of Insurance |
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| 401 | 444 | | Commissioners, or such other form as may be |
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| 402 | 445 | | prescribed in lieu thereof, |
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| 403 | 446 | | (2) if the principal source of premiu ms written by an |
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| 404 | 447 | | insurance company consists of premiums for |
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| 405 | 448 | | reinsurance accepted by it, the taxable income of |
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| 406 | 449 | | such company shall be apportioned to this state |
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| 407 | 450 | | by multiplying such income by a fraction, the |
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| 408 | 451 | | numerator of which is the sum of (a) direct |
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| 435 | 452 | | premiums written for insurance on property or |
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| 436 | 453 | | risks in this state, plus (b) premiums wri tten |
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| 437 | 454 | | for reinsurance accepted in respect of property |
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| 438 | 455 | | or risks in this state, and the deno minator of |
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| 439 | 456 | | which is the sum of (c) direct premiums written |
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| 440 | 457 | | for insurance on property or risks everywhere, |
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| 441 | 458 | | plus (d) premiums written for reinsurance |
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| 442 | 459 | | accepted in respect of property or risks |
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| 443 | 460 | | everywhere. For purposes of this paragraph, |
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| 444 | 461 | | premiums written for r einsurance accepted in |
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| 445 | 462 | | respect of property or risks in this state, |
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| 446 | 463 | | whether or not other wise determinable, may at the |
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| 447 | 464 | | election of the company be determined on the |
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| 448 | 465 | | basis of the proportion which premium s written |
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| 449 | 466 | | for insurance accepted from companies |
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| 450 | 467 | | commercially domiciled in Oklahoma bears to |
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| 485 | 503 | | 5. The net income or loss remaining after the separate |
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| 486 | 504 | | allocation in paragraph 4 of this subsection, being that which is |
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| 487 | 505 | | derived from a unitary business enterprise, shall be apportioned to |
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| 488 | 506 | | this state on the basis of the arithmetical average of three factors |
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| 489 | 507 | | consisting of property, payroll an d sales or gross revenue |
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| 490 | 508 | | enumerated as subparagraphs a, b and c of this paragraph . Net |
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| 491 | 509 | | income or loss as used in this paragraph includes that derived from |
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| 492 | 510 | | patent or copyright royalties, purchase discounts, and interest on |
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| 493 | 511 | | accounts receivable relating to o r arising from a business activi ty, |
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| 494 | 512 | | the income from which is apportioned pursuant to this subsection, |
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| 495 | 513 | | including the sale or other disposition of such property and any |
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| 496 | 514 | | other property used in the unitary enterprise . Deductions used in |
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| 497 | 515 | | computing such net inc ome or loss shall not include ta xes based on |
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| 498 | 516 | | or measured by income . Provided, for corpor ations whose property |
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| 499 | 517 | | for purposes of the tax imposed by Section 2355 of this title has an |
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| 500 | 518 | | initial investment cost equaling or exceeding Two Hundred Million |
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| 501 | 546 | | Dollars ($200,000,000.00) and such investm ent is made on or after |
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| 502 | 547 | | July 1, 1997, or for corporations which expand their property or |
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| 503 | 548 | | facilities in this state and such expansion has an inve stment cost |
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| 504 | 549 | | equaling or exceeding Two Hundred Million Dollars ($200,000,000.00) |
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| 505 | 550 | | over a period not to exceed thre e (3) years, and such expansion is |
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| 506 | 551 | | commenced on or after January 1, 2000, the three factors shall be |
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| 507 | 552 | | apportioned with property and payroll, each comprising twenty-five |
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| 508 | 553 | | percent (25%) of the apportionment factor and sales comp rising fifty |
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| 535 | 554 | | percent (50%) of the apportionment factor . The apportionment |
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| 536 | 555 | | factors shall be computed as follows: |
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| 537 | 556 | | a. The property factor is a fraction, the numerator of |
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| 538 | 557 | | which is the average value of the taxpayer 's real and |
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| 539 | 558 | | tangible personal property owned o r rented and used in |
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| 540 | 559 | | this state during the tax period and the denominator |
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| 541 | 560 | | of which is the average value of all the taxpayer's |
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| 542 | 561 | | real and tangible personal property everywhere own ed |
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| 543 | 562 | | or rented and used during the tax period. |
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| 544 | 563 | | (1) Property, the income from which is separately |
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| 545 | 564 | | allocated in paragraph 4 of this subsection, |
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| 546 | 565 | | shall not be included in dete rmining this |
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| 547 | 566 | | fraction. The numerator of the fraction shall |
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| 548 | 567 | | include a portion of the in vestment in |
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| 549 | 568 | | transportation and other equipment having no |
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| 550 | 569 | | fixed situs, such as ro lling stock, buses, trucks |
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| 551 | 597 | | and trailers, including machinery and equipment |
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| 552 | 598 | | carried thereon, airplanes, salespersons' |
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| 553 | 599 | | automobiles and other similar equipment, in the |
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| 554 | 600 | | proportion that miles traveled in Oklahoma by |
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| 555 | 601 | | such equipment bears to total miles traveled, |
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| 556 | 602 | | (2) Property owned by the taxpa yer is valued at its |
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| 557 | 603 | | original cost. Property rented by t he taxpayer |
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| 558 | 604 | | is valued at eight times the net annual rental |
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| 585 | 605 | | rate. Net annual rental rat e is the annual |
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| 586 | 606 | | rental rate paid by the taxpayer, less any annual |
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| 587 | 607 | | rental rate received by the taxpayer from |
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| 588 | 608 | | subrentals, |
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| 589 | 609 | | (3) The average value of property shall be determ ined |
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| 590 | 610 | | by averaging the values at the beginning and |
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| 591 | 611 | | ending of the tax period but the Okla homa Tax |
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| 592 | 612 | | Commission may require the averaging of monthly |
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| 593 | 613 | | values during the tax p eriod if reasonably |
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| 594 | 614 | | required to reflect properly the average value of |
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| 595 | 615 | | the taxpayer's property; |
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| 596 | 616 | | b. The payroll factor is a fraction, the numerator of |
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| 597 | 617 | | which is the total compensa tion for services rendered |
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| 598 | 618 | | in the state during the tax period, and the |
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| 599 | 619 | | denominator of which is the total compens ation for |
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| 600 | 620 | | services rendered everywhere during the tax per iod. |
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| 601 | 648 | | "Compensation", as used in this subsection means those |
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| 602 | 649 | | paid-for services to the e xtent related to the unitary |
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| 603 | 650 | | business but does not include officers ' salaries, |
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| 604 | 651 | | wages and other compensation. |
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| 605 | 652 | | (1) In the case of a transportation enterprise, the |
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| 606 | 653 | | numerator of the fraction shall include a portion |
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| 607 | 654 | | of such expenditure in connection with employ ees |
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| 608 | 655 | | operating equipment over a fixed route, such as |
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| 635 | 656 | | railroad employees, airline pilots, or bus |
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| 636 | 657 | | drivers, in this state only a part of the time, |
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| 637 | 658 | | in the proportion that mil eage traveled in |
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| 638 | 659 | | Oklahoma bears to total mileage traveled by such |
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| 639 | 660 | | employees, |
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| 640 | 661 | | (2) In any case the numerator of the fraction shall |
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| 641 | 662 | | include a portion of such expenditures in |
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| 642 | 663 | | connection with itinerant em ployees, such as |
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| 643 | 664 | | traveling salespersons, in this state on ly a part |
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| 644 | 665 | | of the time, in the proportion that time spent in |
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| 645 | 666 | | Oklahoma bears to total tim e spent in furtherance |
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| 646 | 667 | | of the enterprise by such employees; |
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| 647 | 668 | | c. The sales factor is a fraction, the numerator of which |
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| 648 | 669 | | is the total sales or gross revenue of the taxpayer in |
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| 649 | 670 | | this state during the tax period, and the denominator |
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| 650 | 671 | | of which is the total sales o r gross revenue of the |
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| 651 | 699 | | taxpayer everywhere during the tax period . "Sales", |
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| 652 | 700 | | as used in this subsection does not include sales or |
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| 653 | 701 | | gross revenue which are separately alloc ated in |
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| 654 | 702 | | paragraph 4 of this subsection. |
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| 655 | 703 | | (1) Sales of tangible personal property have a situs |
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| 656 | 704 | | in this state if the property is delivered or |
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| 657 | 705 | | shipped to a purchaser other than the United |
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| 658 | 706 | | States government, within this state regardless |
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| 685 | 707 | | of the FOB point or oth er conditions of the sale; |
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| 686 | 708 | | or the property is shipped from an office, store, |
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| 687 | 709 | | warehouse, factory or other place of storage in |
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| 688 | 710 | | this state and (a) the purchaser is the Uni ted |
