OK
Oklahoma Senate Bill SB1728

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1728 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11
22
33
44 Req. No. 2457 Page 1 1
55 2
66 3
77 4
88 5
99 6
1010 7
1111 8
1212 9
1313 10
1414 11
1515 12
1616 13
1717 14
1818 15
1919 16
2020 17
2121 18
2222 19
2323 20
2424 21
2525 22
2626 23
2727 24
2828 1
2929 2
3030 3
3131 4
3232 5
3333 6
3434 7
3535 8
3636 9
3737 10
3838 11
3939 12
4040 13
4141 14
4242 15
4343 16
4444 17
4545 18
4646 19
4747 20
4848 21
4949 22
5050 23
5151 24
5252
5353 STATE OF OKLAHOMA
5454
5555 2nd Session of the 58th Legislature (2022)
5656
5757 SENATE BILL 1728 By: Bergstrom
5858
5959
6060
6161
6262
6363 AS INTRODUCED
6464
6565 An Act relating to income tax; amending 68 O.S. 2021,
6666 Section 2358, which relates t o adjustments to arrive
6767 at Oklahoma taxable income and Oklahoma adjusted
6868 gross income; modifying the sales apportionment
6969 factor to determine certain corporate income to
7070 exclude certain out of state shipments ; updating
7171 statutory language; and providing an effective date.
7272
7373
7474
7575
7676
7777 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
7878 SECTION 1. AMENDATORY 68 O.S. 2021, Section 2358, is
7979 amended to read as follows:
8080 Section 2358. For all tax years beginning after December 31,
8181 1981, taxable income and adjusted gross income shall be adjusted to
8282 arrive at Oklahoma taxable income and Oklahoma adjusted gross income
8383 as required by this section.
8484 A. The taxable income of any taxpayer sh all be adjusted to
8585 arrive at Oklahoma taxable income f or corporations and Oklahoma
8686 adjusted gross income for individuals, as follows:
8787 1. There shall be added interest income on obligations of any
8888 state or political subdivision thereto which is not otherwi se
8989
9090
9191 Req. No. 2457 Page 2 1
9292 2
9393 3
9494 4
9595 5
9696 6
9797 7
9898 8
9999 9
100100 10
101101 11
102102 12
103103 13
104104 14
105105 15
106106 16
107107 17
108108 18
109109 19
110110 20
111111 21
112112 22
113113 23
114114 24
115115 1
116116 2
117117 3
118118 4
119119 5
120120 6
121121 7
122122 8
123123 9
124124 10
125125 11
126126 12
127127 13
128128 14
129129 15
130130 16
131131 17
132132 18
133133 19
134134 20
135135 21
136136 22
137137 23
138138 24
139139
140140 exempted pursuant to other laws of this state, to t he extent that
141141 such interest is not included in ta xable income and adjusted gross
142142 income.
143143 2. There shall be deducted amounts included in such income that
144144 the state is prohibited from taxing because of the provisions of the
145145 Federal Constitution, the State Constitution, federal laws , or laws
146146 of Oklahoma.
147147 3. The amount of any federal net operating loss deduction shall
148148 be adjusted as follows:
149149 a. For carryovers and carrybacks to taxable years
150150 beginning before January 1, 1981, the amount of any
151151 net operating loss deduction allowed to a taxpayer for
152152 federal income tax purposes shall be reduced to an
153153 amount which is the same portion thereof as the loss
154154 from sources within this state, as determined pursuant
155155 to this section and Section 2362 of this title, for
156156 the taxable year in which such loss is sustained is of
157157 the total loss for such year;
158158 b. For carryovers and carryba cks to taxable years
159159 beginning after December 31, 1980, the amount of any
160160 net operating loss de duction allowed for the taxable
161161 year shall be an amou nt equal to the aggregate of the
162162 Oklahoma net operating loss carryovers and carrybacks
163163 to such year. Oklahoma net operating losses shall be
164164
165165
166166 Req. No. 2457 Page 3 1
167167 2
168168 3
169169 4
170170 5
171171 6
172172 7
173173 8
174174 9
175175 10
176176 11
177177 12
178178 13
179179 14
180180 15
181181 16
182182 17
183183 18
184184 19
185185 20
186186 21
187187 22
188188 23
189189 24
190190 1
191191 2
192192 3
193193 4
194194 5
195195 6
196196 7
197197 8
198198 9
199199 10
200200 11
201201 12
202202 13
203203 14
204204 15
205205 16
206206 17
207207 18
208208 19
209209 20
210210 21
211211 22
212212 23
213213 24
214214
215215 separately determined by reference to Section 172 of
216216 the Internal Revenue Code, 26 U.S.C., Section 172, as
217217 modified by the Oklahoma Income Tax Act, Section 2351
218218 et seq. of this title, and shall be allowed without
219219 regard to the existence of a federal net operating
220220 loss. For tax years beginning after December 31,
221221 2000, and ending before January 1, 2008, the years to
222222 which such losses may be carried shall be determined
223223 solely by reference to Section 172 of the Internal
224224 Revenue Code, 26 U.S.C., Section 172, with the
225225 exception that the terms "net operating loss" and
226226 "taxable income" shall be replaced with "Oklahoma net
227227 operating loss" and "Oklahoma taxable income ". For
228228 tax years beginning after December 31, 2007, and
229229 ending before January 1, 2009, years to which such
230230 losses may be carried back shall be limited to two (2)
231231 years. For tax years beginning after December 31,
232232 2008, the years to which such losses may be carried
233233 back shall be determined solely by reference to
234234 Section 172 of the Internal Revenue Code, 26 U.S.C.,
235235 Section 172, with the exception that the terms "net
236236 operating loss" and "taxable income" shall be replaced
237237 with "Oklahoma net operating loss " and "Oklahoma
238238 taxable income".
239239
240240
241241 Req. No. 2457 Page 4 1
242242 2
243243 3
244244 4
245245 5
246246 6
247247 7
248248 8
249249 9
250250 10
251251 11
252252 12
253253 13
254254 14
255255 15
256256 16
257257 17
258258 18
259259 19
260260 20
261261 21
262262 22
263263 23
264264 24
265265 1
266266 2
267267 3
268268 4
269269 5
270270 6
271271 7
272272 8
273273 9
274274 10
275275 11
276276 12
277277 13
278278 14
279279 15
280280 16
281281 17
282282 18
283283 19
284284 20
285285 21
286286 22
287287 23
288288 24
289289
290290 4. Items of the following nature shall be allocated as
291291 indicated. Allowable deductions attributable to items separately
292292 allocable in subparagraphs a, b, and c of this paragraph, whether or
293293 not such items of income were actually received , shall be allocated
294294 on the same basis as those items:
295295 a. Income from real and tangible personal property, such
296296 as rents, oil and mining production or roy alties, and
297297 gains or losses from sales of such prope rty, shall be
298298 allocated in accordance with the sit us of such
299299 property;
300300 b. Income from intangible personal pro perty, such as
301301 interest, dividends, patent or copyright royalties,
302302 and gains or losses from sal es of such property, shall
303303 be allocated in accordanc e with the domiciliary situs
304304 of the taxpayer, exce pt that:
305305 (1) where such property has acquired a nonunitary
306306 business or commercial situs apart from the
307307 domicile of the taxpayer such income shall be
308308 allocated in accordance with such business or
309309 commercial situs; interest income from
310310 investments held to ge nerate working capital for
311311 a unitary business enterprise sh all be included
312312 in apportionable income; a resident trust or
313313 resident estate shall be treated a s having a
314314
315315
316316 Req. No. 2457 Page 5 1
317317 2
318318 3
319319 4
320320 5
321321 6
322322 7
323323 8
324324 9
325325 10
326326 11
327327 12
328328 13
329329 14
330330 15
331331 16
332332 17
333333 18
334334 19
335335 20
336336 21
337337 22
338338 23
339339 24
340340 1
341341 2
342342 3
343343 4
344344 5
345345 6
346346 7
347347 8
348348 9
349349 10
350350 11
351351 12
352352 13
353353 14
354354 15
355355 16
356356 17
357357 18
358358 19
359359 20
360360 21
361361 22
362362 23
363363 24
364364
365365 separate commercial or business situs ins ofar as
366366 undistributed income is concerned, but sha ll not
367367 be treated as having a separate commercial or
368368 business situs insofar as distributed income is
369369 concerned,
370370 (2) for taxable years beginning after Dece mber 31,
371371 2003, capital or ordinary gains or losses f rom
372372 the sale of an ownership interest in a publicl y
373373 traded partnership, as defined by Section 7704(b)
374374 of the Internal Revenue Code, shall be allocated
375375 to this state in the ratio of the original cost
376376 of such partnership's tangible property in this
377377 state to the original cost of such partnership 's
378378 tangible property everywhere, as determined at
379379 the time of the sale; if more than fifty percent
380380 (50%) of the value of the partnership 's assets
381381 consists of intangibl e assets, capital or
382382 ordinary gains or losses from t he sale of an
383383 ownership interest in the partnershi p shall be
384384 allocated to this state in accordance with the
385385 sales factor of the partnership for its first
386386 full tax period immediately preceding its tax
387387 period during which the ownership interest in the
388388 partnership was sold; the provisions of this
389389
390390
391391 Req. No. 2457 Page 6 1
392392 2
393393 3
394394 4
395395 5
396396 6
397397 7
398398 8
399399 9
400400 10
401401 11
402402 12
403403 13
404404 14
405405 15
406406 16
407407 17
408408 18
409409 19
410410 20
411411 21
412412 22
413413 23
414414 24
415415 1
416416 2
417417 3
418418 4
419419 5
420420 6
421421 7
422422 8
423423 9
424424 10
425425 11
426426 12
427427 13
428428 14
429429 15
430430 16
431431 17
432432 18
433433 19
434434 20
435435 21
436436 22
437437 23
438438 24
439439
440440 division shall only apply if the capital or
441441 ordinary gains or losses f rom the sale of an
442442 ownership interest in a partnership do not
443443 constitute qualifying gain receiv ing capital
444444 treatment as defined in subparagraph a o f
445445 paragraph 2 of subsection F of this section,
446446 (3) income from such property which is required to be
447447 allocated pursuant to the provisions of paragraph
448448 5 of this subsection shall be allocated as herein
449449 provided;
450450 c. Net income or loss from a business activit y which is
451451 not a part of business carried on withi n or without
452452 the state of a unitary character shall be sepa rately
453453 allocated to the state in which such activity is
454454 conducted;
455455 d. In the case of a manufact uring or processing
456456 enterprise the business of which in Oklahoma consists
457457 solely of marketing its prod ucts by:
458458 (1) sales having a situs without this state, shipp ed
459459 directly to a point from without the state to a
460460 purchaser within the state, commonly known as
461461 interstate sales,
462462 (2) sales of the product stored in public warehouses
463463 within the state pursuant to "in transit"
464464
465465
466466 Req. No. 2457 Page 7 1
467467 2
468468 3
469469 4
470470 5
471471 6
472472 7
473473 8
474474 9
475475 10
476476 11
477477 12
478478 13
479479 14
480480 15
481481 16
482482 17
483483 18
484484 19
485485 20
486486 21
487487 22
488488 23
489489 24
490490 1
491491 2
492492 3
493493 4
494494 5
495495 6
496496 7
497497 8
498498 9
499499 10
500500 11
501501 12
502502 13
503503 14
504504 15
505505 16
506506 17
507507 18
508508 19
509509 20
510510 21
511511 22
512512 23
513513 24
514514
515515 tariffs, as prescribed and allowed by the
516516 Interstate Commerce Commission, to a purchaser
517517 within the state,
518518 (3) sales of the product stored in public warehouses
519519 within the state where the shipme nt to such
520520 warehouses is not covered by "in transit"
521521 tariffs, as prescribed and allowed by the
522522 Interstate Commerce Commission, to a purchaser
523523 within or without the state,
524524 the Oklahoma net income shall , at the option of the
525525 taxpayer, be that portion of the total net income of
526526 the taxpayer for federal incom e tax purposes derived
527527 from the manufacture and/or processi ng and sales
528528 everywhere as determined by the ratio of the sales
529529 defined in this section mad e to the purchaser within
530530 the state to the total sales e verywhere. The term
531531 "public warehouse" as used in this subparagraph means
532532 a licensed public warehouse, the p rincipal business of
533533 which is warehousing merchandise for the public;
534534 e. In the case of insurance companies, Oklahoma taxable
535535 income shall be taxab le income of the taxpayer for
536536 federal tax purposes , as adjusted for the adjustments
537537 provided pursuant to the provisions of paragraphs 1
538538 and 2 of this subsection, apportioned as follows:
539539
540540
541541 Req. No. 2457 Page 8 1
542542 2
543543 3
544544 4
545545 5
546546 6
547547 7
548548 8
549549 9
550550 10
551551 11
552552 12
553553 13
554554 14
555555 15
556556 16
557557 17
558558 18
559559 19
560560 20
561561 21
562562 22
563563 23
564564 24
565565 1
566566 2
567567 3
568568 4
569569 5
570570 6
571571 7
572572 8
573573 9
574574 10
575575 11
576576 12
577577 13
578578 14
579579 15
580580 16
581581 17
582582 18
583583 19
584584 20
585585 21
586586 22
587587 23
588588 24
589589
590590 (1) except as otherwise provided by division (2) of
591591 this subparagraph, taxable income of an insurance
592592 company for a taxable year shall be apportioned
593593 to this state by multiplying such income by a
594594 fraction, the numerator of which is the direct
595595 premiums written for insu rance on property or
596596 risks in this state, and the denomina tor of which
597597 is the direct premiums written for in surance on
598598 property or risks everywhere. For purposes of
599599 this subsection, the term "direct premiums
600600 written" means the total amount of direct
601601 premiums written, assessments and annuity
602602 considerations as rep orted for the taxable year
603603 on the annual statement filed by the company with
604604 the Insurance Commissioner in th e form approved
605605 by the National Association of Insurance
606606 Commissioners, or such other for m as may be
607607 prescribed in lieu thereof,
608608 (2) if the principal source of premiums written by an
609609 insurance company consists of premiums for
610610 reinsurance accepted by it, th e taxable income of
611611 such company shall be apportioned to this state
612612 by multiplying such income by a fraction, the
613613 numerator of which is the sum of (a) direct
614614
615615
616616 Req. No. 2457 Page 9 1
617617 2
618618 3
619619 4
620620 5
621621 6
622622 7
623623 8
624624 9
625625 10
626626 11
627627 12
628628 13
629629 14
630630 15
631631 16
632632 17
633633 18
634634 19
635635 20
636636 21
637637 22
638638 23
639639 24
640640 1
641641 2
642642 3
643643 4
644644 5
645645 6
646646 7
647647 8
648648 9
649649 10
650650 11
651651 12
652652 13
653653 14
654654 15
655655 16
656656 17
657657 18
658658 19
659659 20
660660 21
661661 22
662662 23
663663 24
664664
665665 premiums written for insurance on prope rty or
666666 risks in this state, plus (b) premiums written
667667 for reinsurance accepted in respect of property
668668 or risks in this state, and the denominator o f
669669 which is the sum of (c) direct premiums written
670670 for insurance on property or risks everywhere,
671671 plus (d) premiums written for reinsurance
672672 accepted in respect of proper ty or risks
673673 everywhere. For purposes of this paragraph,
674674 premiums written for reinsuranc e accepted in
675675 respect of property or risks in this state,
676676 whether or not otherwise determinable, may at the
677677 election of the company be determined on the
678678 basis of the proportion which premiums written
679679 for insurance accepted from companies
680680 commercially domiciled in Oklahoma bears to
681681 premiums written for reinsurance accepted from
682682 all sources, or alternatively in the proportion
683683 which the sum of the direct premiums written fo r
684684 insurance on property or risks in this state by
685685 each ceding company from which reinsur ance is
686686 accepted bears to the sum of the total direct
687687 premiums written by each such ceding company for
688688 the taxable year.
