OK
Oklahoma House Bill HB1391

Oklahoma 2025 Regular Session

Oklahoma House Bill HB1391 Compare Versions

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2828 STATE OF OKLAHOMA
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3030 1st Session of the 60th Legislature (2025)
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3232 HOUSE BILL 1391 By: Provenzano
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3838 AS INTRODUCED
3939
4040 An Act relating to revenue and taxation; amending 68
4141 O.S. 2021, Section 2358, as last amended by Section
4242 1, Chapter 166, O.S.L. 2024 (68 O.S. Supp. 2024,
4343 Section 2358), which relates to adjustments to arrive
4444 at Oklahoma taxable income and Oklahoma adjusted
4545 gross income; modifying caps on retirement benefits
4646 adjustment; and providing an effective date .
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5252 BE IT ENACTED BY THE PE OPLE OF THE STATE OF OKLAHOMA:
5353 SECTION 1. AMENDATORY 68 O.S. 2021, Section 2358, as
5454 last amended by Section 1, Chapter 166, O.S.L. 2024 (68 O.S. Supp.
5555 2024, Section 2358), is amended to read as follows:
5656 Section 2358. For all tax years beginning after December 31,
5757 1981, taxable income and adjusted gross income shall be adjusted to
5858 arrive at Oklahoma taxable income and Oklahoma adjusted gross income
5959 as required by this section.
6060 A. The taxable income of any taxpayer shall be adjuste d to
6161 arrive at Oklahoma taxable income for corporations and Oklahoma
6262 adjusted gross income for individuals, as follows:
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8989 1. There shall be added interest income on obligations of any
9090 state or political subdivision thereto which is not otherwise
9191 exempted pursuant to other laws of this state, to the extent that
9292 such interest is not included in taxable income and adjusted gross
9393 income.
9494 2. There shall be deducted amounts included in such income that
9595 the state is prohibited from taxing because of the provisions of the
9696 Federal Constitution, the State Constitution, federal laws or laws
9797 of Oklahoma.
9898 3. The amount of any federal net operating loss deduction shall
9999 be adjusted as follows:
100100 a. For carryovers and carrybacks to taxable years
101101 beginning before January 1, 1 981, the amount of any
102102 net operating loss deduction allowed to a taxpayer for
103103 federal income tax purposes shall be reduced to an
104104 amount which is the same portion thereof as the loss
105105 from sources within this state, as determined pursuant
106106 to this section and Section 2362 of this title, for
107107 the taxable year in which such loss is sustai ned is of
108108 the total loss for such year;
109109 b. For carryovers and carrybacks to taxable years
110110 beginning after December 31, 1980, the amount of any
111111 net operating loss deduction allowe d for the taxable
112112 year shall be an amount equal to the aggregate of the
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139139 Oklahoma net operating loss carryovers and carrybacks
140140 to such year. Oklahoma net operating losses shall be
141141 separately determined by reference to Section 172 of
142142 the Internal Revenue Co de, 26 U.S.C., Section 172, as
143143 modified by the Oklahoma Income Tax Act, Sectio n 2351
144144 et seq. of this title, and shall be allowed without
145145 regard to the existence of a federal net operating
146146 loss. For tax years beginning after December 31,
147147 2000, and ending before January 1, 2008, the years to
148148 which such losses may be carried shall be determined
149149 solely by reference to Section 172 of the Internal
150150 Revenue Code, 26 U.S.C., Section 172, with the
151151 exception that the terms "net operating loss" and
152152 "taxable income" shall be replaced with "Oklahoma net
153153 operating loss" and "Oklahoma taxable incom e". For
154154 tax years beginning after December 31, 2007, and
155155 ending before January 1, 2009, years to which such
156156 losses may be carried back shall be limited to two (2)
157157 years. For tax years beginning after December 31,
158158 2008, the years to which such losses may be carried
159159 back shall be determined solely by reference to
160160 Section 172 of the Internal Revenue Code, 26 U.S.C.,
161161 Section 172, with the exception that the terms "net
162162 operating loss" and "taxable income" shall be replaced
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189189 with "Oklahoma net operating loss " and "Oklahoma
190190 taxable income".
191191 4. Items of the following nature shall be allocated as
192192 indicated. Allowable deductions attributable to items separately
193193 allocable in subparagraphs a, b and c of this paragraph, whether or
194194 not such items of income were actually received, shall be allocated
195195 on the same basis as those items:
196196 a. Income from real and tangible personal property, such
197197 as rents, oil and mining production or royalties, and
198198 gains or losses from sales of such property, shall be
199199 allocated in accordance wi th the situs of such
200200 property;
201201 b. Income from intangible personal property, such as
202202 interest, dividends, patent or copyright royalties,
203203 and gains or losses from sales of such pro perty, shall
204204 be allocated in accordance with the domiciliary situs
205205 of the taxpayer, except that:
206206 (1) where such property has acquired a nonunitary
207207 business or commercial situs apart from the
208208 domicile of the taxpayer such income shall be
209209 allocated in accordance with such business or
210210 commercial situs; interest income from
211211 investments held to generate working capital for
212212 a unitary business enterprise shall be included
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239239 in apportionable income; a resident trust or
240240 resident estate shall be treated as having a
241241 separate commercial or business situs insofar as
242242 undistributed income is concerned, but shall not
243243 be treated as having a separate commercial or
244244 business situs insofar as distributed income is
245245 concerned,
246246 (2) for taxable years beginning after December 31,
247247 2003, capital or ordinary gains or losses from
248248 the sale of an ownership interest in a publicly
249249 traded partnership, as defined by Section 7704(b)
250250 of the Internal Revenue Code, shall be allocated
251251 to this state in the ratio of the original cost
252252 of such partnership's tangible property in this
253253 state to the original cost of such partnership 's
254254 tangible property everywhere, as determined at
255255 the time of the sale; if more than fifty percent
256256 (50%) of the value of the partnership 's assets
257257 consists of intangible assets, capi tal or
258258 ordinary gains or losses from the sale of an
259259 ownership interest in the partnership shall be
260260 allocated to this state in accordance with the
261261 sales factor of the partnership for its first
262262 full tax period immediately preceding its tax
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289289 period during which the ownership interest in the
290290 partnership was sold; the provisions of this
291291 division shall only apply if the capital or
292292 ordinary gains or losses from the sale of an
293293 ownership interest in a partnership do not
294294 constitute qualifying gain receiving capital
295295 treatment as defined in subparagraph a of
296296 paragraph 2 of subsection F of this se ction,
297297 (3) income from such property which is required to be
298298 allocated pursuant to the provisions of paragraph
299299 5 of this subsection shall be allocated as herein
300300 provided;
301301 c. Net income or loss from a business activity which is
302302 not a part of business carried on within or without
303303 the state of a unitary character shall be separately
304304 allocated to the state in which such activity is
305305 conducted;
306306 d. In the case of a manufacturing or proce ssing
307307 enterprise the business of which in Oklahoma consists
308308 solely of marketing its products by:
309309 (1) sales having a situs without this state, shipped
310310 directly to a point from without the state to a
311311 purchaser within the state, commonly known as
312312 interstate sales,
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339339 (2) sales of the product stored in public warehouses
340340 within the state pursuant to "in transit"
341341 tariffs, as prescribed and allowed by the
342342 Interstate Commerce Commission, to a purchaser
343343 within the state,
344344 (3) sales of the product stored in public wareho uses
345345 within the state where the shipment to such
346346 warehouses is not covered by "in transit"
347347 tariffs, as prescribed and allowed by the
348348 Interstate Commerce Commission, to a purchaser
349349 within or without the state, the Oklahoma net
350350 income shall, at the option of the taxpayer, be
351351 that portion of the total net income of the
352352 taxpayer for federal income tax purposes derived
353353 from the manufacture and/or processing and sales
354354 everywhere as determined by the ratio of the
355355 sales defined in this section made to the
356356 purchaser within the state to the total sales
357357 everywhere. The term "public warehouse" as used
358358 in this subparagraph means a licensed public
359359 warehouse, the principal business of which is
360360 warehousing merchandise for the public;
361361 e. In the case of insurance companies, Oklahoma taxable
362362 income shall be taxable income of the taxpayer for
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389389 federal tax purposes, as adjusted for the adjustments
390390 provided pursuant to the provisions of paragraphs 1
391391 and 2 of this subsection, apportioned as follows:
392392 (1) except as otherwise provided by division (2) of
393393 this subparagraph, taxable income of an insurance
394394 company for a taxable year shall be apportioned
395395 to this state by multiplying such income by a
396396 fraction, the numerator of which is the direct
397397 premiums written for insurance on property or
398398 risks in this state, and the denominator of which
399399 is the direct premiums written for insurance on
400400 property or risks everywhere. For purposes of
401401 this subsection, the term "direct premiums
402402 written" means the total amount of direct
403403 premiums written, assessm ents and annuity
404404 considerations as reported for the taxable year
405405 on the annual statement filed by the company with
406406 the Insurance Commissioner in the form approved
407407 by the National Association of Insurance
408408 Commissioners, or such other form as may be
409409 prescribed in lieu thereof,
410410 (2) if the principal source of premiums written by an
411411 insurance company consists of premiums for
412412 reinsurance accepted by it, the taxable income of
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439439 such company shall be apportioned to this state
440440 by multiplying such income by a fraction, the
441441 numerator of which is the sum of (a) direct
442442 premiums written for insuranc e on property or
443443 risks in this state, plus (b) premiums written
444444 for reinsurance accepted in respect of property
445445 or risks in this state, and the denominator of
446446 which is the sum of (c) direct premiums written
447447 for insurance on property or risks everywhere,
448448 plus (d) premiums written for reinsurance
449449 accepted in respect of property or risks
450450 everywhere. For purposes of this paragraph,
451451 premiums written for reinsurance accepted in
452452 respect of property or risks in this state,
453453 whether or not otherwise determinable, ma y at the
454454 election of the company be determined on the
455455 basis of the proportion which premiums written
456456 for insurance accepted from companies
457457 commercially domiciled in Oklahoma bear s to
458458 premiums written for reinsurance accepted from
459459 all sources, or alternatively in the proportion
460460 which the sum of the direct premiums written for
461461 insurance on property or risks in this state by
462462 each ceding company from which reinsurance is
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489489 accepted bears to the sum of the total direct
490490 premiums written by each such ceding company for
491491 the taxable year.