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| 689 | 711 | | States government or (b) the taxpayer is not |
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| 690 | 712 | | doing business in the state of the dest ination of |
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| 691 | 713 | | the shipment. |
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| 692 | 714 | | (2) In the case of a railroad or interurban railway |
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| 693 | 715 | | enterprise, the numerator of the fraction shall |
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| 694 | 716 | | not be less than the allocation of revenues to |
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| 695 | 717 | | this state as shown in its a nnual report to the |
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| 696 | 718 | | Corporation Commission. |
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| 697 | 719 | | (3) In the case of an airline, tr uck or bus |
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| 698 | 720 | | enterprise or freight car, tank car, refrigerator |
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| 699 | 721 | | car or other railroad equipment enterprise, the |
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| 700 | 722 | | numerator of the fraction shall includ e a portion |
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| 735 | 758 | | allocated to Oklahoma based upon miles moved, at |
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| 736 | 759 | | the option of the taxpayer, and the denominator |
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| 737 | 760 | | of which shall be the total of traffic units of |
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| 738 | 761 | | the enterprise or th e revenue of the enterprise |
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| 739 | 762 | | everywhere as appropriate to the numerator . A |
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| 740 | 763 | | "traffic unit" is hereby defined as the |
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| 741 | 764 | | transportation for a distance of one (1) mile of |
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| 742 | 765 | | one (1) barrel of oil, one (1) gallon of gasoline |
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| 743 | 766 | | or one thousand (1,000) cubic feet of natu ral or |
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| 744 | 767 | | casinghead gas, as the ca se may be. |
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| 745 | 768 | | (5) In the case of a telephone or telegra ph or other |
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| 746 | 769 | | communication enterprise, the numerator of the |
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| 747 | 770 | | fraction shall include that porti on of the |
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| 748 | 771 | | interstate revenue as is allocated pursuant to |
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| 749 | 772 | | the accounting procedur es prescribed by the |
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| 750 | 773 | | Federal Communications Commission; provided that |
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| 751 | 801 | | in respect to each corporation or busin ess entity |
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| 752 | 802 | | required by the Federal Communications Commission |
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| 753 | 803 | | to keep its books and records in accordance with |
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| 754 | 804 | | a uniform system of accounts prescrib ed by such |
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| 755 | 805 | | Commission, the intra state net income shall be |
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| 756 | 806 | | determined separately in t he manner provided by |
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| 757 | 807 | | such uniform system of accounts and only the |
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| 758 | 808 | | interstate income shall b e subject to allocation |
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| 785 | 809 | | pursuant to the provisions of this subsection . |
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| 786 | 810 | | Provided further, that the gross revenue factors |
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| 787 | 811 | | shall be those as are determined pursuant t o the |
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| 788 | 812 | | accounting procedures prescribed by the Federal |
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| 789 | 813 | | Communications Commission. |
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| 790 | 814 | | In any case where the apportionment of the three factors |
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| 791 | 815 | | prescribed in this paragraph attri butes to Oklahoma a portion of n et |
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| 792 | 816 | | income of the enterprise out of all appropriate proportion to the |
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| 793 | 817 | | property owned and/or business transacted within this state, because |
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| 794 | 818 | | of the fact that one or more of the factors so prescribed are not |
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| 795 | 819 | | employed to any appr eciable extent in furtherance of the enterprise; |
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| 796 | 820 | | or because one or more factors not so prescribed are employe d to a |
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| 797 | 821 | | considerable extent in furtherance of the enterprise; or bec ause of |
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| 798 | 822 | | other reasons, the Tax Commission is empowered to permit, after a |
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| 799 | 823 | | showing by taxpayer that an excessive portion of net income has been |
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| 800 | 824 | | attributed to Oklaho ma, or require, when in its judgment an |
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| 801 | 852 | | insufficient portion of net income has been attribute d to Oklahoma, |
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| 802 | 853 | | the elimination, substitution, or use of additional factors, or |
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| 803 | 854 | | reduction or increase in the weig ht of such prescribed factors . |
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| 804 | 855 | | Provided, however, that any such variance fro m such prescribed |
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| 805 | 856 | | factors which has the effect of increasing the po rtion of net income |
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| 806 | 857 | | attributable to Oklahoma must not be inherently arbitrary, a nd |
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| 807 | 858 | | application of the recomputed final apportionment to the net income |
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| 834 | 859 | | of the enterprise must attribute to Ok lahoma only a reasonable |
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| 835 | 860 | | portion thereof. |
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| 836 | 861 | | 6. For calendar years 19 97 and 1998, the owner of a new or |
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| 837 | 862 | | expanded agricultural commodity processing fa cility in this state |
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| 838 | 863 | | may exclude from Oklahoma taxable income, or in the case of a n |
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| 839 | 864 | | individual, the Oklahoma adjusted gross income, fifteen percent |
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| 840 | 865 | | (15%) of the investment by t he owner in the new or expanded |
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| 841 | 866 | | agricultural commodity processing facility . For calendar year 1999, |
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| 842 | 867 | | and all subsequent years, the percentage, not to exceed fifte en |
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| 843 | 868 | | percent (15%), available to the owner of a new or expanded |
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| 844 | 869 | | agricultural commodity processin g facility in this state claiming |
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| 845 | 870 | | the exemption shall be adjusted annually so th at the total estimated |
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| 846 | 871 | | reduction in tax liability does not exceed One Million Doll ars |
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| 847 | 872 | | ($1,000,000.00) annuall y. The Tax Commission shall promulgate rules |
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| 848 | 873 | | for determining the p ercentage of the investment which each eligible |
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| 849 | 874 | | taxpayer may exclude . The exclusion provided by this paragraph |
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| 850 | 875 | | shall be taken in the taxable year when the invest ment is made. In |
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| 851 | 903 | | the event the total reduction in tax liability authorized by this |
|---|
| 852 | 904 | | paragraph exceeds One Million Dollars ($1,000,000.00) in any |
|---|
| 853 | 905 | | calendar year, the Tax Commis sion shall permit any excess ove r One |
|---|
| 854 | 906 | | Million Dollars ($1,000,000.00) and shall fa ctor such excess into |
|---|
| 855 | 907 | | the percentage for subsequent years. Any amount of the exemption |
|---|
| 856 | 908 | | permitted to be excluded pursuant to the provisions of this |
|---|
| 857 | 909 | | paragraph but not used in any year may be carried forward as an |
|---|
| 884 | 910 | | exemption from income pursuant to the provis ions of this paragraph |
|---|
| 885 | 911 | | for a period not exceeding six (6) years following the year in which |
|---|
| 886 | 912 | | the investment was originally made. |
|---|
| 887 | 913 | | For purposes of this paragraph: |
|---|
| 888 | 914 | | a. "Agricultural commodity processing facility " means |
|---|
| 889 | 915 | | building, structures, fixtures and impro vements used |
|---|
| 890 | 916 | | or operated primarily for the processing or production |
|---|
| 891 | 917 | | of marketable products from agricultural commodities . |
|---|
| 892 | 918 | | The term shall also mean a dairy operation that |
|---|
| 893 | 919 | | requires a depreciable investment of at least Two |
|---|
| 894 | 920 | | Hundred Fifty Thousand Dollars ($25 0,000.00) and which |
|---|
| 895 | 921 | | produces milk from dairy cows. The term does not |
|---|
| 896 | 922 | | include a facility that pr ovides only, and nothing |
|---|
| 897 | 923 | | more than, storage, cleaning, drying or transportation |
|---|
| 898 | 924 | | of agricultural commodities, and |
|---|
| 899 | 925 | | b. "Facility" means each part of the facility which is |
|---|
| 900 | 926 | | used in a process pri marily for: |
|---|
| 934 | 961 | | (3) packaging or otherwise preparing the product for |
|---|
| 935 | 962 | | sale or shipment. |
|---|
| 936 | 963 | | 7. Despite any provision to the contrary in paragraph 3 of this |
|---|
| 937 | 964 | | subsection, for taxable years begi nning after December 31, 1999, in |
|---|
| 938 | 965 | | the case of a taxpayer which has a farming loss, such farming loss |
|---|
| 939 | 966 | | shall be considered a net operating loss ca rryback in accordance |
|---|
| 940 | 967 | | with and to the extent of the Internal Revenue Code, 26 U. S.C., |
|---|
| 941 | 968 | | Section 172(b)(G). However, the amount of the net operating loss |
|---|
| 942 | 969 | | carryback shall not exceed the lesser of: |
|---|
| 943 | 970 | | a. Sixty Thousand Dollars ($60,000.00), or |
|---|
| 944 | 971 | | b. the loss properly shown on Schedule F of the Internal |
|---|
| 945 | 972 | | Revenue Service Form 1040 reduced by one -half (1/2) of |
|---|
| 946 | 973 | | the income from all other sources other than reflected |
|---|
| 947 | 974 | | on Schedule F. |
|---|
| 948 | 975 | | 8. In taxable years beginning after December 31, 1995, all |
|---|
| 949 | 976 | | qualified wages equal to the fede ral income tax credit set forth in |
|---|
| 950 | 977 | | 26 U.S.C.A., Section 45A, shall be deducted f rom taxable income. |
|---|
| 951 | 1005 | | The deduction allowed pursuant to this paragraph sh all only be |
|---|
| 952 | 1006 | | permitted for the tax yea rs in which the federal tax credit pursuant |
|---|
| 953 | 1007 | | to 26 U.S.C.A., Section 45A, is allowed. For purposes of this |
|---|
| 954 | 1008 | | paragraph, "qualified wages" means those wages used to calculate the |
|---|
| 955 | 1009 | | federal credit pursuant to 26 U.S.C.A., Sec tion 45A. |
|---|
| 956 | 1010 | | 9. In taxable years beginn ing after December 31, 2005, an |
|---|
| 957 | 1011 | | employer that is eligible for and u tilizes the Safety Pays OSHA |
|---|
| 984 | 1012 | | Consultation Service provided by the Oklahoma Depar tment of Labor |
|---|
| 985 | 1013 | | shall receive an exemption from taxable income in the am ount of One |
|---|
| 986 | 1014 | | Thousand Dollars ($1,000.0 0) for the tax year that the service is |
|---|
| 987 | 1015 | | utilized. |
|---|
| 988 | 1016 | | 10. For taxable years beginning on or after January 1, 2010, |
|---|
| 989 | 1017 | | there shall be added to Oklahoma ta xable income an amount equal to |
|---|
| 990 | 1018 | | the amount of deferred income not incl uded in such taxable income |
|---|
| 991 | 1019 | | pursuant to Section 108(i)(1) of the Internal Revenue Code of 1986 |
|---|
| 992 | 1020 | | as amended by Section 1231 of the American Recovery and Reinvestment |
|---|
| 993 | 1021 | | Act of 2009 (P.L. No. 111-5). There shall be subtract ed from |
|---|
| 994 | 1022 | | Oklahoma taxable income an amo unt equal to the amount of deferred |
|---|
| 995 | 1023 | | income included in such taxable income pursuant to Section 108(i)(1) |
|---|
| 996 | 1024 | | of the Internal Revenue Code by Section 1231 of the American |
|---|
| 997 | 1025 | | Recovery and Reinves tment Act of 2009 (P.L. No. 111 -5). |
|---|
| 998 | 1026 | | 11. For taxable years beginning on or after January 1, 2019, |
|---|
| 999 | 1027 | | there shall be subtracted from Oklahoma taxable income or adjusted |
|---|
| 1000 | 1028 | | gross income any item of income or gain, and there shall be added to |
|---|
| 1034 | 1063 | | provisions of the Pass -Through Entity Tax Equity Act of 2019, and |
|---|
| 1035 | 1064 | | (ii) the total amount of tax attri butable to any resulting Oklahoma |
