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53	53	STATE OF OKLAHOMA
54	54
55	55	1st Session of the 59th Legislature (2023)
56	56
57	57	SENATE BILL 207 By: Bergstrom
58	58
59	59
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63	63	AS INTRODUCED
64	64
65	65	An Act relating to income tax incentives; amending 74
66	66	O.S. 2021, Section 5064.7, wh ich relates to
67	67	incentives for products developed an d manufactured in
68	68	this state; limiting qualification; limiting certain
69	69	credit and exemption to certain taxable years; and
70	70	providing an effective date.
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75	75	BE IT ENACTED BY THE PEOPLE OF THE STATE O F OKLAHOMA:
76	76	SECTION 1. AMENDATORY 74 O.S. 2021, Section 5064.7, is
77	77	amended to read as follows:
78	78	Section 5064.7. A. The following incentives shall be available
79	79	to inventors for products develo ped and manufactured in this state
80	80	and to instate manufacturers of said products; provide d, to qualify
81	81	for the incentives, the product shall be patented or have patent
82	82	pending pursuant to federal law and shall be registered with the
83	83	Oklahoma Center for the Advancement of Science and Technology
84	84	(OCAST) before November 1, 2023:
85	85	1. Royalty earned by an inventor from a product developed and
86	86	manufactured in this state shall be exempt from state income tax for
87	87	a period of seven (7) years from January 1 of the fi rst year in
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139	139	which such royalty is rece ived as long as the manufacturer remains
140	140	in the state; and
141	141	2. An instate manufacturer of a product develop ed in this state
142	142	by an inventor shall be eligible for a tax credit, as provided for
143	143	in Section 2357.4 of Title 68 of the Oklahoma Statutes , for property
144	144	placed in service during tax years 1987 through 2023. In addition
145	145	such manufacturer may exclude from Oklahoma taxable income, or in
146	146	the case of an individual, the Oklaho ma adjusted gross income,
147	147	sixty-five percent (65%) of the cost of depreciable prop erty
148	148	purchased and utilized directly in manufacturi ng the product. The
149	149	maximum exclusion shall not exceed Five Hundred Thousand Dollars
150	150	($500,000.00). If the exclusion allo wed by this paragraph exceeds
151	151	the Oklahoma taxable income, or in the case of an in dividual, the
152	152	Oklahoma adjusted gross income, the a mount of the exclusion that is
153	153	in excess of such income may be carried forward as an exclusion
154	154	against subsequent Oklahoma taxable income or in the case of an
155	155	individual, subsequent Oklahoma adjusted gross income, for a period
156	156	not to exceed four (4) years. For the purposes of this paragraph,
157	157	“depreciable property ” means machinery, fixtures, equipment,
158	158	buildings, or substantia l improvements thereto, placed in service in
159	159	this state during the taxable year years 1987 through 2023 .
160	160	B. The Oklahoma Tax Commiss ion, in conjunction with the
161	161	Oklahoma Center for the Advancement of Science and Technology, shall
162	162	promulgate rules to implement the provisions of t his section.
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214	214	SECTION 2. This act shall be come effective November 1, 2023.
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216	216	59-1-169 QD 1/9/2023 2:50:14 PM

Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB207 Compare Versions