Oklahoma 2024 Regular Session

Oklahoma House Bill HB1964 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. H. B. NO. 1964 Page 1 1
	3	+	HB1964 HFLR Page 1
	4	+	BOLD FACE denotes Committee Amendments. 1
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28		-	ENGROSSED HOUSE
29		-	BILL NO. 1964 By: Newton, Martinez, and
30		-	Fetgatter of the House
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
31	30
32		-	~~and~~
	31	+	STATE OF OKLAHOMA
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34		-	Jech of the Senate
	33	+	1st Session of the 59th Legislature (2023)
	34	+
	35	+	COMMITTEE SUBSTITUTE
	36	+	FOR
	37	+	HOUSE BILL NO. 1964 By: Newton, Martinez, and
	38	+	Fetgatter
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	45	+	COMMITTEE SUBSTITUTE
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42	47		[ revenue and taxation – medical research activities
43	48		– income tax credit – vision research institutes –
44	49		effective date ]
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49	54		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
50	55		SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.45, is
51	56		amended to read as follows:
52	57		Section 2357.45 A. 1. For tax years beginning after December
53	58		31, 2004, there shall be allowed against the tax imposed b y Section
54	59		2355 of this title, a credit for any taxpayer wh o makes a donation
55	60		to an independent biomedical research institute and for tax years
56	61		beginning after December 31, 2010, a credit for any taxpayer who
57	62		makes a donation to a cancer research institute and for tax years
58		-	beginning after December 31, 202 3, a credit for any taxpayer who
59		-	makes a donation to a vision research institute.
60	63
61		-	ENGR. H. B. NO. 1964 Page 2 1
	64	+	HB1964 HFLR Page 2
	65	+	BOLD FACE denotes Committee Amendments. 1
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	90	+	beginning after December 31, 202 3, a credit for any taxpayer who
	91	+	makes a donation to a vision research institute.
86	92		2. The credit authorized by paragraph 1 of this subsecti on
87	93		shall be limited as follows:
88	94		a. for calendar year 2007 2024 and all subsequent years,
89	95		the credit percentage, not to exceed fifty percent
90	96		(50%), shall be adju sted annually so that the total
91	97		estimate of the credits does not exceed Two Six
92	98		Million Dollars ($2,000,000.00) ($6,000,000.00)
93	99		annually. The formula to be used for the percentage
94	100		adjusted shall be fifty percent (50%) times One Two
95	101		Million Dollars ($1,000,000.00) ($2,000,000.00)
96	102		divided by the credits cl aimed in the preceding year
97	103		for each donation to an independent b iomedical
98	104		research institute and fifty percent (50 %) times One
99	105		Two Million Dollars ($1,000,000.00) ($2,000,000.00)
100	106		divided by the credits claimed in the p receding year
101	107		for each donation to a cancer research institute and
102	108		fifty percent (50%) times Two Million Dollars
103	109		($2,000,000.00) divided by the credits claimed in the
104	110		preceding year for each donation to a vision research
105	111		institute,
106	112		b. in no event shall a taxpayer claim more than one
107	113		credit for a donation to any ind ependent biomedical
108		-	research institute and one credit for a donation to a
109		-	cancer research institute and one credit for a
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111		-	ENGR. H. B. NO. 1964 Page 3 1
	115	+	HB1964 HFLR Page 3
	116	+	BOLD FACE denotes Committee Amendments. 1
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	141	+	research institute and one credit for a donation to a
	142	+	cancer research institute and one credit for a
136	143		donation to a vision research institute in each
137	144		taxable year nor shall the credit exceed One Thousand
138	145		Dollars ($1,000.00) for each taxpayer for each type of
139	146		donation a single individual, Two Thousand Dollars
140	147		($2,000.00) for married individuals filing jointly , or
141	148		Fifty Thousand Dollars ( $50,000.00) for any taxpayer
142	149		that is a legal business entity including limited an d
143	150		general partnerships, corporations, s ubchapter S
144	151		corporations and limited liability companies . The
145	152		dollar amounts for limiting the tax credits as
146	153		described by this subparagraph s hall be applicable to
147	154		each type of taxpayer for each one of su ch tax credits
148	155		and shall not be a limitation on the aggregate total
149	156		of all such credits that may be claimed for any single
150	157		tax year,
151	158		c. for tax year 2011, no more than Fifty Thousand Dollars
152	159		($50,000.00) in total tax credits for donations to a
153	160		cancer research institute shall be allowed,
154	161		d. in no event shall more than fifty percent (50%) one-
155	162		third (1/3) of the Two Six Million Dollars
156	163		($2,000,000.00) ($6,000,000.00) in total tax credits
157	164		authorized by this section, for any calendar year
158		-	after the effective date of this act , be allocated for
159		-	credits for donations to a cancer research ins titute
160	165
161		-	ENGR. H. B. NO. 1964 Page 4 1
	166	+	HB1964 HFLR Page 4
	167	+	BOLD FACE denotes Committee Amendments. 1
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	192	+	after the effective date of this act , be allocated for
	193	+	credits for donations to a cancer research ins titute
186	194		or be allocated for credits for donations to a vision
187	195		research institute, and
188	196		e. in the event the total tax cr edits authorized by this
189	197		section exceed One Two Million Dollars ($1,000,000.00)
190	198		($2,000,000.00) in any calendar year for either a
191	199		vision research institute or a cancer research
192	200		institute or an independent biomedical research
193	201		institute, the Oklahoma Tax Commission shall permit
194	202		any excess over One Two Million Dollars
195	203		($1,000,000.00) ($2,000,000.00) but shall factor such
196	204		excess into the percentage adjustment formula for
197	205		subsequent years for that type of donation. However,
198	206		any such adjustment to the formula for donations to an
199	207		independent biomedical research institute shall not
200	208		affect the formula for donations to a cancer research
201	209		institute or a vision research institute, and any such
202	210		adjustment to the formula for donations to a cancer
203	211		research institute shall not affect the formula for
204	212		donations to an independent biomedical research
205	213		institute or a vision research institute, and any such
206	214		adjustment to the formula for donations to a vision
207	215		research institute shall not affect the fo rmula for
208		-	donations to an independent biomedical research
209		-	institute or a cancer research institute.