|---|
| 1036 | 1065 | | net entity income has been paid. The Oklahoma Tax Commission shall |
|---|
| 1037 | 1066 | | promulgate rules for the reporting of such exclusion to direct and |
|---|
| 1038 | 1067 | | indirect members of the electing pass -through entity. As used in |
|---|
| 1039 | 1068 | | this paragraph, "electing pass-through entity", "indirect member", |
|---|
| 1040 | 1069 | | and "member" shall be defined in the same manner as prescribed by |
|---|
| 1041 | 1070 | | Section 2355.1P-2 of this title. Notwithstanding the application of |
|---|
| 1042 | 1071 | | this paragraph, the adjusted tax basis of a ny ownership interest in |
|---|
| 1043 | 1072 | | a pass-through entity for purposes of Sectio n 2351 et seq. of th is |
|---|
| 1044 | 1073 | | title shall be equal to its adjusted tax basis for federal income |
|---|
| 1045 | 1074 | | tax purposes. |
|---|
| 1046 | 1075 | | B. 1. The taxable income of any corporation shall be further |
|---|
| 1047 | 1076 | | adjusted to arrive at Oklahoma taxable income, except those |
|---|
| 1048 | 1077 | | corporations electing treatme nt as provided in sub chapter S of the |
|---|
| 1049 | 1078 | | Internal Revenue Code, 26 U.S.C., Section 1361 et seq., and Section |
|---|
| 1050 | 1079 | | 2365 of this title, deductions pursuant to the provisions of the |
|---|
| 1051 | 1107 | | Accelerated Cost Recovery System as defined and a llowed in the |
|---|
| 1052 | 1108 | | Economic Recovery Tax Act of 1981, Public L aw 97-34, 26 U.S.C., |
|---|
| 1053 | 1109 | | Section 168, for depreciation of assets placed into service after |
|---|
| 1054 | 1110 | | December 31, 1981, shall not be allowed in calculating Oklahoma |
|---|
| 1055 | 1111 | | taxable income. Such corporations shall be allo wed a deduction for |
|---|
| 1056 | 1112 | | depreciation of assets placed into se rvice after December 31, 1981, |
|---|
| 1057 | 1113 | | in accordance with provisions of the Internal Revenue Co de, 26 |
|---|
| 1084 | 1114 | | U.S.C., Section 1 et seq., in effect immediately prior to the |
|---|
| 1085 | 1115 | | enactment of the Accelerated Cost Recovery System. The Oklahoma tax |
|---|
| 1086 | 1116 | | basis for all such assets place d into service after December 31, |
|---|
| 1087 | 1117 | | 1981, calculated in this section shall be retained an d utilized for |
|---|
| 1088 | 1118 | | all Oklahoma income tax purposes through the final disposition of |
|---|
| 1089 | 1119 | | such assets. |
|---|
| 1090 | 1120 | | Notwithstanding any other provisions of the Oklahoma Income Tax |
|---|
| 1091 | 1121 | | Act, Section 2351 et seq. of th is title, or of the Internal Revenue |
|---|
| 1092 | 1122 | | Code to the contrary, this sub section shall control calculation of |
|---|
| 1093 | 1123 | | depreciation of assets placed into service after December 31, 1981, |
|---|
| 1094 | 1124 | | and before January 1, 1983. |
|---|
| 1095 | 1125 | | For assets placed in service and hel d by a corporation i n which |
|---|
| 1096 | 1126 | | accelerated cost recovery system was previously disallowed, an |
|---|
| 1097 | 1127 | | adjustment to taxable income is required in the first taxable year |
|---|
| 1098 | 1128 | | beginning after December 31, 1982, to rec oncile the basis of such |
|---|
| 1099 | 1129 | | assets to the basis allowed in t he Internal Revenue Code. The |
|---|
| 1100 | 1130 | | purpose of this adjustment is to equalize the basis and allowance |
|---|
| 1101 | 1158 | | for depreciation accounts between that reported to the Internal |
|---|
| 1102 | 1159 | | Revenue Service and that reported to O klahoma. |
|---|
| 1103 | 1160 | | 2. For tax years beginn ing on or after January 1, 2009, and |
|---|
| 1104 | 1161 | | ending on or before December 31, 2009, there shall be added to |
|---|
| 1105 | 1162 | | Oklahoma taxable income any amount in excess of One Hundred Seventy - |
|---|
| 1106 | 1163 | | five Thousand Dollars ( $175,000.00) which has been dedu cted as a |
|---|
| 1133 | 1164 | | small business expense under Internal Revenue C ode, Section 179 as |
|---|
| 1134 | 1165 | | provided in the American Recovery and Reinvestment Act of 2009. |
|---|
| 1135 | 1166 | | C. 1. For taxable years beginning after December 31, 1987, the |
|---|
| 1136 | 1167 | | taxable income of any corporation shall be further adjusted to |
|---|
| 1137 | 1168 | | arrive at Oklahoma taxable income for transf ers of technology to |
|---|
| 1138 | 1169 | | qualified small businesses located in Oklahoma. Such transferor |
|---|
| 1139 | 1170 | | corporation shall be allowed an exemption from taxable income of an |
|---|
| 1140 | 1171 | | amount equal to the amount of royalty payment received as a result |
|---|
| 1141 | 1172 | | of such transfer; provided, however , such amount shall not exceed |
|---|
| 1142 | 1173 | | ten percent (10%) of the amount of gross proceeds receiv ed by such |
|---|
| 1143 | 1174 | | transferor corporation as a result of the technology transfer . Such |
|---|
| 1144 | 1175 | | exemption shall be allowed for a period not to exceed ten (10) y ears |
|---|
| 1145 | 1176 | | from the date of rec eipt of the first ro yalty payment accruing from |
|---|
| 1146 | 1177 | | such transfer. No exemption may be cla imed for transfers of |
|---|
| 1147 | 1178 | | technology to qualified small businesses made prior to Jan uary 1, |
|---|
| 1148 | 1179 | | 1988. |
|---|
| 1149 | 1180 | | 2. For purposes of this subsection: |
|---|
| 1150 | 1208 | | a. "Qualified small business" means an entity, whether |
|---|
| 1151 | 1209 | | organized as a corporation, partnership, or |
|---|
| 1152 | 1210 | | proprietorship, organized for profit with its |
|---|
| 1153 | 1211 | | principal place of business located within this state |
|---|
| 1154 | 1212 | | and which meets the following criteria : |
|---|
| 1155 | 1213 | | (1) Capitalization of not m ore than Two Hundred Fifty |
|---|
| 1156 | 1214 | | Thousand Dollars ($25 0,000.00), |
|---|
| 1183 | 1215 | | (2) Having at least fifty percent (50%) of its |
|---|
| 1184 | 1216 | | employees and assets located in Oklahoma at the |
|---|
| 1185 | 1217 | | time of the transfer, and |
|---|
| 1186 | 1218 | | (3) Not a subsidiary or affiliate of the transf eror |
|---|
| 1187 | 1219 | | corporation; |
|---|
| 1188 | 1220 | | b. "Technology" means a proprietary pro cess, formula, |
|---|
| 1189 | 1221 | | pattern, device or compilation of scientific or |
|---|
| 1190 | 1222 | | technical information wh ich is not in the public |
|---|
| 1191 | 1223 | | domain; |
|---|
| 1192 | 1224 | | c. "Transferor corporation " means a corporation which is |
|---|
| 1193 | 1225 | | the exclusive and undi sputed owner of the techn ology |
|---|
| 1194 | 1226 | | at the time the transfer i s made; and |
|---|
| 1195 | 1227 | | d. "Gross proceeds" means the total amount of |
|---|
| 1196 | 1228 | | consideration for the transfe r of technology, whether |
|---|
| 1197 | 1229 | | the consideration is in money or otherwise. |
|---|
| 1198 | 1230 | | D. 1. For taxable years beginning after D ecember 31, 2005, the |
|---|
| 1199 | 1231 | | taxable income of any corporation, estate or trust, sha ll be further |
|---|
| 1200 | 1259 | | adjusted for qualifying gains receiving capital treat ment. Such |
|---|
| 1201 | 1260 | | corporations, estates or trusts shall be allowed a deduction from |
|---|
| 1202 | 1261 | | Oklahoma taxable income for the am ount of qualifying gain s receiving |
|---|
| 1203 | 1262 | | capital treatment earn ed by the corporatio n, estate or trust during |
|---|
| 1204 | 1263 | | the taxable year and included in the fede ral taxable income of such |
|---|
| 1205 | 1264 | | corporation, estate or trust. |
|---|
| 1206 | 1265 | | 2. As used in this subsection: |
|---|
| 1233 | 1266 | | a. "qualifying gains receiving capital treat ment" means |
|---|
| 1234 | 1267 | | the amount of net capita l gains, as defined in Section |
|---|
| 1235 | 1268 | | 1222(11) of the Internal Revenue Code, included in the |
|---|
| 1236 | 1269 | | federal income tax return of the corporation, estate |
|---|
| 1237 | 1270 | | or trust that result from: |
|---|
| 1238 | 1271 | | (1) the sale of real property or tangible personal |
|---|
| 1239 | 1272 | | property located within Oklahoma that h as been |
|---|
| 1240 | 1273 | | directly or indirectly owned by the corporation, |
|---|
| 1241 | 1274 | | estate or trust for a holding period of at least |
|---|
| 1242 | 1275 | | five (5) years prior to the date of the |
|---|
| 1243 | 1276 | | transaction from whic h such net capital gains |
|---|
| 1244 | 1277 | | arise, |
|---|
| 1245 | 1278 | | (2) the sale of stock or on the sale of an ownership |
|---|
| 1246 | 1279 | | interest in an Oklahoma company, limited |
|---|
| 1247 | 1280 | | liability company, or partnership where such |
|---|
| 1248 | 1281 | | stock or ownership interest has been directly or |
|---|
| 1249 | 1282 | | indirectly owned by the corporation, estate or |
|---|
| 1283 | 1317 | | company, limited liability company, or |
|---|
| 1284 | 1318 | | partnership where such property has been directly |
|---|
| 1285 | 1319 | | or indirectly owned by such entity owned by the |
|---|
| 1286 | 1320 | | owners of such entity, and used in or derived |
|---|
| 1287 | 1321 | | from such entity for a p eriod of at least three |
|---|
| 1288 | 1322 | | (3) years prior to the date of th e transaction |
|---|
| 1289 | 1323 | | from which the net capital gains arise, |
|---|
| 1290 | 1324 | | b. "holding period" means an uninterrupted period of |
|---|
| 1291 | 1325 | | time. The holding period shall include any additional |
|---|
| 1292 | 1326 | | period when the property was held by another |
|---|
| 1293 | 1327 | | individual or entity, if such additional period i s |
|---|
| 1294 | 1328 | | included in the taxpayer's holding period for the |
|---|
| 1295 | 1329 | | asset pursuant to the Internal Reve nue Code, |
|---|
| 1296 | 1330 | | c. "Oklahoma company", "limited liability company ", or |
|---|
| 1297 | 1331 | | "partnership" means an entity whose primary |
|---|
| 1298 | 1332 | | headquarters have been located in Oklahoma for at |
|---|
| 1299 | 1333 | | least three (3) uninterrupted years prior to the date |
|---|
| 1332 | 1367 | | entities) that sells the asset that gives rise to the |
|---|
| 1333 | 1368 | | qualifying gains receivin g capital treatment. |
|---|
| 1334 | 1369 | | (1) With respect to sales of real property or |
|---|
| 1335 | 1370 | | tangible personal property located within |
|---|
| 1336 | 1371 | | Oklahoma, the deduction described in this |
|---|
| 1337 | 1372 | | subsection shall not apply unless the pass- |
|---|
| 1338 | 1373 | | through entity that makes the sale has held the |
|---|
| 1339 | 1374 | | property for not less than five (5) uninterrupted |
|---|
| 1340 | 1375 | | years prior to the date of the transaction t hat |
|---|
| 1341 | 1376 | | created the capital gain, an d each pass-through |
|---|
| 1342 | 1377 | | entity included in the chain of owner ship has |
|---|
| 1343 | 1378 | | been a member, partner, or shareholder of the |
|---|
| 1344 | 1379 | | pass-through entity in the tier immediately below |
|---|
| 1345 | 1380 | | it for an uninterrupted period of not less than |
|---|
| 1346 | 1381 | | five (5) years. |
|---|
| 1347 | 1382 | | (2) With respect to sales of s tock or ownership |
|---|
| 1348 | 1383 | | interest in or sales of all or substant ially all |
|---|
| 1349 | 1384 | | of the assets of an Oklahoma company, limited |
|---|
| 1382 | 1418 | | transaction that created the capital gain, and |
|---|
| 1383 | 1419 | | each pass-through entity included in the chain of |
|---|
| 1384 | 1420 | | ownership has been a member, partner or |
|---|
| 1385 | 1421 | | shareholder of the pass -through entity in the |
|---|
| 1386 | 1422 | | tier immediately bel ow it for an uninterrupted |
|---|
| 1387 | 1423 | | period of not less than three (3) years. |
|---|
| 1388 | 1424 | | E. The Oklahoma adjusted gross income of any individual |
|---|
| 1389 | 1425 | | taxpayer shall be furt her adjusted as follows to arriv e at Oklahoma |
|---|
| 1390 | 1426 | | taxable income: |
|---|
| 1391 | 1427 | | 1. a. In the case of indivi duals, there shall b e added or |
|---|
| 1392 | 1428 | | deducted, as the case may be, the difference necessary |
|---|
| 1393 | 1429 | | to allow personal exemptions of One Thousand Dollars |
|---|
| 1394 | 1430 | | ($1,000.00) in lieu of the p ersonal exemptions allowed |
|---|
| 1395 | 1431 | | by the Internal Revenue Code. |
|---|
| 1396 | 1432 | | b. There shall be allowed an add itional exemption of One |
|---|
| 1397 | 1433 | | Thousand Dollars ($1,000.00) for each taxpayer or |
|---|
| 1398 | 1434 | | spouse who is blind at the close of the tax year . For |
|---|
| 1399 | 1435 | | purposes of this subparagraph, an ind ividual is blind |
|---|
| 1431 | 1468 | | widest diameter of the visual field subtends an angle |
|---|
| 1432 | 1469 | | no greater than twenty (20) degrees. |
|---|
| 1433 | 1470 | | c. There shall be allowed an additional exemption of One |
|---|
| 1434 | 1471 | | Thousand Dollars ($1,000.00) for each taxpayer or |
|---|
| 1435 | 1472 | | spouse who is sixty-five (65) years of ag e or older at |
|---|
| 1436 | 1473 | | the close of the tax year based upon the filing status |
|---|
| 1437 | 1474 | | and federal adjusted gross income of the taxpayer. |
|---|
| 1438 | 1475 | | Taxpayers with the following filing status may claim |
|---|
| 1439 | 1476 | | this exemption if the federal adjusted gross income |
|---|
| 1440 | 1477 | | does not exceed: |
|---|
| 1441 | 1478 | | (1) Twenty-five Thousand Dollars ($25,000.00) if |
|---|
| 1442 | 1479 | | married and filing jointly; |
|---|
| 1443 | 1480 | | (2) Twelve Thousand Five Hundred Dollars ($12 ,500.00) |
|---|
| 1444 | 1481 | | if married and filing separately; |
|---|
| 1445 | 1482 | | (3) Fifteen Thousand Dol lars ($15,000.00) if single; |
|---|
| 1446 | 1483 | | and |
|---|
| 1447 | 1484 | | (4) Nineteen Thousand Dollars ($19,000.00) if a |
|---|
| 1448 | 1485 | | qualifying head of household. |
|---|
| 1481 | 1519 | | purposes of the income thresholds provided in this |
|---|
| 1482 | 1520 | | subparagraph. |
|---|
| 1483 | 1521 | | 2. a. For taxable years beginning on or before December 31, |
|---|
| 1484 | 1522 | | 2005, in the case of individuals who use the standard |
|---|
| 1485 | 1523 | | deduction in determining taxabl e income, there shall |
|---|
| 1486 | 1524 | | be added or deducted, as the case m ay be, the |
|---|
| 1487 | 1525 | | difference necessary to allow a standard deduction in |
|---|
| 1488 | 1526 | | lieu of the standard d eduction allowed by the Internal |
|---|
| 1489 | 1527 | | Revenue Code, in an amount equal to the larger of |
|---|
| 1490 | 1528 | | fifteen percent (15%) of the Oklahoma adjusted gross |
|---|
| 1491 | 1529 | | income or One Thousand Dollars ($ 1,000.00), but not t o |
|---|
| 1492 | 1530 | | exceed Two Thousand Dollars ($2,000.00), except that |
|---|