492492 5. The net income or loss remaining after the separate
493493 allocation in paragraph 4 of this subsection, being that which is
494494 derived from a unitary business en terprise, shall be apportioned to
495495 this state on the basis of the arithmetical average of three factors
496496 consisting of property, payroll and sales or gross revenue
497497 enumerated as subparagraphs a, b and c of this paragraph. Net
498498 income or loss as used in this paragraph includes that derived from
499499 patent or copyright royalties, purchase d iscounts, and interest on
500500 accounts receivable relating to or arising from a business activity,
501501 the income from which is apportioned pursuant to this subsection,
502502 including the sale or other disposition of such property and any
503503 other property used in the unitary enterprise. Deductions used in
504504 computing such net income or loss shall not include taxes based on
505505 or measured by income. Provided, for corporations whose property
506506 for purposes of the tax imposed by Section 2355 of this title has an
507507 initial investment cost equaling or exceeding Two Hundred Million
508508 Dollars ($200,000,000.00) and such investment is made on or after
509509 July 1, 1997, or for corporations which expand their property o r
510510 facilities in this state and such expansion has an investment cost
511511 equaling or exceeding Two Hundred Million Dollars ($200,000,000.00)
512512 over a period not to exceed three (3) years, and such expansion is
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539539 commenced on or after January 1, 2000, the three fac tors shall be
540540 apportioned with property and payroll, each comprising twenty -five
541541 percent (25%) of the apportionment factor and sales comprising fifty
542542 percent (50%) of the apportionment factor. The apportionment
543543 factors shall be computed as follows:
544544 a. The property factor is a fraction, the numerator of
545545 which is the average value of the taxpayer 's real and
546546 tangible personal property owned or rented and used in
547547 this state during the tax period and the denominator
548548 of which is the average value of all the taxp ayer's
549549 real and tangible personal property everywhere owned
550550 or rented and used during the tax period.
551551 (1) Property, the income from which is separately
552552 allocated in paragraph 4 of this subsection,
553553 shall not be included in determining this
554554 fraction. The numerator of the fraction shall
555555 include a portion of the investment in
556556 transportation and other equipment having no
557557 fixed situs, such as rolling stock, buses, trucks
558558 and trailers, including machinery and equipment
559559 carried thereon, airplanes, salespersons '
560560 automobiles and other similar equipment, in the
561561 proportion that miles traveled i n Oklahoma by
562562 such equipment bears to total miles traveled,
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589589 (2) Property owned by the taxpayer is valued at its
590590 original cost. Property rented by the taxpayer
591591 is valued at eight times the net annual rental
592592 rate. Net annual rental rate is the annual
593593 rental rate paid by the taxpayer, less any annual
594594 rental rate received by the taxpayer from
595595 subrentals,
596596 (3) The average value of property shall be determined
597597 by averaging the values a t the beginning and
598598 ending of the tax period but the Oklahoma Tax
599599 Commission may require the averaging of monthly
600600 values during the tax period if reasonably
601601 required to reflect properly the average value of
602602 the taxpayer's property;
603603 b. The payroll factor is a fraction, the numerator of
604604 which is the total compensation for services rendered
605605 in the state during the tax period, and the
606606 denominator of which is the total compensation for
607607 services rendered everywhere during the tax period.
608608 "Compensation", as used in this subsection means those
609609 paid-for services to the extent related to the unitary
610610 business but does not include officers ' salaries,
611611 wages and other compensation.
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638638 (1) In the case of a transportation enterprise, the
639639 numerator of the fraction shall includ e a portion
640640 of such expenditure in connection with employees
641641 operating equipment over a fixed route, such as
642642 railroad employees, airline pilots, or bus
643643 drivers, in this state only a part of the time,
644644 in the proportion that mileage traveled in
645645 Oklahoma bears to total mileage traveled by such
646646 employees,
647647 (2) In any case the numerator o f the fraction shall
648648 include a portion of such expenditures in
649649 connection with itinerant employees, such as
650650 traveling salespersons, in this state only a part
651651 of the time, in the proportion that time spent in
652652 Oklahoma bears to total time spent in furtherance
653653 of the enterprise by such employees;
654654 c. The sales factor is a fraction, the numerator of which
655655 is the total sales or gross revenue of the taxpayer in
656656 this state during the tax period, and the denominator
657657 of which is the total sales or gross revenue of th e
658658 taxpayer everywhere during the tax period. "Sales",
659659 as used in this subsection does not include sales or
660660 gross revenue which are separately allocated in
661661 paragraph 4 of this su bsection.
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688688 (1) Sales of tangible personal property have a situs
689689 in this state if the property is delivered or
690690 shipped to a purchaser other than the United
691691 States government, within this state regardless
692692 of the FOB point or other conditions of the sale;
693693 or the property is shipped from an office, store,
694694 warehouse, factory or other plac e of storage in
695695 this state and (a) the purchaser is the United
696696 States government or (b) the taxpayer is not
697697 doing business in the state of the destination of
698698 the shipment.
699699 (2) In the case of a railroad or interurban railway
700700 enterprise, the numerator of the fraction shall
701701 not be less than the allocation of revenues to
702702 this state as shown in its annual report to the
703703 Corporation Commission.
704704 (3) In the case of an airline, truck or bus
705705 enterprise or freight car, tank car, refrigerator
706706 car or other railroad equip ment enterprise, the
707707 numerator of the fraction shall include a portion
708708 of revenue from interstate transportation in the
709709 proportion that interstate mileage traveled in
710710 Oklahoma bears to total interstate mileage
711711 traveled.
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738738 (4) In the case of an oil, gasoline or gas pipeline
739739 enterprise, the numerator of the fraction shall
740740 be either the total of traffic units of the
741741 enterprise within Oklahoma or the revenue
742742 allocated to Oklahoma based upon miles moved, at
743743 the option of the taxpayer, and the denominator
744744 of which shall be the total of traffic units of
745745 the enterprise or the revenue of the enterprise
746746 everywhere as appropriate to the numerator. A
747747 "traffic unit" is hereby defined as the
748748 transportation for a distance of one (1) mile of
749749 one (1) barrel of oil, one (1) gallon of gasoline
750750 or one thousand (1,000) cubic feet of natural or
751751 casinghead gas, as the case may be.
752752 (5) In the case of a telephone or telegraph or other
753753 communication enterpris e, the numerator of the
754754 fraction shall include that portion of the
755755 interstate revenue as is allocated pursuant to
756756 the accounting procedures prescribed by the
757757 Federal Communications Commission; provided that
758758 in respect to each corporation or business entity
759759 required by the Federal Communications Commission
760760 to keep its books and records in accordance with
761761 a uniform system of accounts prescribed by such
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788788 Commission, the intrastate net income shall be
789789 determined separately in the manner provided by
790790 such uniform system of accounts and only the
791791 interstate income shall be subject to allocati on
792792 pursuant to the provisions of this subsection.
793793 Provided further, that the gross revenue factors
794794 shall be those as are determined pursuant to the
795795 accounting procedures prescri bed by the Federal
796796 Communications Commission.
797797 In any case where the apportionment of the three factors
798798 prescribed in this paragraph attributes to Oklahoma a portion of net
799799 income of the enterprise out of all appropriate proportion to the
800800 property owned and/or business transacted within this state, because
801801 of the fact that one or mor e of the factors so prescribed are not
802802 employed to any appreciable extent in furtherance of the enterprise;
803803 or because one or more factors not so prescribed are employed to a
804804 considerable extent in furtherance of the enterprise; or because of
805805 other reasons, the Tax Commission is empowered to permit, after a
806806 showing by taxpayer that an excessive portion of net income has been
807807 attributed to Oklahoma, or require, when in its judgment an
808808 insufficient portion of net income has been attributed to Oklahoma,
809809 the elimination, substitution, or use of additional factors, or
810810 reduction or increase in the weight of such prescribed factors.
811811 Provided, however, that any such variance from such pre scribed
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838838 factors which has the effect of increasing the portion of net income
839839 attributable to Oklahoma must not be inherently arbitrary, and
840840 application of the recomputed final apportionment to the net income
841841 of the enterprise must attribute to Oklahoma onl y a reasonable
842842 portion thereof.