689689
690690
691691 Req. No. 2457 Page 10 1
692692 2
693693 3
694694 4
695695 5
696696 6
697697 7
698698 8
699699 9
700700 10
701701 11
702702 12
703703 13
704704 14
705705 15
706706 16
707707 17
708708 18
709709 19
710710 20
711711 21
712712 22
713713 23
714714 24
715715 1
716716 2
717717 3
718718 4
719719 5
720720 6
721721 7
722722 8
723723 9
724724 10
725725 11
726726 12
727727 13
728728 14
729729 15
730730 16
731731 17
732732 18
733733 19
734734 20
735735 21
736736 22
737737 23
738738 24
739739
740740 5. The net income or loss remaining after the separate
741741 allocation in paragraph 4 of this subsection, being that which is
742742 derived from a unitary business enterprise, shall be apportioned to
743743 this state on the basis of the arithmetical average of three factors
744744 consisting of property, payroll, and sales or gross revenue
745745 enumerated as subparagraphs a, b , and c of this paragraph . Net
746746 income or loss as used in this paragraph includes that derived from
747747 patent or copyright royalties, purchase discounts , and interest on
748748 accounts receivable relating to or arising from a business activity,
749749 the income from which is apportioned pursuant to this subsect ion,
750750 including the sale or other disposition of such prope rty and any
751751 other property used in the unitary ent erprise. Deductions used in
752752 computing such net income or los s shall not include taxes based on
753753 or measured by income . Provided, for corporations w hose property
754754 for purposes of the tax imposed by Section 2 355 of this title has an
755755 initial investment cost e qualing or exceeding Two Hund red Million
756756 Dollars ($200,000,00 0.00) and such investment is made on or after
757757 July 1, 1997, or for corporations which e xpand their property or
758758 facilities in this state and such expansion has an investment cost
759759 equaling or exceeding Two Hundred Million Doll ars ($200,000,000.00)
760760 over a period not to exceed three (3) years, and such expansion is
761761 commenced on or after January 1, 2000, the three factors shall be
762762 apportioned with prope rty and payroll, each comprising twenty -five
763763 percent (25%) of the apportionment factor and sales comprising fif ty
764764
765765
766766 Req. No. 2457 Page 11 1
767767 2
768768 3
769769 4
770770 5
771771 6
772772 7
773773 8
774774 9
775775 10
776776 11
777777 12
778778 13
779779 14
780780 15
781781 16
782782 17
783783 18
784784 19
785785 20
786786 21
787787 22
788788 23
789789 24
790790 1
791791 2
792792 3
793793 4
794794 5
795795 6
796796 7
797797 8
798798 9
799799 10
800800 11
801801 12
802802 13
803803 14
804804 15
805805 16
806806 17
807807 18
808808 19
809809 20
810810 21
811811 22
812812 23
813813 24
814814
815815 percent (50%) of the apportionment factor . The apportionment
816816 factors shall be compu ted as follows:
817817 a. The property factor is a fraction, the numerator of
818818 which is the average value of the tax payer's real and
819819 tangible personal property owned or rented a nd used in
820820 this state during the tax period and the denominator
821821 of which is the averag e value of all the taxpayer's
822822 real and tangible personal pr operty everywhere owned
823823 or rented and used during the tax period.
824824 (1) Property, the income from which is separa tely
825825 allocated in paragraph 4 of this subsection,
826826 shall not be included in determinin g this
827827 fraction. The numerator of the fraction shall
828828 include a portion of the investment in
829829 transportation and other equipment having no
830830 fixed situs, such as rolling stoc k, buses,
831831 trucks, and trailers, including machinery and
832832 equipment carried thereon, air planes,
833833 salespersons' automobiles, and other similar
834834 equipment, in the proportion that miles traveled
835835 in Oklahoma by such equipment bears to total
836836 miles traveled,
837837 (2) Property owned by the taxpayer is valued at its
838838 original cost. Property rented by the ta xpayer
839839
840840
841841 Req. No. 2457 Page 12 1
842842 2
843843 3
844844 4
845845 5
846846 6
847847 7
848848 8
849849 9
850850 10
851851 11
852852 12
853853 13
854854 14
855855 15
856856 16
857857 17
858858 18
859859 19
860860 20
861861 21
862862 22
863863 23
864864 24
865865 1
866866 2
867867 3
868868 4
869869 5
870870 6
871871 7
872872 8
873873 9
874874 10
875875 11
876876 12
877877 13
878878 14
879879 15
880880 16
881881 17
882882 18
883883 19
884884 20
885885 21
886886 22
887887 23
888888 24
889889
890890 is valued at eight times the net annual rental
891891 rate. Net annual rental rate is the annual
892892 rental rate paid by the taxpayer, less any annual
893893 rental rate received by the taxpayer from
894894 subrentals,
895895 (3) The average value of property shall be determined
896896 by averaging the values at the beginning and
897897 ending of the tax period, but the Oklahoma Tax
898898 Commission may require the averaging of monthly
899899 values during the tax period if r easonably
900900 required to reflect properly the average value of
901901 the taxpayer's property;
902902 b. The payroll factor is a fraction, the numerator of
903903 which is the total compensation for services rendered
904904 in the state during the tax per iod, and the
905905 denominator of which is the total compensation for
906906 services rendered everywhere during the tax period .
907907 "Compensation", as used in this subsection means those
908908 paid-for services to the extent related to the unita ry
909909 business but does not include officers' salaries,
910910 wages, and other compensation.
911911 (1) In the case of a transportation enterprise, the
912912 numerator of the fraction shall include a portion
913913 of such expenditure in connection with employees
914914
915915
916916 Req. No. 2457 Page 13 1
917917 2
918918 3
919919 4
920920 5
921921 6
922922 7
923923 8
924924 9
925925 10
926926 11
927927 12
928928 13
929929 14
930930 15
931931 16
932932 17
933933 18
934934 19
935935 20
936936 21
937937 22
938938 23
939939 24
940940 1
941941 2
942942 3
943943 4
944944 5
945945 6
946946 7
947947 8
948948 9
949949 10
950950 11
951951 12
952952 13
953953 14
954954 15
955955 16
956956 17
957957 18
958958 19
959959 20
960960 21
961961 22
962962 23
963963 24
964964
965965 operating equipment o ver a fixed route, such as
966966 railroad employees, airline pilots, or bus
967967 drivers, in this state only a part of the time,
968968 in the proportion that milea ge traveled in
969969 Oklahoma bears to total mileage traveled by s uch
970970 employees,
971971 (2) In any case the numerator of th e fraction shall
972972 include a portion of such expenditures in
973973 connection with itinerant employees, such as
974974 traveling salespersons, in this state onl y a part
975975 of the time, in the proportion that time spent in
976976 Oklahoma bears to total time spent in furtherance
977977 of the enterprise by such employees ;
978978 c. The sales factor is a fract ion, the numerator of which
979979 is the total sales or gross revenue of the taxpayer in
980980 this state during the tax period, and the denominator
981981 of which is the total sales or gross revenue of the
982982 taxpayer everywhere during the tax period. "Sales",
983983 as used in this subsection does not include sales or
984984 gross revenue which are separately alloc ated in
985985 paragraph 4 of this subsection.
986986 (1) Sales of tangible personal property have a situs
987987 in this state if the property is delivered or
988988 shipped to a purchaser other than the United
989989
990990
991991 Req. No. 2457 Page 14 1
992992 2
993993 3
994994 4
995995 5
996996 6
997997 7
998998 8
999999 9
10001000 10
10011001 11
10021002 12
10031003 13
10041004 14
10051005 15
10061006 16
10071007 17
10081008 18
10091009 19
10101010 20
10111011 21
10121012 22
10131013 23
10141014 24
10151015 1
10161016 2
10171017 3
10181018 4
10191019 5
10201020 6
10211021 7
10221022 8
10231023 9
10241024 10
10251025 11
10261026 12
10271027 13
10281028 14
10291029 15
10301030 16
10311031 17
10321032 18
10331033 19
10341034 20
10351035 21
10361036 22
10371037 23
10381038 24
10391039
10401040 States government, within this state regardless
10411041 of the FOB point or oth er conditions of the sale;
10421042 or the property is shipped from an o ffice, store,
10431043 warehouse, factory, or other place of storage in
10441044 this state and (a) the purchaser is the United
10451045 States government or (b) the taxpayer is not
10461046 doing business in the state of the dest ination of
10471047 the shipment.
10481048 (2) In the case of a railroad or inte rurban railway
10491049 enterprise, the numerator of the fr action shall
10501050 not be less than the allocation of revenues to
10511051 this state as shown in its annual report to the
10521052 Corporation Commission.
10531053 (3) In the case of an airline, truck, or bus
10541054 enterprise or freight car, ta nk car, refrigerator
10551055 car, or other railroad equipm ent enterprise, the
10561056 numerator of the fraction shall include a portio n
10571057 of revenue from interstate transportation in the
10581058 proportion that interstat e mileage traveled in
10591059 Oklahoma bears to total interstate milea ge
10601060 traveled.
10611061 (4) In the case of an oil, gasoline o r gas pipeline
10621062 enterprise, the numer ator of the fraction shall
10631063 be either the total of traffic units of the
10641064
10651065
10661066 Req. No. 2457 Page 15 1
10671067 2
10681068 3
10691069 4
10701070 5
10711071 6
10721072 7
10731073 8
10741074 9
10751075 10
10761076 11
10771077 12
10781078 13
10791079 14
10801080 15
10811081 16
10821082 17
10831083 18
10841084 19
10851085 20
10861086 21
10871087 22
10881088 23
10891089 24
10901090 1
10911091 2
10921092 3
10931093 4
10941094 5
10951095 6
10961096 7
10971097 8
10981098 9
10991099 10
11001100 11
11011101 12
11021102 13
11031103 14
11041104 15
11051105 16
11061106 17
11071107 18
11081108 19
11091109 20
11101110 21
11111111 22
11121112 23
11131113 24
11141114
11151115 enterprise within Oklahoma or the re venue
11161116 allocated to Oklahoma based upon miles moved, at
11171117 the option of the taxpayer, and the denominator
11181118 of which shall be the total of traffic units o f
11191119 the enterprise or the revenue of the enterprise
11201120 everywhere as appropriate to the numerator . A
11211121 "traffic unit" is hereby defined as the
11221122 transportation for a distance of one (1) mile of
11231123 one (1) barrel of oil, one (1) gal lon of
11241124 gasoline, or one thousand (1,0 00) cubic feet of
11251125 natural or casinghead gas, as the case may be.
11261126 (5) In the case of a telephone or telegra ph or other
11271127 communication enterprise, the numerator of the
11281128 fraction shall include that portion of the
11291129 interstate revenue as is allocated pursuant to
11301130 the accounting procedures prescri bed by the
11311131 Federal Communications Commission; provided that
11321132 in respect to each corporation or b usiness entity
11331133 required by the Federal Com munications Commission
11341134 to keep its books and recor ds in accordance with
11351135 a uniform system of accounts prescribed by such
11361136 Commission, the intrastate net income shall be
11371137 determined separately in t he manner provided by
11381138 such uniform system of accounts and only the
11391139
11401140
11411141 Req. No. 2457 Page 16 1
11421142 2
11431143 3
11441144 4
11451145 5
11461146 6
11471147 7
11481148 8
11491149 9
11501150 10
11511151 11
11521152 12
11531153 13
11541154 14
11551155 15
11561156 16
11571157 17
11581158 18
11591159 19
11601160 20
11611161 21
11621162 22
11631163 23
11641164 24
11651165 1
11661166 2
11671167 3
11681168 4
11691169 5
11701170 6
11711171 7
11721172 8
11731173 9
11741174 10
11751175 11
11761176 12
11771177 13
11781178 14
11791179 15
11801180 16
11811181 17
11821182 18
11831183 19
11841184 20
11851185 21
11861186 22
11871187 23
11881188 24
11891189
11901190 interstate income shall be subject to allocati on
11911191 pursuant to the provisions of this subsection.
11921192 Provided further, that the gross revenue factors
11931193 shall be those as are determined pursuant t o the
11941194 accounting procedures prescribed by the Federal
11951195 Communications Commission.
11961196 In any case where the apportionm ent of the three factors
11971197 prescribed in this paragraph attributes to O klahoma a portion of net
11981198 income of the enterprise out of all appropriate proportion to the
11991199 property owned and/or business transacted with in this state, because
12001200 of the fact that one or mor e of the factors so prescribed are no t
12011201 employed to any appreciable ex tent in furtherance of the enterprise;
12021202 or because one or more factors not so prescribed are emp loyed to a
12031203 considerable extent in furthera nce of the enterprise; or because of
12041204 other reasons, the Tax Commission is empowered to permit, after a
12051205 showing by taxpayer that an excessive portion of net income has been
12061206 attributed to Oklaho ma, or require, when i n its judgment an
12071207 insufficient portion of net income has been attributed to Oklahoma,
12081208 the elimination, substitution, or use of ad ditional factors, or
12091209 reduction or increase in the weight of such prescribed factors .
12101210 Provided, however, that any such variance from such prescribed
12111211 factors which has th e effect of increasing the portion of net income
12121212 attributable to Oklahoma must not be i nherently arbitrary, and
12131213 application of the recomputed final apportionment to the net income
12141214
12151215
12161216 Req. No. 2457 Page 17 1
12171217 2
12181218 3
12191219 4
12201220 5
12211221 6
12221222 7
12231223 8
12241224 9
12251225 10
12261226 11
12271227 12
12281228 13
12291229 14
12301230 15
12311231 16
12321232 17
12331233 18
12341234 19
12351235 20
12361236 21
12371237 22
12381238 23
12391239 24
12401240 1
12411241 2
12421242 3
12431243 4
12441244 5
12451245 6
12461246 7
12471247 8
12481248 9
12491249 10
12501250 11
12511251 12
12521252 13
12531253 14
12541254 15
12551255 16
12561256 17
12571257 18
12581258 19
12591259 20
12601260 21
12611261 22
12621262 23
12631263 24
12641264
12651265 of the enterprise must attribute t o Oklahoma only a reasonable
12661266 portion thereof.
12671267 6. For calendar years 1997 and 1998, the owne r of a new or
12681268 expanded agricultural c ommodity processing facility in this state
12691269 may exclude from Oklahoma taxable income, or in the case of a n
12701270 individual, the Oklah oma adjusted gross income, fifteen percent
12711271 (15%) of the investment by the owner in the new o r expanded
12721272 agricultural commodity pro cessing facility. For calendar year 1999,
12731273 and all subsequent years, the percentage, not to exceed fifte en
12741274 percent (15%), avail able to the owner of a new or expanded
12751275 agricultural commodity processing facility in this st ate claiming
12761276 the exemption shall be a djusted annually so that the tot al estimated
12771277 reduction in tax liability does not exceed One Million Doll ars
12781278 ($1,000,000.00) annually. The Tax Commission shall promulgat e rules
12791279 for determining the percentage of the inve stment which each eligible
12801280 taxpayer may exclude. The exclusion provided by this paragraph
12811281 shall be taken in the taxable year when the invest ment is made. In
12821282 the event the total reduction in tax liability authorized by this
12831283 paragraph exceeds One Million D ollars ($1,000,000.00) in any
12841284 calendar year, the Tax Commission shall permit any excess over One
12851285 Million Dollars ($1,000,000.00) and shall fa ctor such excess into
12861286 the percentage for subsequent years . Any amount of the exemption
12871287 permitted to be excluded pu rsuant to the provisions of this
12881288 paragraph but not used in any year m ay be carried forward as an
12891289
12901290
12911291 Req. No. 2457 Page 18 1
12921292 2
12931293 3
12941294 4
12951295 5
12961296 6
12971297 7
12981298 8
12991299 9
13001300 10
13011301 11
13021302 12
13031303 13
13041304 14
13051305 15
13061306 16
13071307 17
13081308 18
13091309 19
13101310 20
13111311 21
13121312 22
13131313 23
13141314 24
13151315 1
13161316 2
13171317 3
13181318 4
13191319 5
13201320 6
13211321 7
13221322 8
13231323 9
13241324 10
13251325 11
13261326 12
13271327 13
13281328 14
13291329 15
13301330 16
13311331 17
13321332 18
13331333 19
13341334 20
13351335 21
13361336 22
13371337 23
13381338 24
13391339
13401340 exemption from income pursuant to the provis ions of this paragraph
13411341 for a period not exceeding six (6) years f ollowing the year in which
13421342 the investment was orig inally made.
