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ENGROSSED HOUSE
BILL NO. 1964 By: Newton, Martinez, and
Fetgatter of the House
and
Jech of the Senate
[ revenue and taxation – medical research activities
– income tax credit – vision research institutes –
effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.45, is
amended to read as follows:
Section 2357.45 A. 1. For tax years beginning after December
31, 2004, there shall be allowed against t he tax imposed by Section
2355 of this title, a credit for any taxpayer wh o makes a donation
to an independent biomedical research institute and for tax years
beginning after December 31, 2010, a credit for any taxpayer who
makes a donation to a cancer res earch institute and for tax years
beginning after December 31, 202 3, a credit for any taxpayer who
makes a donation to a vision research institute.
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2. The credit authorized by paragraph 1 of this subsecti on
shall be limited as follows:
a. for calendar year 2007 2024 and all subsequent years,
the credit percentage, not to exceed fifty percent
(50%), shall be adju sted annually so that the total
estimate of the credits does not exceed Two Six
Million Dollars ($2,000,000.00) ($6,000,000.00)
annually. The formula to be used for the percentage
adjusted shall be fifty percent (50%) times One Two
Million Dollars ($1,000,000.00) ($2,000,000.00)
divided by the credits cl aimed in the preceding year
for each donation to an independent b iomedical
research institute and fifty percent (50%) times One
Two Million Dollars ($1,000,000.00) ($2,000,000.00)
divided by the credits claimed in the p receding year
for each donation to a cancer research institute and
fifty percent (50%) times Two Million Dollars
($2,000,000.00) divided by the credits claimed in the
preceding year for each donation to a vision research
institute,
b. in no event shall a taxpayer claim more than one
credit for a donation to any ind ependent biomedical
research institute and one credit for a donation to a
cancer research institute and one credit for a
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donation to a vision research institute in each
taxable year nor shall the credit exceed One Thousand
Dollars ($1,000.00) for each taxpayer for each type of
donation a single individual, Two Thousand Dollars
($2,000.00) for married individuals filing jointly , or
Fifty Thousand Dollars ( $50,000.00) for any taxpayer
that is a legal business entity including limited an d
general partnerships, corporations, s ubchapter S
corporations and limited liability companies . The
dollar amounts for limiting the tax credits as
described by this subparagraph s hall be applicable to
each type of taxpayer for each one of su ch tax credits
and shall not be a limitation on the aggregate total
of all such credits that may be claimed for any single
tax year,
c. for tax year 2011, no more than Fifty Thousand Dollars
($50,000.00) in total tax credits for donations to a
cancer research institute shall be allowed,
d. in no event shall more than fifty percent (50%) one-
third (1/3) of the Two Six Million Dollars
($2,000,000.00) ($6,000,000.00) in total tax credits
authorized by this section, for any calendar year
after the effective date of this act , be allocated for
credits for donations to a cancer research ins titute
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or be allocated for credits for donations to a vision
research institute, and
e. in the event the total tax cr edits authorized by this
section exceed One Two Million Dollars ($1,000,000.00)
($2,000,000.00) in any calendar year for either a
vision research institute or a cancer research
institute or an independent biomedical research
institute, the Oklahoma Tax Commission shall permit
any excess over One Two Million Dollars
($1,000,000.00) ($2,000,000.00) but shall factor such
excess into the percentage adjustment formula for
subsequent years for that type of donation. However,
any such adjustment to the formula for donations to an
independent biomedical research institute shall not
affect the formula for donations to a cancer research
institute or a vision research institute, and any such
adjustment to the formula for donations to a cancer
research institute shall not affect the formula for
donations to an independent biomedical research
institute or a vision research institute, and any such
adjustment to the formula for donations to a vision
research institute shall not affect the fo rmula for
donations to an independent biomedical research
institute or a cancer research institute.
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3. For purposes of this section, "independent biomedical
research institute" means an Oklahoma organization which is exempt
from taxation pursuant to the provisions of Section 501(c)(3) of the
Internal Revenue Code, 26 U.S.C ., Section 501(c)(3) whose primary
focus is conducting peer-reviewed basic biomedical research. The
organization shall:
a. have a board of directors,
b. be able to accept grants in its own name,
c. be an identifiable institute that has its own
employees and administrative staff, and
d. receive at least Fifteen Million Dollars
($15,000,000.00) in National Institute Institutes of
Health funding each year.
4. For purposes of this section, "cancer research institute "
means an organization which is exempt from taxation pursuant to the
Internal Revenue Code and whose primary focus is raising the
standard of cancer clinical care in Oklahoma through peer-reviewed
cancer research and education or a not -for-profit supporting
organization, as that term is defined by the Internal Revenue Code,
affiliated with a tax-exempt organization whose primary focus is
raising the standard of cancer clinical care in Oklahoma through
peer-reviewed cancer research and education. The tax -exempt
organization whose primary focus is ra ising the standard of cancer
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clinical care in Oklahoma through peer-reviewed cancer research and
education shall:
a. either be an independent research institute or a
program that is part of a state university which is a
member of The Oklahoma State System of Higher
Education, and
b. receive at least Four Million Dollars ($4,000,000.00)
in National Cancer I nstitute funding each year.
5. For purposes of this section, "vision research institute "
means an organization which is exempt from taxation pursuant to the
Internal Revenue Code with a focu s on raising the standard of
clinical vision care in Oklahoma thr ough peer-reviewed vision
research and education or a not-for-profit supporting organization ,
as that term is defined by the Internal Revenue Code, affili ated
with a tax-exempt organization w ith a focus on raising the standard
of clinical vision care in Oklahoma through peer-reviewed vision
research and education. The tax -exempt organization wit h a focus on
raising the standard of clinical vision care in O klahoma through
peer-reviewed vision research and education shall:
a. either be an independent researc h institute or an
organization that is affiliated with a state
university which is a member of The Oklahoma State
System of Higher Education,
b. have a board of directors,
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c. be able to accept donations in its own name or the
name of its supporting organiz ation,
d. be an identifiable institute that has its own
employees and administrative staff, and
e. be involved in the conduct of research funded by the
National Institutes of Health at a minimum level of
Two Million Dollars ($2,000,000.00) each year.
B. In no event shall the amount of the credit exceed the amount
of any tax liability o f the taxpayer.
C. Any credits allowed but not used in any tax year may be
carried over, in order, to each o f the four (4) years following the
year of qualification.
D. The Tax Commission shall have the authority to prescribe
forms for purposes of claimi ng the credit authorized by this
section.
SECTION 2. This act shall become effective November 1, 2023.
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Passed the House of Representatives the 14th day of March, 2023.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2023.
Presiding Officer of the Senate