843843 6. For calendar years 1997 and 1998, the owne r of a new or
844844 expanded agricultural commodity processing facility in this state
845845 may exclude from Oklahoma taxable income, or in the case of an
846846 individual, the Oklahoma adjusted g ross income, fifteen percent
847847 (15%) of the investment by the owner in the new or expanded
848848 agricultural commodity processing facility. For calendar year 1999,
849849 and all subsequent years, the percentage, not to exceed fifteen
850850 percent (15%), available to the ow ner of a new or expanded
851851 agricultural commodity processing facility in this st ate claiming
852852 the exemption shall be adjusted annually so that the total estimated
853853 reduction in tax liability does not exceed One Million Dollars
854854 ($1,000,000.00) annually. The Ta x Commission shall promulgate rules
855855 for determining the percentage of the investment which each eligible
856856 taxpayer may exclude. The exclusion provided by this paragraph
857857 shall be taken in the taxable year when the investment is made. In
858858 the event the total reduction in tax liability authorized by this
859859 paragraph exceeds One Million D ollars ($1,000,000.00) in any
860860 calendar year, the Tax Commission shall permit any excess over One
861861 Million Dollars ($1,000,000.00) and shall factor such excess into
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888888 the percentage for subsequent years. Any amount of the exemption
889889 permitted to be excluded pursuant to the provisions of this
890890 paragraph but not used in any year may be carried forward as an
891891 exemption from income pursuant to the provisions of this paragraph
892892 for a period not exceeding six (6) years following the year in which
893893 the investment was orig inally made.
894894 For purposes of this paragraph:
895895 a. "Agricultural commodity processing facility " means
896896 building, structures, fixtures and improvements used
897897 or operated primarily for the processing or production
898898 of marketable products from agricultural commodities.
899899 The term shall also mean a dairy operation that
900900 requires a depreciable investment of at least Two
901901 Hundred Fifty Thousand Dollars ($250,000.00) and which
902902 produces milk from dairy cows. The term does not
903903 include a facility that provides only, and noth ing
904904 more than, storage, cleaning, drying or transportation
905905 of agricultural commodities, and
906906 b. "Facility" means each part of the facility which is
907907 used in a process primarily for :
908908 (1) the processing of agricultural commodities,
909909 including receiving or storing agricultural
910910 commodities, or the production of milk at a dairy
911911 operation,
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938938 (2) transporting the agricultural commodities or
939939 product before, during or after the processing,
940940 or
941941 (3) packaging or otherwise preparing the product for
942942 sale or shipment.
943943 7. Despite any provision to the contrary in paragraph 3 of this
944944 subsection, for taxable years beginning after December 31, 1999, in
945945 the case of a taxpayer which has a farming loss, such farming loss
946946 shall be considered a net operating loss carryback in accordance
947947 with and to the extent of the Internal Revenue Code, 26 U.S.C.,
948948 Section 172(b)(G). However, the amount of the net operating loss
949949 carryback shall not exceed the lesser of:
950950 a. Sixty Thousand Dollars ($60,000.00), or
951951 b. the loss properly shown on Schedule F of the Internal
952952 Revenue Service Form 1040 reduced by one -half (1/2) of
953953 the income from all other sources other than reflected
954954 on Schedule F.
955955 8. In taxable years beginning after December 31, 1995, all
956956 qualified wages equal to the federal income tax credit set forth in
957957 26 U.S.C.A., Section 45A, shall be deducted from taxable income.
958958 The deduction allowed pursuant to this paragraph shall only be
959959 permitted for the tax years in whic h the federal tax credit pursuant
960960 to 26 U.S.C.A., Section 45A, is allowed. Fo r purposes of this
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987987 paragraph, "qualified wages" means those wages used to calculate the
988988 federal credit pursuant to 26 U.S.C.A., Section 45A.
989989 9. In taxable years beginning after December 31, 2005, an
990990 employer that is eligible for and utilizes the Safety Pays OSHA
991991 Consultation Service provided by the Oklahoma Department of Labor
992992 shall receive an exemption from taxable income in the amount of One
993993 Thousand Dollars ($1,000.00) for the tax year that the service is
994994 utilized.
995995 10. For taxable years beginning on or after January 1, 2010,
996996 there shall be added to Oklahoma taxable income an amount equal to
997997 the amount of deferred income not included in such taxable income
998998 pursuant to Section 1 08(i)(1) of the Internal Revenue Code of 1986
999999 as amended by Section 1231 of the American Recovery and Reinvestment
10001000 Act of 2009 (P.L. No. 111 -5). There shall be subtracted from
10011001 Oklahoma taxable income an amount equal to the amount of deferred
10021002 income included in such taxable income pursuant to Section 108(i)(1)
10031003 of the Internal Revenu e Code by Section 1231 of the American
10041004 Recovery and Reinvestment Act of 2009 (P.L. No. 111 -5).
10051005 11. For taxable years beginning on or after January 1, 2019,
10061006 there shall be subtra cted from Oklahoma taxable income or adjusted
10071007 gross income any item of income or gain, and there shall be added to
10081008 Oklahoma taxable income or adjusted gross income any item of loss or
10091009 deduction that in the absence of an election pursuant to the
10101010 provisions of the Pass-Through Entity Tax Equity Act of 2019 would
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10371037 be allocated to a memb er or to an indirect member of an electing
10381038 pass-through entity pursuant to Section 2351 et seq. of this title,
10391039 if (i) the electing pass -through entity has accounted for such item
10401040 in computing its Oklahoma net entity income or loss pursuant to the
10411041 provisions of the Pass -Through Entity Tax Equity Act of 2019, and
10421042 (ii) the total amount of tax attributable to any resulting Oklahoma
10431043 net entity income has been paid. The Oklahoma Tax Co mmission shall
10441044 promulgate rules for the reporting of such exclusion to direct and
10451045 indirect members of the electing pass -through entity. As used in
10461046 this paragraph, "electing pass-through entity", "indirect member",
10471047 and "member" shall be defined in the same manner as prescribed by
10481048 Section 2355.1P-2 of this title. Notwithstanding the application of
10491049 this paragraph, the adjusted tax basis of any ownership interest in
10501050 a pass-through entity for purposes of Section 2351 et seq. of this
10511051 title shall be equal to its adjusted tax basis for federal income
10521052 tax purposes.
10531053 B. 1. The taxable incom e of any corporation shall be further
10541054 adjusted to arrive at Oklahoma taxable income, except those
10551055 corporations electing treatment as provided in subchapter S of the
10561056 Internal Revenue Code, 26 U.S.C., Section 1361 et seq., and Section
10571057 2365 of this title, deductions pursuant to the provisions of the
10581058 Accelerated Cost Recovery System as defined and allowed in the
10591059 Economic Recovery Tax Act of 1981, Public Law 97 -34, 26 U.S.C.,
10601060 Section 168, for depreciation of assets placed into service after
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10871087 December 31, 1981, sh all not be allowed in calculating Oklahoma
10881088 taxable income. Such corporations shall be allowed a deduction for
10891089 depreciation of assets placed into service after December 31, 1981,
10901090 in accordance with provisions of the Internal Revenue Code, 26
10911091 U.S.C., Section 1 et seq., in effect immediately prior to the
10921092 enactment of the Accelerated Cost Recovery System. The Oklahoma tax
10931093 basis for all such assets placed into service after December 31,
10941094 1981, calculated in this section shall be retained and utilized for
10951095 all Oklahoma income tax purposes through the final disposition of
10961096 such assets.
10971097 Notwithstanding any other provisions of the Oklahoma Income Tax
10981098 Act, Section 2351 et seq. of this title, or of the Internal Revenue
10991099 Code to the contrary, this subsection shall control calculation of
11001100 depreciation of assets placed into service after December 31, 1981,
11011101 and before January 1, 1983.
11021102 For assets placed in service and held by a corporation in which
11031103 accelerated cost recovery system was previously disallowed, an
11041104 adjustment to taxable income is required in the first taxable year
11051105 beginning after December 31, 1982, to reconcile the basis of such
11061106 assets to the basis allowed in the Internal Revenue Code. The
11071107 purpose of this adjustment is to equalize the basis and allowance
11081108 for depreciation accounts between that reported to the Internal
11091109 Revenue Service and that reported to Oklahoma.
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11361136 2. For tax years beginning on or after January 1, 2009, and
11371137 ending on or before December 31, 2009, there shall be added to
11381138 Oklahoma taxable income any amou nt in excess of One Hundred Seventy -
11391139 five Thousand Dollars ($175,000.00) which has been deducted as a
11401140 small business expense under Internal Revenue Code, Section 179 as
11411141 provided in the American Recovery and Reinvestment Act of 2009.
11421142 C. 1. For taxable years beginning after December 31, 1987, the
11431143 taxable income of any corporation shall be further adjusted to
11441144 arrive at Oklahoma taxable income for transfers of technology to
11451145 qualified small businesses located in Oklahoma. Such transferor
11461146 corporation shall be a llowed an exemption from taxable income of an
11471147 amount equal to the amount of royalty payment received as a result
11481148 of such transfer; provided, however, such amount shall not exceed
11491149 ten percent (10%) of the amount of gross proceeds received by such
11501150 transferor corporation as a result of the technology transfer. Such
11511151 exemption shall be allowed for a period not to exceed ten (10) years
11521152 from the date of receipt of the first royalty paym ent accruing from
11531153 such transfer. No exemption may be claimed for transfers of
11541154 technology to qualified small businesses made prior to January 1,
11551155 1988.
11561156 2. For purposes of this subsection:
11571157 a. "Qualified small business " means an entity, whether
11581158 organized as a corporation, partnership, or
11591159 proprietorship, organized for profit with its
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11861186 principal place of business located within this state
11871187 and which meets the following criteria:
11881188 (1) Capitalization of not more than Two Hundred Fifty
11891189 Thousand Dollars ($250,000.00),
11901190 (2) Having at least fifty percent (50%) of its
11911191 employees and assets located i n Oklahoma at the
11921192 time of the transfer, and
11931193 (3) Not a subsidiary or affiliate of the transferor
11941194 corporation;
11951195 b. "Technology" means a proprietary process, formula,
11961196 pattern, device or compilation of scientific or
11971197 technical information which is not in the public
11981198 domain;
11991199 c. "Transferor corporation " means a corporation which is
12001200 the exclusive and undisputed owner of the technology
12011201 at the time the transfer is made; and
12021202 d. "Gross proceeds" means the total amount of
12031203 consideration for the transfer of technology, whet her
12041204 the consideration is in money or otherwise.
