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ENGROSSED HOUSE
BILL NO. 3197 By: Hilbert, Newton, and
McDugle of the House
and
Jech of the Senate
[ revenue and taxation - Vision Care and Researc h Tax
Credit Act of 2024 - income tax credit for donation
to vision institute - credit amount limitation -
tax credit prohibited – carryover - cap amount -
cap amount procedures – noncodification –
codification - effective date ]
BE IT ENACTED BY THE PEO PLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law no t to be
codified in the Oklahoma Statutes reads as foll ows:
This act shall be known and may be cited as the "Vision Care and
Research Tax Credit Act of 2024".
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.45.1 of Title 68, unless
there is created a duplication in numbering, r eads as follows:
A. As used in this section, "vision institute" means an
organization which is exempt from taxation pursuant to the Internal
Revenue Code of 1986, as amended, with a focus on raising the
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standard of clinical and surgical vision care in Oklahoma through
patient care at or above national standards and peer -reviewed vision
research or a not-for-profit supporting or ganization, as that term
is defined by the Internal Revenue Code, affiliated with a tax -
exempt organization with a focus on raising the standard of clinical
and surgical vision care in Oklahoma through patient care at or
above national standards and peer -reviewed vision research. The
tax-exempt organization with a focus on raising the sta ndard of
clinical and surgical vision care in Oklahoma through patient care
at or above national standa rds and peer-reviewed vision research
shall:
1. Be an independent vision institute;
2. Have a board of directors;
3. Be able to accept donations in its own n ame or the name of
its supporting organization;
4. Be an identifiable institute that has its ow n employees and
administrative staff ;
5. Be involved in direct pati ent care; and
6. Be involved in the conduct of research funded by the
National Institutes of Health at a minimum lev el of Two Million
Dollars ($2,000,000.00) per year averaged over five (5) years.
B. For taxable years beginning on or after January 1, 202 5,
there shall be allowed as a credit against the tax imposed pursuant
to Section 2355 of Title 68 of the Oklahoma Statutes a credit for
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any taxpayer who makes a donation to a vision institute. The credit
otherwise authorized by this s ection shall not exceed One Thousand
Dollars ($1,000.00) for a single individual, Two Thousand Dolla rs
($2,000.00) for married individuals filing joi ntly, or Fifty
Thousand Dollars ($50,000.00) for any taxpayer that is a legal
business entity including limited and gener al partnerships,
corporations, subchapter S corporations, and limited liability
companies. The dollar amounts for limiting the tax credits as
described by this subsection shall be app licable to each type of
taxpayer for each one of such tax credits and sh all not be a
limitation on the aggregate to tal of all such credits that may be
claimed for any single tax year.
C. The tax credit authorized by this section shall not be used
to reduce the tax liability of the taxpayer to less than zero (0).
D. To the extent not used, the tax credit authorized by this
section may be carried over, in o rder, to each of the five (5)
subsequent taxable years.
E. For tax years beginning on or after January 1, 20 25, the
total amount of credits authorized by this section used t o offset
tax shall be adjusted annually to limit the annual amount of credits
to Two Million Dollars ($2,000,000.00). The Tax Commission shall
annually calculate and publish a percentage by which the credits
authorized by this section shall be reduced so the total amount of
credits used to offset tax does not exceed Two Million Dollars
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($2,000,000.00) per year. The formula to be used for t he percentage
adjustment shall be Two Million Dollars ($2,000,000.00) divided by
the credits used to offset tax in the second preceding year.
F. Pursuant to subsection E of this section, in the event the
total tax credits authorized by this section excee d Two Million
Dollars ($2,000,000.00) in any calendar year, the Tax Commission
shall permit any excess over Tw o Million Dollars ($2,000,000.00) but
shall factor such excess into the percentage adjustment formula for
subsequent years.
SECTION 3. This act shall become effective January 1, 2025.
Passed the House of Representatives the 6th day of March, 2024.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2024.
Presiding Officer of the Senate