| 1493 | 1531 | | in the case of a married individual filing a separate |
|---|
| 1494 | 1532 | | return such deduction shall be the lar ger of fifteen |
|---|
| 1495 | 1533 | | percent (15%) of such Oklahoma adjusted gross income |
|---|
| 1496 | 1534 | | or Five Hundred Dolla rs ($500.00), but no t to exceed |
|---|
| 1497 | 1535 | | the maximum amount of One Thousand Dollars |
|---|
| 1498 | 1536 | | ($1,000.00). |
|---|
| 1499 | 1564 | | b. For taxable years beginning on or after January 1, |
|---|
| 1500 | 1565 | | 2006, and before January 1, 2007, in the case of |
|---|
| 1501 | 1566 | | individuals who use the standard deduction in |
|---|
| 1502 | 1567 | | determining taxable income, there shall be added or |
|---|
| 1503 | 1568 | | deducted, as the case may be, the difference necessary |
|---|
| 1504 | 1569 | | to allow a standard deduction in lieu of the standard |
|---|
| 1531 | 1570 | | deduction allowed by the Internal Revenue Code, in an |
|---|
| 1532 | 1571 | | amount equal to: |
|---|
| 1533 | 1572 | | (1) Three Thousand Dollars ($3,000.00), if the filing |
|---|
| 1534 | 1573 | | status is married filing joint, head of household |
|---|
| 1535 | 1574 | | or qualifying widow; or |
|---|
| 1536 | 1575 | | (2) Two Thousand Dollars ($2,000.00), if the filing |
|---|
| 1537 | 1576 | | status is single or married fi ling separate. |
|---|
| 1538 | 1577 | | c. For the taxable year beginning on January 1, 2007, and |
|---|
| 1539 | 1578 | | ending December 31, 2007, in the cas e of individuals |
|---|
| 1540 | 1579 | | who use the standard deduction in determining taxa ble |
|---|
| 1541 | 1580 | | income, there shall be added or deducted, as the case |
|---|
| 1542 | 1581 | | may be, the difference necessary to allow a standard |
|---|
| 1543 | 1582 | | deduction in lieu of the standard deduction allowed by |
|---|
| 1544 | 1583 | | the Internal Revenue Code, in an amount equal to: |
|---|
| 1545 | 1584 | | (1) Five Thousand Five Hundred Dollars ( $5,500.00), |
|---|
| 1546 | 1585 | | if the filing status is married filing joint or |
|---|
| 1547 | 1586 | | qualifying widow; or |
|---|
| 1548 | 1614 | | (2) Four Thousand One Hundred Twenty-five Dollars |
|---|
| 1549 | 1615 | | ($4,125.00) for a head of household; o r |
|---|
| 1550 | 1616 | | (3) Two Thousand Seven Hundred Fifty Dollars |
|---|
| 1551 | 1617 | | ($2,750.00), if the filing status is sin gle or |
|---|
| 1552 | 1618 | | married filing separate. |
|---|
| 1553 | 1619 | | d. For the taxable year beginning on January 1, 2008, and |
|---|
| 1554 | 1620 | | ending December 31, 2008, in the case of individuals |
|---|
| 1581 | 1621 | | who use the standard deduc tion in determining taxable |
|---|
| 1582 | 1622 | | income, there shall be added or deducted, as the case |
|---|
| 1583 | 1623 | | may be, the difference necessary to allow a standard |
|---|
| 1584 | 1624 | | deduction in lieu of the standar d deduction allowed by |
|---|
| 1585 | 1625 | | the Internal Revenue Code, in an amount equal to: |
|---|
| 1586 | 1626 | | (1) Six Thousand Five Hundred Dollars ($6,500.00), if |
|---|
| 1587 | 1627 | | the filing status is married filing joint or |
|---|
| 1588 | 1628 | | qualifying widow, or |
|---|
| 1589 | 1629 | | (2) Four Thousand Eight Hundred Seventy -five Dollars |
|---|
| 1590 | 1630 | | ($4,875.00) for a head of household, or |
|---|
| 1591 | 1631 | | (3) Three Thousand Two Hundred Fifty Dollars |
|---|
| 1592 | 1632 | | ($3,250.00), if the filing status is single or |
|---|
| 1593 | 1633 | | married filing separate. |
|---|
| 1594 | 1634 | | e. For the taxable year begin ning on January 1, 2009, and |
|---|
| 1595 | 1635 | | ending December 31, 2009, in the case of individual s |
|---|
| 1596 | 1636 | | who use the standard deduction in determining taxable |
|---|
| 1597 | 1637 | | income, there shall be added or d educted, as the case |
|---|
| 1630 | 1671 | | (2) Six Thousand Three Hundred Seventy -five Dollars |
|---|
| 1631 | 1672 | | ($6,375.00) for a head of household, or |
|---|
| 1632 | 1673 | | (3) Four Thousand Two Hundred Fifty Dollars |
|---|
| 1633 | 1674 | | ($4,250.00), if the filing status is single or |
|---|
| 1634 | 1675 | | married filing separate. |
|---|
| 1635 | 1676 | | Oklahoma adjusted gross income shall be increased by |
|---|
| 1636 | 1677 | | any amounts paid for motor vehicle ex cise taxes which |
|---|
| 1637 | 1678 | | were deducted as allowed by the Internal Revenue Code. |
|---|
| 1638 | 1679 | | f. For taxable years beginning on or after January 1, |
|---|
| 1639 | 1680 | | 2010, and ending on December 31, 2016, in t he case of |
|---|
| 1640 | 1681 | | individuals who use the standard deduction in |
|---|
| 1641 | 1682 | | determining taxable income, th ere shall be added or |
|---|
| 1642 | 1683 | | deducted, as the case may be, the difference necessary |
|---|
| 1643 | 1684 | | to allow a standard deduction equal to the standard |
|---|
| 1644 | 1685 | | deduction allowed by the Internal Revenu e Code, based |
|---|
| 1645 | 1686 | | upon the amount and filing status prescribed by such |
|---|
| 1646 | 1687 | | Code for purposes of filing federal individual income |
|---|
| 1647 | 1688 | | tax returns. |
|---|
| 1679 | 1721 | | lieu of the standard deducti on allowed by the Internal |
|---|
| 1680 | 1722 | | Revenue Code, as follows: |
|---|
| 1681 | 1723 | | (1) Six Thousand Three Hundred Fifty Dollars |
|---|
| 1682 | 1724 | | ($6,350.00) for single or married filing |
|---|
| 1683 | 1725 | | separately, |
|---|
| 1684 | 1726 | | (2) Twelve Thousand Seven Hundred Dollars |
|---|
| 1685 | 1727 | | ($12,700.00) for married filing jointly or |
|---|
| 1686 | 1728 | | qualifying widower w ith dependent child, and |
|---|
| 1687 | 1729 | | (3) Nine Thousand Three Hundred Fifty Dollars |
|---|
| 1688 | 1730 | | ($9,350.00) for head of household. |
|---|
| 1689 | 1731 | | h. For taxable years beginning on or after January 1, |
|---|
| 1690 | 1732 | | 2023, in the case of individuals who use the standard |
|---|
| 1691 | 1733 | | deduction in determining taxable income for purposes |
|---|
| 1692 | 1734 | | of the federal income tax return for the applicable |
|---|
| 1693 | 1735 | | tax year, and whose Oklahoma itemized deductions are |
|---|
| 1694 | 1736 | | greater than Twenty-one Thousand Five Hundred Dollars |
|---|
| 1695 | 1737 | | ($21,500.00) for a joint return or greater than Ten |
|---|
| 1696 | 1738 | | Thousand Seven Hundred Fifty Dollars ($10, 750.00) for |
|---|
| 1697 | | - | an individual return or Sixteen Thousand Six Hundred |
|---|
| 1698 | | - | Fifty Dollars ($16,650.00) for the return of a n |
|---|
| 1699 | | - | individual claiming head of household status , there |
|---|
| 1700 | | - | may be deducted the amount of the itemized deductions |
|---|
| 1701 | | - | that could have been claimed f or purposes of the |
|---|
| 1702 | | - | federal income tax return for purposes of the Okl ahoma |
|---|
| 1703 | | - | |
|---|
| 1704 | | - | ENGR. H. B. NO. 3675 Page 35 1 |
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| 1705 | | - | 2 |
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| 1706 | | - | 3 |
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| 1707 | | - | 4 |
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| 1708 | | - | 5 |
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| 1709 | | - | 6 |
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| 1710 | | - | 7 |
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| 1711 | | - | 8 |
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| 1712 | | - | 9 |
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| 1715 | | - | 12 |
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| 1716 | | - | 13 |
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| 1717 | | - | 14 |
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| 1720 | | - | 17 |
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| 1721 | | - | 18 |
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| 1722 | | - | 19 |
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| 1723 | | - | 20 |
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| 1724 | | - | 21 |
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| 1725 | | - | 22 |
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| 1726 | | - | 23 |
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| 1727 | | - | 24 |
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| 1728 | | - | |
|---|
| 1729 | | - | income tax return for the same income tax year. If a |
|---|
| 1730 | | - | taxpayer chooses this option, the taxpayer may not |
|---|
| 1731 | | - | claim the standard deduction for the same tax year; |
|---|
| 1732 | | - | provided that the federal taxable i ncome is less than |
|---|
| 1733 | | - | Forty Thousand Five Hundred Twenty -five Dollars |
|---|
| 1734 | | - | ($40,525.00) on a single filer return, Fifty -four |
|---|
| 1735 | | - | Thousand Two Hundred Dol lars ($54,200.00) for a filer |
|---|
| 1736 | | - | claiming head of household status, or Eighty -one |
|---|
| 1737 | | - | Thousand Fifty Dollars ($81,05 0.00) for a joint |
|---|
| 1738 | | - | return. |
|---|
| 1739 | + | an individual return, there may be deducted the amount |
|---|
| 1740 | + | |
|---|
| 1741 | + | HB3675 HFLR Page 35 |
|---|
| 1742 | + | BOLD FACE denotes Committee Amendments. 1 |
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| 1743 | + | 2 |
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| 1744 | + | 3 |
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| 1745 | + | 4 |
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| 1746 | + | 5 |
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| 1747 | + | 6 |
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| 1748 | + | 7 |
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| 1749 | + | 8 |
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| 1750 | + | 9 |
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| 1751 | + | 10 |
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| 1752 | + | 11 |
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| 1753 | + | 12 |
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| 1754 | + | 13 |
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| 1755 | + | 14 |
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| 1756 | + | 15 |
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| 1757 | + | 16 |
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| 1758 | + | 17 |
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| 1759 | + | 18 |
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| 1760 | + | 19 |
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| 1761 | + | 20 |
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| 1762 | + | 21 |
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| 1763 | + | 22 |
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| 1764 | + | 23 |
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| 1765 | + | 24 |
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| 1766 | + | |
|---|
| 1767 | + | of the itemized deductions that could have been |
|---|
| 1768 | + | claimed for purposes of the federal income tax return |
|---|
| 1769 | + | for purposes of the Okl ahoma income tax return f or the |
|---|
| 1770 | + | same income tax year. If a taxpayer chooses this |
|---|
| 1771 | + | option, the taxpayer may not claim the standard |
|---|
| 1772 | + | deduction for the same tax year. |
|---|
| 1739 | 1773 | | 3. a. In the case of resident and part-year resident |
|---|
| 1740 | 1774 | | individuals having adjusted gross income from sources |
|---|
| 1741 | 1775 | | both within and without the state, the item ized or |
|---|
| 1742 | 1776 | | standard deductions and personal exemptions shall be |
|---|
| 1743 | 1777 | | reduced to an amount which is the same portion of the |
|---|
| 1744 | 1778 | | total thereof as Oklahoma adjusted gross income is of |
|---|
| 1745 | 1779 | | adjusted gross income. To the extent itemized |
|---|
| 1746 | 1780 | | deductions include allowable moving expe nse, proration |
|---|
| 1747 | 1781 | | of moving expense shall not be required or permitted |
|---|
| 1748 | 1782 | | but allowable moving expense shall be fully deductible |
|---|
| 1749 | 1783 | | for those taxpayers moving within or into Oklahoma a nd |
|---|
| 1750 | 1784 | | no part of moving expense shall be deductible for |
|---|
| 1751 | 1785 | | those taxpayers moving witho ut or out of Oklahoma. |
|---|
| 1752 | 1786 | | All other itemized or standard deductions and personal |
|---|
| 1783 | 1818 | | on an Oklahoma income tax return, subject to the |
|---|
| 1784 | 1819 | | provisions of paragraph 24 of this subsection, shall |
|---|
| 1785 | 1820 | | not exceed Seventeen Thousand Dollars ($17,000.00). |
|---|
| 1786 | 1821 | | For purposes of this subpara graph, charitable |
|---|
| 1787 | 1822 | | contributions and medical expen ses deductible for |
|---|
| 1788 | 1823 | | federal income tax purposes shall be excluded from the |
|---|
| 1789 | 1824 | | amount of Seventeen Thousand Dollars ($17,000. 00) as |
|---|
| 1790 | 1825 | | specified by this subparagraph. |
|---|
| 1791 | 1826 | | 4. A resident individual with a physical disabi lity |
|---|
| 1792 | 1827 | | constituting a substantial handicap to emplo yment may deduct from |
|---|
| 1793 | 1828 | | Oklahoma adjusted gross income such expenditures to modify a motor |
|---|
| 1794 | 1829 | | vehicle, home or workplace as a re necessary to compensate for his or |
|---|
| 1795 | 1830 | | her handicap. A veteran certified by the Departm ent of Veterans |
|---|
| 1796 | 1831 | | Affairs of the federal government as having a service-connected |
|---|
| 1797 | 1832 | | disability shall be conclusively presumed to be an individual with a |
|---|
| 1798 | 1833 | | physical disability constituting a substantial handicap to |
|---|
| 1799 | 1834 | | employment. The Tax Commission shall promulgate rules containing a |
|---|
| 1800 | 1835 | | list of combinations of commo n disabilities and modifications which |
|---|
| 1801 | 1836 | | may be presumed to qualify for this deduction . The Tax Commission |
|---|
| 1802 | 1837 | | shall prescribe necessary requirements for verification. |
|---|
| 1833 | 1869 | | of any component of the Armed Forces of the United |
|---|
| 1834 | 1870 | | States shall be deducted from taxable income. |
|---|
| 1835 | 1871 | | b. On or after July 1, 2010, one hundred percent (100%) |
|---|
| 1836 | 1872 | | of the income received by any person from the United |
|---|
| 1837 | 1873 | | States as salary or compensation in any form, other |
|---|
| 1838 | 1874 | | than retirement benefits, as a member of a ny component |
|---|
| 1839 | 1875 | | of the Armed Forces of the Unit ed States shall be |
|---|
| 1840 | 1876 | | deducted from taxable income. |
|---|
| 1841 | 1877 | | c. Whenever the filing of a time ly income tax return by a |
|---|
| 1842 | 1878 | | member of the Armed Forces of the United States is |
|---|