12051205 D. 1. For taxable years beginning after December 31, 2005, the
12061206 taxable income of any corporation, estate or trust, shall be furt her
12071207 adjusted for qualifying gains receiving capital treatment. Such
12081208 corporations, estates or trusts shall be allowed a deduction from
12091209 Oklahoma taxable income for the amount of qualifying gains receiving
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12361236 capital treatment earned by the corporation, estate or trust during
12371237 the taxable year and included in the federal taxable income of such
12381238 corporation, estate or trust.
12391239 2. As used in this subsection:
12401240 a. "qualifying gains receiving capital treatment " means
12411241 the amount of net capital gains, as defined in Section
12421242 1222(11) of the Internal Revenue Code, included in the
12431243 federal income tax return of the corporation, estate
12441244 or trust that result from:
12451245 (1) the sale of real property or tangible personal
12461246 property located within Oklahoma that has been
12471247 directly or indirectly owned by the corporation,
12481248 estate or trust for a holding period of at least
12491249 five (5) years prior to the date of the
12501250 transaction from which such net capital gains
12511251 arise,
12521252 (2) the sale of stock or on the sale of an ownership
12531253 interest in an Oklahoma company, l imited
12541254 liability company, or partnership where such
12551255 stock or ownership interest has been directly or
12561256 indirectly owned by the corporation, estate or
12571257 trust for a holding period of at least three (3)
12581258 years prior to the date of the transaction from
12591259 which the net capital gains arise, or
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12861286 (3) the sale of real property, tangible personal
12871287 property or intangible personal property located
12881288 within Oklahoma as part of the sale of all or
12891289 substantially all of the assets of an Oklahoma
12901290 company, limited liability company, or
12911291 partnership where such property has been directly
12921292 or indirectly owned by such entity owned by the
12931293 owners of such entity, and used in or derived
12941294 from such entity for a period of at least three
12951295 (3) years prior to the date of the transaction
12961296 from which the net capital gains arise,
12971297 b. "holding period" means an uninterrupted period of
12981298 time. The holding period shall include any additional
12991299 period when the property was held by another
13001300 individual or entity, if such additional period is
13011301 included in the taxpayer 's holding period for the
13021302 asset pursuant to the Internal Revenue Code,
13031303 c. "Oklahoma company", "limited liability company ", or
13041304 "partnership" means an entity whose primary
13051305 headquarters have been located in Oklahoma for at
13061306 least three (3) uninterrupted years prio r to the date
13071307 of the transaction from which the net capital gains
13081308 arise,
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13351335 d. "direct" means the taxpayer directly owns the asset,
13361336 and
13371337 e. "indirect" means the taxpayer owns an interest in a
13381338 pass-through entity (or chain of pass -through
13391339 entities) that sells t he asset that gives rise to the
13401340 qualifying gains receiving capital treatment.
13411341 (1) With respect to sales of real property or
13421342 tangible personal property located within
13431343 Oklahoma, the deduction described in this
13441344 subsection shall not apply unless the pass -
13451345 through entity that makes the sale has held the
13461346 property for not less than five (5) uninterrupted
13471347 years prior to the date of the transaction that
13481348 created the capital gain, and each pass -through
13491349 entity included in the chain of ownership has
13501350 been a member, partne r, or shareholder of the
13511351 pass-through entity in the tier immediately below
13521352 it for an uninterrupted period of not less than
13531353 five (5) years.
13541354 (2) With respect to sales of stock or ownership
13551355 interest in or sales of all or substantially all
13561356 of the assets of an Oklahoma company, limited
13571357 liability company, or partnership, the deduction
13581358 described in this subsection shall not apply
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13851385 unless the pass-through entity that makes the
13861386 sale has held the stock or ownership interest or
13871387 the assets for not less than three (3)
13881388 uninterrupted years prior to the date of the
13891389 transaction that created the capital gain, and
13901390 each pass-through entity included in the chain of
13911391 ownership has been a member, partner or
13921392 shareholder of the pass -through entity in the
13931393 tier immediately below it for an uninterrupted
13941394 period of not less than three (3) years.
13951395 E. The Oklahoma adj usted gross income of any individual
13961396 taxpayer shall be further adjusted as follows to arrive at Oklahoma
13971397 taxable income:
13981398 1. a. In the case of individuals, there shall be added or
13991399 deducted, as the case may be, the difference necessary
14001400 to allow personal exemptions of One Thousand Dollars
14011401 ($1,000.00) in lieu of the personal exemptions allowed
14021402 by the Internal Revenue Code.
14031403 b. There shall be allowed an additional exemption of One
14041404 Thousand Dollars ($1,000.00) for each taxpayer or
14051405 spouse who is blind at the close of the tax year. For
14061406 purposes of this subparagraph, an individual is blind
14071407 only if the central visual acuity of the individual
14081408 does not exceed 20/200 in the better eye with
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14351435 correcting lenses, or if the visual acuity of the
14361436 individual is greater than 20/200, but is accompanied
14371437 by a limitation in the fields of vision such that the
14381438 widest diameter of the visual field subtends an angle
14391439 no greater than twenty (20) degrees.
14401440 c. There shall be allowed an additional exemption of One
14411441 Thousand Dollars ($1,000.00) for each taxpayer or
14421442 spouse who is sixty-five (65) years of age or older at
14431443 the close of the tax year based upon the filing status
14441444 and federal adjusted gross income of the taxpayer.
14451445 Taxpayers with the following filing status may claim
14461446 this exemption if the federal adjusted gross income
14471447 does not exceed:
14481448 (1) Twenty-five Thousand Dollars ($25,000.00) if
14491449 married and filing jointly,
14501450 (2) Twelve Thousand Five Hundred Dollars ($12,500.00)
14511451 if married and filing separately,
14521452 (3) Fifteen Thousand Dollars ($15,000.00) if single,
14531453 and
14541454 (4) Nineteen Thousand Dollars ($19,000.00) if a
14551455 qualifying head of household.
14561456 Provided, for taxable years beginning after December
14571457 31, 1999, amounts included in the c alculation of
14581458 federal adjusted gross income pursuant to the
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14851485 conversion of a traditional individual retirement
14861486 account to a Roth individual retirement account shall
14871487 be excluded from federal adjusted gross income for
14881488 purposes of the income thresholds provide d in this
14891489 subparagraph.
14901490 2. a. For taxable years beginning on or before Decembe r 31,
14911491 2005, in the case of individuals who use the standard
14921492 deduction in determining taxable income, there shall
14931493 be added or deducted, as the case may be, the
14941494 difference necessary to allow a standard deduction in
14951495 lieu of the standard deduction allowed by the Internal
14961496 Revenue Code, in an amount equal to the larger of
14971497 fifteen percent (15%) of the Oklahoma adjusted gross
14981498 income or One Thousand Dollars ($1,000.00), but not to
14991499 exceed Two Thousand Dollars ($2,000.00), except that
15001500 in the case of a married individu al filing a separate
15011501 return such deduction shall be the larger of fifteen
15021502 percent (15%) of such Oklahoma adjusted gross income
15031503 or Five Hundred Dollars ($500.00), but not to excee d
15041504 the maximum amount of One Thousand Dollars
15051505 ($1,000.00).
15061506 b. For taxable years beginning on or after January 1,
15071507 2006, and before January 1, 2007, in the case of
15081508 individuals who use the standard deduction in
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15351535 determining taxable income, there shall be added or
15361536 deducted, as the case may be, the difference necessary
15371537 to allow a standard deduction in lieu of the standard
15381538 deduction allowed by the Internal Revenue Code, in an
15391539 amount equal to:
15401540 (1) Three Thousand Dollars ($3,000.00), if the filing
15411541 status is married filing joint, head of household
15421542 or qualifying widow, or
15431543 (2) Two Thousand Dollars ($2,000.00), if the filing
15441544 status is single or married filing separate.
15451545 c. For the taxable year beginning on January 1, 2007, and
15461546 ending December 31, 2007, in the case of indiv iduals
15471547 who use the standard deduction in determining taxable
15481548 income, there shall be added or deducted, as the case
15491549 may be, the difference necessary to allow a standard
15501550 deduction in lieu of the standard deduction allowed by
15511551 the Internal Revenue Code, in an amount equal to:
15521552 (1) Five Thousand Five Hundred Dollars ($5,500.00),
15531553 if the filing status is married filing joint or
15541554 qualifying widow, or
15551555 (2) Four Thousand One Hundred Twenty -five Dollars
15561556 ($4,125.00) for a head of household, or
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15831583 (3) Two Thousand Seven Hundr ed Fifty Dollars
15841584 ($2,750.00), if the filing status is single or
15851585 married filing separate.
15861586 d. For the taxable year beginning on January 1, 2008, and
15871587 ending December 31, 2008, in the case of individuals
15881588 who use the standard deduction in determining taxable
15891589 income, there shall be added or deducted, as the case
15901590 may be, the difference necessary to allow a standard
15911591 deduction in lieu of the standard deduction allowed by
15921592 the Internal Revenue Code, in an amount equal to:
15931593 (1) Six Thousand Five Hundred Dollars ($6,500. 00), if
15941594 the filing status is married filing joint or
15951595 qualifying widow,
15961596 (2) Four Thousand Eight Hundred Seventy -five Dollars
15971597 ($4,875.00) for a head of household, or
15981598 (3) Three Thousand Two Hundred Fifty Dollars
15991599 ($3,250.00), if the filing status is single or
16001600 married filing separate.