13431343 For purposes of this par agraph:
13441344 a. "Agricultural commodi ty processing facility " means
13451345 building, structures, fixtures and impro vements used
13461346 or operated primarily for the processing or production
13471347 of marketable products from agricultural commodit ies.
13481348 The term shall also mean a dair y operation that
13491349 requires a depreciable investment of at least Two
13501350 Hundred Fifty Thousand Dollars ($25 0,000.00) and which
13511351 produces milk from dairy cows. The term does not
13521352 include a facility that provides only, and noth ing
13531353 more than, storage, cleaning, dry ing or transportation
13541354 of agricultural commodities, and
13551355 b. "Facility" means each part of the facility which is
13561356 used in a process primarily for:
13571357 (1) the processing of agri cultural commodities ,
13581358 including receiving or stori ng agricultural
13591359 commodities, or the p roduction of milk at a dairy
13601360 operation,
13611361 (2) transporting the agricultural commodities or
13621362 product before, during or after the pr ocessing,
13631363 or
13641364
13651365
13661366 Req. No. 2457 Page 19 1
13671367 2
13681368 3
13691369 4
13701370 5
13711371 6
13721372 7
13731373 8
13741374 9
13751375 10
13761376 11
13771377 12
13781378 13
13791379 14
13801380 15
13811381 16
13821382 17
13831383 18
13841384 19
13851385 20
13861386 21
13871387 22
13881388 23
13891389 24
13901390 1
13911391 2
13921392 3
13931393 4
13941394 5
13951395 6
13961396 7
13971397 8
13981398 9
13991399 10
14001400 11
14011401 12
14021402 13
14031403 14
14041404 15
14051405 16
14061406 17
14071407 18
14081408 19
14091409 20
14101410 21
14111411 22
14121412 23
14131413 24
14141414
14151415 (3) packaging or otherwise pr eparing the product for
14161416 sale or shipment.
14171417 7. Despite any provision to the contrary in paragraph 3 of this
14181418 subsection, for taxable years beginning after December 31, 1999, in
14191419 the case of a taxpayer which has a farm ing loss, such farming loss
14201420 shall be considered a net operating loss carryback in accordance
14211421 with and to the extent of the Intern al Revenue Code, 26 U.S.C.,
14221422 Section 172(b)(G). However, the amount of the net operating loss
14231423 carryback shall not exceed the le sser of:
14241424 a. Sixty Thousand Dollars ($60,00 0.00), or
14251425 b. the loss properly shown on Schedule F of the Internal
14261426 Revenue Service Form 1040 reduced by one-half (1/2) of
14271427 the income from all other sources other than reflected
14281428 on Schedule F.
14291429 8. In taxable years beginning after December 31, 1995, all
14301430 qualified wages equal to the federal income tax credit set forth in
14311431 26 U.S.C.A., Section 45 A, shall be deducted from taxabl e income.
14321432 The deduction allowed pursuant to this paragraph sh all only be
14331433 permitted for the tax years in which the federal tax credit pur suant
14341434 to 26 U.S.C.A., Section 45A, is allowed . For purposes of this
14351435 paragraph, "qualified wages" means those wages use d to calculate the
14361436 federal credit pursuant to 26 U.S.C.A., Sec tion 45A.
14371437 9. In taxable years beginning after December 31, 2005, an
14381438 employer that is eligible for and utilizes the Safety Pa ys OSHA
14391439
14401440
14411441 Req. No. 2457 Page 20 1
14421442 2
14431443 3
14441444 4
14451445 5
14461446 6
14471447 7
14481448 8
14491449 9
14501450 10
14511451 11
14521452 12
14531453 13
14541454 14
14551455 15
14561456 16
14571457 17
14581458 18
14591459 19
14601460 20
14611461 21
14621462 22
14631463 23
14641464 24
14651465 1
14661466 2
14671467 3
14681468 4
14691469 5
14701470 6
14711471 7
14721472 8
14731473 9
14741474 10
14751475 11
14761476 12
14771477 13
14781478 14
14791479 15
14801480 16
14811481 17
14821482 18
14831483 19
14841484 20
14851485 21
14861486 22
14871487 23
14881488 24
14891489
14901490 Consultation Service provided by the Oklahoma Department of Labor
14911491 shall receive an exemption from taxable income in the am ount of One
14921492 Thousand Dollars ($1,0 00.00) for the tax year that the service i s
14931493 utilized.
14941494 10. For taxable years beginning on or after January 1, 2010,
14951495 there shall be added to Oklahoma taxable inco me an amount equal to
14961496 the amount of deferred income not incl uded in such taxable income
14971497 pursuant to Section 108(i)(1) of the Internal Rev enue Code of 1986
14981498 as amended by Section 1231 of th e American Recovery and Reinvestment
14991499 Act of 2009 (P.L. No. 111 -5). There shall be subtracted from
15001500 Oklahoma taxable income an amo unt equal to the amount of deferred
15011501 income included in such taxable income pu rsuant to Section 108(i)(1)
15021502 of the Internal Revenu e Code by Section 1231 of the America n
15031503 Recovery and Reinvestment Act of 2009 (P.L. No. 111 -5).
15041504 11. For taxable years beginning on or after January 1, 2019,
15051505 there shall be subtracted from Oklahoma taxable i ncome or adjusted
15061506 gross income any item of income or gain, and there shall be added to
15071507 Oklahoma taxable income or adjus ted gross income any item of loss or
15081508 deduction that in the absence of an election pursuant to t he
15091509 provisions of the Pass -Through Entity Tax Equity Act of 2019 would
15101510 be allocated to a memb er or to an indirect member of an ele cting
15111511 pass-through entity pursua nt to Section 2351 et seq. of this title,
15121512 if (i) the electing pass-through entity has accounted for such item
15131513 in computing its Oklahoma n et entity income or loss pursuant to the
15141514
15151515
15161516 Req. No. 2457 Page 21 1
15171517 2
15181518 3
15191519 4
15201520 5
15211521 6
15221522 7
15231523 8
15241524 9
15251525 10
15261526 11
15271527 12
15281528 13
15291529 14
15301530 15
15311531 16
15321532 17
15331533 18
15341534 19
15351535 20
15361536 21
15371537 22
15381538 23
15391539 24
15401540 1
15411541 2
15421542 3
15431543 4
15441544 5
15451545 6
15461546 7
15471547 8
15481548 9
15491549 10
15501550 11
15511551 12
15521552 13
15531553 14
15541554 15
15551555 16
15561556 17
15571557 18
15581558 19
15591559 20
15601560 21
15611561 22
15621562 23
15631563 24
15641564
15651565 provisions of the Pass-Through Entity Tax Equi ty Act of 2019, and
15661566 (ii) the total amount of tax attributable to any resulting Oklahoma
15671567 net entity income has been paid . The Oklahoma Tax Commission shall
15681568 promulgate rules for the reporting of such exclusion to direct and
15691569 indirect members of the electing pass-through entity. As used in
15701570 this paragraph, "electing pass-through entity", "indirect member",
15711571 and "member" shall be defined in the same manner as prescribed by
15721572 Section 2355.1P-2 of this title. Notwithstanding the application of
15731573 this paragraph, the a djusted tax basis of any ownersh ip interest in
15741574 a pass-through entity for purposes of Sectio n 2351 et seq. of this
15751575 title shall be equal to its adjusted tax basis for fede ral income
15761576 tax purposes.
15771577 B. 1. The taxable income of any corporation shall be further
15781578 adjusted to arrive at Oklahoma taxable income, except those
15791579 corporations electing treatme nt as provided in subchapter S of the
15801580 Internal Revenue Code, 26 U.S.C., Section 1361 et seq., and Section
15811581 2365 of this title, ded uctions pursuant to the provisions of the
15821582 Accelerated Cost Recovery S ystem as defined and allowed in the
15831583 Economic Recovery Tax Act of 1981, Public Law 97 -34, 26 U.S.C.,
15841584 Section 168, for depreciation of asse ts placed into service after
15851585 December 31, 1981, sh all not be allowed in calculating Okl ahoma
15861586 taxable income. Such corporations shall be allowed a deduction for
15871587 depreciation of assets placed into service after Dece mber 31, 1981,
15881588 in accordance with provisio ns of the Internal Revenue Code, 26
15891589
15901590
15911591 Req. No. 2457 Page 22 1
15921592 2
15931593 3
15941594 4
15951595 5
15961596 6
15971597 7
15981598 8
15991599 9
16001600 10
16011601 11
16021602 12
16031603 13
16041604 14
16051605 15
16061606 16
16071607 17
16081608 18
16091609 19
16101610 20
16111611 21
16121612 22
16131613 23
16141614 24
16151615 1
16161616 2
16171617 3
16181618 4
16191619 5
16201620 6
16211621 7
16221622 8
16231623 9
16241624 10
16251625 11
16261626 12
16271627 13
16281628 14
16291629 15
16301630 16
16311631 17
16321632 18
16331633 19
16341634 20
16351635 21
16361636 22
16371637 23
16381638 24
16391639
16401640 U.S.C., Section 1 et seq., in effect immediately pr ior to the
16411641 enactment of the Acce lerated Cost Recovery System . The Oklahoma tax
16421642 basis for all such assets placed into service a fter December 31,
16431643 1981, calculated in this section shall be retained and utilized for
16441644 all Oklahoma income tax purposes through th e final disposition of
16451645 such assets.
16461646 Notwithstanding any other provisions of the Oklahoma Income Tax
16471647 Act, Section 2351 et seq. o f this title, or of the Internal Revenue
16481648 Code to the contrary, this subsection shall control calculation of
16491649 depreciation of asset s placed into service after Dece mber 31, 1981,
16501650 and before January 1, 1983.
16511651 For assets placed in service and held by a corporati on in which
16521652 accelerated cost recovery syst em was previously disallowed, an
16531653 adjustment to taxable income is required in the first taxable year
16541654 beginning after December 31, 1982, to reconcile the basis of such
16551655 assets to the basis allowed in the Internal Reve nue Code. The
16561656 purpose of this adjustment is to equalize the basis and allowance
16571657 for depreciation accounts between that reported to the Internal
16581658 Revenue Service and that reported to Oklahoma.
16591659 2. For tax years beginn ing on or after January 1, 2009, and
16601660 ending on or before December 31, 2009, there shall be added to
16611661 Oklahoma taxable income any amou nt in excess of One Hundred Seventy -
16621662 five Thousand Dollars ($175,000.0 0) which has been deducted as a
16631663
16641664
16651665 Req. No. 2457 Page 23 1
16661666 2
16671667 3
16681668 4
16691669 5
16701670 6
16711671 7
16721672 8
16731673 9
16741674 10
16751675 11
16761676 12
16771677 13
16781678 14
16791679 15
16801680 16
16811681 17
16821682 18
16831683 19
16841684 20
16851685 21
16861686 22
16871687 23
16881688 24
16891689 1
16901690 2
16911691 3
16921692 4
16931693 5
16941694 6
16951695 7
16961696 8
16971697 9
16981698 10
16991699 11
17001700 12
17011701 13
17021702 14
17031703 15
17041704 16
17051705 17
17061706 18
17071707 19
17081708 20
17091709 21
17101710 22
17111711 23
17121712 24
17131713
17141714 small business expense under Internal Revenue Code, Section 179 as
17151715 provided in the American Recovery and Reinvestment Act of 2009.
17161716 C. 1. For taxable years beginning after December 31, 1987, the
17171717 taxable income of any corpor ation shall be further adjusted to
17181718 arrive at Oklahoma taxable income for transfers of technolog y to
17191719 qualified small businesses located in Oklahoma. Such transferor
17201720 corporation shall be a llowed an exemption from taxable inco me of an
17211721 amount equal to the amo unt of royalty payment received as a result
17221722 of such transfer; provided, however, such amount sh all not exceed
17231723 ten percent (10%) of the am ount of gross proceeds received by such
17241724 transferor corporation as a result of the techn ology transfer. Such
17251725 exemption shall be allowed for a period not to exceed ten (10) y ears
17261726 from the date of receipt of the firs t royalty payment accruing from
17271727 such transfer. No exemption may be claimed for transfers of
17281728 technology to qualified small busine sses made prior to January 1,
17291729 1988.
17301730 2. For purposes of this subsection:
17311731 a. "Qualified small business" means an entity, whether
17321732 organized as a corporation, partnership, or
17331733 proprietorship, organized for profit with its
17341734 principal place of business located wi thin this state
17351735 and which meets the following criteria:
17361736 (1) Capitalization of not m ore than Two Hundred Fifty
17371737 Thousand Dollars ($250,000.00),
17381738
17391739
17401740 Req. No. 2457 Page 24 1
17411741 2
17421742 3
17431743 4
17441744 5
17451745 6
17461746 7
17471747 8
17481748 9
17491749 10
17501750 11
17511751 12
17521752 13
17531753 14
17541754 15
17551755 16
17561756 17
17571757 18
17581758 19
17591759 20
17601760 21
17611761 22
17621762 23
17631763 24
17641764 1
17651765 2
17661766 3
17671767 4
17681768 5
17691769 6
17701770 7
17711771 8
17721772 9
17731773 10
17741774 11
17751775 12
17761776 13
17771777 14
17781778 15
17791779 16
17801780 17
17811781 18
17821782 19
17831783 20
17841784 21
17851785 22
17861786 23
17871787 24
17881788
17891789 (2) Having at least fifty p ercent (50%) of its
17901790 employees and assets located i n Oklahoma at the
17911791 time of the transfer, and
17921792 (3) Not a subsidiary or a ffiliate of the transferor
17931793 corporation;
17941794 b. "Technology" means a proprietary process, formula,
17951795 pattern, device, or compilation of scientif ic or
17961796 technical information which is not in the pu blic
17971797 domain;
17981798 c. "Transferor corporatio n" means a corporation which is
17991799 the exclusive and undisputed owner of the techn ology
18001800 at the time the transfer is made; and
18011801 d. "Gross proceeds" means the total amount of
18021802 consideration for the transfer of technology, whe ther
18031803 the consideration is in money or otherwise.
18041804 D. 1. For taxable years beginning after December 31, 2005, the
18051805 taxable income of any corporation, estate , or trust, shall be
18061806 further adjusted for qualifyin g gains receiving capital treatment .
18071807 Such corporations, estates, or trusts shall be all owed a deduction
18081808 from Oklahoma taxable income for the amount of qualifying gain s
18091809 receiving capital treatment earned by the corpor ation, estate, or
18101810 trust during the taxa ble year and included in the federal taxable
18111811 income of such corporation, estate, or trust.