| 1843 | 1879 | | made impracticable or impossible of accomplishment by |
|---|
| 1844 | 1880 | | reason of: |
|---|
| 1845 | 1881 | | (1) absence from the United State s, which term |
|---|
| 1846 | 1882 | | includes only the states and the Di strict of |
|---|
| 1847 | 1883 | | Columbia; |
|---|
| 1848 | 1884 | | (2) absence from the State of Oklahoma while on |
|---|
| 1849 | 1885 | | active duty; or |
|---|
| 1850 | 1886 | | (3) confinement in a hospital within the United |
|---|
| 1851 | 1887 | | States for treatment of wounds, injuries or |
|---|
| 1852 | 1888 | | disease, |
|---|
| 1883 | 1920 | | (a) Such individual shall return to the United |
|---|
| 1884 | 1921 | | States if the extens ion is granted pursuant |
|---|
| 1885 | 1922 | | to subparagraph a of this paragraph, return |
|---|
| 1886 | 1923 | | to the State of Oklahoma if the extension is |
|---|
| 1887 | 1924 | | granted pursuant to subparagraph b of this |
|---|
| 1888 | 1925 | | paragraph or be discharged from such |
|---|
| 1889 | 1926 | | hospital if the extension is granted |
|---|
| 1890 | 1927 | | pursuant to subparagraph c of this |
|---|
| 1891 | 1928 | | paragraph; or |
|---|
| 1892 | 1929 | | (b) An executor, administr ator, or conservator |
|---|
| 1893 | 1930 | | of the estate of the taxpayer is appointed, |
|---|
| 1894 | 1931 | | whichever event occurs the earliest. |
|---|
| 1895 | 1932 | | Provided, that the Tax Commission may, in its discretion, gra nt |
|---|
| 1896 | 1933 | | any member of the Armed Forces of the Uni ted States an extension of |
|---|
| 1897 | 1934 | | time for filing of inc ome tax returns and payment of i ncome tax |
|---|
| 1898 | 1935 | | without incurring liabilities for interest or penalties . Such |
|---|
| 1899 | 1936 | | extension may be granted only when in the judgment of the Tax |
|---|
| 1900 | 1937 | | Commission a good cause exists therefor and may be for a period in |
|---|
| 1901 | 1938 | | excess of six (6) mont hs. A record of every such exte nsion granted, |
|---|
| 1902 | 1939 | | and the reason therefor, shall be kept. |
|---|
| 1933 | 1971 | | detained by the enemy in a conflict, i s a prisoner of war or is |
|---|
| 1934 | 1972 | | missing in action and not deceased; provided, after July 1, 2 010, |
|---|
| 1935 | 1973 | | all such salary or compensation shall be sub ject to the deduction as |
|---|
| 1936 | 1974 | | provided pursuant to paragraph 5 of this subsection. |
|---|
| 1937 | 1975 | | 7. a. An individual taxpayer, whether resi dent or |
|---|
| 1938 | 1976 | | nonresident, may deduct an amount e qual to the federal |
|---|
| 1939 | 1977 | | income taxes paid by the taxpayer during the taxable |
|---|
| 1940 | 1978 | | year. |
|---|
| 1941 | 1979 | | b. Federal taxes as described in subparagra ph a of this |
|---|
| 1942 | 1980 | | paragraph shall be deductible by any individual |
|---|
| 1943 | 1981 | | taxpayer, whether resident or nonresident, only to the |
|---|
| 1944 | 1982 | | extent they relate to income subject to taxation |
|---|
| 1945 | 1983 | | pursuant to the provisions of the Oklahoma Income Tax |
|---|
| 1946 | 1984 | | Act. The maximum amount allowable in the preceding |
|---|
| 1947 | 1985 | | paragraph shall be prorated on the ratio of the |
|---|
| 1948 | 1986 | | Oklahoma adjusted gross inco me to federal adjusted |
|---|
| 1949 | 1987 | | gross income. |
|---|
| 1950 | 1988 | | c. For the purpose of this paragraph, "federal income |
|---|
| 1951 | 1989 | | taxes paid" shall mean federal income taxes, surtaxes |
|---|
| 1952 | 1990 | | imposed on incomes or excess profits taxes, as though |
|---|
| 1983 | 2022 | | percent (10%) tax rate bracket credit or advanced |
|---|
| 1984 | 2023 | | refund of the credit received during the tax year |
|---|
| 1985 | 2024 | | provided pursuant to the federal Economic Grow th and |
|---|
| 1986 | 2025 | | Tax Relief Reconciliation Act of 2001 , P.L. No. 107- |
|---|
| 1987 | 2026 | | 16, and the advanced refund of suc h credit shall not |
|---|
| 1988 | 2027 | | be subject to taxation. |
|---|
| 1989 | 2028 | | d. The provisions of this paragraph shall apply to all |
|---|
| 1990 | 2029 | | taxable years ending a fter December 31, 1978, and |
|---|
| 1991 | 2030 | | beginning before January 1, 2006. |
|---|
| 1992 | 2031 | | 8. Retirement benefits n ot to exceed Five Thousand Five Hundred |
|---|
| 1993 | 2032 | | Dollars ($5,500.00) for the 2004 ta x year, Seven Thousand Five |
|---|
| 1994 | 2033 | | Hundred Dollars ($7,500.00) for the 2005 tax year and Ten Thousand |
|---|
| 1995 | 2034 | | Dollars ($10,000.00) for the 2006 tax year and all subsequent tax |
|---|
| 1996 | 2035 | | years, which are rec eived by an individual from the civil service of |
|---|
| 1997 | 2036 | | the United States, the Okl ahoma Public Employees Retirement System, |
|---|
| 1998 | 2037 | | the Teachers' Retirement System of Oklahoma, the Okl ahoma Law |
|---|
| 1999 | 2038 | | Enforcement Retirement System, th e Oklahoma Firefighters Pension and |
|---|
| 2000 | 2039 | | Retirement System, the Oklahoma Police Pension and Retire ment |
|---|
| 2001 | 2040 | | System, the employee retirement systems created by counties pursuant |
|---|
| 2002 | 2041 | | to Section 951 et seq. of Title 19 of the Okla homa Statutes, the |
|---|
| 2033 | 2073 | | 101 et seq. of Title 11 of the Oklahoma Statutes shall be exempt |
|---|
| 2034 | 2074 | | from taxable income. |
|---|
| 2035 | 2075 | | 9. In taxable years beginni ng after December 3l, 198 4, Social |
|---|
| 2036 | 2076 | | Security benefits received by an individual shall be exempt from |
|---|
| 2037 | 2077 | | taxable income, to t he extent such benefits are included in the |
|---|
| 2038 | 2078 | | federal adjusted gross income pursuant to t he provisions of Section |
|---|
| 2039 | 2079 | | 86 of the Internal Reven ue Code, 26 U.S.C., Secti on 86. |
|---|
| 2040 | 2080 | | 10. For taxable years beginning after December 31, 1994, lump - |
|---|
| 2041 | 2081 | | sum distributions from em ployer plans of deferred compensation, |
|---|
| 2042 | 2082 | | which are not qualified plans within the meaning of Section 401(a) |
|---|
| 2043 | 2083 | | of the Internal Revenue Code, 26 U.S.C., Section 401(a ), and which |
|---|
| 2044 | 2084 | | are deposited in and accounted for within a separate bank account or |
|---|
| 2045 | 2085 | | brokerage account in a financial institution within this state, |
|---|
| 2046 | 2086 | | shall be excluded from taxable income in the same manner as a |
|---|
| 2047 | 2087 | | qualifying rollover cont ribution to an individua l retirement account |
|---|
| 2048 | 2088 | | within the meaning of Section 408 of the Internal Revenue Code, 26 |
|---|
| 2049 | 2089 | | U.S.C., Section 408. Amounts withdrawn from such b ank or brokerage |
|---|
| 2050 | 2090 | | account, including any earn ings thereon, shall be included in |
|---|
| 2051 | 2091 | | taxable income when withdrawn in the s ame manner as withdrawals from |
|---|
| 2082 | 2123 | | account established pursuant to Sections 2621 through 2623 of Title |
|---|
| 2083 | 2124 | | 63 of the Oklahoma Statutes shall be exempt from taxable income. |
|---|
| 2084 | 2125 | | 12. For taxable years beginning after December 31, 1996 , the |
|---|
| 2085 | 2126 | | Oklahoma adjusted gross income of any indiv idual taxpayer who is a |
|---|
| 2086 | 2127 | | swine or poultry producer may be further adjusted for the deduction |
|---|
| 2087 | 2128 | | for depreciation allowed for new construction or expansion costs |
|---|
| 2088 | 2129 | | which may be computed using the same depreciation method elected for |
|---|
| 2089 | 2130 | | federal income tax purposes ex cept that the useful l ife shall be |
|---|
| 2090 | 2131 | | seven (7) years for purposes of this paragraph . If depreciation is |
|---|
| 2091 | 2132 | | allowed as a deduction in determining the adjusted gross inc ome of |
|---|
| 2092 | 2133 | | an individual, any depreciation calcu lated and claimed pursuant to |
|---|
| 2093 | 2134 | | this section shall in no event be a dupli cation of any depreciation |
|---|
| 2094 | 2135 | | allowed or permitted on the federal income tax return of the |
|---|
| 2095 | 2136 | | individual. |
|---|
| 2096 | 2137 | | 13. a. In taxable years beginning after D ecember 31, 2002, |
|---|
| 2097 | 2138 | | nonrecurring adoption expe nses paid by a resident |
|---|
| 2098 | 2139 | | individual taxpayer in co nnection with: |
|---|
| 2099 | 2140 | | (1) the adoption of a minor, or |
|---|
| 2100 | 2141 | | (2) a proposed adoption of a minor which did not |
|---|
| 2101 | 2142 | | result in a decreed adop tion, |
|---|
| 2130 | 2172 | | b. The deductions for ad options and proposed adoptions |
|---|
| 2131 | 2173 | | authorized by this paragraph shall not exceed Twenty |
|---|
| 2132 | 2174 | | Thousand Dollars ($20,000.00) per calendar year. |
|---|
| 2133 | 2175 | | c. The Tax Commission shall promulga te rules to implement |
|---|
| 2134 | 2176 | | the provisions of thi s paragraph which shall contain a |
|---|
| 2135 | 2177 | | specific list of nonrecurring adoption expenses which |
|---|
| 2136 | 2178 | | may be presumed to qualify for the deduction. The Tax |
|---|
| 2137 | 2179 | | Commission shall prescribe necessary requirements for |
|---|
| 2138 | 2180 | | verification. |
|---|
| 2139 | 2181 | | d. "Nonrecurring adoption expenses " means adoption fees, |
|---|
| 2140 | 2182 | | court costs, medical expenses, a ttorney fees and |
|---|
| 2141 | 2183 | | expenses which are directly rela ted to the legal |
|---|
| 2142 | 2184 | | process of adoption of a child including, but not |
|---|
| 2143 | 2185 | | limited to, costs relating to the adoption study, |
|---|
| 2144 | 2186 | | health and psychological examinations, transpo rtation |
|---|
| 2145 | 2187 | | and reasonable costs of lodging and food for the child |
|---|
| 2146 | 2188 | | or adoptive parents which are incurred to complete the |
|---|
| 2147 | 2189 | | adoption process and are not reimbursed by other |
|---|
| 2148 | 2190 | | sources. The term "nonrecurring adoption expe nses" |
|---|
| 2149 | 2191 | | shall not include attorney fees incur red for the |
|---|
| 2150 | 2192 | | purpose of litigating a conteste d adoption, from and |
|---|
| 2151 | 2193 | | after the point of the initi ation of the contest, |
|---|
| 2180 | 2223 | | property, except for a special needs ch ild as |
|---|
| 2181 | 2224 | | authorized by the court. |
|---|
| 2182 | 2225 | | 14. a. In taxable years beginning before January 1, 2005, |
|---|
| 2183 | 2226 | | retirement benefits not to exceed the amounts |
|---|
| 2184 | 2227 | | specified in this paragraph, which are received by an |
|---|
| 2185 | 2228 | | individual sixty-five (65) years of age or older and |
|---|
| 2186 | 2229 | | whose Oklahoma adjusted gross income is Twenty-five |
|---|
| 2187 | 2230 | | Thousand Dollars ($25,000.00) or less if the filing |
|---|
| 2188 | 2231 | | status is single, head of household, or married filing |
|---|
| 2189 | 2232 | | separate, or Fifty Thousand Dollars ($50,000.00) or |
|---|
| 2190 | 2233 | | less if the filing status is married filing joint or |
|---|
| 2191 | 2234 | | qualifying widow, shall be exempt from taxable in come. |
|---|
| 2192 | 2235 | | In taxable years beginning after December 31, 2004, |
|---|
| 2193 | 2236 | | retirement benefits not to exceed the amounts |
|---|
| 2194 | 2237 | | specified in this paragraph, which are received by an |
|---|
| 2195 | 2238 | | individual whose Oklahoma adjusted gross income is |
|---|
| 2196 | 2239 | | less than the qualifying amount specified in t his |
|---|
| 2197 | 2240 | | paragraph, shall be exempt from taxable incom e. |
|---|
| 2198 | 2241 | | b. For purposes of this paragraph, the qualifying amount |
|---|
| 2199 | 2242 | | shall be as follows: |
|---|
| 2200 | 2243 | | (1) in taxable years beginning after De cember 31, |
|---|
| 2201 | 2244 | | 2004, and prior to January 1, 20 07, the |
|---|
| 2230 | 2274 | | filing status is single, head of household, or |
|---|
| 2231 | 2275 | | married filing separate, or Seventy -five Thousand |
|---|
| 2232 | 2276 | | Dollars ($75,000.00) or less if the filing status |
|---|
| 2233 | 2277 | | is married filing jointly or qualifying widow, |
|---|
| 2234 | 2278 | | (2) in the taxable year beginning January 1, 2007 , |
|---|
| 2235 | 2279 | | the qualifying amount shall be Fifty Thousand |
|---|
| 2236 | 2280 | | Dollars ($50,000.00) or less if the filing status |
|---|
| 2237 | 2281 | | is single, head of hou sehold, or married filing |
|---|
| 2238 | 2282 | | separate, or One Hundred Thousand Dollars |
|---|
| 2239 | 2283 | | ($100,000.00) or less if the filing status is |
|---|
| 2240 | 2284 | | married filing jointly or qualifying widow, |
|---|
| 2241 | 2285 | | (3) in the taxable year beginning January 1, 2008, |
|---|
| 2242 | 2286 | | the qualifying amount shall be Sixty -two Thousand |
|---|
| 2243 | 2287 | | Five Hundred Dollars ($62,500.00) or les s if the |
|---|
| 2244 | 2288 | | filing status is single, head of ho usehold, or |
|---|
| 2245 | 2289 | | married filing separate, or One Hundr ed Twenty- |
|---|
| 2246 | 2290 | | five Thousand Dollars ($125,000.00) or less if |
|---|
| 2247 | 2291 | | the filing status is married filing jointly or |
|---|
| 2248 | 2292 | | qualifying widow, |
|---|
| 2249 | 2293 | | (4) in the taxable year beginning January 1, 2009, |
|---|
| 2250 | 2294 | | the qualifying amount shall be One Hundred |
|---|
| 2251 | 2295 | | Thousand Dollars ($100,000.00) or less i f the |
|---|
| 2280 | 2325 | | Dollars ($200,000.00) or less if the filing |
|---|
| 2281 | 2326 | | status is married filing jointly or qualifying |
|---|
| 2282 | 2327 | | widow, and |
|---|
| 2283 | 2328 | | (5) in the taxable year beginning January 1, 2010, |
|---|
| 2284 | 2329 | | and subsequent taxable years, the re shall be no |
|---|
| 2285 | 2330 | | limitation upon the qualifying amount. |
|---|
| 2286 | 2331 | | c. For purposes of this paragraph, "retirement benefits" |
|---|
| 2287 | 2332 | | means the total dist ributions or withdrawals from the |
|---|
| 2288 | 2333 | | following: |
|---|
| 2289 | 2334 | | (1) an employee pension benefit plan which satis fies |
|---|
| 2290 | 2335 | | the requirements of Section 401 of the Internal |
|---|
| 2291 | 2336 | | Revenue Code, 26 U.S.C., Section 401, |
|---|
| 2292 | 2337 | | (2) an eligible deferred comp ensation plan that |
|---|
| 2293 | 2338 | | satisfies the requiremen ts of Section 457 of the |
|---|
| 2294 | 2339 | | Internal Revenue Code, 26 U.S.C., Section 457, |
|---|
| 2295 | 2340 | | (3) an individual retirement account, annuity or |
|---|
| 2296 | 2341 | | trust or simplified employee pension that |
|---|
| 2297 | 2342 | | satisfies the requirements of Section 408 of the |
|---|
| 2298 | 2343 | | Internal Revenue Code, 26 U.S.C., Section 40 8, |
|---|
| 2299 | 2344 | | (4) an employee annuity subject to the pr ovisions of |
|---|
| 2300 | 2345 | | Section 403(a) or (b) of the Internal Revenue |
|---|
| 2301 | 2346 | | Code, 26 U.S.C., Sectio n 403(a) or (b), |