16011601 e. For the taxable year beginning on January 1, 2009, and
16021602 ending December 31, 2009, in the case of individuals
16031603 who use the standard deduction in determining taxable
16041604 income, there shall be added or deducted, as the case
16051605 may be, the difference necessary to allow a standard
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16321632 deduction in lieu of the standard ded uction allowed by
16331633 the Internal Revenue Code, in an amount equal to:
16341634 (1) Eight Thousand Five Hundred Dollars ($8,500.00),
16351635 if the filing status is married filing joint or
16361636 qualifying widow,
16371637 (2) Six Thousand Three Hundred Seventy -five Dollars
16381638 ($6,375.00) for a head of household, or
16391639 (3) Four Thousand Two Hundred Fifty Dollars
16401640 ($4,250.00), if the filing status is single or
16411641 married filing separate.
16421642 Oklahoma adjusted gross income shall be increased by
16431643 any amounts paid for motor vehicle excise taxes which
16441644 were deducted as allowed by the Internal Revenue Code.
16451645 f. For taxable years beginning on or after January 1,
16461646 2010, and ending on December 31, 2016, in the case of
16471647 individuals who use the s tandard deduction in
16481648 determining taxable income, there shall be added or
16491649 deducted, as the case may be, the difference necessary
16501650 to allow a standard deduction equal to the standard
16511651 deduction allowed by the Internal Revenue Code, based
16521652 upon the amount and fi ling status prescribed by such
16531653 Code for purposes of filing federal individual income
16541654 tax returns.
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16811681 g. For taxable years beginning on or after January 1,
16821682 2017, in the case of individuals who use the standard
16831683 deduction in determining taxable income, there sha ll
16841684 be added or deducted, as the case may be, the
16851685 difference necessary to allow a standard deduction in
16861686 lieu of the standard deduction allowed by the Internal
16871687 Revenue Code, as follows:
16881688 (1) Six Thousand Three Hundred Fifty Dollars
16891689 ($6,350.00) for single or m arried filing
16901690 separately,
16911691 (2) Twelve Thousand Seven Hundred Dollars
16921692 ($12,700.00) for married filing jointly or
16931693 qualifying widower with dependent child, and
16941694 (3) Nine Thousand Three Hundred Fifty Dollars
16951695 ($9,350.00) for head of household.
16961696 3. a. In the case of resident and part-year resident
16971697 individuals having adjusted gross income from sources
16981698 both within and without the state, the itemized or
16991699 standard deductions and personal exemptions shall be
17001700 reduced to an amount which is the same portion of the
17011701 total thereof as Oklahoma adjusted gross income is of
17021702 adjusted gross income. To the ext ent itemized
17031703 deductions include allowable moving expense, proration
17041704 of moving expense shall not be required or permitted
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17311731 but allowable moving expense shall be fully deductible
17321732 for those taxpayers moving within or into Oklahoma and
17331733 no part of moving expense shall be deductible for
17341734 those taxpayers moving without or out of Oklahoma.
17351735 All other itemized or standard deductions and personal
17361736 exemptions shall be subject to proration as pr ovided
17371737 by law.
17381738 b. For taxable years beginning on or after January 1,
17391739 2018, the net amount of itemized deductions allowable
17401740 on an Oklahoma income tax return, subject to the
17411741 provisions of paragraph 24 of this subsection, shall
17421742 not exceed Seventeen Thousand D ollars ($17,000.00).
17431743 For purposes of this subparagraph, charitable
17441744 contributions and medical expenses deductible for
17451745 federal income tax purposes shall be excluded from the
17461746 amount of Seventeen Thousand Dollars ($17,000.00) as
17471747 specified by this subparagraph .
17481748 4. A resident individual with a physical disability
17491749 constituting a substant ial handicap to employment may deduct from
17501750 Oklahoma adjusted gross income such expenditures to modify a motor
17511751 vehicle, home or workplace as are necessary to compensate for his or
17521752 her handicap. A veteran certified by the Department of Veterans
17531753 Affairs of the federal government as having a service -connected
17541754 disability shall be conclusively presumed to be an individual with a
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17811781 physical disability constituting a substantial handicap t o
17821782 employment. The Tax Commission shall promulgate rules containing a
17831783 list of combinations of common disabilities and modifications which
17841784 may be presumed to qualify for this deduction. The Tax Commission
17851785 shall prescribe necessary requirements for verifica tion.
17861786 5. a. Before July 1, 2010, the first One Thousand Five
17871787 Hundred Dollars ($1,500.00) received by any person
17881788 from the United States as salary or compensation in
17891789 any form, other than retirement benefits, as a member
17901790 of any component of the Armed Forces o f the United
17911791 States shall be deducted from taxable income.
17921792 b. On or after July 1, 2010, one hundred percent (100%)
17931793 of the income received by any person from the United
17941794 States as salary or compensation in any form, other
17951795 than retirement benefits, as a membe r of any component
17961796 of the Armed Forces of the United States shall be
17971797 deducted from taxable income.
17981798 c. Whenever the filing of a timely income tax return by a
17991799 member of the Armed Forces of the United States is
18001800 made impracticable or impossible of accomplishme nt by
18011801 reason of:
18021802 (1) absence from the United States, which term
18031803 includes only the states and the District of
18041804 Columbia,
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18311831 (2) absence from the State of Oklahoma while on
18321832 active duty, or
18331833 (3) confinement in a hospital within the United
18341834 States for treatment of w ounds, injuries or
18351835 disease,
18361836 the time for filing a return and paying an income tax
18371837 shall be and is hereby extended without incurring
18381838 liability for interest or penalties, to the fifteenth
18391839 day of the third month following the month in which:
18401840 (a) Such individual shall return to the United
18411841 States if the extension is granted pursuant
18421842 to subparagraph a of this paragraph, return
18431843 to the State of Oklahoma if the extension is
18441844 granted pursuant to subparagraph b of this
18451845 paragraph or be discharged from such
18461846 hospital if the extension is granted
18471847 pursuant to subparagraph c of this
18481848 paragraph, or
18491849 (b) An executor, administrator, or conservator
18501850 of the estate of the taxpayer is appointed,
18511851 whichever event occurs the earliest.
18521852 Provided, that the Tax Commission may, in its discretio n, grant
18531853 any member of the Armed Forces of the United States an extension of
18541854 time for filing of income tax returns and payment of income tax
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18811881 without incurring liabilities for interest or penalties. Such
18821882 extension may be granted only when in the judgment o f the Tax
18831883 Commission a good cause exists therefor and may be for a period in
18841884 excess of six (6) months. A record of every such extension granted,
18851885 and the reason therefor, shall be kept.
18861886 6. Before July 1, 2010, the salary or any other form of
18871887 compensation, received from the United States by a member of any
18881888 component of the Armed For ces of the United States, shall be
18891889 deducted from taxable income during the time in which the person is
18901890 detained by the enemy in a conflict, is a prisoner of war or is
18911891 missing in action and not deceased; provided, after July 1, 2010,
18921892 all such salary or compensation shall be subject to the deduction as
18931893 provided pursuant to paragraph 5 of this subsection.
18941894 7. a. An individual taxpayer, whether resident or
18951895 nonresident, may deduct an am ount equal to the federal
18961896 income taxes paid by the taxpayer during the taxable
18971897 year.
18981898 b. Federal taxes as described in subparagraph a of this
18991899 paragraph shall be deductible by any individual
19001900 taxpayer, whether resident or nonresident, only to the
19011901 extent they relate to income subject to taxation
19021902 pursuant to the provisions of the Oklahoma Income Tax
19031903 Act. The maximum amount allowable in the preceding
19041904 paragraph shall be prorated on the ratio of the
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19311931 Oklahoma adjusted gross income to federal adjusted
19321932 gross income.
19331933 c. For the purpose of this paragraph, "federal income
19341934 taxes paid" shall mean federal income taxes, surtaxes
19351935 imposed on incomes or excess profits taxes, as though
19361936 the taxpayer was on the accrual basis. In determining
19371937 the amount of deduction for federal inc ome taxes for
19381938 tax year 2001, the amount of the deduction shall not
19391939 be adjusted by the amount of any accelerated ten
19401940 percent (10%) tax rate bracket credit or advanced
19411941 refund of the credit received during the tax year
19421942 provided pursuant to the federal Economi c Growth and
19431943 Tax Relief Reconciliation Act of 2001, P.L. No. 107 -
19441944 16, and the advanced refund of such credit shall not
19451945 be subject to taxation.
19461946 d. The provisions of this paragraph shall apply to all
19471947 taxable years ending after December 31, 1978, and
19481948 beginning before January 1, 2006.