18121812 2. As used in this subsection:
18131813
18141814
18151815 Req. No. 2457 Page 25 1
18161816 2
18171817 3
18181818 4
18191819 5
18201820 6
18211821 7
18221822 8
18231823 9
18241824 10
18251825 11
18261826 12
18271827 13
18281828 14
18291829 15
18301830 16
18311831 17
18321832 18
18331833 19
18341834 20
18351835 21
18361836 22
18371837 23
18381838 24
18391839 1
18401840 2
18411841 3
18421842 4
18431843 5
18441844 6
18451845 7
18461846 8
18471847 9
18481848 10
18491849 11
18501850 12
18511851 13
18521852 14
18531853 15
18541854 16
18551855 17
18561856 18
18571857 19
18581858 20
18591859 21
18601860 22
18611861 23
18621862 24
18631863
18641864 a. "qualifying gains receiving capital treat ment" means
18651865 the amount of net capital gains, as defi ned in Section
18661866 1222(11) of the Intern al Revenue Code, included in the
18671867 federal income tax return of the corporation, estate ,
18681868 or trust that result from:
18691869 (1) the sale of real property or tangible personal
18701870 property located within Oklahoma that has been
18711871 directly or indirectly owned by the corporat ion,
18721872 estate, or trust for a holding period of at l east
18731873 five (5) years prior to the date of the
18741874 transaction from which such net capital gains
18751875 arise,
18761876 (2) the sale of stock or on the sale of an ownership
18771877 interest in an Oklahoma company, limited
18781878 liability company, or partnership where such
18791879 stock or ownership interest has been directly or
18801880 indirectly owned by the corporation, estate , or
18811881 trust for a holding period of at least t hree (3)
18821882 years prior to the date of the transaction from
18831883 which the net capital gains ari se, or
18841884 (3) the sale of real property, tangible per sonal
18851885 property, or intangible personal property located
18861886 within Oklahoma as par t of the sale of all or
18871887 substantially all of the assets of an Oklahoma
18881888
18891889
18901890 Req. No. 2457 Page 26 1
18911891 2
18921892 3
18931893 4
18941894 5
18951895 6
18961896 7
18971897 8
18981898 9
18991899 10
19001900 11
19011901 12
19021902 13
19031903 14
19041904 15
19051905 16
19061906 17
19071907 18
19081908 19
19091909 20
19101910 21
19111911 22
19121912 23
19131913 24
19141914 1
19151915 2
19161916 3
19171917 4
19181918 5
19191919 6
19201920 7
19211921 8
19221922 9
19231923 10
19241924 11
19251925 12
19261926 13
19271927 14
19281928 15
19291929 16
19301930 17
19311931 18
19321932 19
19331933 20
19341934 21
19351935 22
19361936 23
19371937 24
19381938
19391939 company, limited lia bility company, or
19401940 partnership where such property has been directly
19411941 or indirectly owned by such entity owned by the
19421942 owners of such entity, and used in or derived
19431943 from such entity for a period of at least three
19441944 (3) years prior to the date of the transactio n
19451945 from which the net capital gains ar ise,
19461946 b. "holding period" means an uninterrupted pe riod of
19471947 time. The holding period shall includ e any additional
19481948 period when the property was held by another
19491949 individual or entity, if such additional period is
19501950 included in the taxpayer's holding period for the
19511951 asset pursuant to the Internal Revenue Code,
19521952 c. "Oklahoma company", "limited liability compan y", or
19531953 "partnership" means an entity whose primary
19541954 headquarters have been located in Oklahoma for at
19551955 least three (3) uninterrupted years prior to the date
19561956 of the transaction from which the net capital gains
19571957 arise,
19581958 d. "direct" means the taxpayer directly ow ns the asset,
19591959 and
19601960 e. "indirect" means the taxpayer owns an interest in a
19611961 pass-through entity (or chain of pass -through
19621962
19631963
19641964 Req. No. 2457 Page 27 1
19651965 2
19661966 3
19671967 4
19681968 5
19691969 6
19701970 7
19711971 8
19721972 9
19731973 10
19741974 11
19751975 12
19761976 13
19771977 14
19781978 15
19791979 16
19801980 17
19811981 18
19821982 19
19831983 20
19841984 21
19851985 22
19861986 23
19871987 24
19881988 1
19891989 2
19901990 3
19911991 4
19921992 5
19931993 6
19941994 7
19951995 8
19961996 9
19971997 10
19981998 11
19991999 12
20002000 13
20012001 14
20022002 15
20032003 16
20042004 17
20052005 18
20062006 19
20072007 20
20082008 21
20092009 22
20102010 23
20112011 24
20122012
20132013 entities) that sells the asset that gi ves rise to the
20142014 qualifying gains receiving capital tr eatment.
20152015 (1) With respect to sales of real pro perty or
20162016 tangible personal prope rty located within
20172017 Oklahoma, the deduction described in this
20182018 subsection shall not apply unless the pass-
20192019 through entity that m akes the sale has held the
20202020 property for not less than five (5) uninterrupted
20212021 years prior to the dat e of the transaction that
20222022 created the capital gain, and each pass -through
20232023 entity included in the chain of ownership has
20242024 been a member, partner, or shareholde r of the
20252025 pass-through entity in the tier immediately below
20262026 it for an uninterrupted period of not le ss than
20272027 five (5) years.
20282028 (2) With respect to sales of stock or owne rship
20292029 interest in or sales of all or substantially al l
20302030 of the assets of an Oklahoma company , limited
20312031 liability company, or partnership, the dedu ction
20322032 described in this subsection shall not a pply
20332033 unless the pass-through entity that makes the
20342034 sale has held the stock or ownership interest or
20352035 the assets for not less than three (3)
20362036 uninterrupted years prior to the date of the
20372037
20382038
20392039 Req. No. 2457 Page 28 1
20402040 2
20412041 3
20422042 4
20432043 5
20442044 6
20452045 7
20462046 8
20472047 9
20482048 10
20492049 11
20502050 12
20512051 13
20522052 14
20532053 15
20542054 16
20552055 17
20562056 18
20572057 19
20582058 20
20592059 21
20602060 22
20612061 23
20622062 24
20632063 1
20642064 2
20652065 3
20662066 4
20672067 5
20682068 6
20692069 7
20702070 8
20712071 9
20722072 10
20732073 11
20742074 12
20752075 13
20762076 14
20772077 15
20782078 16
20792079 17
20802080 18
20812081 19
20822082 20
20832083 21
20842084 22
20852085 23
20862086 24
20872087
20882088 transaction that created t he capital gain, and
20892089 each pass-through entity included in the chain of
20902090 ownership has been a member, partner or
20912091 shareholder of the pass -through entity in the
20922092 tier immediately below it for an uninterrupted
20932093 period of not less than three (3) years.
20942094 E. The Oklahoma adjusted gross income of any individual
20952095 taxpayer shall be further adjust ed as follows to arrive at Oklaho ma
20962096 taxable income:
20972097 1. a. In the case of individuals, t here shall be added or
20982098 deducted, as the case may be, the difference necessary
20992099 to allow personal exemptions of One Thousand Dollars
21002100 ($1,000.00) in lieu of the personal ex emptions allowed
21012101 by the Internal Revenue Code.
21022102 b. There shall be allowed an additional exemption of One
21032103 Thousand Dollars ($1, 000.00) for each taxpayer or
21042104 spouse who is blind at t he close of the tax year . For
21052105 purposes of this subparagraph, an individual is blind
21062106 only if the central visu al acuity of the individual
21072107 does not exceed 20/200 in th e better eye with
21082108 correcting lenses, o r if the visual acuity of the
21092109 individual is greater t han 20/200, but is accompanied
21102110 by a limitation in the fields of vision such th at the
21112111
21122112
21132113 Req. No. 2457 Page 29 1
21142114 2
21152115 3
21162116 4
21172117 5
21182118 6
21192119 7
21202120 8
21212121 9
21222122 10
21232123 11
21242124 12
21252125 13
21262126 14
21272127 15
21282128 16
21292129 17
21302130 18
21312131 19
21322132 20
21332133 21
21342134 22
21352135 23
21362136 24
21372137 1
21382138 2
21392139 3
21402140 4
21412141 5
21422142 6
21432143 7
21442144 8
21452145 9
21462146 10
21472147 11
21482148 12
21492149 13
21502150 14
21512151 15
21522152 16
21532153 17
21542154 18
21552155 19
21562156 20
21572157 21
21582158 22
21592159 23
21602160 24
21612161
21622162 widest diameter of the v isual field subtends an angle
21632163 no greater than twenty (20 ) degrees.
21642164 c. There shall be allowed a n additional exemption of One
21652165 Thousand Dollars ($1,00 0.00) for each taxpayer or
21662166 spouse who is sixty-five (65) years of age or older at
21672167 the close of the tax year based upon the filing status
21682168 and federal adjusted gross i ncome of the taxpayer.
21692169 Taxpayers with the following filing status may claim
21702170 this exemption if the federal adjusted gross income
21712171 does not exceed:
21722172 (1) Twenty-five Thousand Dollars ($25,000.00) if
21732173 married and filing jointly;
21742174 (2) Twelve Thousand Five Hundred Dollars ($12,500.00)
21752175 if married and filing separately;
21762176 (3) Fifteen Thousand Dollars ($15,00 0.00) if single;
21772177 and
21782178 (4) Nineteen Thousand Dol lars ($19,000.00) if a
21792179 qualifying head of household.
21802180 Provided, for taxable years beginning after December
21812181 31, 1999, amounts included in the calculation of
21822182 federal adjusted gross income pursuant to the
21832183 conversion of a traditional individual retirement
21842184 account to a Roth individual retireme nt account shall
21852185 be excluded from federal adjusted gross income for
21862186
21872187
21882188 Req. No. 2457 Page 30 1
21892189 2
21902190 3
21912191 4
21922192 5
21932193 6
21942194 7
21952195 8
21962196 9
21972197 10
21982198 11
21992199 12
22002200 13
22012201 14
22022202 15
22032203 16
22042204 17
22052205 18
22062206 19
22072207 20
22082208 21
22092209 22
22102210 23
22112211 24
22122212 1
22132213 2
22142214 3
22152215 4
22162216 5
22172217 6
22182218 7
22192219 8
22202220 9
22212221 10
22222222 11
22232223 12
22242224 13
22252225 14
22262226 15
22272227 16
22282228 17
22292229 18
22302230 19
22312231 20
22322232 21
22332233 22
22342234 23
22352235 24
22362236
22372237 purposes of the income thresholds provided in this
22382238 subparagraph.
22392239 2. a. For taxable years beginning on or befor e December 31,
22402240 2005, in the case of individual s who use the standard
22412241 deduction in determining taxable income, there shall
22422242 be added or deducted, as the case may be, t he
22432243 difference necessary to allow a sta ndard deduction in
22442244 lieu of the standard deduction all owed by the Internal
22452245 Revenue Code, in an amoun t equal to the larger of
22462246 fifteen percent (15%) of the Ok lahoma adjusted gross
22472247 income or One Thousand Dollars ($1,000.00 ), but not to
22482248 exceed Two Thousand Doll ars ($2,000.00), except that
22492249 in the case of a married individual filing a separate
22502250 return such deduction shall be the larger of fif teen
22512251 percent (15%) of such Oklahoma adjusted gross income
22522252 or Five Hundred Dollars ($500 .00), but not to exceed
22532253 the maximum amount of One Thousand Dollars
22542254 ($1,000.00).
22552255 b. For taxable years beginning on or after January 1,
22562256 2006, and before January 1, 2007, i n the case of
22572257 individuals who use the standard deduction in
22582258 determining taxable income, there shall be added or
22592259 deducted, as the case may be, the difference necessary
22602260 to allow a standard deduction in lieu of the standard
22612261
22622262
22632263 Req. No. 2457 Page 31 1
22642264 2
22652265 3
22662266 4
22672267 5
22682268 6
22692269 7
22702270 8
22712271 9
22722272 10
22732273 11
22742274 12
22752275 13
22762276 14
22772277 15
22782278 16
22792279 17
22802280 18
22812281 19
22822282 20
22832283 21
22842284 22
22852285 23
22862286 24
22872287 1
22882288 2
22892289 3
22902290 4
22912291 5
22922292 6
22932293 7
22942294 8
22952295 9
22962296 10
22972297 11
22982298 12
22992299 13
23002300 14
23012301 15
23022302 16
23032303 17
23042304 18
23052305 19
23062306 20
23072307 21
23082308 22
23092309 23
23102310 24
23112311
23122312 deduction allowed by the Internal R evenue Code, in an
23132313 amount equal to:
23142314 (1) Three Thousand Dollars ($3,000.00), if the fili ng
23152315 status is married filing joint, hea d of
23162316 household, or qualifying widow; or
23172317 (2) Two Thousand Dollars ($2,000.00), if the filing
23182318 status is single or married filing separ ate.
23192319 c. For the taxable year beginning on January 1, 2007, and
23202320 ending December 31, 200 7, in the case of individuals
23212321 who use the standard deduction in determining taxable
23222322 income, there shall be added or deducted, as the case
23232323 may be, the difference necessary to allow a standard
23242324 deduction in lieu of the standard deduction allowed by
23252325 the Internal Revenue Code, in an amount equal to :
23262326 (1) Five Thousand Five Hundred Dollars ($5,500.00),
23272327 if the filing status is married filing joint o r
23282328 qualifying widow; or
23292329 (2) Four Thousand One Hundred Twenty-five Dollars
23302330 ($4,125.00) for a head of household; or
23312331 (3) Two Thousand Seven Hundred Fifty Dollar s
23322332 ($2,750.00), if the filing status is single or
23332333 married filing separate.
23342334 d. For the taxable year be ginning on January 1, 2008, and
23352335 ending December 31, 2008, in the case of individuals
23362336
23372337
23382338 Req. No. 2457 Page 32 1
23392339 2
23402340 3
23412341 4
23422342 5
23432343 6
23442344 7
23452345 8
23462346 9
23472347 10
23482348 11
23492349 12
23502350 13
23512351 14
23522352 15
23532353 16
23542354 17
23552355 18
23562356 19
23572357 20
23582358 21
23592359 22
23602360 23
23612361 24
23622362 1
23632363 2
23642364 3
23652365 4
23662366 5
23672367 6
23682368 7
23692369 8
23702370 9
23712371 10
23722372 11
23732373 12
23742374 13
23752375 14
23762376 15
23772377 16
23782378 17
23792379 18
23802380 19
23812381 20
23822382 21
23832383 22
23842384 23
23852385 24
23862386
23872387 who use the standard deduction in determining taxable
23882388 income, there shall be added or deducted, as the case
23892389 may be, the difference necessary to allow a standard
23902390 deduction in lieu of the standard deductio n allowed by
23912391 the Internal Revenue Code, in an amount equal to:
23922392 (1) Six Thousand Five Hundred Dollars ($6,500.00), if
23932393 the filing status is married filing joint or
23942394 qualifying widow, or
23952395 (2) Four Thousand Eight Hundred Seventy -five Dollars
23962396 ($4,875.00) for a he ad of household, or
23972397 (3) Three Thousand Two Hundred Fifty Dollars
23982398 ($3,250.00), if the f iling status is single or
23992399 married filing separate.