|---|
| 2302 | 2347 | | |
|---|
| 2304 | 2350 | | 2 |
|---|
| 2305 | 2351 | | 3 |
|---|
| 2306 | 2352 | | 4 |
|---|
| 2307 | 2353 | | 5 |
|---|
| 2308 | 2354 | | 6 |
|---|
| 2309 | 2355 | | 7 |
|---|
| 2310 | 2356 | | 8 |
|---|
| 2311 | 2357 | | 9 |
|---|
| 2312 | 2358 | | 10 |
|---|
| 2313 | 2359 | | 11 |
|---|
| 2314 | 2360 | | 12 |
|---|
| 2315 | 2361 | | 13 |
|---|
| 2316 | 2362 | | 14 |
|---|
| 2317 | 2363 | | 15 |
|---|
| 2318 | 2364 | | 16 |
|---|
| 2319 | 2365 | | 17 |
|---|
| 2320 | 2366 | | 18 |
|---|
| 2321 | 2367 | | 19 |
|---|
| 2322 | 2368 | | 20 |
|---|
| 2323 | 2369 | | 21 |
|---|
| 2324 | 2370 | | 22 |
|---|
| 2325 | 2371 | | 23 |
|---|
| 2326 | 2372 | | 24 |
|---|
| 2327 | 2373 | | |
|---|
| 2328 | 2374 | | (5) United States Retirement Bonds which satisfy the |
|---|
| 2329 | 2375 | | requirements of Section 86 of the Internal |
|---|
| 2330 | 2376 | | Revenue Code, 26 U.S.C., Section 86, or |
|---|
| 2331 | 2377 | | (6) lump-sum distributions from a retirement plan |
|---|
| 2332 | 2378 | | which satisfies the r equirements of Section |
|---|
| 2333 | 2379 | | 402(e) of the Internal Revenue Code, 26 U.S.C., |
|---|
| 2334 | 2380 | | Section 402(e). |
|---|
| 2335 | 2381 | | d. The amount of the exemption pr ovided by this paragraph |
|---|
| 2336 | 2382 | | shall be limited to Five Thousand Five Hundred Dollars |
|---|
| 2337 | 2383 | | ($5,500.00) for the 2004 tax year, Seven Thousand Five |
|---|
| 2338 | 2384 | | Hundred Dollars ($7,500.00) for t he 2005 tax year and |
|---|
| 2339 | 2385 | | Ten Thousand Dollars ($10,000.00) for the tax year |
|---|
| 2340 | 2386 | | 2006 and for all subsequent tax years . Any individual |
|---|
| 2341 | 2387 | | who claims the exemption provided for in paragra ph 8 |
|---|
| 2342 | 2388 | | of this subsection shall not be permitted to claim a |
|---|
| 2343 | 2389 | | combined total exemptio n pursuant to this paragraph |
|---|
| 2344 | 2390 | | and paragraph 8 of this subsection in an amount |
|---|
| 2345 | 2391 | | exceeding Five Thousand Five Hundred Dollars |
|---|
| 2346 | 2392 | | ($5,500.00) for the 2004 tax year, Seven Thousand Fiv e |
|---|
| 2347 | 2393 | | Hundred Dollars ($7,500.00) for the 2005 tax ye ar and |
|---|
| 2348 | 2394 | | Ten Thousand Dollars ($10 ,000.00) for the 2006 tax |
|---|
| 2349 | 2395 | | year and all subsequent tax years. |
|---|
| 2350 | 2396 | | 15. In taxable years begin ning after December 31, 1999, for an |
|---|
| 2351 | 2397 | | individual engaged in production agriculture who h as filed a |
|---|
| 2352 | 2398 | | |
|---|
| 2354 | 2401 | | 2 |
|---|
| 2355 | 2402 | | 3 |
|---|
| 2356 | 2403 | | 4 |
|---|
| 2357 | 2404 | | 5 |
|---|
| 2358 | 2405 | | 6 |
|---|
| 2359 | 2406 | | 7 |
|---|
| 2360 | 2407 | | 8 |
|---|
| 2361 | 2408 | | 9 |
|---|
| 2362 | 2409 | | 10 |
|---|
| 2363 | 2410 | | 11 |
|---|
| 2364 | 2411 | | 12 |
|---|
| 2365 | 2412 | | 13 |
|---|
| 2366 | 2413 | | 14 |
|---|
| 2367 | 2414 | | 15 |
|---|
| 2368 | 2415 | | 16 |
|---|
| 2369 | 2416 | | 17 |
|---|
| 2370 | 2417 | | 18 |
|---|
| 2371 | 2418 | | 19 |
|---|
| 2372 | 2419 | | 20 |
|---|
| 2373 | 2420 | | 21 |
|---|
| 2374 | 2421 | | 22 |
|---|
| 2375 | 2422 | | 23 |
|---|
| 2376 | 2423 | | 24 |
|---|
| 2377 | 2424 | | |
|---|
| 2378 | 2425 | | Schedule F form with the taxpayer 's federal income tax return for |
|---|
| 2379 | 2426 | | such taxable year, there shall be excluded from taxable income any |
|---|
| 2380 | 2427 | | amount which was included as federal taxable income or federal |
|---|
| 2381 | 2428 | | adjusted gross income and which consists of the d ischarge of an |
|---|
| 2382 | 2429 | | obligation by a creditor of the t axpayer incurred to finance the |
|---|
| 2383 | 2430 | | production of agricultural products. |
|---|
| 2384 | 2431 | | 16. In taxable years beginning December 31, 2000, a n amount |
|---|
| 2385 | 2432 | | equal to one hundred percent (100% ) of the amount of any scholarship |
|---|
| 2386 | 2433 | | or stipend received from participation in the Oklahoma P olice Corps |
|---|
| 2387 | 2434 | | Program, as establishe d in Section 2-140.3 of Title 47 of the |
|---|
| 2388 | 2435 | | Oklahoma Statutes shall be exempt from taxable i ncome. |
|---|
| 2389 | 2436 | | 17. a. In taxable years beginning af ter December 31, 2001, |
|---|
| 2390 | 2437 | | and before January 1, 2005, there shall be allowed a |
|---|
| 2391 | 2438 | | deduction in the amount of contributions to accou nts |
|---|
| 2392 | 2439 | | established pursuant to the Oklahoma College Savings |
|---|
| 2393 | 2440 | | Plan Act. The deduction shall equal the amount of |
|---|
| 2394 | 2441 | | contributions to accoun ts, but in no event shall the |
|---|
| 2395 | 2442 | | deduction for each contributor exceed Two Thousand |
|---|
| 2396 | 2443 | | Five Hundred Dollars ($2,500.00) each taxabl e year for |
|---|
| 2397 | 2444 | | each account. |
|---|
| 2398 | 2445 | | b. In taxable years beginning after December 31, 2004, |
|---|
| 2399 | 2446 | | each taxpayer shall be allowed a deduction for |
|---|
| 2400 | 2447 | | contributions to accounts established pursuant t o the |
|---|
| 2401 | 2448 | | Oklahoma College Savings Plan Act . The maximum annual |
|---|
| 2402 | 2449 | | |
|---|
| 2404 | 2452 | | 2 |
|---|
| 2405 | 2453 | | 3 |
|---|
| 2406 | 2454 | | 4 |
|---|
| 2407 | 2455 | | 5 |
|---|
| 2408 | 2456 | | 6 |
|---|
| 2409 | 2457 | | 7 |
|---|
| 2410 | 2458 | | 8 |
|---|
| 2411 | 2459 | | 9 |
|---|
| 2412 | 2460 | | 10 |
|---|
| 2413 | 2461 | | 11 |
|---|
| 2414 | 2462 | | 12 |
|---|
| 2415 | 2463 | | 13 |
|---|
| 2416 | 2464 | | 14 |
|---|
| 2417 | 2465 | | 15 |
|---|
| 2418 | 2466 | | 16 |
|---|
| 2419 | 2467 | | 17 |
|---|
| 2420 | 2468 | | 18 |
|---|
| 2421 | 2469 | | 19 |
|---|
| 2422 | 2470 | | 20 |
|---|
| 2423 | 2471 | | 21 |
|---|
| 2424 | 2472 | | 22 |
|---|
| 2425 | 2473 | | 23 |
|---|
| 2426 | 2474 | | 24 |
|---|
| 2427 | 2475 | | |
|---|
| 2428 | 2476 | | deduction shall equa l the amount of contributions to |
|---|
| 2429 | 2477 | | all such accounts plus any contributions to such |
|---|
| 2430 | 2478 | | accounts by the taxpayer for prior taxable years after |
|---|
| 2431 | 2479 | | December 31, 2004, which were not dedu cted, but in no |
|---|
| 2432 | 2480 | | event shall the deduction for each tax year exceed Ten |
|---|
| 2433 | 2481 | | Thousand Dollars ($10,000.00) for each individual |
|---|
| 2434 | 2482 | | taxpayer or Twenty Thousand Dollars ($20,000.00) for |
|---|
| 2435 | 2483 | | taxpayers filing a joint return . Any amount of a |
|---|
| 2436 | 2484 | | contribution that is not deducte d by the taxpayer in |
|---|
| 2437 | 2485 | | the year for which the c ontribution is made may be |
|---|
| 2438 | 2486 | | carried forward as a deduction from income for the |
|---|
| 2439 | 2487 | | succeeding five (5) years . For taxable years |
|---|
| 2440 | 2488 | | beginning after December 31, 2005, deductio ns may be |
|---|
| 2441 | 2489 | | taken for contributions and rollov ers made during a |
|---|
| 2442 | 2490 | | taxable year and up to Apri l 15 of the succeeding |
|---|
| 2443 | 2491 | | year, or the due date of a taxpayer's state income tax |
|---|
| 2444 | 2492 | | return, excluding extensions, whichever is lat er. |
|---|
| 2445 | 2493 | | Provided, a deduction for the same con tribution may |
|---|
| 2446 | 2494 | | not be taken for two (2) diffe rent taxable years. |
|---|
| 2447 | 2495 | | c. In taxable years begi nning after December 31, 2006, |
|---|
| 2448 | 2496 | | deductions for contributions made pursuant to |
|---|
| 2449 | 2497 | | subparagraph b of this paragraph shall be limite d as |
|---|
| 2450 | 2498 | | follows: |
|---|
| 2451 | 2499 | | |
|---|
| 2453 | 2502 | | 2 |
|---|
| 2454 | 2503 | | 3 |
|---|
| 2455 | 2504 | | 4 |
|---|
| 2456 | 2505 | | 5 |
|---|
| 2457 | 2506 | | 6 |
|---|
| 2458 | 2507 | | 7 |
|---|
| 2459 | 2508 | | 8 |
|---|
| 2460 | 2509 | | 9 |
|---|
| 2461 | 2510 | | 10 |
|---|
| 2462 | 2511 | | 11 |
|---|
| 2463 | 2512 | | 12 |
|---|
| 2464 | 2513 | | 13 |
|---|
| 2465 | 2514 | | 14 |
|---|
| 2466 | 2515 | | 15 |
|---|
| 2467 | 2516 | | 16 |
|---|
| 2468 | 2517 | | 17 |
|---|
| 2469 | 2518 | | 18 |
|---|
| 2470 | 2519 | | 19 |
|---|
| 2471 | 2520 | | 20 |
|---|
| 2472 | 2521 | | 21 |
|---|
| 2473 | 2522 | | 22 |
|---|
| 2474 | 2523 | | 23 |
|---|
| 2475 | 2524 | | 24 |
|---|
| 2476 | 2525 | | |
|---|
| 2477 | 2526 | | (1) for a taxpayer who qualif ied for the five-year |
|---|
| 2478 | 2527 | | carryforward election and who takes a rollover or |
|---|
| 2479 | 2528 | | nonqualified withdrawal during that period, the |
|---|
| 2480 | 2529 | | tax deduction otherwise available pursuant to |
|---|
| 2481 | 2530 | | subparagraph b of this paragraph shall be reduc ed |
|---|
| 2482 | 2531 | | by the amount which is equal to the roll over or |
|---|
| 2483 | 2532 | | nonqualified withdrawal, and |
|---|
| 2484 | 2533 | | (2) for a taxpayer who elects to take a rollover or |
|---|
| 2485 | 2534 | | nonqualified withdrawal within the s ame tax year |
|---|
| 2486 | 2535 | | in which a contribution was made to the |
|---|
| 2487 | 2536 | | taxpayer's account, the tax deducti on otherwise |
|---|
| 2488 | 2537 | | available pursuant to subparag raph b of this |
|---|
| 2489 | 2538 | | paragraph shall be reduced by the amount of the |
|---|
| 2490 | 2539 | | contribution which is e qual to the rollover or |
|---|
| 2491 | 2540 | | nonqualified withdrawal. |
|---|
| 2492 | 2541 | | d. If a taxpayer elects to take a rollover on a |
|---|
| 2493 | 2542 | | contribution for which a deduc tion has been taken |
|---|
| 2494 | 2543 | | pursuant to subparagrap h b of this paragraph within |
|---|
| 2495 | 2544 | | one (1) year of the date of contribution, the amount |
|---|
| 2496 | 2545 | | of such rollover shall be included in the a djusted |
|---|
| 2497 | 2546 | | gross income of the taxpayer in the taxable year of |
|---|
| 2498 | 2547 | | the rollover. |
|---|
| 2499 | 2548 | | e. If a taxpayer makes a nonqualified withdrawal of |
|---|
| 2500 | 2549 | | contributions for which a deduction was taken pur suant |
|---|
| 2501 | 2550 | | |
|---|
| 2503 | 2553 | | 2 |
|---|
| 2504 | 2554 | | 3 |
|---|
| 2505 | 2555 | | 4 |
|---|
| 2506 | 2556 | | 5 |
|---|
| 2507 | 2557 | | 6 |
|---|
| 2508 | 2558 | | 7 |
|---|
| 2509 | 2559 | | 8 |
|---|
| 2510 | 2560 | | 9 |
|---|
| 2511 | 2561 | | 10 |
|---|
| 2512 | 2562 | | 11 |
|---|
| 2513 | 2563 | | 12 |
|---|
| 2514 | 2564 | | 13 |
|---|
| 2515 | 2565 | | 14 |
|---|
| 2516 | 2566 | | 15 |
|---|
| 2517 | 2567 | | 16 |
|---|
| 2518 | 2568 | | 17 |
|---|
| 2519 | 2569 | | 18 |
|---|
| 2520 | 2570 | | 19 |
|---|
| 2521 | 2571 | | 20 |
|---|
| 2522 | 2572 | | 21 |
|---|
| 2523 | 2573 | | 22 |
|---|
| 2524 | 2574 | | 23 |
|---|
| 2525 | 2575 | | 24 |
|---|
| 2526 | 2576 | | |
|---|
| 2527 | 2577 | | to subparagraph b of this paragrap h, such nonqualified |
|---|
| 2528 | 2578 | | withdrawal and any e arnings thereon shall be included |
|---|
| 2529 | 2579 | | in the adjusted gross income of the taxpayer in the |
|---|
| 2530 | 2580 | | taxable year of the nonqualified withdrawal. |
|---|
| 2531 | 2581 | | f. As used in this paragraph: |
|---|
| 2532 | 2582 | | (1) "non-qualified withdrawal" means a withdrawal |
|---|
| 2533 | 2583 | | from an Oklahoma College Savings Plan account |
|---|
| 2534 | 2584 | | other than one of the following: |
|---|
| 2535 | 2585 | | (a) a qualified withdrawal, |
|---|
| 2536 | 2586 | | (b) a withdrawal made as a result of the death |
|---|
| 2537 | 2587 | | or disability of the d esignated beneficiary |
|---|
| 2538 | 2588 | | of an account, |
|---|
| 2539 | 2589 | | (c) a withdrawal that is made on the accou nt of |
|---|
| 2540 | 2590 | | a scholarship or the allowance or paymen t |
|---|
| 2541 | 2591 | | described in Section 135(d)(1)(B) or (C) or |
|---|
| 2542 | 2592 | | by the Internal Revenue Code, received by |
|---|
| 2543 | 2593 | | the designated beneficiary to the extent th e |
|---|
| 2544 | 2594 | | amount of the refund does not exceed the |
|---|
| 2545 | 2595 | | amount of the scholarship, allowance , or |
|---|
| 2546 | 2596 | | payment, or |
|---|
| 2547 | 2597 | | (d) a rollover or change of d esignated |
|---|
| 2548 | 2598 | | beneficiary as permitted by subsection F of |
|---|
| 2549 | 2599 | | Section 3970.7 of Title 70 of Okla homa |
|---|
| 2550 | 2600 | | Statutes, and |
|---|
| 2551 | 2601 | | |
|---|
| 2553 | 2604 | | 2 |
|---|
| 2554 | 2605 | | 3 |
|---|
| 2555 | 2606 | | 4 |
|---|
| 2556 | 2607 | | 5 |
|---|
| 2557 | 2608 | | 6 |
|---|
| 2558 | 2609 | | 7 |
|---|
| 2559 | 2610 | | 8 |
|---|
| 2560 | 2611 | | 9 |
|---|
| 2561 | 2612 | | 10 |
|---|
| 2562 | 2613 | | 11 |
|---|
| 2563 | 2614 | | 12 |
|---|
| 2564 | 2615 | | 13 |
|---|
| 2565 | 2616 | | 14 |
|---|
| 2566 | 2617 | | 15 |
|---|
| 2567 | 2618 | | 16 |
|---|
| 2568 | 2619 | | 17 |
|---|
| 2569 | 2620 | | 18 |
|---|
| 2570 | 2621 | | 19 |
|---|
| 2571 | 2622 | | 20 |
|---|
| 2572 | 2623 | | 21 |
|---|
| 2573 | 2624 | | 22 |
|---|
| 2574 | 2625 | | 23 |
|---|
| 2575 | 2626 | | 24 |
|---|
| 2576 | 2627 | | |
|---|
| 2577 | 2628 | | (2) "rollover" means the transfer of funds from the |
|---|
| 2578 | 2629 | | Oklahoma College Savings Plan to any other plan |
|---|
| 2579 | 2630 | | under Section 529 of the Internal Revenue Code. |
|---|
| 2580 | 2631 | | 18. For taxable years beginning after December 31, 2005, |
|---|
| 2581 | 2632 | | retirement benefits received by an individual from any component of |
|---|
| 2582 | 2633 | | the Armed Forces of the United States in an amount not to exceed the |
|---|
| 2583 | 2634 | | greater of seventy-five percent (75%) of such benefits or Ten |
|---|
| 2584 | 2635 | | Thousand Dollars ($10,000.00) shall be exempt from taxable income |
|---|
| 2585 | 2636 | | but in no case less th an the amount of the exemption provided by |
|---|
| 2586 | 2637 | | paragraph 14 of this subsection. |
|---|
| 2587 | 2638 | | 19. For taxable years beginning after Dec ember 31, 2006, |
|---|
| 2588 | 2639 | | retirement benefits received by fe deral civil service retirees, |
|---|
| 2589 | 2640 | | including survivor annuities, paid in lieu of Social Secur ity |
|---|
| 2590 | 2641 | | benefits shall be exempt from taxable i ncome to the extent such |
|---|
| 2591 | 2642 | | benefits are included in the federal adjusted gros s income pursuant |
|---|
| 2592 | 2643 | | to the provisions of Section 86 of the Internal Revenue Code, 26 |
|---|
| 2593 | 2644 | | U.S.C., Section 86, according to the following schedule : |
|---|
| 2594 | 2645 | | a. in the taxable year beginning January 1, 2007, twenty |
|---|
| 2595 | 2646 | | percent (20%) of such benefi ts shall be exempt, |
|---|
| 2596 | 2647 | | b. in the taxable year beginning January 1, 2008, forty |
|---|
| 2597 | 2648 | | percent (40%) of such benefits shall be exempt, |
|---|
| 2598 | 2649 | | c. in the taxable year beginning January 1, 2 009, sixty |
|---|
| 2599 | 2650 | | percent (60%) of such benefits s hall be exempt, |
|---|