19491949 8. Retirement benefits not to exceed Five Thousand Five Hundred
19501950 Dollars ($5,500.00) for the 2004 tax year, Seven Thousand Five
19511951 Hundred Dollars ($7,500.00) for the 2005 tax year , and Ten Thousand
19521952 Dollars ($10,000.00) for the 2006 through 2024 tax years, and Twenty
19531953 Thousand Dollars ($20,000.00) for the 2025 tax year and all
19541954 subsequent tax years, which are received by an individual from the
19551955
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19811981 civil service of the United States, the Oklahoma Public Employees
19821982 Retirement System, the Teache rs' Retirement System of Oklahoma, the
19831983 Oklahoma Law Enforcement Retirement System, the Oklahoma
19841984 Firefighters Pension and Retirement System, the Oklahoma Police
19851985 Pension and Retirement System, the employee retirement systems
19861986 created by counties pursuant to S ection 951 et seq. of Title 19 of
19871987 the Oklahoma Statutes, the Uniform Retiremen t System for Justices
19881988 and Judges, the Oklahoma Wildlife Conservation Department Retirement
19891989 Fund, the Oklahoma Employment Security Commission Retirement Plan,
19901990 or the employee reti rement systems created by municipalities
19911991 pursuant to Section 48 -101 et seq. of Title 11 of the Oklahoma
19921992 Statutes shall be exempt from taxable income.
19931993 9. In taxable years beginning after December 3l, 1984, Social
19941994 Security benefits received by an individual shall be exempt from
19951995 taxable income, to the extent such benefits are included in the
19961996 federal adjusted gross income pursuant to the provisions of Section
19971997 86 of the Internal Revenue Code, 26 U.S.C., Section 86.
19981998 10. For taxable years beginning after Decembe r 31, 1994, lump-
19991999 sum distributions from employer plans of deferred compensation,
20002000 which are not qualified plans within the meaning of Section 401(a)
20012001 of the Internal Revenue Code, 26 U.S.C., Section 401(a), and which
20022002 are deposited in and accounted for within a separate bank account or
20032003 brokerage account in a financial institution withi n this state,
20042004 shall be excluded from taxable income in the same manner as a
20052005
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20312031 qualifying rollover contribution to an individual retirement account
20322032 within the meaning of Section 408 of the Internal Revenue Code, 26
20332033 U.S.C., Section 408. Amounts withdrawn from such bank or brokerage
20342034 account, including any earnings thereon, shall be included in
20352035 taxable income when withdrawn in the same manner as withdrawals from
20362036 individual retirement a ccounts within the meaning of Section 408 of
20372037 the Internal Revenue Code.
20382038 11. In taxable years beginning after December 31, 1995,
20392039 contributions made to and interest received from a medical savings
20402040 account established pursuant to Sections 2621 through 2623 o f Title
20412041 63 of the Oklahoma Statutes shall be exempt from taxable income.
20422042 12. For taxable years beginning after December 31, 1996, the
20432043 Oklahoma adjusted gross income of any individual taxpayer who is a
20442044 swine or poultry producer may be further adjusted for the deduction
20452045 for depreciation allowed for new construction or expansion costs
20462046 which may be computed using the same depreciation method elected for
20472047 federal income tax purposes except that the useful life shall be
20482048 seven (7) years for purposes of this paragr aph. If depreciation is
20492049 allowed as a deduction in determining the adjusted gross income of
20502050 an individual, any depreciation calculated and claimed pursuant to
20512051 this section shall in no event be a duplication of any depreciation
20522052 allowed or permitted on the f ederal income tax return of the
20532053 individual.
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20802080 13. a. In taxable years beginning before January 1, 2005,
20812081 retirement benefits not to exceed the amounts
20822082 specified in this paragraph, which are received by an
20832083 individual sixty-five (65) years of age or older and
20842084 whose Oklahoma adjusted gross income is Twenty -five
20852085 Thousand Dollars ($25,000.00) or less if the filing
20862086 status is single, head of household, or married filing
20872087 separate, or Fifty Thousand Dollars ($50,000.00) or
20882088 less if the filing status is married filing jo int or
20892089 qualifying widow, shall be exempt from taxable income.
20902090 In taxable years beginning after December 31, 2004,
20912091 retirement benefits not to exceed the amounts
20922092 specified in this paragraph, which are received by an
20932093 individual whose Oklahoma adjusted gross income is
20942094 less than the qualifying amount specified in this
20952095 paragraph, shall be exempt from taxable income.
20962096 b. For purposes of this paragraph, the qualifying amount
20972097 shall be as follows:
20982098 (1) in taxable years beginning after December 31,
20992099 2004, and prior to J anuary 1, 2007, the
21002100 qualifying amount shall be Thirty -seven Thousand
21012101 Five Hundred Dollars ($37,500.00) or less if the
21022102 filing status is single, head of household, or
21032103 married filing separate, or Seventy -five Thousand
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21302130 Dollars ($75,000.00) or less if the filin g status
21312131 is married filing jointly or qualifying widow,
21322132 (2) in the taxable year beginning January 1, 2007,
21332133 the qualifying amount shall be Fifty Thousand
21342134 Dollars ($50,000.00) or less if the filing status
21352135 is single, head of household, or married filing
21362136 separate, or One Hundred Thousand Dollars
21372137 ($100,000.00) or less if the filing statu s is
21382138 married filing jointly or qualifying widow,
21392139 (3) in the taxable year beginning January 1, 2008,
21402140 the qualifying amount shall be Sixty -two Thousand
21412141 Five Hundred Dollars ($62,50 0.00) or less if the
21422142 filing status is single, head of household, or
21432143 married filing separate, or One Hundred Twenty -
21442144 five Thousand Dollars ($125,000.00) or less if
21452145 the filing status is married filing jointly or
21462146 qualifying widow,
21472147 (4) in the taxable year begin ning January 1, 2009,
21482148 the qualifying amount shall be One Hundred
21492149 Thousand Dollars ($100,000.00) or less if the
21502150 filing status is single, head of household, or
21512151 married filing separate, or Two Hundred Thousand
21522152 Dollars ($200,000.00) or less if the filing
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21792179 status is married filing jointly or qualifying
21802180 widow, and
21812181 (5) in the taxable year beginning January 1, 2010,
21822182 and subsequent taxable years, there shall be no
21832183 limitation upon the qualifying amount.
21842184 c. For purposes of this paragraph, "retirement benefits"
21852185 means the total distributions or withdrawals from the
21862186 following:
21872187 (1) an employee pension benefit plan which satisfies
21882188 the requirements of Section 401 of the Internal
21892189 Revenue Code, 26 U.S.C., Section 401,
21902190 (2) an eligible deferred compensation plan that
21912191 satisfies the requirements of Section 457 of the
21922192 Internal Revenue Code, 26 U.S.C., Section 457,
21932193 (3) an individual retirement account, annuity or
21942194 trust or simplified employee pension that
21952195 satisfies the requirements of Section 408 of the
21962196 Internal Revenue Code, 26 U.S.C. , Section 408,
21972197 (4) an employee annuity subject to the provisions of
21982198 Section 403(a) or (b) of the Internal Revenue
21992199 Code, 26 U.S.C., Section 403(a) or (b),
22002200 (5) United States Retirement Bonds which satisfy the
22012201 requirements of Section 86 of the Internal
22022202 Revenue Code, 26 U.S.C., Section 86, or
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22292229 (6) lump-sum distributions from a retirement plan
22302230 which satisfies the requirements of Section
22312231 402(e) of the Internal Revenue Code, 26 U.S.C.,
22322232 Section 402(e).
22332233 d. The amount of the exemption provided by this paragraph
22342234 shall be limited to Five Thousand Five Hundred Dollars
22352235 ($5,500.00) for the 2004 tax year, Seven Thousand Five
22362236 Hundred Dollars ($7,500.00) for the 2005 tax year , and
22372237 Ten Thousand Dollars ($10,000.00) for the tax year
22382238 2006 through 2024 tax years, and Twenty Thousa nd
22392239 Dollars ($20,000.00) for the 2025 tax year and for all
22402240 subsequent tax years. Any individual who claims the
22412241 exemption provided for in paragraph 8 of this
22422242 subsection shall not be permitted to claim a combined
22432243 total exemption pursuant to this paragraph an d
22442244 paragraph 8 of this subsection in an amount exceeding
22452245 Five Thousand Five Hun dred Dollars ($5,500.00) for the
22462246 2004 tax year, Seven Thousand Five Hundred Dollars
22472247 ($7,500.00) for the 2005 tax year , and Ten Thousand
22482248 Dollars ($10,000.00) for the 2006 through 2024 tax
22492249 years, and Twenty Thousand Dollars ($20,000.00) for
22502250 the 2025 tax year and all subsequent tax years.
22512251 14. In taxable years beginning after December 31, 1999, for an
22522252 individual engaged in production agriculture who has filed a
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22792279 Schedule F form with t he taxpayer's federal income tax return for
22802280 such taxable year, there shall be excluded from taxable income any
22812281 amount which was included as federal taxable income or federal
22822282 adjusted gross income and which consists of the discharge of an
22832283 obligation by a creditor of the taxpayer incurred to finance the
22842284 production of agricultural products.
22852285 15. In taxable years beginning December 31, 2000, an amount
22862286 equal to one hundred percent (100%) of the amount of any scholarship
22872287 or stipend received from participation in the Oklahoma Police Corps
22882288 Program, as established in Section 2 -140.3 of Title 47 of the
22892289 Oklahoma Statutes shall be exempt from taxable income.
22902290 16. a. In taxable years beginning after December 31, 2001,
22912291 and before January 1, 2005, there shall be allowed a
22922292 deduction in the amount of contributions to accounts
22932293 established pursuant to the Oklahoma College Savings
22942294 Plan Act. The deduction shall equal the amount of
22952295 contributions to accounts, but in no event shall the
22962296 deduction for each contributor exceed Two Thous and
22972297 Five Hundred Dollars ($2,500.00) each taxable year for
22982298 each account.