24002400 e. For the taxable year beginning on Jan uary 1, 2009, and
24012401 ending December 31, 2009, in the case of individuals
24022402 who use the standard deduction in determining taxable
24032403 income, there shall be added or deducted , as the case
24042404 may be, the difference n ecessary to allow a standard
24052405 deduction in lieu of the standard deduction allowed by
24062406 the Internal Revenue Code, in an amount equal to :
24072407 (1) Eight Thousand Five Hundred Dollars ($8,500.00),
24082408 if the filing status is married filing joint or
24092409 qualifying widow, or
24102410
24112411
24122412 Req. No. 2457 Page 33 1
24132413 2
24142414 3
24152415 4
24162416 5
24172417 6
24182418 7
24192419 8
24202420 9
24212421 10
24222422 11
24232423 12
24242424 13
24252425 14
24262426 15
24272427 16
24282428 17
24292429 18
24302430 19
24312431 20
24322432 21
24332433 22
24342434 23
24352435 24
24362436 1
24372437 2
24382438 3
24392439 4
24402440 5
24412441 6
24422442 7
24432443 8
24442444 9
24452445 10
24462446 11
24472447 12
24482448 13
24492449 14
24502450 15
24512451 16
24522452 17
24532453 18
24542454 19
24552455 20
24562456 21
24572457 22
24582458 23
24592459 24
24602460
24612461 (2) Six Thousand Three Hundred Seventy -five Dollars
24622462 ($6,375.00) for a head of household, or
24632463 (3) Four Thousand Two Hundred Fifty Doll ars
24642464 ($4,250.00), if the filing status is single or
24652465 married filing separate.
24662466 Oklahoma adjusted gross income shall be increase d by
24672467 any amounts paid for motor vehicle excise taxes which
24682468 were deducted as allowed by the Internal Revenue Code.
24692469 f. For taxable years beginning on or after January 1,
24702470 2010, and ending on December 31, 2016, in the case of
24712471 individuals who use the standard d eduction in
24722472 determining taxable income, there shall b e added or
24732473 deducted, as the case may be, the di fference necessary
24742474 to allow a standard deduction equal to the standard
24752475 deduction allowed by the Internal Revenue Code, based
24762476 upon the amount and filing stat us prescribed by such
24772477 Code for purposes of filing fed eral individual income
24782478 tax returns.
24792479 g. For taxable years beginning on or after January 1,
24802480 2017, in the case of individuals who use the standard
24812481 deduction in determin ing taxable income, there shall
24822482 be added or deducted, as the case may be, the
24832483 difference necessary to allow a standard deduction in
24842484
24852485
24862486 Req. No. 2457 Page 34 1
24872487 2
24882488 3
24892489 4
24902490 5
24912491 6
24922492 7
24932493 8
24942494 9
24952495 10
24962496 11
24972497 12
24982498 13
24992499 14
25002500 15
25012501 16
25022502 17
25032503 18
25042504 19
25052505 20
25062506 21
25072507 22
25082508 23
25092509 24
25102510 1
25112511 2
25122512 3
25132513 4
25142514 5
25152515 6
25162516 7
25172517 8
25182518 9
25192519 10
25202520 11
25212521 12
25222522 13
25232523 14
25242524 15
25252525 16
25262526 17
25272527 18
25282528 19
25292529 20
25302530 21
25312531 22
25322532 23
25332533 24
25342534
25352535 lieu of the standard deduction allowed by the Internal
25362536 Revenue Code, as follows:
25372537 (1) Six Thousand Three Hundred Fifty Dollar s
25382538 ($6,350.00) for single or married fi ling
25392539 separately,
25402540 (2) Twelve Thousand Seven Hundred Do llars
25412541 ($12,700.00) for married filing jointly o r
25422542 qualifying widower with depend ent child, and
25432543 (3) Nine Thousand Three Hundred Fifty Dollars
25442544 ($9,350.00) for head of h ousehold.
25452545 3. a. In the case of residen t and part-year resident
25462546 individuals having adjusted gross income from sources
25472547 both within and witho ut the state, the itemized or
25482548 standard deductions and personal exemptions shall be
25492549 reduced to an amount which is the s ame portion of the
25502550 total thereof as Oklahoma adjusted gross income is of
25512551 adjusted gross income. To the extent itemized
25522552 deductions include allowable moving expense, prora tion
25532553 of moving expense shall not be required or permitted
25542554 but allowable moving expense shall be fully deductible
25552555 for those taxpayers moving within or into Oklahoma and
25562556 no part of moving expense shall be deductible for
25572557 those taxpayers moving without or out of Oklahoma.
25582558 All other itemized or standard deductions and personal
25592559
25602560
25612561 Req. No. 2457 Page 35 1
25622562 2
25632563 3
25642564 4
25652565 5
25662566 6
25672567 7
25682568 8
25692569 9
25702570 10
25712571 11
25722572 12
25732573 13
25742574 14
25752575 15
25762576 16
25772577 17
25782578 18
25792579 19
25802580 20
25812581 21
25822582 22
25832583 23
25842584 24
25852585 1
25862586 2
25872587 3
25882588 4
25892589 5
25902590 6
25912591 7
25922592 8
25932593 9
25942594 10
25952595 11
25962596 12
25972597 13
25982598 14
25992599 15
26002600 16
26012601 17
26022602 18
26032603 19
26042604 20
26052605 21
26062606 22
26072607 23
26082608 24
26092609
26102610 exemptions shall be subject to proration as provided
26112611 by law.
26122612 b. For taxable years beginning on or after Janu ary 1,
26132613 2018, the net amount of itemized deducti ons allowable
26142614 on an Oklahoma income tax return, subject to the
26152615 provisions of paragraph 24 of this subsection, shall
26162616 not exceed Seventeen Thousand Dollars ($ 17,000.00).
26172617 For purposes of this subparagraph, chari table
26182618 contributions and medical expenses deduct ible for
26192619 federal income tax purp oses shall be excluded from the
26202620 amount of Seventeen Thousand Dollars ($17,000.00) as
26212621 specified by this subparagraph.
26222622 4. A resident individual with a physical disability
26232623 constituting a substantial handicap to employment may deduct from
26242624 Oklahoma adjusted gr oss income such expenditures to modify a motor
26252625 vehicle, home, or workplace as are nece ssary to compensate for his
26262626 or her handicap. A veteran certified by the Department of Vete rans
26272627 Affairs of the federal government as having a service-connected
26282628 disability shall be conclusively presumed to be an individual with a
26292629 physical disability constit uting a substantial handicap to
26302630 employment. The Tax Commission shall promulgate rules cont aining a
26312631 list of combinations of common disabili ties and modifications which
26322632 may be presumed to qualify for this deduction . The Tax Commission
26332633 shall prescribe neces sary requirements for verification.
26342634
26352635
26362636 Req. No. 2457 Page 36 1
26372637 2
26382638 3
26392639 4
26402640 5
26412641 6
26422642 7
26432643 8
26442644 9
26452645 10
26462646 11
26472647 12
26482648 13
26492649 14
26502650 15
26512651 16
26522652 17
26532653 18
26542654 19
26552655 20
26562656 21
26572657 22
26582658 23
26592659 24
26602660 1
26612661 2
26622662 3
26632663 4
26642664 5
26652665 6
26662666 7
26672667 8
26682668 9
26692669 10
26702670 11
26712671 12
26722672 13
26732673 14
26742674 15
26752675 16
26762676 17
26772677 18
26782678 19
26792679 20
26802680 21
26812681 22
26822682 23
26832683 24
26842684
26852685 5. a. Before July 1, 2010, the first One Thousand Five
26862686 Hundred Dollars ($1,500.00) received by any pers on
26872687 from the United States as sa lary or compensation in
26882688 any form, other than retirement benefits, as a member
26892689 of any component of the Armed Forces of the Un ited
26902690 States shall be deducted from taxable income.
26912691 b. On or after July 1, 2010, one hundred percent ( 100%)
26922692 of the income received b y any person from the United
26932693 States as salary or compensation in any form, other
26942694 than retirement benefits, as a member of any component
26952695 of the Armed Forces of the United States s hall be
26962696 deducted from taxable income.
26972697 c. Whenever the filing of a timely inco me tax return by a
26982698 member of the Armed Forces of the United States is
26992699 made impracticable or impossible of accomplishment by
27002700 reason of:
27012701 (1) absence from the United States, which te rm
27022702 includes only the states and the District of
27032703 Columbia;
27042704 (2) absence from the State of Oklahoma this state
27052705 while on active duty; or
27062706 (3) confinement in a hospital within the United
27072707 States for treatment of w ounds, injuries, or
27082708 disease,
27092709
27102710
27112711 Req. No. 2457 Page 37 1
27122712 2
27132713 3
27142714 4
27152715 5
27162716 6
27172717 7
27182718 8
27192719 9
27202720 10
27212721 11
27222722 12
27232723 13
27242724 14
27252725 15
27262726 16
27272727 17
27282728 18
27292729 19
27302730 20
27312731 21
27322732 22
27332733 23
27342734 24
27352735 1
27362736 2
27372737 3
27382738 4
27392739 5
27402740 6
27412741 7
27422742 8
27432743 9
27442744 10
27452745 11
27462746 12
27472747 13
27482748 14
27492749 15
27502750 16
27512751 17
27522752 18
27532753 19
27542754 20
27552755 21
27562756 22
27572757 23
27582758 24
27592759
27602760 the time for filing a return and paying an income tax
27612761 shall be and is hereby exte nded without incurring
27622762 liability for interest or penalties, to the fifteenth
27632763 day of the third month following the month in which:
27642764 (a) Such individual shall return to the United
27652765 States if the extension is granted pursuant
27662766 to subparagraph a of this paragraph , return
27672767 to the State of Oklahoma this state if the
27682768 extension is granted pursuant to
27692769 subparagraph b of this p aragraph or be
27702770 discharged from such hospital if the
27712771 extension is granted pursuant to
27722772 subparagraph c of this paragraph; or
27732773 (b) An executor, administrator, or c onservator
27742774 of the estate of the taxpayer is appointed,
27752775 whichever event occurs the earliest.
27762776 Provided, that the Tax Commission may, in its discretion, grant
27772777 any member of the Armed Force s of the United States an extension of
27782778 time for filing of income tax re turns and payment of i ncome tax
27792779 without incurring liabilities for interest or penalties . Such
27802780 extension may be granted only when in the judgment of the Tax
27812781 Commission a good cause exis ts therefor and may be for a period in
27822782 excess of six (6) months . A record of every such exte nsion granted,
27832783 and the reason therefor, shall be kept.
27842784
27852785
27862786 Req. No. 2457 Page 38 1
27872787 2
27882788 3
27892789 4
27902790 5
27912791 6
27922792 7
27932793 8
27942794 9
27952795 10
27962796 11
27972797 12
27982798 13
27992799 14
28002800 15
28012801 16
28022802 17
28032803 18
28042804 19
28052805 20
28062806 21
28072807 22
28082808 23
28092809 24
28102810 1
28112811 2
28122812 3
28132813 4
28142814 5
28152815 6
28162816 7
28172817 8
28182818 9
28192819 10
28202820 11
28212821 12
28222822 13
28232823 14
28242824 15
28252825 16
28262826 17
28272827 18
28282828 19
28292829 20
28302830 21
28312831 22
28322832 23
28332833 24
28342834
28352835 6. Before July 1, 2010, the salary or any other form of
28362836 compensation, received from the United States by a member of any
28372837 component of the Armed Forces of the United States, shall be
28382838 deducted from taxable income during the time in which the person is
28392839 detained by the enemy in a conflict, is a prisoner of war or is
28402840 missing in action and not deceased; provided, aft er July 1, 2010,
28412841 all such salary or compensation shall be subject to th e deduction as
28422842 provided pursuant to paragraph 5 of this subsection.
28432843 7. a. An individual taxpayer, whether resident or
28442844 nonresident, may deduct an amount equal to the federal
28452845 income taxes paid by the taxpayer during the taxable
28462846 year.
28472847 b. Federal taxes as desc ribed in subparagraph a of this
28482848 paragraph shall be deductible by any individual
28492849 taxpayer, whether resident or nonresident, only to the
28502850 extent they relate to income subject to taxation
28512851 pursuant to the provisions of the Oklahoma Income Tax
28522852 Act. The maximum amount allowable in the preceding
28532853 paragraph shall be prorated on the ratio of the
28542854 Oklahoma adjusted gross income to federal adjusted
28552855 gross income.
28562856 c. For the purpose of this paragraph, "federal income
28572857 taxes paid" shall mean federal income taxes, surtaxes
28582858 imposed on incomes or excess profits taxes, as though
28592859
28602860
28612861 Req. No. 2457 Page 39 1
28622862 2
28632863 3
28642864 4
28652865 5
28662866 6
28672867 7
28682868 8
28692869 9
28702870 10
28712871 11
28722872 12
28732873 13
28742874 14
28752875 15
28762876 16
28772877 17
28782878 18
28792879 19
28802880 20
28812881 21
28822882 22
28832883 23
28842884 24
28852885 1
28862886 2
28872887 3
28882888 4
28892889 5
28902890 6
28912891 7
28922892 8
28932893 9
28942894 10
28952895 11
28962896 12
28972897 13
28982898 14
28992899 15
29002900 16
29012901 17
29022902 18
29032903 19
29042904 20
29052905 21
29062906 22
29072907 23
29082908 24
29092909
29102910 the taxpayer was on the accrual basis . In determining
29112911 the amount of deduction for federal income taxes for
29122912 tax year 2001, the amoun t of the deduction shall not
29132913 be adjusted by the amount of any accelerat ed ten
29142914 percent (10%) tax rate bracket credit or advanced
29152915 refund of the credit received during the tax year
29162916 provided pursuant to the federal Economic Growth and
29172917 Tax Relief Reconciliation Act of 2001, P.L. No. 107 -
29182918 16, and the advanced refund of such credit s hall not
29192919 be subject to taxation.
29202920 d. The provisions of this paragraph shall apply to all
29212921 taxable years ending after December 31, 1978, and
29222922 beginning before January 1, 2006.
29232923 8. Retirement benefits not to exceed Five Thousand Five Hundred
29242924 Dollars ($5,500.00) for the 2004 tax year, Seven Thousand Five
29252925 Hundred Dollars ($7,500.00) for the 2005 tax year and Ten Thousand
29262926 Dollars ($10,000.00) for the 2006 tax year and all subsequent tax
29272927 years, which are received by an individual from the civil service of
29282928 the United States, the Oklahoma Public Employees Retirement System,
29292929 the Teachers' Retirement System of Oklah oma, the Oklahoma Law
29302930 Enforcement Retirement System, the Oklahoma Firefighters Pension and
29312931 Retirement System, the Oklahoma Police Pension and Retirement
29322932 System, the employee retirement systems created by counties pursuant
29332933 to Section 951 et seq. of Title 19 of the Oklahoma Statutes, the
29342934
29352935
29362936 Req. No. 2457 Page 40 1
29372937 2
29382938 3
29392939 4
29402940 5
29412941 6
29422942 7
29432943 8
29442944 9
29452945 10
29462946 11
29472947 12
29482948 13
29492949 14
29502950 15
29512951 16
29522952 17
29532953 18
29542954 19
29552955 20
29562956 21
29572957 22
29582958 23
29592959 24
29602960 1
29612961 2
29622962 3
29632963 4
29642964 5
29652965 6
29662966 7
29672967 8
29682968 9
29692969 10
29702970 11
29712971 12
29722972 13
29732973 14
29742974 15
29752975 16
29762976 17
29772977 18
29782978 19
29792979 20
29802980 21
29812981 22
29822982 23
29832983 24
29842984
29852985 Uniform Retirement System for Justices and Judges, the O klahoma
29862986 Wildlife Conservation Department Retirement Fund, the Oklahoma
29872987 Employment Security Commission Retirement Plan, or the employee
29882988 retirement systems created by muni cipalities pursuant to Section 48-
29892989 101 et seq. of Title 11 of the Oklahoma Statutes shal l be exempt
29902990 from taxable income.