| 2600 | 2651 | | |
|---|
| 2602 | 2654 | | 2 |
|---|
| 2603 | 2655 | | 3 |
|---|
| 2604 | 2656 | | 4 |
|---|
| 2605 | 2657 | | 5 |
|---|
| 2606 | 2658 | | 6 |
|---|
| 2607 | 2659 | | 7 |
|---|
| 2608 | 2660 | | 8 |
|---|
| 2609 | 2661 | | 9 |
|---|
| 2610 | 2662 | | 10 |
|---|
| 2611 | 2663 | | 11 |
|---|
| 2612 | 2664 | | 12 |
|---|
| 2613 | 2665 | | 13 |
|---|
| 2614 | 2666 | | 14 |
|---|
| 2615 | 2667 | | 15 |
|---|
| 2616 | 2668 | | 16 |
|---|
| 2617 | 2669 | | 17 |
|---|
| 2618 | 2670 | | 18 |
|---|
| 2619 | 2671 | | 19 |
|---|
| 2620 | 2672 | | 20 |
|---|
| 2621 | 2673 | | 21 |
|---|
| 2622 | 2674 | | 22 |
|---|
| 2623 | 2675 | | 23 |
|---|
| 2624 | 2676 | | 24 |
|---|
| 2625 | 2677 | | |
|---|
| 2626 | 2678 | | d. in the taxable year begin ning January 1, 2010, eighty |
|---|
| 2627 | 2679 | | percent (80%) of suc h benefits shall be exempt, and |
|---|
| 2628 | 2680 | | e. in the taxable year beginning January 1, 2011, and |
|---|
| 2629 | 2681 | | subsequent taxable years, one hund red percent (100%) |
|---|
| 2630 | 2682 | | of such benefits shall b e exempt. |
|---|
| 2631 | 2683 | | 20. a. For taxable years beginning after December 31, 2007, a |
|---|
| 2632 | 2684 | | resident individual m ay deduct up to Ten Thousand |
|---|
| 2633 | 2685 | | Dollars ($10,000.00) from Oklahoma adjusted gross |
|---|
| 2634 | 2686 | | income if the individual, or the dependen t of the |
|---|
| 2635 | 2687 | | individual, while living, donates one or more human |
|---|
| 2636 | 2688 | | organs of the individual t o another human being for |
|---|
| 2637 | 2689 | | human organ transplanta tion. As used in this |
|---|
| 2638 | 2690 | | paragraph, "human organ" means all or part of a liver, |
|---|
| 2639 | 2691 | | pancreas, kidney, intestine, lung, or bone marrow. A |
|---|
| 2640 | 2692 | | deduction that is claimed under this paragraph may be |
|---|
| 2641 | 2693 | | claimed in the taxabl e year in which the human organ |
|---|
| 2642 | 2694 | | transplantation occurs. |
|---|
| 2643 | 2695 | | b. An individual may clai m this deduction only once, and |
|---|
| 2644 | 2696 | | the deduction may be claimed only for unreimbursed |
|---|
| 2645 | 2697 | | expenses that are incurred by the individual and |
|---|
| 2646 | 2698 | | related to the organ donation of the indivi dual. |
|---|
| 2647 | 2699 | | c. The Oklahoma Tax Commission shall promul gate rules to |
|---|
| 2648 | 2700 | | implement the provisions of this paragraph which shall |
|---|
| 2649 | 2701 | | contain a specific list of expenses which may be |
|---|
| 2650 | 2702 | | |
|---|
| 2652 | 2705 | | 2 |
|---|
| 2653 | 2706 | | 3 |
|---|
| 2654 | 2707 | | 4 |
|---|
| 2655 | 2708 | | 5 |
|---|
| 2656 | 2709 | | 6 |
|---|
| 2657 | 2710 | | 7 |
|---|
| 2658 | 2711 | | 8 |
|---|
| 2659 | 2712 | | 9 |
|---|
| 2660 | 2713 | | 10 |
|---|
| 2661 | 2714 | | 11 |
|---|
| 2662 | 2715 | | 12 |
|---|
| 2663 | 2716 | | 13 |
|---|
| 2664 | 2717 | | 14 |
|---|
| 2665 | 2718 | | 15 |
|---|
| 2666 | 2719 | | 16 |
|---|
| 2667 | 2720 | | 17 |
|---|
| 2668 | 2721 | | 18 |
|---|
| 2669 | 2722 | | 19 |
|---|
| 2670 | 2723 | | 20 |
|---|
| 2671 | 2724 | | 21 |
|---|
| 2672 | 2725 | | 22 |
|---|
| 2673 | 2726 | | 23 |
|---|
| 2674 | 2727 | | 24 |
|---|
| 2675 | 2728 | | |
|---|
| 2676 | 2729 | | presumed to qualify for the deduction . The Tax |
|---|
| 2677 | 2730 | | Commission shall prescribe necessary requ irements for |
|---|
| 2678 | 2731 | | verification. |
|---|
| 2679 | 2732 | | 21. For taxable years beginning after December 31, 20 09, there |
|---|
| 2680 | 2733 | | shall be exempt from taxable income any amount received by the |
|---|
| 2681 | 2734 | | beneficiary of the death benefit for an emergency medical technician |
|---|
| 2682 | 2735 | | or a registered emergency medical responder provided by Section 1- |
|---|
| 2683 | 2736 | | 2505.1 of Title 63 of the Oklahoma Statutes. |
|---|
| 2684 | 2737 | | 22. For taxable years beginning after December 31, 2008, |
|---|
| 2685 | 2738 | | taxable income shall be increased by any unemployment compensation |
|---|
| 2686 | 2739 | | exempted under Section 85(c) of the Internal Revenue Code, 26 |
|---|
| 2687 | 2740 | | U.S.C., Section 85(c)(2009). |
|---|
| 2688 | 2741 | | 23. For taxable years beginning after Dece mber 31, 2008, there |
|---|
| 2689 | 2742 | | shall be exempt from taxable income any payment in an amount less |
|---|
| 2690 | 2743 | | than Six Hundred Dollars ($600.00) received by a person as an award |
|---|
| 2691 | 2744 | | for participation in a competitive livestock show event. For |
|---|
| 2692 | 2745 | | purposes of this paragraph, the payment shall be treated as a |
|---|
| 2693 | 2746 | | scholarship amount paid by the entity sponsoring the event and th e |
|---|
| 2694 | 2747 | | sponsoring entity shall cause the payment to be categorized as a |
|---|
| 2695 | 2748 | | scholarship in its b ooks and records. |
|---|
| 2696 | 2749 | | 24. For taxable years beginnin g on or after January 1, 2016, |
|---|
| 2697 | 2750 | | taxable income shall be increased by any amount of state and local |
|---|
| 2698 | 2751 | | sales or income taxes deducted under 26 U.S.C., Section 164 of th e |
|---|
| 2699 | 2752 | | Internal Revenue Code. If the amount of state and local taxes |
|---|
| 2700 | 2753 | | |
|---|
| 2702 | 2756 | | 2 |
|---|
| 2703 | 2757 | | 3 |
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| 2704 | 2758 | | 4 |
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| 2705 | 2759 | | 5 |
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| 2706 | 2760 | | 6 |
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| 2707 | 2761 | | 7 |
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| 2708 | 2762 | | 8 |
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| 2709 | 2763 | | 9 |
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| 2710 | 2764 | | 10 |
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| 2711 | 2765 | | 11 |
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| 2712 | 2766 | | 12 |
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| 2713 | 2767 | | 13 |
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| 2714 | 2768 | | 14 |
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| 2715 | 2769 | | 15 |
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| 2716 | 2770 | | 16 |
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| 2717 | 2771 | | 17 |
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| 2718 | 2772 | | 18 |
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| 2719 | 2773 | | 19 |
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| 2720 | 2774 | | 20 |
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| 2721 | 2775 | | 21 |
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| 2722 | 2776 | | 22 |
|---|
| 2723 | 2777 | | 23 |
|---|
| 2724 | 2778 | | 24 |
|---|
| 2725 | 2779 | | |
|---|
| 2726 | 2780 | | deducted on the federal retu rn is limited, taxable income on the |
|---|
| 2727 | 2781 | | state return shall be increased only by the amount actually deducted |
|---|
| 2728 | 2782 | | after any such limitations are applied. |
|---|
| 2729 | 2783 | | 25. For taxable years beginning after December 31, 2020, eac h |
|---|
| 2730 | 2784 | | taxpayer shall be allowed a deduction for contr ibutions to accounts |
|---|
| 2731 | 2785 | | established pursuant to the Achieving a Better Life Experience |
|---|
| 2732 | 2786 | | (ABLE) Program as established in Sec tion 4001.1 et seq. of Title 56 |
|---|
| 2733 | 2787 | | of the Oklahoma Statutes. For any tax year, the deduct ion provided |
|---|
| 2734 | 2788 | | for in this paragraph shall not exce ed Ten Thousand Dollars |
|---|
| 2735 | 2789 | | ($10,000.00) for an individual taxpayer or Twenty Thousand Dollars |
|---|
| 2736 | 2790 | | ($20,000.00) for taxpayers fi ling a joint return. Any amount of |
|---|
| 2737 | 2791 | | contribution not deducted by the taxpayer in the ta x year for which |
|---|
| 2738 | 2792 | | the contribution is made may be carried forward as a deduction f rom |
|---|
| 2739 | 2793 | | income for up to five (5) tax years. Deductions may be taken for |
|---|
| 2740 | 2794 | | contributions made during the tax year and through April 15 o f the |
|---|
| 2741 | 2795 | | succeeding tax year, or through the du e date of a taxpayer's state |
|---|
| 2742 | 2796 | | income tax return ex cluding extensions, whichever is later. |
|---|
| 2743 | 2797 | | Provided, a deduction for the same contribution may not be taken in |
|---|
| 2744 | 2798 | | more than one (1) tax year. |
|---|
| 2745 | 2799 | | F. 1. For taxable years beginning after December 31, 2004, a |
|---|
| 2746 | 2800 | | deduction from the Oklahoma adjusted gross income of any individual |
|---|
| 2747 | 2801 | | taxpayer shall be all owed for qualifying gains receiving capital |
|---|
| 2748 | 2802 | | treatment that are included in the federal a djusted gross income of |
|---|
| 2749 | 2803 | | such individual taxpayer during the taxable year. |
|---|
| 2750 | 2804 | | |
|---|
| 2752 | 2807 | | 2 |
|---|
| 2753 | 2808 | | 3 |
|---|
| 2754 | 2809 | | 4 |
|---|
| 2755 | 2810 | | 5 |
|---|
| 2756 | 2811 | | 6 |
|---|
| 2757 | 2812 | | 7 |
|---|
| 2758 | 2813 | | 8 |
|---|
| 2759 | 2814 | | 9 |
|---|
| 2760 | 2815 | | 10 |
|---|
| 2761 | 2816 | | 11 |
|---|
| 2762 | 2817 | | 12 |
|---|
| 2763 | 2818 | | 13 |
|---|
| 2764 | 2819 | | 14 |
|---|
| 2765 | 2820 | | 15 |
|---|
| 2766 | 2821 | | 16 |
|---|
| 2767 | 2822 | | 17 |
|---|
| 2768 | 2823 | | 18 |
|---|
| 2769 | 2824 | | 19 |
|---|
| 2770 | 2825 | | 20 |
|---|
| 2771 | 2826 | | 21 |
|---|
| 2772 | 2827 | | 22 |
|---|
| 2773 | 2828 | | 23 |
|---|
| 2774 | 2829 | | 24 |
|---|
| 2775 | 2830 | | |
|---|
| 2776 | 2831 | | 2. As used in this subsection: |
|---|
| 2777 | 2832 | | a. "qualifying gains receiving capital treatment" means |
|---|
| 2778 | 2833 | | the amount of net capital gains, as defined in Section |
|---|
| 2779 | 2834 | | 1222(11) of the Internal Revenue Code, included in an |
|---|
| 2780 | 2835 | | individual taxpayer's federal income tax return that |
|---|
| 2781 | 2836 | | result from: |
|---|
| 2782 | 2837 | | (1) the sale of real property or tangible personal |
|---|
| 2783 | 2838 | | property located within Oklahoma tha t has been |
|---|
| 2784 | 2839 | | directly or indirectly owned by the individual |
|---|
| 2785 | 2840 | | taxpayer for a holding period of at least five |
|---|
| 2786 | 2841 | | (5) years prior to the dat e of the transaction |
|---|
| 2787 | 2842 | | from which such net cap ital gains arise, |
|---|
| 2788 | 2843 | | (2) the sale of stock or the sa le of a direct or |
|---|
| 2789 | 2844 | | indirect ownership interest in an Oklahoma |
|---|
| 2790 | 2845 | | company, limited liability company, or |
|---|
| 2791 | 2846 | | partnership where su ch stock or ownership |
|---|
| 2792 | 2847 | | interest has been dir ectly or indirectly owned by |
|---|
| 2793 | 2848 | | the individual taxpayer for a holding period of |
|---|
| 2794 | 2849 | | at least two (2) years prior to the date of the |
|---|
| 2795 | 2850 | | transaction from which the net capital gains |
|---|
| 2796 | 2851 | | arise, or |
|---|
| 2797 | 2852 | | (3) the sale of real property, ta ngible personal |
|---|
| 2798 | 2853 | | property or intangible pers onal property located |
|---|
| 2799 | 2854 | | within Oklahoma as par t of the sale of all or |
|---|
| 2800 | 2855 | | |
|---|
| 2802 | 2858 | | 2 |
|---|
| 2803 | 2859 | | 3 |
|---|
| 2804 | 2860 | | 4 |
|---|
| 2805 | 2861 | | 5 |
|---|
| 2806 | 2862 | | 6 |
|---|
| 2807 | 2863 | | 7 |
|---|
| 2808 | 2864 | | 8 |
|---|
| 2809 | 2865 | | 9 |
|---|
| 2810 | 2866 | | 10 |
|---|
| 2811 | 2867 | | 11 |
|---|
| 2812 | 2868 | | 12 |
|---|
| 2813 | 2869 | | 13 |
|---|
| 2814 | 2870 | | 14 |
|---|
| 2815 | 2871 | | 15 |
|---|
| 2816 | 2872 | | 16 |
|---|
| 2817 | 2873 | | 17 |
|---|
| 2818 | 2874 | | 18 |
|---|
| 2819 | 2875 | | 19 |
|---|
| 2820 | 2876 | | 20 |
|---|
| 2821 | 2877 | | 21 |
|---|
| 2822 | 2878 | | 22 |
|---|
| 2823 | 2879 | | 23 |
|---|
| 2824 | 2880 | | 24 |
|---|
| 2825 | 2881 | | |
|---|
| 2826 | 2882 | | substantially all of the assets of an Oklahoma |
|---|
| 2827 | 2883 | | company, limited liability company, or |
|---|
| 2828 | 2884 | | partnership or an Oklahoma proprietorship |
|---|
| 2829 | 2885 | | business enterprise where such property has been |
|---|
| 2830 | 2886 | | directly or indirectly owned by such entity or |
|---|
| 2831 | 2887 | | business enterprise or owned by the owners of |
|---|
| 2832 | 2888 | | such entity or business enterprise for a pe riod |
|---|
| 2833 | 2889 | | of at least two (2) years prior to the date of |
|---|
| 2834 | 2890 | | the transaction from which the net c apital gains |
|---|
| 2835 | 2891 | | arise, |
|---|
| 2836 | 2892 | | b. "holding period" means an uninterrupted period of |
|---|
| 2837 | 2893 | | time. The holding period shall include any additional |
|---|
| 2838 | 2894 | | period when the property was held by ano ther |
|---|
| 2839 | 2895 | | individual or entity, if such additional period is |
|---|
| 2840 | 2896 | | included in the taxpayer 's holding period for the |
|---|
| 2841 | 2897 | | asset pursuant to the Int ernal Revenue Code, |
|---|
| 2842 | 2898 | | c. "Oklahoma company," "limited liability company," or |
|---|
| 2843 | 2899 | | "partnership" means an entity whose primary |
|---|
| 2844 | 2900 | | headquarters have been located in Oklahoma for at |
|---|
| 2845 | 2901 | | least three (3) uninterrupted years prior to the date |
|---|
| 2846 | 2902 | | of the transaction from which the net capital gains |
|---|
| 2847 | 2903 | | arise, |
|---|
| 2848 | 2904 | | d. "direct" means the individual taxpayer directly owns |
|---|
| 2849 | 2905 | | the asset, |
|---|
| 2850 | 2906 | | |
|---|
| 2852 | 2909 | | 2 |
|---|
| 2853 | 2910 | | 3 |
|---|
| 2854 | 2911 | | 4 |
|---|
| 2855 | 2912 | | 5 |
|---|
| 2856 | 2913 | | 6 |
|---|
| 2857 | 2914 | | 7 |
|---|
| 2858 | 2915 | | 8 |
|---|
| 2859 | 2916 | | 9 |
|---|
| 2860 | 2917 | | 10 |
|---|
| 2861 | 2918 | | 11 |
|---|
| 2862 | 2919 | | 12 |
|---|
| 2863 | 2920 | | 13 |
|---|
| 2864 | 2921 | | 14 |
|---|
| 2865 | 2922 | | 15 |
|---|
| 2866 | 2923 | | 16 |
|---|
| 2867 | 2924 | | 17 |
|---|
| 2868 | 2925 | | 18 |
|---|
| 2869 | 2926 | | 19 |
|---|
| 2870 | 2927 | | 20 |
|---|
| 2871 | 2928 | | 21 |
|---|
| 2872 | 2929 | | 22 |
|---|
| 2873 | 2930 | | 23 |
|---|
| 2874 | 2931 | | 24 |
|---|
| 2875 | 2932 | | |
|---|
| 2876 | 2933 | | e. "indirect" means the individual taxpayer owns an |
|---|
| 2877 | 2934 | | interest in a pass-through entity (or chain of pass - |
|---|
| 2878 | 2935 | | through entities) that sells the asset that gives rise |
|---|
| 2879 | 2936 | | to the qualifying gains receiving capital treatm ent. |
|---|
| 2880 | 2937 | | (1) With respect to sales of real property o r |
|---|
| 2881 | 2938 | | tangible personal property loc ated within |
|---|
| 2882 | 2939 | | Oklahoma, the deduction described in this |
|---|