22992299 b. In taxable years beginning after December 31, 2004,
23002300 each taxpayer shall be allowed a deduction for
23012301 contributions to accounts established pursuant to the
23022302 Oklahoma College Savings Pl an Act. The maximum annual
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23292329 deduction shall equal the amount of contributions to
23302330 all such accounts plus any contributions to such
23312331 accounts by the taxpayer for prior taxable years after
23322332 December 31, 2004, which were not deducted, but in no
23332333 event shall the deduction for each tax year exceed Ten
23342334 Thousand Dollars ($10,000.00) for each i ndividual
23352335 taxpayer or Twenty Thousand Dollars ($20,000.00) for
23362336 taxpayers filing a joint return. Any amount of a
23372337 contribution that is not deducted by the taxpayer in
23382338 the year for which the contribution is made may be
23392339 carried forward as a deduction from income for the
23402340 succeeding five (5) years. For taxable years
23412341 beginning after December 31, 2005, deductions may be
23422342 taken for contributions and rollovers made during a
23432343 taxable year and up to April 15 of the succeeding
23442344 year, or the due date of a taxpayer 's state income tax
23452345 return, excluding extensions, whichever is later.
23462346 Provided, a deduction for the same contribution may
23472347 not be taken for two (2) different taxable years.
23482348 c. In taxable years beginning after December 31, 2006,
23492349 deductions for contributions made pursuant to
23502350 subparagraph b of this paragraph shall be limited as
23512351 follows:
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23782378 (1) for a taxpayer who qualified for the five -year
23792379 carryforward election and who takes a rollover or
23802380 nonqualified withdrawal during that period, the
23812381 tax deduction otherwise available p ursuant to
23822382 subparagraph b of this paragraph shall be reduced
23832383 by the amount which is equal to the rollover or
23842384 nonqualified withdrawal, and
23852385 (2) for a taxpayer who elects to take a rollover or
23862386 nonqualified withdrawal within the same tax year
23872387 in which a contribution was made to the
23882388 taxpayer's account, the tax deduction otherwise
23892389 available pursuant to subparagraph b of this
23902390 paragraph shall be reduced by the amount of the
23912391 contribution which is equal to the rollover or
23922392 nonqualified withdrawal.
23932393 d. If a taxpayer elects to take a rollover on a
23942394 contribution for which a deduction has been taken
23952395 pursuant to subparagraph b of this paragraph within
23962396 one (1) year of the date of contribution, the am ount
23972397 of such rollover shall be included in the adjusted
23982398 gross income of the taxpayer in the taxable year of
23992399 the rollover.
24002400 e. If a taxpayer makes a nonqualified withdrawal of
24012401 contributions for which a deduction was taken pursuant
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24282428 to subparagraph b of this p aragraph, such nonqualified
24292429 withdrawal and any earnings thereon shall be inclu ded
24302430 in the adjusted gross income of the taxpayer in the
24312431 taxable year of the nonqualified withdrawal.
24322432 f. As used in this paragraph:
24332433 (1) "non-qualified withdrawal " means a withdrawal
24342434 from an Oklahoma College Savings Plan account
24352435 other than one of the following:
24362436 (a) a qualified withdrawal,
24372437 (b) a withdrawal made as a result of the death
24382438 or disability of the designated beneficiary
24392439 of an account,
24402440 (c) a withdrawal that is made on the acc ount of
24412441 a scholarship or the allowance or payment
24422442 described in Section 135(d)( 1)(B) or (C) or
24432443 by the Internal Revenue Code, received by
24442444 the designated beneficiary to the extent the
24452445 amount of the refund does not exceed the
24462446 amount of the scholarship, allowan ce, or
24472447 payment, or
24482448 (d) a rollover or change of designated
24492449 beneficiary as permitted by subsection F of
24502450 Section 3970.7 of Title 70 of Oklahoma
24512451 Statutes, and
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24782478 (2) "rollover" means the transfer of funds from the
24792479 Oklahoma College Savings Plan to any other plan
24802480 under Section 529 of the Internal Revenue Code.
24812481 17. For tax years 2006 through 2021, retirement benefits
24822482 received by an individual from any component of the Armed Forces of
24832483 the United States in an amount not to exceed the greater of seventy -
24842484 five percent (75%) of such benefits or Ten Thousand Dollars
24852485 ($10,000.00) shall be exempt from taxable income but in no case less
24862486 than the amount of the exemption provided by paragraph 13 of this
24872487 subsection. For tax year 2022 and subsequent tax years, retirement
24882488 benefits received by an individual from any component of the Armed
24892489 Forces of the United States shall be exempt from taxable income.
24902490 18. For taxable years beginning after December 31, 2006,
24912491 retirement benefits received by federal civil service retirees,
24922492 including survivor annuities, paid in lieu of Social Security
24932493 benefits shall be exempt from taxable income to the extent such
24942494 benefits are included in the federal adjusted gross income pursuant
24952495 to the provisions of Section 86 of the Internal Revenue Code, 26
24962496 U.S.C., Section 86, according to the following schedule:
24972497 a. in the taxable year begin ning January 1, 2007, twenty
24982498 percent (20%) of such benefits shall be exempt,
24992499 b. in the taxable year beginning January 1, 2008, forty
25002500 percent (40%) of such benefits shall be exemp t,
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25272527 c. in the taxable year beginning January 1, 2009, sixty
25282528 percent (60%) of such benefits shall be exempt,
25292529 d. in the taxable year beginning January 1, 2010, eighty
25302530 percent (80%) of such benefits shall be exempt, and
25312531 e. in the taxable year beginning January 1, 2011, and
25322532 subsequent taxable years, one hundred percent (100%)
25332533 of such benefits shall be exempt.
25342534 19. a. For taxable years beginning after December 31, 2007, a
25352535 resident individual may deduct up to Ten Thousand
25362536 Dollars ($10,000.00) from Oklahoma adjusted gross
25372537 income if the individual, or the dependent of the
25382538 individual, while living, donates one or more human
25392539 organs of the individual to another human being for
25402540 human organ transplantation. As used in this
25412541 paragraph, "human organ" means all or part of a l iver,
25422542 pancreas, kidney, intestine, lung, or bone marrow. A
25432543 deduction that is claimed under this paragraph may be
25442544 claimed in the taxable year in which the human organ
25452545 transplantation occurs.
25462546 b. An individual may claim this deduction only once, and
25472547 the deduction may be claimed only for unreimbursed
25482548 expenses that are incurred by the individual and
25492549 related to the organ donation of the individual.
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25762576 c. The Oklahoma Tax Commission shall promulgate rules to
25772577 implement the provisions of this paragraph which shall
25782578 contain a specific list of expenses which may be
25792579 presumed to qualify for the dedu ction. The Tax
25802580 Commission shall prescribe necessary requirements for
25812581 verification.
25822582 20. For taxable years beginning after December 31, 2009, there
25832583 shall be exempt from taxable i ncome any amount received by the
25842584 beneficiary of the death benefit for an emergency medical technician
25852585 or a registered emergency medical responder provided by Section 1 -
25862586 2505.1 of Title 63 of the Oklahoma Statutes.
25872587 21. For taxable years beginning after Dece mber 31, 2008,
25882588 taxable income shall be increased by any unemployment compensat ion
25892589 exempted under Section 85(c) of the Internal Revenue Code, 26
25902590 U.S.C., Section 85(c)(2009).
25912591 22. For taxable years beginning after December 31, 2008, there
25922592 shall be exempt from taxable income any payment in an amount less
25932593 than Six Hundred Dollars ($600.00) received by a person as an award
25942594 for participation in a competitive livestock show event. For
25952595 purposes of this paragraph, the payment shall be treated as a
25962596 scholarship amount paid by the entity sponsoring the event and the
25972597 sponsoring entity shall caus e the payment to be categorized as a
25982598 scholarship in its books and records.
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26252625 23. For taxable years beginning on or after January 1, 2016,
26262626 taxable income shall be increased by any amount of state and local
26272627 sales or income taxes deducted under 26 U.S.C., Section 164 of the
26282628 Internal Revenue Code. If the amount of state and local taxes
26292629 deducted on the federal return is limited, taxable income on the
26302630 state return shall be increased onl y by the amount actually deducted
26312631 after any such limitations are applied.
26322632 24. For taxable years beginning after December 31, 2020, each
26332633 taxpayer shall be allowed a deduction for contributions to accounts
26342634 established pursuant to the Achieving a Better Life Experience
26352635 (ABLE) Program as established in Section 4001.1 et seq. of Title 56
26362636 of the Oklahoma Statutes. For any tax year, the deduction provided
26372637 for in this paragraph shall not exceed Ten Thousand Dollars
26382638 ($10,000.00) for an individual taxpayer or Twent y Thousand Dollars
26392639 ($20,000.00) for taxpayers filing a joint return. Any amou nt of
26402640 contribution not deducted by the taxpayer in the tax year for which
26412641 the contribution is made may be carried forward as a deduction from
26422642 income for up to five (5) tax years. Deductions may be taken for
26432643 contributions made during the tax year and through April 15 of the
26442644 succeeding tax year, or through the due date of a taxpayer 's state
26452645 income tax return excluding extensions, whichever is later.
26462646 Provided, a deduction for the s ame contribution may not be taken in
26472647 more than one (1) tax year.
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26742674 F. 1. For taxable years beginning after December 31, 2004, a
26752675 deduction from the Oklahoma adjusted gross income of any individual
26762676 taxpayer shall be allowed for qualifying gains receiving cap ital
26772677 treatment that are included in the federal adjusted gross income of
26782678 such individual taxpayer during the taxable year.