29912991 9. In taxable years beginning after D ecember 3l, 1984, Social
29922992 Security benefits received by an individual shall be exempt from
29932993 taxable income, to the extent such benefits are included in the
29942994 federal adjusted gross income p ursuant to the provisions of Section
29952995 86 of the Internal Revenue Code, 2 6 U.S.C., Section 86.
29962996 10. For taxable years beginning after December 31, 1994, lump -
29972997 sum distributions from employer plans of deferred compensation,
29982998 which are not qualified plans within the meaning of Section 401(a)
29992999 of the Internal Revenue Code, 26 U.S.C., Section 401(a), and which
30003000 are deposited in and accounted for within a separate bank account or
30013001 brokerage account in a financial institution within this state,
30023002 shall be excluded from ta xable income in the same manner as a
30033003 qualifying rollover contribution t o an individual retirement account
30043004 within the meaning of Section 408 of the Internal Revenue Code, 26
30053005 U.S.C., Section 408. Amounts withdrawn from such bank or brokerage
30063006 account, including any earnings thereon, shall be included in
30073007 taxable income when with drawn in the same manner as withdrawals from
30083008
30093009
30103010 Req. No. 2457 Page 41 1
30113011 2
30123012 3
30133013 4
30143014 5
30153015 6
30163016 7
30173017 8
30183018 9
30193019 10
30203020 11
30213021 12
30223022 13
30233023 14
30243024 15
30253025 16
30263026 17
30273027 18
30283028 19
30293029 20
30303030 21
30313031 22
30323032 23
30333033 24
30343034 1
30353035 2
30363036 3
30373037 4
30383038 5
30393039 6
30403040 7
30413041 8
30423042 9
30433043 10
30443044 11
30453045 12
30463046 13
30473047 14
30483048 15
30493049 16
30503050 17
30513051 18
30523052 19
30533053 20
30543054 21
30553055 22
30563056 23
30573057 24
30583058
30593059 individual retirement accounts within the meaning of Section 408 of
30603060 the Internal Revenue Code.
30613061 11. In taxable years beginning after Decembe r 31, 1995,
30623062 contributions made to and interest received from a medical savings
30633063 account established pursuant to Sections 2621 through 2623 of Title
30643064 63 of the Oklahoma Sta tutes shall be exempt from taxable income.
30653065 12. For taxable years beginning after Decem ber 31, 1996, the
30663066 Oklahoma adjusted gross income of any individual taxp ayer who is a
30673067 swine or poultry producer may be further adjusted for the deduction
30683068 for depreciation allowed for new construction or expansion costs
30693069 which may be computed using the same d epreciation method elected for
30703070 federal income tax purposes except that the useful life shall be
30713071 seven (7) years for purposes of this paragraph . If depreciation is
30723072 allowed as a deduction in determining the adjusted gross income of
30733073 an individual, any deprec iation calculated and claimed pursuant to
30743074 this section shall in no even t be a duplication of any deprec iation
30753075 allowed or permitted on the federal income tax return of th e
30763076 individual.
30773077 13. a. In taxable years beginning after December 31, 2002,
30783078 nonrecurring adoption expenses paid by a resident
30793079 individual taxpayer in connection w ith:
30803080 (1) the adoption of a minor , or
30813081 (2) a proposed adoption of a minor which did not
30823082 result in a decreed adoption,
30833083
30843084
30853085 Req. No. 2457 Page 42 1
30863086 2
30873087 3
30883088 4
30893089 5
30903090 6
30913091 7
30923092 8
30933093 9
30943094 10
30953095 11
30963096 12
30973097 13
30983098 14
30993099 15
31003100 16
31013101 17
31023102 18
31033103 19
31043104 20
31053105 21
31063106 22
31073107 23
31083108 24
31093109 1
31103110 2
31113111 3
31123112 4
31133113 5
31143114 6
31153115 7
31163116 8
31173117 9
31183118 10
31193119 11
31203120 12
31213121 13
31223122 14
31233123 15
31243124 16
31253125 17
31263126 18
31273127 19
31283128 20
31293129 21
31303130 22
31313131 23
31323132 24
31333133
31343134 may be deducted from the Oklahoma adjusted gross
31353135 income.
31363136 b. The deductions for adoptions and proposed adoptions
31373137 authorized by this paragraph shall not exceed Twenty
31383138 Thousand Dollars ($20,000.00) per calendar year.
31393139 c. The Tax Commission sh all promulgate rules to implement
31403140 the provisions of this paragraph which shall contain a
31413141 specific list of nonrecurring adoption expenses which
31423142 may be presumed to qualify for the deduction . The Tax
31433143 Commission shall prescribe necessary requirements for
31443144 verification.
31453145 d. "Nonrecurring adoption expenses" means adoption fees,
31463146 court costs, medical expenses, attorney fees , and
31473147 expenses which are directly related to the legal
31483148 process of adoption of a child including, but not
31493149 limited to, costs relating to the adopti on study,
31503150 health and psychological examinations, transportation,
31513151 and reasonable costs o f lodging and food for the child
31523152 or adoptive parents which are incurred t o complete the
31533153 adoption process and are not reimbursed by other
31543154 sources. The term "nonrecurring adoption expenses"
31553155 shall not include attorney fees incurred for the
31563156 purpose of litigating a contested adoption, from and
31573157 after the point of the initiation of t he contest,
31583158
31593159
31603160 Req. No. 2457 Page 43 1
31613161 2
31623162 3
31633163 4
31643164 5
31653165 6
31663166 7
31673167 8
31683168 9
31693169 10
31703170 11
31713171 12
31723172 13
31733173 14
31743174 15
31753175 16
31763176 17
31773177 18
31783178 19
31793179 20
31803180 21
31813181 22
31823182 23
31833183 24
31843184 1
31853185 2
31863186 3
31873187 4
31883188 5
31893189 6
31903190 7
31913191 8
31923192 9
31933193 10
31943194 11
31953195 12
31963196 13
31973197 14
31983198 15
31993199 16
32003200 17
32013201 18
32023202 19
32033203 20
32043204 21
32053205 22
32063206 23
32073207 24
32083208
32093209 costs associated wit h physical remodeling, renovation ,
32103210 and alteration of the adoptiv e parents' home or
32113211 property, except for a special needs child as
32123212 authorized by the cour t.
32133213 14. a. In taxable years beginning before January 1, 2005,
32143214 retirement benefits not to exceed the amounts
32153215 specified in this paragraph, which are received by an
32163216 individual sixty-five (65) years of age or older and
32173217 whose Oklahoma adjusted gross income is Tw enty-five
32183218 Thousand Dollars ($25,000.00) or less if the filing
32193219 status is single, head of household, or marr ied filing
32203220 separate, or Fifty Thousand Dollars ($50,000.00) or
32213221 less if the filing status is married filing joint or
32223222 qualifying widow, shall be exempt from taxable income.
32233223 In taxable years beginning after December 31, 2004,
32243224 retirement benefits not to excee d the amounts
32253225 specified in this paragraph, which are received b y an
32263226 individual whose Oklahoma adjusted gross income is
32273227 less than the qualifying amount specified in this
32283228 paragraph, shall be exempt from taxable income.
32293229 b. For purposes of this paragraph, the qualifying amount
32303230 shall be as follows:
32313231 (1) in taxable years beg inning after December 31,
32323232 2004, and prior to January 1, 2007, the
32333233
32343234
32353235 Req. No. 2457 Page 44 1
32363236 2
32373237 3
32383238 4
32393239 5
32403240 6
32413241 7
32423242 8
32433243 9
32443244 10
32453245 11
32463246 12
32473247 13
32483248 14
32493249 15
32503250 16
32513251 17
32523252 18
32533253 19
32543254 20
32553255 21
32563256 22
32573257 23
32583258 24
32593259 1
32603260 2
32613261 3
32623262 4
32633263 5
32643264 6
32653265 7
32663266 8
32673267 9
32683268 10
32693269 11
32703270 12
32713271 13
32723272 14
32733273 15
32743274 16
32753275 17
32763276 18
32773277 19
32783278 20
32793279 21
32803280 22
32813281 23
32823282 24
32833283
32843284 qualifying amount sha ll be Thirty-seven Thousand
32853285 Five Hundred Dollars ($37,500.00) or less if t he
32863286 filing status is single, head of household, or
32873287 married filing separate, or Seventy -five Thousand
32883288 Dollars ($75,000.00) or less if the filing status
32893289 is married filing jointly or qua lifying widow,
32903290 (2) in the taxable year beginning January 1, 2007,
32913291 the qualifying amount shall be Fifty Tho usand
32923292 Dollars ($50,000.00) or less if the filing status
32933293 is single, head of household, or married filing
32943294 separate, or One Hundred Thousand Dollars
32953295 ($100,000.00) or less if the filing status is
32963296 married filing jointly or qualif ying widow,
32973297 (3) in the taxable year beginning January 1, 2008,
32983298 the qualifying amount shall be S ixty-two Thousand
32993299 Five Hundred Dollars ($62,500.00) or less if the
33003300 filing status is sin gle, head of household, or
33013301 married filing separate, or One Hundred Twenty -
33023302 five Thousand Dollars ($125,000. 00) or less if
33033303 the filing status is married filing jointly or
33043304 qualifying widow,
33053305 (4) in the taxable year beginning January 1, 2009,
33063306 the qualifying amount shall be One Hundred
33073307 Thousand Dollars ($100,000.00) or less if the
33083308
33093309
33103310 Req. No. 2457 Page 45 1
33113311 2
33123312 3
33133313 4
33143314 5
33153315 6
33163316 7
33173317 8
33183318 9
33193319 10
33203320 11
33213321 12
33223322 13
33233323 14
33243324 15
33253325 16
33263326 17
33273327 18
33283328 19
33293329 20
33303330 21
33313331 22
33323332 23
33333333 24
33343334 1
33353335 2
33363336 3
33373337 4
33383338 5
33393339 6
33403340 7
33413341 8
33423342 9
33433343 10
33443344 11
33453345 12
33463346 13
33473347 14
33483348 15
33493349 16
33503350 17
33513351 18
33523352 19
33533353 20
33543354 21
33553355 22
33563356 23
33573357 24
33583358
33593359 filing status is single, head of hou sehold, or
33603360 married filing separate, or Two Hundred Thousand
33613361 Dollars ($200,000.00) or less if the filing
33623362 status is married filing jointly or qualifying
33633363 widow, and
33643364 (5) in the taxable year beginning January 1, 2010,
33653365 and subsequent taxable years, there shall b e no
33663366 limitation upon the qualifying amount.
33673367 c. For purposes of this paragraph, "retirement benefits"
33683368 means the total distributions or withdrawals from the
33693369 following:
33703370 (1) an employee pension benefit plan which satisfies
33713371 the requirements of Section 401 of th e Internal
33723372 Revenue Code, 26 U.S.C., Section 401,
33733373 (2) an eligible deferred compensation plan that
33743374 satisfies the requirements of Section 457 of the
33753375 Internal Revenue Code, 26 U.S.C., Section 457,
33763376 (3) an individual retirem ent account, annuity, or
33773377 trust or simplified employee pension that
33783378 satisfies the requirements of Sect ion 408 of the
33793379 Internal Revenue Code, 26 U.S.C., Section 408,
33803380 (4) an employee annuity s ubject to the provisions of
33813381 Section 403(a) or (b) of the Internal Re venue
33823382 Code, 26 U.S.C., Section 403(a) o r (b),
33833383
33843384
33853385 Req. No. 2457 Page 46 1
33863386 2
33873387 3
33883388 4
33893389 5
33903390 6
33913391 7
33923392 8
33933393 9
33943394 10
33953395 11
33963396 12
33973397 13
33983398 14
33993399 15
34003400 16
34013401 17
34023402 18
34033403 19
34043404 20
34053405 21
34063406 22
34073407 23
34083408 24
34093409 1
34103410 2
34113411 3
34123412 4
34133413 5
34143414 6
34153415 7
34163416 8
34173417 9
34183418 10
34193419 11
34203420 12
34213421 13
34223422 14
34233423 15
34243424 16
34253425 17
34263426 18
34273427 19
34283428 20
34293429 21
34303430 22
34313431 23
34323432 24
34333433
34343434 (5) United States Retirement Bonds which satisfy the
34353435 requirements of Section 86 of the Internal
34363436 Revenue Code, 26 U.S.C., Section 86, or
34373437 (6) lump-sum distributions from a retirement plan
34383438 which satisfies the re quirements of Section
34393439 402(e) of the Internal Revenue Code, 26 U.S.C.,
34403440 Section 402(e).
34413441 d. The amount of the exemption provided by this paragraph
34423442 shall be limited to Five Thousand Five Hundred Dollars
34433443 ($5,500.00) for the 2004 tax year, Seven Thousand Five
34443444 Hundred Dollars ($7,500.00) for the 2005 ta x year and
34453445 Ten Thousand Dollars ($10,000.00) for the tax year
34463446 2006 and for all subsequent tax years. Any individual
34473447 who claims the exemption provide d for in paragraph 8
34483448 of this subsection shall not be permitted to claim a
34493449 combined total exemption pursuant to this paragraph
34503450 and paragraph 8 of this subsection in an am ount
34513451 exceeding Five Thousand Five Hundred Dollars
34523452 ($5,500.00) for the 2004 tax year, Se ven Thousand Five
34533453 Hundred Dollars ($7,500.00) for the 2005 tax ye ar and
34543454 Ten Thousand Dollars ($10,000.00) f or the 2006 tax
34553455 year and all subsequent tax years.
34563456 15. In taxable years beginning after December 31, 1999, for an
34573457 individual engaged in production a griculture who has filed a
34583458
34593459
34603460 Req. No. 2457 Page 47 1
34613461 2
34623462 3
34633463 4
34643464 5
34653465 6
34663466 7
34673467 8
34683468 9
34693469 10
34703470 11
34713471 12
34723472 13
34733473 14
34743474 15
34753475 16
34763476 17
34773477 18
34783478 19
34793479 20
34803480 21
34813481 22
34823482 23
34833483 24
34843484 1
34853485 2
34863486 3
34873487 4
34883488 5
34893489 6
34903490 7
34913491 8
34923492 9
34933493 10
34943494 11
34953495 12
34963496 13
34973497 14
34983498 15
34993499 16
35003500 17
35013501 18
35023502 19
35033503 20
35043504 21
35053505 22
35063506 23
35073507 24
35083508
35093509 Schedule F form with the taxpayer 's federal income tax return for
35103510 such taxable year, there shall be excluded from taxable income any
35113511 amount which was included as federal taxable income or federal
35123512 adjusted gross income and which c onsists of the discharge of an
35133513 obligation by a creditor of the t axpayer incurred to finance the
35143514 production of agricultural products.
35153515 16. In taxable years beginning Dece mber 31, 2000, an amount
35163516 equal to one hundred percent (100%) of the amount of any schol arship
35173517 or stipend received from participation in the Oklahoma P olice Corps
35183518 Program, as established in Secti on 2-140.3 of Title 47 of the
35193519 Oklahoma Statutes shall be exemp t from taxable income.
35203520 17. a. In taxable years beginning after December 31, 2001,
35213521 and before January 1, 2005, there shall be allowed a
35223522 deduction in the amount of contributions to accounts
35233523 established pursuant to the Oklahoma College Savings
35243524 Plan Act. The deduction shall equal the amount of
35253525 contributions to accounts, but in no event shall th e
35263526 deduction for each contributor exceed Two Thousand
35273527 Five Hundred Dollars ($2,500.00) each taxable year for
35283528 each account.
