Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB311 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. S. B. NO. 311 Page 1 1
	3	+	SENATE FLOOR VERSION - SB311 SFLR Page 1
	4	+	(Bold face denotes Committee Amendments) 1
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28		-	~~ENGROSSED~~ SENATE
29		-	~~BILL NO.~~ ~~311 By: Rader and Bergstrom of the~~
30		-	~~Senate~~
	29	+	SENATE FLOOR VERSION
	30	+	February 15, 2023
	31	+	AS AMENDED
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32		-	and
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34		-	Boatman of the House
	33	+	SENATE BILL NO. 311 By: Rader and Bergstrom
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38		-	An Act relating to income tax incentives; amending 74
39		-	O.S. 2021, Section 5064.7, which relates to
40		-	incentives for products developed and ma nufactured in
41		-	this state; limiting qualification; limiting c ertain
42		-	credit and exemption to certain taxable years; and
43		-	providing an effective date .
44		-
	37	+	[ income tax incentives - effective date ]
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48	41		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OK LAHOMA:
49	42		SECTION 1. AMENDATORY 74 O.S. 2021, Section 5064.7, is
50	43		amended to read as follows:
51	44		Section 5064.7. A. The following incentives shall be available
52	45		to inventors for products developed and manufactured in this state
53	46		and to instate manufacturers of said products; provided, to qualify
54	47		for the incentives, the product shall be patented or have patent
55	48		pending pursuant to federal law and shall be registered with the
56	49		Oklahoma Center for the Adv ancement of Science and Technology
57	50		(OCAST) before November 1, 2023:
58	51		1. Royalty earned by an inventor from a product developed and
59	52		manufactured in this state shall be exempt from state income tax for
60	53		a period of seven (7) years from January 1 of the first year in
	54	+	which such royalty is received as long as the manufacturer remains
	55	+	in the state; and
	56	+	2. An instate manufacturer of a product develop ed in this state
	57	+	by an inventor shall be eligible for a tax credit, as provided for
	58	+	in Section 2357.4 of Title 68 o f the Oklahoma Statutes , for property
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62		-	ENGR. S. B. NO. 311 Page 2 1
	60	+	SENATE FLOOR VERSION - SB311 SFLR Page 2
	61	+	(Bold face denotes Committee Amendments) 1
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87		-	which such royalty is received as long as the manufacturer remains
88		-	in the state; and
89		-	2. An instate manufacturer of a product develop ed in this state
90		-	by an inventor shall be eligible for a tax credit, as provided for
91		-	in Section 2357.4 of Title 68 o f the Oklahoma Statutes , for property
92	86		placed in service during tax years 1987 through 2 023. In addition
93	87		such manufacturer may exclude from Oklahoma taxable income, or in
94	88		the case of an individual, the Oklaho ma adjusted gross income,
95	89		sixty-five percent (65%) of the cost of depreciable property
96	90		purchased and utilized directly in manufacturing the product. The
97	91		maximum exclusion shall not exceed Five Hundred Thousand Dollars
98	92		($500,000.00). If the exclusion allo wed by this paragraph exceeds
99	93		the Oklahoma taxable income, or in the case of an indivi dual, the
100	94		Oklahoma adjusted gross income, the amo unt of the exclusion that is
101	95		in excess of such income may be carried forward as an exclusion
102	96		against subsequent Oklahoma taxable income or in the case of an
103	97		individual, subsequent Oklahoma adjusted gross inc ome, for a period
104	98		not to exceed four (4) years. For the purposes of this paragraph,
105	99		“depreciable property ” means machinery, fixtures, equipment,
106	100		buildings, or substantia l improvements thereto, placed in service in
107	101		this state during the taxable year years 1987 through 2023.
108	102		B. The Oklahoma Tax Commissio n, in conjunction with the
109	103		Oklahoma Center for the Advancement of Science and Technology, shall
110	104		promulgate rules to implement the provisions of t his section.
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137	105		SECTION 2. This act shall become effective November 1, 2023.
138		-	Passed the Senate the 20th day of March, 2023.
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142		-	Presiding Officer of the Senate
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145		-	Passed the House of Representatives the ____ day of __________,
146		-	2023.
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150		-	Presiding Officer of the House
151		-	of Representatives
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	106	+	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
	107	+	February 15, 2023 - DO PASS AS AMENDED