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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
SENATE BILL 1498 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 certain institute in
certain tax years; 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 o f this subsection
shall be limited as follows:
a. for calendar year 2007 and al l 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 do es 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 Dollars ($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 exceed One Million Dollars
($1,000,000.00) 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 One Million Dollars
($1,000,000.00) divided by the credits claimed in the
preceding year for each donation to an independent
biomedical research institute ,
c. for tax year 2025 and subsequent tax years, the credit
percentage, not to exceed fifty percent (50%), shall
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be adjusted annually so that the total estimate of the
credits does not exceed Five Hundred Thousand Dollars
($500,000.00) annually for donations to cancer
research institutes. The formula to be used for the
percentage adjusted shall be fifty percent (50%) times
Five Hundred Thousand Dollars ( $500,000.00) divided by
the credits claimed in the 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 each taxable year nor
shall the credit exceed One Thousand Dollars
($1,000.00) for each taxpayer for each type of
donation,
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 per cent (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
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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
($1,000,000.00) for tax years 2011 through 2024 , and
Five Hundred Thousand Dollars ( $500,000.00) for tax
year 2025 and subsequent tax years, in any calendar
year for either a cancer research institute or One
Million Dollars ($1,000,000.00) for an independent
biomedical research institute , the Oklahoma Tax
Commission shall permit any excess over One Million
Dollars ($1,000,000.00) but shall factor such excess
into the percentage adjustment f ormula for subsequent
years for that type of donation. Ho wever, any such
adjustment to the formula for donations to an
independent biomedical research institute sh all not
affect the formula for donations to a cancer research
institute, and any such adjustment to the formula for
donations to a cancer resea rch 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 which is exempt from
taxation pursuant to the provisions of Section 501(c)(3) of the
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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 car e 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 Revenue Code,
affiliated with a tax -exempt organization whose primary focus is
raising the standard of ca ncer clinical care in Oklahoma through
peer-reviewed cancer research and educat ion. 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 r esearch institute or a
program that is part of a state university which is a
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member of The Oklahoma State System of Higher
Education, and
b. receive at least Four M illion 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 credit authorized by this
section.
SECTION 2. This act shall become effective November 1, 2024.
59-2-2544 QD 12/15/2023 9:46:11 PM