35293529 b. In taxable years beginning after December 31 , 2004,
35303530 each taxpayer shall be allowed a deduction for
35313531 contributions to accounts establ ished pursuant to the
35323532 Oklahoma College Savings Plan Act . The maximum annual
35333533
35343534
35353535 Req. No. 2457 Page 48 1
35363536 2
35373537 3
35383538 4
35393539 5
35403540 6
35413541 7
35423542 8
35433543 9
35443544 10
35453545 11
35463546 12
35473547 13
35483548 14
35493549 15
35503550 16
35513551 17
35523552 18
35533553 19
35543554 20
35553555 21
35563556 22
35573557 23
35583558 24
35593559 1
35603560 2
35613561 3
35623562 4
35633563 5
35643564 6
35653565 7
35663566 8
35673567 9
35683568 10
35693569 11
35703570 12
35713571 13
35723572 14
35733573 15
35743574 16
35753575 17
35763576 18
35773577 19
35783578 20
35793579 21
35803580 22
35813581 23
35823582 24
35833583
35843584 deduction shall equal the amou nt of contributions to
35853585 all such accounts plus any contribution s to such
35863586 accounts by the taxpayer for prior taxable years after
35873587 December 31, 2004, whi ch were not deducted, but in no
35883588 event shall the deduction for each tax year exceed Ten
35893589 Thousand Dollars ($1 0,000.00) for each individual
35903590 taxpayer or Twenty Thousand Doll ars ($20,000.00) for
35913591 taxpayers filing a joint return. Any amount of a
35923592 contribution that is not deducted by the taxpayer in
35933593 the year for which the c ontribution is made may be
35943594 carried forward as a deduction from income for the
35953595 succeeding five (5) years . For taxable years
35963596 beginning after December 31, 2005, deductions may be
35973597 taken for contributions and rollovers made during a
35983598 taxable year and up to Apri l 15 of the succeeding
35993599 year, or the due date o f a taxpayer's state income tax
36003600 return, excluding extensions, whichever is later.
36013601 Provided, a deduction for the same contribution may
36023602 not be taken for two (2) different taxable years.
36033603 c. In taxable years begi nning after December 31, 2006,
36043604 deductions for contributions made pursuant to
36053605 subparagraph b of this paragraph shall be limited as
36063606 follows:
36073607
36083608
36093609 Req. No. 2457 Page 49 1
36103610 2
36113611 3
36123612 4
36133613 5
36143614 6
36153615 7
36163616 8
36173617 9
36183618 10
36193619 11
36203620 12
36213621 13
36223622 14
36233623 15
36243624 16
36253625 17
36263626 18
36273627 19
36283628 20
36293629 21
36303630 22
36313631 23
36323632 24
36333633 1
36343634 2
36353635 3
36363636 4
36373637 5
36383638 6
36393639 7
36403640 8
36413641 9
36423642 10
36433643 11
36443644 12
36453645 13
36463646 14
36473647 15
36483648 16
36493649 17
36503650 18
36513651 19
36523652 20
36533653 21
36543654 22
36553655 23
36563656 24
36573657
36583658 (1) for a taxpayer who qualified for the five-year
36593659 carryforward election and who takes a rollover or
36603660 nonqualified withdrawal during that period, the
36613661 tax deduction otherwise available pursuant to
36623662 subparagraph b of this paragrap h shall be reduced
36633663 by the amount which is equal to the rollover or
36643664 nonqualified withdra wal, and
36653665 (2) for a taxpayer who elects to take a rollover or
36663666 nonqualified withdrawal within the same tax ye ar
36673667 in which a contribution was made to the
36683668 taxpayer's account, the tax deduction otherwise
36693669 available pursuant to subparagraph b of this
36703670 paragraph shall be reduced by the amount of the
36713671 contribution which is e qual to the rollover or
36723672 nonqualified withdrawal.
36733673 d. If a taxpayer elects to take a rollover on a
36743674 contribution for which a deduction has been taken
36753675 pursuant to subparagraph b of this paragraph within
36763676 one (1) year of the date of contribution, the amount
36773677 of such rollover shall be included in the adjusted
36783678 gross income of the taxpayer in the taxable year of
36793679 the rollover.
36803680 e. If a taxpayer makes a nonqualified withdrawal of
36813681 contributions for which a deducti on was taken pursuant
36823682
36833683
36843684 Req. No. 2457 Page 50 1
36853685 2
36863686 3
36873687 4
36883688 5
36893689 6
36903690 7
36913691 8
36923692 9
36933693 10
36943694 11
36953695 12
36963696 13
36973697 14
36983698 15
36993699 16
37003700 17
37013701 18
37023702 19
37033703 20
37043704 21
37053705 22
37063706 23
37073707 24
37083708 1
37093709 2
37103710 3
37113711 4
37123712 5
37133713 6
37143714 7
37153715 8
37163716 9
37173717 10
37183718 11
37193719 12
37203720 13
37213721 14
37223722 15
37233723 16
37243724 17
37253725 18
37263726 19
37273727 20
37283728 21
37293729 22
37303730 23
37313731 24
37323732
37333733 to subparagraph b of this paragrap h, such nonqualified
37343734 withdrawal and any earnings th ereon shall be included
37353735 in the adjusted gross income of the ta xpayer in the
37363736 taxable year of the nonqualified withdrawal.
37373737 f. As used in this paragraph :
37383738 (1) "non-qualified withdrawal " means a withdrawal
37393739 from an Oklahoma Colleg e Savings Plan account
37403740 other than one of the following:
37413741 (a) a qualified withdrawal,
37423742 (b) a withdrawal made as a result of the death
37433743 or disability of the designated beneficiary
37443744 of an account,
37453745 (c) a withdrawal that is made on the accou nt of
37463746 a scholarship or the allowance or payment
37473747 described in Section 135(d)(1)(B) or (C) or
37483748 by the Internal Revenue Co de, received by
37493749 the designated beneficiary to the extent the
37503750 amount of the refund does not exceed the
37513751 amount of the scholarship, allowance , or
37523752 payment, or
37533753 (d) a rollover or change of designated
37543754 beneficiary as permitted by subsection F of
37553755 Section 3970.7 of Title 70 of Oklahoma
37563756 Statutes, and
37573757
37583758
37593759 Req. No. 2457 Page 51 1
37603760 2
37613761 3
37623762 4
37633763 5
37643764 6
37653765 7
37663766 8
37673767 9
37683768 10
37693769 11
37703770 12
37713771 13
37723772 14
37733773 15
37743774 16
37753775 17
37763776 18
37773777 19
37783778 20
37793779 21
37803780 22
37813781 23
37823782 24
37833783 1
37843784 2
37853785 3
37863786 4
37873787 5
37883788 6
37893789 7
37903790 8
37913791 9
37923792 10
37933793 11
37943794 12
37953795 13
37963796 14
37973797 15
37983798 16
37993799 17
38003800 18
38013801 19
38023802 20
38033803 21
38043804 22
38053805 23
38063806 24
38073807
38083808 (2) "rollover" means the transfer of funds from the
38093809 Oklahoma College Savings Plan to any other plan
38103810 under Section 529 of the In ternal Revenue Code.
38113811 18. For taxable years beginning after December 31, 2005,
38123812 retirement benefits received by an individual from any component of
38133813 the Armed Forces of the United Sta tes in an amount not to exceed the
38143814 greater of seventy-five percent (75%) of such benefits or Ten
38153815 Thousand Dollars ($10,000.00) shall be exempt from taxable income
38163816 but in no case less than the amount of the exemption provided by
38173817 paragraph 14 of this subsect ion.
38183818 19. For taxable years beginning after Dec ember 31, 2006,
38193819 retirement benefits received by federal civi l service retirees,
38203820 including survivor annuities, paid in lieu of Social Security
38213821 benefits shall be exempt from taxable income to the extent such
38223822 benefits are included in the federal adjusted gros s income pursuant
38233823 to the provisions of Section 86 of the Int ernal Revenue Code, 26
38243824 U.S.C., Section 86, according to the fo llowing schedule:
38253825 a. in the taxable year beginning January 1, 2007, twenty
38263826 percent (20%) of such benefits shall be exempt,
38273827 b. in the taxable year beginning Januar y 1, 2008, forty
38283828 percent (40%) of such benefits shall be exempt,
38293829 c. in the taxable year beginn ing January 1, 2009, sixty
38303830 percent (60%) of such benefits shall be exempt,
38313831
38323832
38333833 Req. No. 2457 Page 52 1
38343834 2
38353835 3
38363836 4
38373837 5
38383838 6
38393839 7
38403840 8
38413841 9
38423842 10
38433843 11
38443844 12
38453845 13
38463846 14
38473847 15
38483848 16
38493849 17
38503850 18
38513851 19
38523852 20
38533853 21
38543854 22
38553855 23
38563856 24
38573857 1
38583858 2
38593859 3
38603860 4
38613861 5
38623862 6
38633863 7
38643864 8
38653865 9
38663866 10
38673867 11
38683868 12
38693869 13
38703870 14
38713871 15
38723872 16
38733873 17
38743874 18
38753875 19
38763876 20
38773877 21
38783878 22
38793879 23
38803880 24
38813881
38823882 d. in the taxable year beginning January 1, 2010, eight y
38833883 percent (80%) of such benefits shall be exempt, and
38843884 e. in the taxable year beginning January 1, 2011, and
38853885 subsequent taxable years, one hundred percent (100%)
38863886 of such benefits shall be exempt.
38873887 20. a. For taxable years beginning after December 31, 2007, a
38883888 resident individual may deduct up to Ten Thousand
38893889 Dollars ($10,000.00) from Oklahoma adjusted gross
38903890 income if the individual, or the dependent of the
38913891 individual, while living, donates one or more human
38923892 organs of the individual to another human being for
38933893 human organ transplantation . As used in this
38943894 paragraph, "human organ" means all or part of a liver,
38953895 pancreas, kidney, intestin e, lung, or bone marrow. A
38963896 deduction that is claimed under this paragraph may be
38973897 claimed in the taxable year in which the human organ
38983898 transplantation occurs.
38993899 b. An individual may claim this ded uction only once, and
39003900 the deduction may be claimed only for un reimbursed
39013901 expenses that are incurred by the individual and
39023902 related to the organ donati on of the individual.
39033903 c. The Oklahoma Tax Commission shall promulgate rules to
39043904 implement the provisions of this paragraph which shall
39053905 contain a specific list of expenses which may be
39063906
39073907
39083908 Req. No. 2457 Page 53 1
39093909 2
39103910 3
39113911 4
39123912 5
39133913 6
39143914 7
39153915 8
39163916 9
39173917 10
39183918 11
39193919 12
39203920 13
39213921 14
39223922 15
39233923 16
39243924 17
39253925 18
39263926 19
39273927 20
39283928 21
39293929 22
39303930 23
39313931 24
39323932 1
39333933 2
39343934 3
39353935 4
39363936 5
39373937 6
39383938 7
39393939 8
39403940 9
39413941 10
39423942 11
39433943 12
39443944 13
39453945 14
39463946 15
39473947 16
39483948 17
39493949 18
39503950 19
39513951 20
39523952 21
39533953 22
39543954 23
39553955 24
39563956
39573957 presumed to qualify for the deduction. The Tax
39583958 Commission shall prescrib e necessary requirements for
39593959 verification.
39603960 21. For taxable years beginning after December 31, 2009, there
39613961 shall be exempt from taxable income any amount received by the
39623962 beneficiary of the death benefit for an emergency medical technician
39633963 or a registered emergency medical responder provided by Section 1-
39643964 2505.1 of Title 63 of the Oklahoma Statutes.
39653965 22. For taxable years beginning after December 31, 2008,
39663966 taxable income shall be increased by any unemployment compensation
39673967 exempted under Section 85(c) of the I nternal Revenue Code, 26
39683968 U.S.C., Section 85(c)(2009).
39693969 23. For taxable years beginning after December 31, 2 008, there
39703970 shall be exempt from taxable income any payment in an amount less
39713971 than Six Hundred Dollars ($600.00) received by a person as an award
39723972 for participation in a competitive lives tock show event. For
39733973 purposes of this paragraph, the payment shall be treated as a
39743974 scholarship amount paid by the entity sponsoring the event and the
39753975 sponsoring entity shall cause the payment to be categorized as a
39763976 scholarship in its books and records.
39773977 24. For taxable years beginning on or af ter January 1, 2016,
39783978 taxable income shall be increased by any amount of state and local
39793979 sales or income taxes deducted under 26 U.S.C., Section 164 of the
39803980 Internal Revenue Code . If the amount of state and local taxe s
39813981
39823982
39833983 Req. No. 2457 Page 54 1
39843984 2
39853985 3
39863986 4
39873987 5
39883988 6
39893989 7
39903990 8
39913991 9
39923992 10
39933993 11
39943994 12
39953995 13
39963996 14
39973997 15
39983998 16
39993999 17
40004000 18
40014001 19
40024002 20
40034003 21
40044004 22
40054005 23
40064006 24
40074007 1
40084008 2
40094009 3
40104010 4
40114011 5
40124012 6
40134013 7
40144014 8
40154015 9
40164016 10
40174017 11
40184018 12
40194019 13
40204020 14
40214021 15
40224022 16
40234023 17
40244024 18
40254025 19
40264026 20
40274027 21
40284028 22
40294029 23
40304030 24
40314031
40324032 deducted on the federal return is limi ted, taxable income on the
40334033 state return shall be increased only by the amount actually deducte d
40344034 after any such limitations are applied.
40354035 25. For taxable years beginning after Decemb er 31, 2020, each
40364036 taxpayer shall be allowed a deduction for contributions t o accounts
40374037 established pursuant to the Achieving a Better Life Experience
40384038 (ABLE) Program as es tablished in Section 4001.1 et seq. of Title 56
40394039 of the Oklahoma Statutes. For any tax year, the deduction provided
40404040 for in this paragraph shall not exceed Ten Tho usand Dollars
40414041 ($10,000.00) for an individual taxpayer or Twenty Thousand Dollars
40424042 ($20,000.00) for taxpayers filing a joint return. Any amount of
40434043 contribution not deducted by the ta xpayer in the tax year for which
40444044 the contribution is made may be carried fo rward as a deduction from
40454045 income for up to five (5) tax years . Deductions may be taken for
40464046 contributions made during the tax year and through April 15 of the
40474047 succeeding tax year, o r through the due date of a taxpay er's state
40484048 income tax return excluding ex tensions, whichever is later.
40494049 Provided, a deduction for the same contribution may not be take n in
40504050 more than one (1) tax year.
40514051 F. 1. For taxable years beginning after December 31, 2004, a
40524052 deduction from the Oklaho ma adjusted gross income of any individual
40534053 taxpayer shall be allowed for q ualifying gains receiving capital
40544054 treatment that are included in the federal adjusted gross income of
40554055 such individual taxpayer during the taxable ye ar.