| 2883 | 2940 | | subsection shall not apply unless the pass- |
|---|
| 2884 | 2941 | | through entity that makes the sale has held the |
|---|
| 2885 | 2942 | | property for not less than fiv e (5) uninterrupted |
|---|
| 2886 | 2943 | | years prior to the date of th e transaction that |
|---|
| 2887 | 2944 | | created the capital gain, and each pass-through |
|---|
| 2888 | 2945 | | entity included in the chain of ownership has |
|---|
| 2889 | 2946 | | been a member, partner, or shareholder of the |
|---|
| 2890 | 2947 | | pass-through entity in the tier immediately belo w |
|---|
| 2891 | 2948 | | it for an uninterrupted period of not less than |
|---|
| 2892 | 2949 | | five (5) years. |
|---|
| 2893 | 2950 | | (2) With respect to sales of stock or ownership |
|---|
| 2894 | 2951 | | interest in or sales of all or substantially all |
|---|
| 2895 | 2952 | | of the assets of an Oklahoma company, limited |
|---|
| 2896 | 2953 | | liability company, partnership or Oklahoma |
|---|
| 2897 | 2954 | | proprietorship business enterprise, the deduction |
|---|
| 2898 | 2955 | | described in this subsection shall not apply |
|---|
| 2899 | 2956 | | unless the pass-through entity that makes the |
|---|
| 2900 | 2957 | | |
|---|
| 2902 | 2960 | | 2 |
|---|
| 2903 | 2961 | | 3 |
|---|
| 2904 | 2962 | | 4 |
|---|
| 2905 | 2963 | | 5 |
|---|
| 2906 | 2964 | | 6 |
|---|
| 2907 | 2965 | | 7 |
|---|
| 2908 | 2966 | | 8 |
|---|
| 2909 | 2967 | | 9 |
|---|
| 2910 | 2968 | | 10 |
|---|
| 2911 | 2969 | | 11 |
|---|
| 2912 | 2970 | | 12 |
|---|
| 2913 | 2971 | | 13 |
|---|
| 2914 | 2972 | | 14 |
|---|
| 2915 | 2973 | | 15 |
|---|
| 2916 | 2974 | | 16 |
|---|
| 2917 | 2975 | | 17 |
|---|
| 2918 | 2976 | | 18 |
|---|
| 2919 | 2977 | | 19 |
|---|
| 2920 | 2978 | | 20 |
|---|
| 2921 | 2979 | | 21 |
|---|
| 2922 | 2980 | | 22 |
|---|
| 2923 | 2981 | | 23 |
|---|
| 2924 | 2982 | | 24 |
|---|
| 2925 | 2983 | | |
|---|
| 2926 | 2984 | | sale has held the stock or owner ship interest for |
|---|
| 2927 | 2985 | | not less than two (2) uni nterrupted years prior |
|---|
| 2928 | 2986 | | to the date of the tr ansaction that created the |
|---|
| 2929 | 2987 | | capital gain, and each pass-through entity |
|---|
| 2930 | 2988 | | included in the chain of ownership has been a |
|---|
| 2931 | 2989 | | member, partner or shareholder of the pass - |
|---|
| 2932 | 2990 | | through entity in the tier immediately below it |
|---|
| 2933 | 2991 | | for an uninterrupted period of not less than two |
|---|
| 2934 | 2992 | | (2) years. For purposes of this division, |
|---|
| 2935 | 2993 | | uninterrupted ownership prior to July 1, 2007, |
|---|
| 2936 | 2994 | | shall be included in the determination of the |
|---|
| 2937 | 2995 | | required holding period prescribe d by this |
|---|
| 2938 | 2996 | | division, and |
|---|
| 2939 | 2997 | | f. "Oklahoma proprietorship business enterprise" means a |
|---|
| 2940 | 2998 | | business enterprise whose income and expenses have |
|---|
| 2941 | 2999 | | been reported on Schedule C or F of an individual |
|---|
| 2942 | 3000 | | taxpayer's federal income tax return, or any similar |
|---|
| 2943 | 3001 | | successor schedule pu blished by the Internal Revenue |
|---|
| 2944 | 3002 | | Service and whose primary headquarters have been |
|---|
| 2945 | 3003 | | located in Oklahoma for at least three (3) |
|---|
| 2946 | 3004 | | uninterrupted years prior to the date of the |
|---|
| 2947 | 3005 | | transaction from which the net capital gains arise. |
|---|
| 2948 | 3006 | | G. 1. For purposes of computing i ts Oklahoma taxable income |
|---|
| 2949 | 3007 | | under this section, the dividends-paid deduction otherwise a llowed |
|---|
| 2950 | 3008 | | |
|---|
| 2952 | 3011 | | 2 |
|---|
| 2953 | 3012 | | 3 |
|---|
| 2954 | 3013 | | 4 |
|---|
| 2955 | 3014 | | 5 |
|---|
| 2956 | 3015 | | 6 |
|---|
| 2957 | 3016 | | 7 |
|---|
| 2958 | 3017 | | 8 |
|---|
| 2959 | 3018 | | 9 |
|---|
| 2960 | 3019 | | 10 |
|---|
| 2961 | 3020 | | 11 |
|---|
| 2962 | 3021 | | 12 |
|---|
| 2963 | 3022 | | 13 |
|---|
| 2964 | 3023 | | 14 |
|---|
| 2965 | 3024 | | 15 |
|---|
| 2966 | 3025 | | 16 |
|---|
| 2967 | 3026 | | 17 |
|---|
| 2968 | 3027 | | 18 |
|---|
| 2969 | 3028 | | 19 |
|---|
| 2970 | 3029 | | 20 |
|---|
| 2971 | 3030 | | 21 |
|---|
| 2972 | 3031 | | 22 |
|---|
| 2973 | 3032 | | 23 |
|---|
| 2974 | 3033 | | 24 |
|---|
| 2975 | 3034 | | |
|---|
| 2976 | 3035 | | by federal law in computing net income of a real estate investment |
|---|
| 2977 | 3036 | | trust that is subject to federal income tax shall be added back in |
|---|
| 2978 | 3037 | | computing the tax imposed by this state under this title if the real |
|---|
| 2979 | 3038 | | estate investment trust is a captive real esta te investment trust. |
|---|
| 2980 | 3039 | | 2. For purposes of computin g its Oklahoma taxable income un der |
|---|
| 2981 | 3040 | | this section, a taxpayer shall add back otherwise deductible rents |
|---|
| 2982 | 3041 | | and interest expenses paid to a captive real estate investme nt trust |
|---|
| 2983 | 3042 | | that is not subject to the provisio ns of paragraph 1 of this |
|---|
| 2984 | 3043 | | subsection. As used in this subsection: |
|---|
| 2985 | 3044 | | a. the term "real estate investment trust" or "REIT" |
|---|
| 2986 | 3045 | | means the meaning ascribed to such term in Sectio n 856 |
|---|
| 2987 | 3046 | | of the Internal Revenue Code, |
|---|
| 2988 | 3047 | | b. the term "captive real estate investment trust " means |
|---|
| 2989 | 3048 | | a real estate investment trust, the shares or |
|---|
| 2990 | 3049 | | beneficial interests of which are not regularly traded |
|---|
| 2991 | 3050 | | on an established securities market and more than |
|---|
| 2992 | 3051 | | fifty percent (50%) of the voting power or value of |
|---|
| 2993 | 3052 | | the beneficial interests or shares of which are owned |
|---|
| 2994 | 3053 | | or controlled, directly or indirectly, or |
|---|
| 2995 | 3054 | | constructively, by a single enti ty that is: |
|---|
| 2996 | 3055 | | (1) treated as an association taxable as a |
|---|
| 2997 | 3056 | | corporation under the Internal Re venue Code, and |
|---|
| 2998 | 3057 | | |
|---|
| 3000 | 3060 | | 2 |
|---|
| 3001 | 3061 | | 3 |
|---|
| 3002 | 3062 | | 4 |
|---|
| 3003 | 3063 | | 5 |
|---|
| 3004 | 3064 | | 6 |
|---|
| 3005 | 3065 | | 7 |
|---|
| 3006 | 3066 | | 8 |
|---|
| 3007 | 3067 | | 9 |
|---|
| 3008 | 3068 | | 10 |
|---|
| 3009 | 3069 | | 11 |
|---|
| 3010 | 3070 | | 12 |
|---|
| 3011 | 3071 | | 13 |
|---|
| 3012 | 3072 | | 14 |
|---|
| 3013 | 3073 | | 15 |
|---|
| 3014 | 3074 | | 16 |
|---|
| 3015 | 3075 | | 17 |
|---|
| 3016 | 3076 | | 18 |
|---|
| 3017 | 3077 | | 19 |
|---|
| 3018 | 3078 | | 20 |
|---|
| 3019 | 3079 | | 21 |
|---|
| 3020 | 3080 | | 22 |
|---|
| 3021 | 3081 | | 23 |
|---|
| 3022 | 3082 | | 24 |
|---|
| 3023 | 3083 | | |
|---|
| 3024 | 3084 | | (2) not exempt from federal income tax pursuant to |
|---|
| 3025 | 3085 | | the provisions of Section 501(a) of the Internal |
|---|
| 3026 | 3086 | | Revenue Code. |
|---|
| 3027 | 3087 | | The term shall not include a real esta te investment |
|---|
| 3028 | 3088 | | trust that is intended to be regularly traded on an |
|---|
| 3029 | 3089 | | established securities market, and that satisfies the |
|---|
| 3030 | 3090 | | requirements of Section 856(a)(5) and (6) of the U.S. |
|---|
| 3031 | 3091 | | Internal Revenue Code by reason of Section 856(h)( 2) |
|---|
| 3032 | 3092 | | of the Internal Revenue Code, |
|---|
| 3033 | 3093 | | c. the term "association taxable as a corporation " shall |
|---|
| 3034 | 3094 | | not include the following enti ties: |
|---|
| 3035 | 3095 | | (1) any real estate investment trust as defined in |
|---|
| 3036 | 3096 | | paragraph a of this subsec tion other than a |
|---|
| 3037 | 3097 | | "captive real estate investment tru st", or |
|---|
| 3038 | 3098 | | (2) any qualified real e state investment trust |
|---|
| 3039 | 3099 | | subsidiary under Section 856(i) of the Internal |
|---|
| 3040 | 3100 | | Revenue Code, other than a qualified REIT |
|---|
| 3041 | 3101 | | subsidiary of a "captive real estate investment |
|---|
| 3042 | 3102 | | trust", or |
|---|
| 3043 | 3103 | | (3) any Listed Australian Property Trust (meaning an |
|---|
| 3044 | 3104 | | Australian unit trust registere d as a "Managed |
|---|
| 3045 | 3105 | | Investment Scheme" under the Australian |
|---|
| 3046 | 3106 | | Corporations Act in which the pr incipal class of |
|---|
| 3047 | 3107 | | units is listed on a recog nized stock exchange in |
|---|
| 3048 | 3108 | | |
|---|
| 3050 | 3111 | | 2 |
|---|
| 3051 | 3112 | | 3 |
|---|
| 3052 | 3113 | | 4 |
|---|
| 3053 | 3114 | | 5 |
|---|
| 3054 | 3115 | | 6 |
|---|
| 3055 | 3116 | | 7 |
|---|
| 3056 | 3117 | | 8 |
|---|
| 3057 | 3118 | | 9 |
|---|
| 3058 | 3119 | | 10 |
|---|
| 3059 | 3120 | | 11 |
|---|
| 3060 | 3121 | | 12 |
|---|
| 3061 | 3122 | | 13 |
|---|
| 3062 | 3123 | | 14 |
|---|
| 3063 | 3124 | | 15 |
|---|
| 3064 | 3125 | | 16 |
|---|
| 3065 | 3126 | | 17 |
|---|
| 3066 | 3127 | | 18 |
|---|
| 3067 | 3128 | | 19 |
|---|
| 3068 | 3129 | | 20 |
|---|
| 3069 | 3130 | | 21 |
|---|
| 3070 | 3131 | | 22 |
|---|
| 3071 | 3132 | | 23 |
|---|
| 3072 | 3133 | | 24 |
|---|
| 3073 | 3134 | | |
|---|
| 3074 | 3135 | | Australia and is regularly traded on an |
|---|
| 3075 | 3136 | | established securities market ), or an entity |
|---|
| 3076 | 3137 | | organized as a trust, provided that a Listed |
|---|
| 3077 | 3138 | | Australian Property Trust owns or controls, |
|---|
| 3078 | 3139 | | directly or indirectly, seventy-five percent |
|---|
| 3079 | 3140 | | (75%) or more of the voting power or value of the |
|---|
| 3080 | 3141 | | beneficial interests or shares of such trust, or |
|---|
| 3081 | 3142 | | (4) any Qualified Foreign Entity, meani ng a |
|---|
| 3082 | 3143 | | corporation, trust, association or partnership |
|---|
| 3083 | 3144 | | organized outside the laws of the Un ited States |
|---|
| 3084 | 3145 | | and which satisfies the followi ng criteria: |
|---|
| 3085 | 3146 | | (a) at least seventy-five percent (75%) of the |
|---|
| 3086 | 3147 | | entity's total asset value at the close of |
|---|
| 3087 | 3148 | | its taxable year is re presented by real |
|---|
| 3088 | 3149 | | estate assets, as defined in Section |
|---|
| 3089 | 3150 | | 856(c)(5)(B) of the Internal Reve nue Code, |
|---|
| 3090 | 3151 | | thereby including shares or certi ficates of |
|---|
| 3091 | 3152 | | beneficial interest in an y real estate |
|---|
| 3092 | 3153 | | investment trust, cash and cash equivalents , |
|---|
| 3093 | 3154 | | and U.S. Government securities , |
|---|
| 3094 | 3155 | | (b) the entity receives a dividend-paid |
|---|
| 3095 | 3156 | | deduction comparable to Section 561 of the |
|---|
| 3096 | 3157 | | Internal Revenue Code, or is exempt from |
|---|
| 3097 | 3158 | | entity level tax, |
|---|
| 3098 | 3159 | | |
|---|
| 3100 | 3162 | | 2 |
|---|
| 3101 | 3163 | | 3 |
|---|
| 3102 | 3164 | | 4 |
|---|
| 3103 | 3165 | | 5 |
|---|
| 3104 | 3166 | | 6 |
|---|
| 3105 | 3167 | | 7 |
|---|
| 3106 | 3168 | | 8 |
|---|
| 3107 | 3169 | | 9 |
|---|
| 3108 | 3170 | | 10 |
|---|
| 3109 | 3171 | | 11 |
|---|
| 3110 | 3172 | | 12 |
|---|
| 3111 | 3173 | | 13 |
|---|
| 3112 | 3174 | | 14 |
|---|
| 3113 | 3175 | | 15 |
|---|
| 3114 | 3176 | | 16 |
|---|
| 3115 | 3177 | | 17 |
|---|
| 3116 | 3178 | | 18 |
|---|
| 3117 | 3179 | | 19 |
|---|
| 3118 | 3180 | | 20 |
|---|
| 3119 | 3181 | | 21 |
|---|
| 3120 | 3182 | | 22 |
|---|
| 3121 | 3183 | | 23 |
|---|
| 3122 | 3184 | | 24 |
|---|
| 3123 | 3185 | | |
|---|
| 3124 | 3186 | | (c) the entity is required to distribute at |
|---|
| 3125 | 3187 | | least eighty-five percent (85%) of i ts |
|---|
| 3126 | 3188 | | taxable income, as computed i n the |
|---|
| 3127 | 3189 | | jurisdiction in which it is organized, to |
|---|
| 3128 | 3190 | | the holders of its shares or certificate s of |
|---|
| 3129 | 3191 | | beneficial interest on an annual basis , |
|---|
| 3130 | 3192 | | (d) not more than ten percent (10%) of the |
|---|
| 3131 | 3193 | | voting power or value in such entity is held |
|---|
| 3132 | 3194 | | directly or indirectly or construct ively by |
|---|
| 3133 | 3195 | | a single entity or individual, or the shares |
|---|
| 3134 | 3196 | | or beneficial interests of such en tity are |
|---|
| 3135 | 3197 | | regularly traded on an established |
|---|
| 3136 | 3198 | | securities market, and |
|---|
| 3137 | 3199 | | (e) the entity is organized in a country which |
|---|
| 3138 | 3200 | | has a tax treaty with the United States. |
|---|
| 3139 | 3201 | | 3. For purposes of this subsection, the constructive ownership |
|---|
| 3140 | 3202 | | rules of Section 318(a) of the Intern al Revenue Code, as modified by |
|---|
| 3141 | 3203 | | Section 856(d)(5) of the Internal Revenue Code, shall apply in |
|---|
| 3142 | 3204 | | determining the ownership of stock, asset s, or net profits of any |
|---|
| 3143 | 3205 | | person. |
|---|
| 3144 | 3206 | | 4. A real estate investment trust that does not become |
|---|
| 3145 | 3207 | | regularly traded on an establis hed securities market within one (1) |
|---|
| 3146 | 3208 | | year of the date on which it first becomes a real estate investment |
|---|
| 3147 | 3209 | | trust shall be deemed not to ha ve been regularly traded on an |
|---|
| 3148 | 3210 | | |
|---|
| 3150 | 3213 | | 2 |
|---|
| 3151 | 3214 | | 3 |
|---|
| 3152 | 3215 | | 4 |
|---|
| 3153 | 3216 | | 5 |
|---|
| 3154 | 3217 | | 6 |
|---|
| 3155 | 3218 | | 7 |
|---|
| 3156 | 3219 | | 8 |
|---|
| 3157 | 3220 | | 9 |
|---|
| 3158 | 3221 | | 10 |
|---|
| 3159 | 3222 | | 11 |
|---|
| 3160 | 3223 | | 12 |
|---|
| 3161 | 3224 | | 13 |
|---|
| 3162 | 3225 | | 14 |
|---|
| 3163 | 3226 | | 15 |
|---|
| 3164 | 3227 | | 16 |
|---|
| 3165 | 3228 | | 17 |
|---|
| 3166 | 3229 | | 18 |
|---|
| 3167 | 3230 | | 19 |
|---|
| 3168 | 3231 | | 20 |
|---|
| 3169 | 3232 | | 21 |
|---|
| 3170 | 3233 | | 22 |
|---|
| 3171 | 3234 | | 23 |
|---|
| 3172 | 3235 | | 24 |
|---|
| 3173 | 3236 | | |
|---|
| 3174 | 3237 | | established securities market, retroactive to the date it first |
|---|
| 3175 | 3238 | | became a real estate inve stment trust, and shall file an amended |
|---|
| 3176 | 3239 | | return reflecting such retroactive designation for any tax year or |
|---|
| 3177 | 3240 | | part year occurring during it s initial year of status as a re al |
|---|
| 3178 | 3241 | | estate investment trust. For purposes of this subsection, a real |
|---|
| 3179 | 3242 | | estate investment trust becomes a real estate investment trust on |
|---|
| 3180 | 3243 | | the first day it has both met the requirements of Section 856 of the |
|---|
| 3181 | 3244 | | Internal Revenue Cod e and has elected to be treated as a real estate |
|---|
| 3182 | 3245 | | investment trust pursuant to Section 856(c)(1) of the Internal |
|---|
| 3183 | 3246 | | Revenue Code. |
|---|
| 3184 | 3247 | | SECTION 2. This act shall become effective November 1, 2022. |
|---|