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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
SENATE BILL 1497 By: Garvin
AS INTRODUCED
An Act relating to income tax credit; amending 68
O.S. 2021, Section 2357.45, which relates to credit
for donations to certain research institutes;
modifying credit limit for ce rtain institute in
certain tax years; modifying credit limit for
taxpayer in certain tax years; modifying definition;
updating statutory reference; updating statutory
language; and providing an 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 shal l be allowed against the tax imposed by Section
2355 of this title, a credit for any taxpayer who makes a donation
to an independent biomedical research institute and for tax years
beginning after December 31, 2010, a credit fo r any taxpayer who
makes a donation to a cancer research institute .
2. The credit authorized by paragraph 1 of this subsection
shall be limited as follows:
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a. for calendar year 2007 and all subsequen t years tax
years 2007 through 2024, the credit percentage, not to
exceed fifty percent (50%), shall be adjusted annually
so that the total estimate of the credits does not
exceed Two Million Dollars ($2,000,000.00) annually.
The formula to be used for the percentage adjusted
shall be fifty percent (50%) times One Million Dollars
($1,000,000.00) divided by the credits claimed in the
preceding year for each donation to an independent
biomedical research institu te and fifty percent (50%)
times One Million Do llars ($1,000,000.00) divided by
the credits claimed in the preceding year for each
donation to a cancer research institute,
b. for tax year 2025 and subsequent tax years, the credit
percentage, not to exceed fifty percent (50%), shall
be adjusted annually so that the total estimate of the
credits does not exce ed Two Million Dollars
($2,000,000.00) annually for donations to indepen dent
biomedical research institut es. The formula to be
used for the percentage adjusted shall be fifty
percent (50%) times Two Million Dollars
($2,000,000.00) divided by the credits claimed in the
preceding year for each donation to an independent
biomedical research institute ,
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c. for tax year 2025 and subsequent tax years, the credit
percentage, not to exceed fifty percent (50%), shall
be adjusted annually so that the total estimate of the
credits does not exceed One Million Dollars
($1,000,000.00) annually for donations to cancer
research institutes. The formula to be used for the
percentage adjusted shall be fifty percent (50%) times
One Million Dollars ($1,000,000.00) divided by the
credits claimed in the prec eding year for each
donation to a cancer research institute,
d. in no event shall a taxpayer claim more than one
credit for a donation to any independent biomedical
research institute and one credit for a d onation to a
cancer research institute in each taxable year nor
shall the credit exceed One Thousand Dollars
($1,000.00) for each taxpayer for tax years 2005
through 2024, and One Thousand Dollars ( $1,000.00) for
single filers and married filing separate, Two
Thousand Dollars ($2,000.00) for married filing joint,
head of household, qualifying widow, and for any
taxpayer that is a business entity formed under the
laws of any state, including limited and general
partnerships, corpor ations, and limited liabili ty
companies, for tax year 2025 and sub sequent tax years,
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for each type of the donation to a cancer research
institute. For tax year 2025 and subsequent tax
years, the credit shall not exceed O ne Thousand
Dollars ($1,000.00) for single filers and married
filing separate, Two Thousand Dollars ($2,000.00) for
married filing joint, head of household, and
qualifying widow, and Fifty Thousand Dollars
($50,000.00) for any taxpayer that is a business
entity formed under the laws of any state, including
limited and general par tnerships, corporations, and
limited liability companies for donations to any
independent biomedical research instit ute,
c. e. for tax year 2011, no more than Fifty Thousand
Dollars ($50,000.00) in total tax credits for
donations to a cancer research institute shall be
allowed,
d. f. in no event shall more than fifty percent (50%)
of the Two Million Dollars ($ 2,000,000.00) in total
tax credits authorized by this section, for any
calendar year after the effective date of this act
January 1, 2011, be allocated for credits for
donations to a cancer research institute, and
e. g. in the event the total tax credits authorized by
this section exceed One Million Dollars
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($1,000,000.00) in any calendar year for either a
cancer research institute or One Million Dollars
($1,000,000.00) for tax years 2011 through 2024, and
One Million Five Hundred Thousand Dollars
($1,500,000.00) for tax year 2025 and subsequent tax
years, for an independent biomedical research
institute, the Oklahoma Tax Com mission shall permit
any excess over One Million Dollars ($1,000,000.00)
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 formu la for
donations to a cancer 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 independ ent biomedical research
institute.
3. For purposes of this section, “independent biomedical
research institute” means an organization in this state 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 pe er-reviewed basic biomedical research.
The organization shall:
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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 st aff, and
d. receive at least Fifteen Million Dollars
($15,000,000.00) Twenty Million Dollars
($20,000,000.00) 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 pursuan t to the
Internal Revenue Code and whose primary focus is raising the
standard of cancer clinical care in Oklahoma through pee r-reviewed
cancer research and education or a not -for-profit supporting
organization, as that term is defined by the Internal Reve nue 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 raising the standar d of cancer
clinical care in Oklahoma through peer -reviewed cancer research and
education shall:
a. either be an independent r esearch institute or a
program that is part of a state university which is a
member of The Oklahoma State System of Higher
Education, and
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b. receive at least Four Million Dollars ($4,000,000.00)
in National Cancer Institute funding each year.
B. In no event shall the amount of the credit exceed the amount
of any tax liability of the taxpayer.
C. Any credits allowed but not used in any tax year may be
carried over, in order, to each of the four (4) years f ollowing the
year of qualification.
D. The Tax Commission shall have the authority to prescribe
forms for purposes of claimin g the credit authorized by this
section.
SECTION 2. This act shall become effective November 1, 2024.
59-2-2543 QD 12/15/2023 9:45:08 PM