40564056
40574057
40584058 Req. No. 2457 Page 55 1
40594059 2
40604060 3
40614061 4
40624062 5
40634063 6
40644064 7
40654065 8
40664066 9
40674067 10
40684068 11
40694069 12
40704070 13
40714071 14
40724072 15
40734073 16
40744074 17
40754075 18
40764076 19
40774077 20
40784078 21
40794079 22
40804080 23
40814081 24
40824082 1
40834083 2
40844084 3
40854085 4
40864086 5
40874087 6
40884088 7
40894089 8
40904090 9
40914091 10
40924092 11
40934093 12
40944094 13
40954095 14
40964096 15
40974097 16
40984098 17
40994099 18
41004100 19
41014101 20
41024102 21
41034103 22
41044104 23
41054105 24
41064106
41074107 2. As used in this subsectio n:
41084108 a. "qualifying gains receiving capital t reatment" means
41094109 the amount of net capital gains, as defined in Section
41104110 1222(11) of the Intern al Revenue Code, included in an
41114111 individual taxpayer's federal income tax return that
41124112 result from:
41134113 (1) the sale of real property or tangible personal
41144114 property located within Oklahoma that has been
41154115 directly or indirectly owned by the individual
41164116 taxpayer for a holding period of at least five
41174117 (5) years prior to the date of the transaction
41184118 from which such net capital gains ari se,
41194119 (2) the sale of stock or the sale of a di rect or
41204120 indirect ownership inter est in an Oklahoma
41214121 company, limited liability company, or
41224122 partnership where such stock or ownership
41234123 interest has been directly or indirectly owned b y
41244124 the individual taxpayer for a holding period of
41254125 at least two (2) years pri or to the date of the
41264126 transaction from which the net capital gains
41274127 arise, or
41284128 (3) the sale of real property, tangible personal
41294129 property or intangible personal property located
41304130 within Oklahoma as part of the sal e of all or
41314131
41324132
41334133 Req. No. 2457 Page 56 1
41344134 2
41354135 3
41364136 4
41374137 5
41384138 6
41394139 7
41404140 8
41414141 9
41424142 10
41434143 11
41444144 12
41454145 13
41464146 14
41474147 15
41484148 16
41494149 17
41504150 18
41514151 19
41524152 20
41534153 21
41544154 22
41554155 23
41564156 24
41574157 1
41584158 2
41594159 3
41604160 4
41614161 5
41624162 6
41634163 7
41644164 8
41654165 9
41664166 10
41674167 11
41684168 12
41694169 13
41704170 14
41714171 15
41724172 16
41734173 17
41744174 18
41754175 19
41764176 20
41774177 21
41784178 22
41794179 23
41804180 24
41814181
41824182 substantially all of the assets of an Oklahoma
41834183 company, limited lia bility company, or
41844184 partnership or an Oklahoma proprietorship
41854185 business enterprise where such property has been
41864186 directly or indirectly owned by such e ntity or
41874187 business enterprise or owned by the owners of
41884188 such entity or busine ss enterprise for a period
41894189 of at least two (2) years prior to the date of
41904190 the transaction from which the net capital gains
41914191 arise,
41924192 b. "holding period" means an uninterrupted peri od of
41934193 time. The holding period shall include any additional
41944194 period when the property was held by another
41954195 individual or entity, if such a dditional period is
41964196 included in the taxpayer's holding period for the
41974197 asset pursuant to the Internal Revenue Code,
41984198 c. "Oklahoma company," "limited liability company," or
41994199 "partnership" means an entity whose primary
42004200 headquarters have been located in Oklahoma for at
42014201 least three (3) uninterrupt ed years prior to the date
42024202 of the transaction from which the net capital gains
42034203 arise,
42044204 d. "direct" means the individual taxpayer directly owns
42054205 the asset,
42064206
42074207
42084208 Req. No. 2457 Page 57 1
42094209 2
42104210 3
42114211 4
42124212 5
42134213 6
42144214 7
42154215 8
42164216 9
42174217 10
42184218 11
42194219 12
42204220 13
42214221 14
42224222 15
42234223 16
42244224 17
42254225 18
42264226 19
42274227 20
42284228 21
42294229 22
42304230 23
42314231 24
42324232 1
42334233 2
42344234 3
42354235 4
42364236 5
42374237 6
42384238 7
42394239 8
42404240 9
42414241 10
42424242 11
42434243 12
42444244 13
42454245 14
42464246 15
42474247 16
42484248 17
42494249 18
42504250 19
42514251 20
42524252 21
42534253 22
42544254 23
42554255 24
42564256
42574257 e. "indirect" means the individual taxpayer owns an
42584258 interest in a pass-through entity (or chain of pass -
42594259 through entities) that sells the asset that gives rise
42604260 to the qualifying gains rece iving capital treatment.
42614261 (1) With respect to sales of real property or
42624262 tangible personal property located within
42634263 Oklahoma, the deduction described in this
42644264 subsection shall not apply unless the pass -
42654265 through entity that makes the sale has held the
42664266 property for not less than five (5) u ninterrupted
42674267 years prior to the date of the transaction tha t
42684268 created the capital gain, and each pass-through
42694269 entity included in the chain of owne rship has
42704270 been a member, partner, or shareholder of the
42714271 pass-through entity in the t ier immediately below
42724272 it for an uninterrupted period of not less than
42734273 five (5) years.
42744274 (2) With respect to sales of stock or ownership
42754275 interest in or sales of all or substan tially all
42764276 of the assets of an Okl ahoma company, limited
42774277 liability company, partners hip, or Oklahoma
42784278 proprietorship business enterprise, the deduction
42794279 described in this subsection shall not apply
42804280 unless the pass-through entity that makes the
42814281
42824282
42834283 Req. No. 2457 Page 58 1
42844284 2
42854285 3
42864286 4
42874287 5
42884288 6
42894289 7
42904290 8
42914291 9
42924292 10
42934293 11
42944294 12
42954295 13
42964296 14
42974297 15
42984298 16
42994299 17
43004300 18
43014301 19
43024302 20
43034303 21
43044304 22
43054305 23
43064306 24
43074307 1
43084308 2
43094309 3
43104310 4
43114311 5
43124312 6
43134313 7
43144314 8
43154315 9
43164316 10
43174317 11
43184318 12
43194319 13
43204320 14
43214321 15
43224322 16
43234323 17
43244324 18
43254325 19
43264326 20
43274327 21
43284328 22
43294329 23
43304330 24
43314331
43324332 sale has held the stock or ownership interest for
43334333 not less than two (2) uninterrupted years prior
43344334 to the date of the transact ion that created the
43354335 capital gain, and each pass -through entity
43364336 included in the chain of ownership has been a
43374337 member, partner or shareholder of t he pass-
43384338 through entity in the tier immediately below it
43394339 for an uninterrupted period o f not less than two
43404340 (2) years. For purposes of this division,
43414341 uninterrupted ownershi p prior to July 1, 2007,
43424342 shall be included in the d etermination of the
43434343 required holding period prescribed by this
43444344 division, and
43454345 f. "Oklahoma proprietorship business enterp rise" means a
43464346 business enterprise whose income and expenses have
43474347 been reported on Sch edule C or F of an individual
43484348 taxpayer's federal income tax return, or any similar
43494349 successor schedule published by the In ternal Revenue
43504350 Service and whose primary headquart ers have been
43514351 located in Oklahoma for at least three (3)
43524352 uninterrupted years prior to the date of the
43534353 transaction from which the net cap ital gains arise.
43544354 G. 1. For purposes of computing its Oklahoma taxab le income
43554355 under this section, the dividends -paid deduction otherwise allow ed
43564356
43574357
43584358 Req. No. 2457 Page 59 1
43594359 2
43604360 3
43614361 4
43624362 5
43634363 6
43644364 7
43654365 8
43664366 9
43674367 10
43684368 11
43694369 12
43704370 13
43714371 14
43724372 15
43734373 16
43744374 17
43754375 18
43764376 19
43774377 20
43784378 21
43794379 22
43804380 23
43814381 24
43824382 1
43834383 2
43844384 3
43854385 4
43864386 5
43874387 6
43884388 7
43894389 8
43904390 9
43914391 10
43924392 11
43934393 12
43944394 13
43954395 14
43964396 15
43974397 16
43984398 17
43994399 18
44004400 19
44014401 20
44024402 21
44034403 22
44044404 23
44054405 24
44064406
44074407 by federal law in computing net income of a real estate in vestment
44084408 trust that is subject to federal income ta x shall be added back in
44094409 computing the tax imposed by this state under this title if the real
44104410 estate investment trust is a captive real estate i nvestment trust.
44114411 2. For purposes of computing its Oklahoma t axable income under
44124412 this section, a taxpayer shall add back otherwise deductible rents
44134413 and interest expenses paid to a ca ptive real estate investment trust
44144414 that is not subject to the provisions of paragraph 1 of this
44154415 subsection. As used in this subsection :
44164416 a. the term "real estate investment trust" or "REIT"
44174417 means the meaning ascribed to s uch term in Section 856
44184418 of the Internal Revenue Code,
44194419 b. the term "captive real estate investment trust" means
44204420 a real estate investment trust, the shares or
44214421 beneficial interests of which are not regularly traded
44224422 on an established securities market and more than
44234423 fifty percent (50%) of the vo ting power or value of
44244424 the beneficial interests or shares of which are owned
44254425 or controlled, directly or indirectly, or
44264426 constructively, by a single entity that is:
44274427 (1) treated as an association taxable as a
44284428 corporation under the Internal Revenue Code, and
44294429
44304430
44314431 Req. No. 2457 Page 60 1
44324432 2
44334433 3
44344434 4
44354435 5
44364436 6
44374437 7
44384438 8
44394439 9
44404440 10
44414441 11
44424442 12
44434443 13
44444444 14
44454445 15
44464446 16
44474447 17
44484448 18
44494449 19
44504450 20
44514451 21
44524452 22
44534453 23
44544454 24
44554455 1
44564456 2
44574457 3
44584458 4
44594459 5
44604460 6
44614461 7
44624462 8
44634463 9
44644464 10
44654465 11
44664466 12
44674467 13
44684468 14
44694469 15
44704470 16
44714471 17
44724472 18
44734473 19
44744474 20
44754475 21
44764476 22
44774477 23
44784478 24
44794479
44804480 (2) not exempt from federal income tax pursuant to
44814481 the provisions of Section 501(a) of the Internal
44824482 Revenue Code.
44834483 The term shall not inc lude a real estate investment
44844484 trust that is intende d to be regularly traded on an
44854485 established securities market, and that satisfies the
44864486 requirements of Section 856(a)(5) a nd (6) of the U.S.
44874487 Internal Revenue Code by reason of Section 856(h)(2)
44884488 of the Internal Revenue Code,
44894489 c. the term "association taxable a s a corporation" shall
44904490 not include the following entities:
44914491 (1) any real estate investment trust as defined in
44924492 paragraph a of this subsection other than a
44934493 "captive real estate investment trust ", or
44944494 (2) any qualified real estate investment trust
44954495 subsidiary under Section 856(i) of the Internal
44964496 Revenue Code, other than a qualifi ed REIT
44974497 subsidiary of a "captive real estate inves tment
44984498 trust", or
44994499 (3) any Listed Australian Property Trust (meaning an
45004500 Australian unit trust registered as a "Managed
45014501 Investment Scheme" under the Australian
45024502 Corporations Act in which the principal class of
45034503 units is listed on a recognized stock exchange in
45044504
45054505
45064506 Req. No. 2457 Page 61 1
45074507 2
45084508 3
45094509 4
45104510 5
45114511 6
45124512 7
45134513 8
45144514 9
45154515 10
45164516 11
45174517 12
45184518 13
45194519 14
45204520 15
45214521 16
45224522 17
45234523 18
45244524 19
45254525 20
45264526 21
45274527 22
45284528 23
45294529 24
45304530 1
45314531 2
45324532 3
45334533 4
45344534 5
45354535 6
45364536 7
45374537 8
45384538 9
45394539 10
45404540 11
45414541 12
45424542 13
45434543 14
45444544 15
45454545 16
45464546 17
45474547 18
45484548 19
45494549 20
45504550 21
45514551 22
45524552 23
45534553 24
45544554
45554555 Australia and is regularly traded on an
45564556 established securities market), or an entity
45574557 organized as a trust, provided that a Listed
45584558 Australian Property Trust owns or control s,
45594559 directly or indirectly, seventy -five percent
45604560 (75%) or more of the voting power or value of the
45614561 beneficial interests or shares of such trust, or
45624562 (4) any Qualified Foreign Entity, meaning a
45634563 corporation, trust, associatio n, or partnership
45644564 organized outside the laws of the United States
45654565 and which satisfies the following criteria:
45664566 (a) at least seventy-five percent (75%) of the
45674567 entity's total asset value at the close of
45684568 its taxable year is represented by real
45694569 estate assets, as defined in Section
45704570 856(c)(5)(B) of the Internal Revenue Code,
45714571 thereby including shares or certificates of
45724572 beneficial interest in any real estate
45734573 investment trust, cash and cash equivalents,
45744574 and U.S. Government securities,
45754575 (b) the entity receives a divide nd-paid
45764576 deduction comparable to Sec tion 561 of the
45774577 Internal Revenue Cod e, or is exempt from
45784578 entity level tax,
45794579
45804580
45814581 Req. No. 2457 Page 62 1
45824582 2
45834583 3
45844584 4
45854585 5
45864586 6
45874587 7
45884588 8
45894589 9
45904590 10
45914591 11
45924592 12
45934593 13
45944594 14
45954595 15
45964596 16
45974597 17
45984598 18
45994599 19
46004600 20
46014601 21
46024602 22
46034603 23
46044604 24
46054605 1
46064606 2
46074607 3
46084608 4
46094609 5
46104610 6
46114611 7
46124612 8
46134613 9
46144614 10
46154615 11
46164616 12
46174617 13
46184618 14
46194619 15
46204620 16
46214621 17
46224622 18
46234623 19
46244624 20
46254625 21
46264626 22
46274627 23
46284628 24
46294629
46304630 (c) the entity is required to distribute at
46314631 least eighty-five percent (85%) of its
46324632 taxable income, as computed in the
46334633 jurisdiction in which it is organized, to
46344634 the holders of its sh ares or certificates of
46354635 beneficial interest on an annual basis,
46364636 (d) not more than ten percent (10%) of the
46374637 voting power or value in such entity is held
46384638 directly or indirectly or constructively by
46394639 a single entity or indivi dual, or the shares
46404640 or beneficial interests of such entity are
46414641 regularly traded on an established
46424642 securities market, and
46434643 (e) the entity is organized in a country which
46444644 has a tax treaty with the United Stat es.
46454645 3. For purposes of this subsection, the constr uctive ownership
46464646 rules of Section 318(a) of the Internal Revenue Code, as modified by
46474647 Section 856(d)(5) of the Internal R evenue Code, shall apply in
46484648 determining the ownership of stock, assets, or net profi ts of any
46494649 person.
46504650 4. A real estate investment trus t that does not become
46514651 regularly traded on an established securities ma rket within one (1)
46524652 year of the date on which it f irst becomes a real estate investment
46534653 trust shall be deemed not to have been regular ly traded on an
46544654
46554655
46564656 Req. No. 2457 Page 63 1
46574657 2
46584658 3
46594659 4
46604660 5
46614661 6
46624662 7
46634663 8
46644664 9
46654665 10
46664666 11
46674667 12
46684668 13
46694669 14
46704670 15
46714671 16
46724672 17
46734673 18
46744674 19
46754675 20
46764676 21
46774677 22
46784678 23
46794679 24
46804680 1
46814681 2
46824682 3
46834683 4
46844684 5
46854685 6
46864686 7
46874687 8
46884688 9
46894689 10
46904690 11
46914691 12
46924692 13
46934693 14
46944694 15
46954695 16
46964696 17
46974697 18
46984698 19
46994699 20
47004700 21
47014701 22
47024702 23
47034703 24
47044704
47054705 established securities market, retr oactive to the date it first
47064706 became a real estate investment trust, and shall file an amended
47074707 return reflecting such retr oactive designation for any tax year or
47084708 part year occurring during its initial year of status as a real
47094709 estate investment trust. For purposes of this subsection, a real
47104710 estate investment trust becomes a re al estate investment trust on
47114711 the first day it has both met the requirements of Section 856 of the
47124712 Internal Revenue Code and has elect ed to be treated as a real estate
47134713 investment trust pursuant to Section 856(c)(1) of th e Internal
47144714 Revenue Code.
47154715 SECTION 2. This act shall become effective No vember 1, 2022.
47164716
47174717 58-2-2457 QD 1/20/2022 6:03:52 PM