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ENGROSSED SENATE
BILL NO. 1497 By: Garvin of the Senate
and
Archer of the House
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 certain 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 shall 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 for 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:
a. for calendar year 2007 and all subsequent years tax
years 2007 through 2024 , the credit percentage, not to
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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 claime d in the
preceding year for each donation to an independent
biomedical research institute and fifty percent (50%)
times One Million Dollars ($1,000,000.00) divided by
the credits claimed in the preceding year for each
donation to a cancer research institut e,
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 exceed One Million Five Hundred
Thousand Dollars ($1,500,000.00) annually for
donations to independent biomedical research
institutes. The formula to be used for the percentage
adjusted shall be fifty percent (50%) times One
Million Five Hundred Thousand Dollars ($1,500,000.00)
divided by the credits claimed in the precedin g 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 tot al 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 t he preceding 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 donation to a
cancer research institute in e ach 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 marrie d 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, corporations, and limited liability
companies, for tax year 2025 and subsequ ent 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 One Thousand
Dollars ($1,000.00) for single filers and married
filing separate, Two Thousand Dollars ($2,0 00.00) for
married filing joint, head of household, and
qualifying widow, and Twenty-five Thousand Dollars
($25,000.00) for any taxpayer that is a business
entity formed under the laws of any state, including
limited and general partnerships, corporations, and
limited liability companies for donations to any
independent biomedical research institute ,
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 donati ons to a
cancer research institute, and
e. g. in the event the total tax credits authorized by this
section exceed One Million Dollars ($1,000,000.00) in
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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
Commission shall permi t 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 formula 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 independent
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 peer-reviewed basic biomedical research.
The organization shall:
a. have a board of directors,
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b. be able to accept grants in its own name,
c. be an identifiable institute that has its own
employees and adminis trative staff, 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 taxa tion 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 I nternal 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 raising the standard of cancer
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 Hi gher
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 following the
year of qualification.
D. The Tax Commission shall have the authority to prescribe
forms for purposes of claiming the cr edit authorized by this
section.
SECTION 2. This act shall become effective November 1, 2024.
Passed the Senate the 1 4th day of March, 2024.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2024.
Presiding Officer of the House
of Representatives