26792679 2. As used in this subsection:
26802680 a. "qualifying gains receiving capital treatment " means
26812681 the amount of net capital gains, as defined i n Section
26822682 1222(11) of the Internal Revenue Code, included in an
26832683 individual taxpayer's federal income tax return that
26842684 result from:
26852685 (1) the sale of real property or tangible personal
26862686 property located within Oklahoma that has been
26872687 directly or indirectly owned by the individual
26882688 taxpayer for a holding period of at least five
26892689 (5) years prior to the date of the transaction
26902690 from which such net capital gains arise,
26912691 (2) the sale of stock or the sale of a direct or
26922692 indirect ownership interest in an Oklahoma
26932693 company, limited liability company, or
26942694 partnership where such stock or ownership
26952695 interest has been directly or indirectly owned by
26962696 the individual taxpayer for a holding period of
26972697 at least two (2) years prior to the date of the
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27242724 transaction from which the net capital gains
27252725 arise, or
27262726 (3) the sale of real property, tangible personal
27272727 property or intangible personal property located
27282728 within Oklahoma as part of the sale of all or
27292729 substantially all of the assets of an Oklahoma
27302730 company, limited liability company, or
27312731 partnership or an Oklahoma proprietorship
27322732 business enterprise where such property has be en
27332733 directly or indirectly owned by such entity or
27342734 business enterprise or owned by the owners of
27352735 such entity or business enterprise for a period
27362736 of at least two (2) years prior to the date of
27372737 the transaction from which the net capital gains
27382738 arise,
27392739 b. "holding period" means an uninterrupted period of
27402740 time. The holding period shall include any additional
27412741 period when the property was held by another
27422742 individual or entity, if such addi tional period is
27432743 included in the taxpayer 's holding period for the
27442744 asset pursuant to the Internal Revenue Code,
27452745 c. "Oklahoma company," "limited liability company, " or
27462746 "partnership" means an entity whose primary
27472747 headquarters have been located in Oklahoma fo r at
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27742774 least three (3) uninterrupted years prior to the date
27752775 of the transaction from which the net capital gains
27762776 arise,
27772777 d. "direct" means the individual taxpayer directly owns
27782778 the asset,
27792779 e. "indirect" means the individual taxpayer owns an
27802780 interest in a pass-through entity (or chain of pass -
27812781 through entities) that sells the asset that g ives rise
27822782 to the qualifying gains receiving capital treatment.
27832783 (1) With respect to sales of real property or
27842784 tangible personal property located within
27852785 Oklahoma, the deduction des cribed in this
27862786 subsection shall not apply unless the pass -
27872787 through entity that makes the sale has held the
27882788 property for not less than five (5) uninterrupted
27892789 years prior to the date of the transaction that
27902790 created the capital gain, and each pass -through
27912791 entity included in the chain of ownership has
27922792 been a member, partner, or sharehold er of the
27932793 pass-through entity in the tier immediately below
27942794 it for an uninterrupted period of not less than
27952795 five (5) years.
27962796 (2) With respect to sales of stock or ownership
27972797 interest in or sales of all or substantially all
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28242824 of the assets of an Oklahoma company, limited
28252825 liability company, partnership or Oklahoma
28262826 proprietorship business enterprise, the deduction
28272827 described in this subsection shall not apply
28282828 unless the pass-through entity that makes the
28292829 sale has held the stock or ownership interest for
28302830 not less than two (2) uninterrupted years prior
28312831 to the date of the transaction that created the
28322832 capital gain, and each pass -through entity
28332833 included in the chain of ownership has been a
28342834 member, partner or shareholder of the pass -
28352835 through entity in the tier immediately below it
28362836 for an uninterrupted period of not less than two
28372837 (2) years. For purposes of this division,
28382838 uninterrupted ownership prior to July 1, 2007,
28392839 shall be included in the deter mination of the
28402840 required holding period prescribed by this
28412841 division, and
28422842 f. "Oklahoma proprietorship business enterprise " means a
28432843 business enterprise whose income and expenses have
28442844 been reported on Schedule C or F of an individual
28452845 taxpayer's federal income tax return, or any similar
28462846 successor schedule published by the Internal Revenue
28472847 Service and whose primary headquarters have been
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28742874 located in Oklahoma for at least three (3)
28752875 uninterrupted years prior to the date of the
28762876 transaction from which the net capital gains arise.
28772877 G. 1. For purposes of computing its Oklahoma taxable income
28782878 under this section, the dividends -paid deduction otherwise allowed
28792879 by federal law in computing net income of a real estate investment
28802880 trust that is subject to federal income tax sh all be added back in
28812881 computing the tax imposed by this state under this title if the real
28822882 estate investment trust is a captive real estate investment trust.
28832883 2. For purposes of computing its Oklahoma taxable income under
28842884 this section, a taxpayer shall add back otherwise deductible rents
28852885 and interest expenses paid to a captive real e state investment trust
28862886 that is not subject to the provisions of paragraph 1 of this
28872887 subsection. As used in this subsection:
28882888 a. the term "real estate investment trust " or "REIT"
28892889 means the meaning ascribed to such term in Section 856
28902890 of the Internal Revenue Code,
28912891 b. the term "captive real estate investment trust " means
28922892 a real estate investment trust, the shares or
28932893 beneficial interests of which are not regularly traded
28942894 on an established securities market and more than
28952895 fifty percent (50%) of the voting power o r value of
28962896 the beneficial interests or shares of which are owned
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29232923 or controlled, directly or indirectly, or
29242924 constructively, by a single entity that is:
29252925 (1) treated as an associati on taxable as a
29262926 corporation under the Internal Revenue Code, and
29272927 (2) not exempt from federal income tax pursuant to
29282928 the provisions of Section 501(a) of the Internal
29292929 Revenue Code.
29302930 The term shall not include a real estate investment
29312931 trust that is intended to be regularly traded on an
29322932 established securities market, and that satisfies t he
29332933 requirements of Section 856(a)(5) and (6) of the U.S.
29342934 Internal Revenue Code by reason of Section 856(h)(2)
29352935 of the Internal Revenue Code,
29362936 c. the term "association taxable as a corporation" shall
29372937 not include the following entities:
29382938 (1) any real estate investment trust as defined in
29392939 paragraph a of this subsection other than a
29402940 "captive real estate investment trust ",
29412941 (2) any qualified real estate investment trust
29422942 subsidiary under Section 856(i) of the Internal
29432943 Revenue Code, other than a qualified REIT
29442944 subsidiary of a "captive real estate investment
29452945 trust",
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29722972 (3) any Listed Australian Property Trust (meaning an
29732973 Australian unit trust registered as a "Managed
29742974 Investment Scheme" under the Australian
29752975 Corporations Act in which the principal class of
29762976 units is listed on a recognized stock exchange in
29772977 Australia and is regularly traded on an
29782978 established securities market), or an entity
29792979 organized as a trust, provided that a Listed
29802980 Australian Property Trust owns or controls,
29812981 directly or indirectly, seventy -five percent
29822982 (75%) or more of the voting power or value of the
29832983 beneficial interests or shares of such trust, or
29842984 (4) any Qualified Foreign Entity, meaning a
29852985 corporation, trust, association or partn ership
29862986 organized outside the laws of the United States
29872987 and which satisfies the following criteria:
29882988 (a) at least seventy-five percent (75%) of the
29892989 entity's total asset value at the close of
29902990 its taxable year is represented by real
29912991 estate assets, as defined i n Section
29922992 856(c)(5)(B) of the Internal Revenue Code,
29932993 thereby including shares or certificates of
29942994 beneficial interest in any real estate
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30213021 investment trust, cash and cash equivalents,
30223022 and U.S. Government securities,
30233023 (b) the entity receives a dividend -paid
30243024 deduction comparable to Section 561 of the
30253025 Internal Revenue Code, or is exempt from
30263026 entity level tax,
30273027 (c) the entity is required to distribute at
30283028 least eighty-five percent (85%) of its
30293029 taxable income, as computed in the
30303030 jurisdiction in which it is organized, to
30313031 the holders of its shares or certificates of
30323032 beneficial interest on an annu al basis,
30333033 (d) not more than ten percent (10%) of the
30343034 voting power or value in such entity is held
30353035 directly or indirectly or constructively by
30363036 a single entity or individual, or th e shares
30373037 or beneficial interests of such entity are
30383038 regularly traded on an established
30393039 securities market, and
30403040 (e) the entity is organized in a country which
30413041 has a tax treaty with the United States.
30423042 3. For purposes of this subsection, the constructive owne rship
30433043 rules of Section 318(a) of the Internal Revenue Code, as modified by
30443044 Section 856(d)(5) of the Internal Revenue Code, shall apply in
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30713071 determining the ownership of stock, assets, or net profits of any
30723072 person.
30733073 4. A real estate investment trust that does not become
30743074 regularly traded on an established securities market within one (1)
30753075 year of the date on which it first becomes a real estate investment
30763076 trust shall be deemed not to have been regularly traded on an
30773077 established securities market, retroactive to the date it first
30783078 became a real estate investment trust, and shall file an ame nded
30793079 return reflecting such retroactive designation for any tax year or
30803080 part year occurring during its initial year of status as a real
30813081 estate investment trust. For purposes of this subsection, a real
30823082 estate investment trust becomes a real estate investment trust on
30833083 the first day it has both met the requirements of Section 856 of the
30843084 Internal Revenue Code and has elected to be treated as a real estate
30853085 investment trust pursuant to Section 856(c)(1) of the Internal
30863086 Revenue Code.
30873087 SECTION 2. This act shall become effective November 1, 2025.
30883088
30893089 60-1-11240 AO 12/16/24