210	216
211		-	ENGR. H. B. NO. 1964 Page 5 1
	217	+	HB1964 HFLR Page 5
	218	+	BOLD FACE denotes Committee Amendments. 1
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	243	+	donations to an independent biomedical research
	244	+	institute or a cancer research institute.
236	245		3. For purposes of this section, "independent biomedical
237	246		research institute" means an Oklahoma organization which is exempt
238	247		from taxation pursuant to the provisions of Section 501(c)(3) of the
239	248		Internal Revenue Code, 26 U.S.C ., Section 501(c)(3) whose primary
240	249		focus is conducting peer-reviewed basic biomedical research. The
241	250		organization shall:
242	251		a. have a board of directors,
243	252		b. be able to accept grants in its own name,
244	253		c. be an identifiable institute that has its own
245	254		employees and administrative staff, and
246	255		d. receive at least Fifteen Million Dollars
247	256		($15,000,000.00) in National Institute Institutes of
248	257		Health funding each year.
249	258		4. For purposes of this section, "cancer research institute "
250	259		means an organization which is exempt from taxation pursuant to the
251	260		Internal Revenue Code and whose primary focus is raising the
252	261		standard of cancer clinical care in Oklahoma through peer-reviewed
253	262		cancer research and education or a not -for-profit supporting
254	263		organization, as that term is defined by the Internal Revenue Code,
255	264		affiliated with a tax-exempt organization whose primary focus is
256	265		raising the standard of cancer clinical care in Oklahoma through
257	266		peer-reviewed cancer research and education. The tax -exempt
258		-	organization whose primary focus is ra ising the standard of cancer
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260		-	ENGR. H. B. NO. 1964 Page 6 1
	268	+	HB1964 HFLR Page 6
	269	+	BOLD FACE denotes Committee Amendments. 1
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	294	+	organization whose primary focus is ra ising the standard of cancer
285	295		clinical care in Oklahoma through peer-reviewed cancer research and
286	296		education shall:
287	297		a. either be an independent research institute or a
288	298		program that is part of a state university which is a
289	299		member of The Oklahoma State System of Higher
290	300		Education, and
291	301		b. receive at least Four Million Dollars ($4,000,000.00)
292	302		in National Cancer I nstitute funding each year.
293	303		5. For purposes of this section, "vision research institute "
294	304		means an organization which is exempt from taxation pursuant to the
295	305		Internal Revenue Code with a focu s on raising the standard of
296	306		clinical vision care in Oklahoma thr ough peer-reviewed vision
297	307		research and education or a not-for-profit supporting organization ,
298	308		as that term is defined by the Internal Revenue Code, affili ated
299	309		with a tax-exempt organization w ith a focus on raising the standard
300	310		of clinical vision care in Oklahoma through peer-reviewed vision
301	311		research and education. The tax -exempt organization wit h a focus on
302	312		raising the standard of clinical vision care in O klahoma through
303	313		peer-reviewed vision research and education shall:
304	314		a. either be an independent researc h institute or an
305	315		organization that is affiliated with a state
306	316		university which is a member of The Oklahoma State
307	317		System of Higher Education,
308		-	b. have a board of directors,
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310		-	ENGR. H. B. NO. 1964 Page 7 1
	319	+	HB1964 HFLR Page 7
	320	+	BOLD FACE denotes Committee Amendments. 1
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	345	+	b. have a board of directors,
335	346		c. be able to accept donations in its own name or the
336	347		name of its supporting organiz ation,
337	348		d. be an identifiable institute that has its own
338	349		employees and administrative staff, and
339	350		e. be involved in the conduct of research funded by the
340	351		National Institutes of Health at a minimum level of
341	352		Two Million Dollars ($2,000,000.00) each year.
342	353		B. In no event shall the amount of the credit exceed the amount
343	354		of any tax liability o f the taxpayer.
344	355		C. Any credits allowed but not used in any tax year may be
345	356		carried over, in order, to each o f the four (4) years following the
346	357		year of qualification.
347	358		D. The Tax Commission shall have the authority to prescribe
348	359		forms for purposes of claimi ng the credit authorized by this
349	360		section.
350	361		SECTION 2. This act shall become effective November 1, 2023.
351	362
352		-	ENGR. H. B. NO. 1964 Page 8 1
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377		-	Passed the House of Representatives the 14th day of March, 2023.
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380		-
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382		-	Presiding Officer of the House
383		-	of Representatives
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386		-	Passed the Senate the ___ day of __________, 2023.
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391		-	Presiding Officer of the Senate
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393		-
	363	+	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET , dated
	364	+	03/02/2023 - DO PASS, As Amended and Coauthored.