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Oklahoma House Bill HB1927

Oklahoma 2025 Regular Session

Oklahoma House Bill HB1927 Compare Versions

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2828 STATE OF OKLAHOMA
2929
3030 1st Session of the 60th Legislature (2025)
3131
3232 HOUSE BILL 1927 By: Wilk
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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 155, Chapter 452, O.S.L. 2024 (68 O.S. Supp. 2024,
4343 Section 2358), which relates to Oklahoma taxable
4444 income and Oklahoma adjusted gross income; providing
4545 exemption for retirement income; and providing an
4646 effective date.
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5252 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
5353 SECTION 1. AMENDATORY 68 O.S. 2021, Section 2358, as
5454 last amended by Section 155, Chapter 452, 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 adjusted to
6161 arrive at Oklahoma taxable in come for corporations and Oklahoma
6262 adjusted gross income for individuals, as f ollows:
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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 fe deral net operating loss deduction shall
9999 be adjusted as follows:
100100 a. For carryovers and carrybacks to taxable years
101101 beginning before January 1, 1981, 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 sustained 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 allowed 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 Code, 26 U.S.C., Section 172, as
143143 modified by the Oklahoma Income Tax Act, Section 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 t o
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 income ". 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 3 1,
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, whet her 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 p roperty, shall be
199199 allocated in accordance with 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 property, shall
204204 be allocated in accor dance 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 f or
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 loss es 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, capital or
258258 ordinary gains or losses fr om 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 section,
297297 (3) income from such proper ty 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 act ivity 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 processing
307307 enterprise the business of w hich 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 sto red 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 warehouses
345345 within the state where the sh ipment to such
346346 warehouses is not covered by "in transit"
347347 tariffs, as prescribe d and allowed by the
348348 Interstate Commerce Commission, to a purchaser
349349 within or without the state,
350350 the Oklahoma net income shall, at the option of the
351351 taxpayer, be that portion of the total net income of
352352 the 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 sales
355355 defined in this section made to the purchaser within
356356 the state to the total sal es everywhere. The term
357357 "public warehouse" as used in this subparagraph means
358358 a licensed public warehouse, the principal business of
359359 which is warehousing merchandise for the public;
360360 e. In the case of insurance companies, Oklahoma taxable
361361 income shall be taxable income of the taxpayer for
362362 federal tax purposes, as adjusted for the adjustments
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389389 provided pursuant to the provisions of paragraphs 1
390390 and 2 of this subsection, apportioned as follows:
391391 (1) except as otherwise provided by division (2) of
392392 this subparagraph, taxable income of an insurance
393393 company for a taxable year shall be apport ioned
394394 to this state by multiplying such income by a
395395 fraction, the numerator of which is the direct
396396 premiums written for insurance on property or
397397 risks in this state, and the deno minator of which
398398 is the direct premiums written for insurance on
399399 property or risks everywhere. For purposes of
400400 this subsection, the term "direct premiums
401401 written" means the total amount of direct
402402 premiums written, assessments and annuity
403403 considerations as reported for the taxable year
404404 on the annual statement filed by the company wi th
405405 the Insurance Commissioner in the form approved
406406 by the National Association of Insurance
407407 Commissioners, or such other form as may be
408408 prescribed in lieu thereof,
409409 (2) if the principal source of premiums written by an
410410 insurance company consists of premiums for
411411 reinsurance accepted by it, the taxable income of
412412 such company shall be apportioned to this state
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439439 by multiplying such income by a fraction, the
440440 numerator of which is the sum of (a) direct
441441 premiums written for insurance on property or
442442 risks in this state, plus (b) premiums written
443443 for reinsurance accepted in respect of property
444444 or risks in this state, and the denominator of
445445 which is the sum of (c) direct premiums written
446446 for insurance on property or risks everywhere,
447447 plus (d) premiums written for reinsurance
448448 accepted in respect of property or risks
449449 everywhere. For purposes of this paragraph,
450450 premiums written for reinsurance accepted in
451451 respect of property or risks in this stat e,
452452 whether or not otherwise determinable, may at the
453453 election of the company b e determined on the
454454 basis of the proportion which premiums written
455455 for insurance accepted from companies
456456 commercially domiciled in Oklahoma bears to
457457 premiums written for reinsura nce accepted from
458458 all sources, or alternatively in the proportion
459459 which the sum of the direct premiums written for
460460 insurance on property or risks in this state by
461461 each ceding company from which reinsurance is
462462 accepted bears to the sum of the total direct
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489489 premiums written by each such ceding company for
490490 the taxable year.
491491 5. The net income or loss remaining after the separate
492492 allocation in paragraph 4 of this subsection, being that which is
493493 derived from a unitary business enterprise, shall be apportioned to
494494 this state on the basis of the arithmetical average of three factors
495495 consisting of property, payroll and sales or gross revenue
496496 enumerated as subparagraphs a, b and c of this paragraph. Net
497497 income or loss as used in this paragraph includes that derived fr om
498498 patent or copyright royalties, purchase discounts, and interest on
499499 accounts receivable relating to or arising from a business activity,
500500 the income from which is apportioned pursuant to this subsection,
501501 including the sale or other disposition of such pro perty and any
502502 other property used in the unitary enterprise. Deductions used in
503503 computing such net income or loss shall not include taxes based on
504504 or measured by income. Provided, for corporations whose property
505505 for purposes of the tax imposed by Section 2355 of this title has an
506506 initial investment cost equaling or exceeding Two H undred Million
507507 Dollars ($200,000,000.00) and such investment is made on or after
508508 July 1, 1997, or for corporations which expand their property or
509509 facilities in this state and suc h expansion has an investment cost
510510 equaling or exceeding Two Hundred Million Dollars ($200,000,000.00)
511511 over a period not to exceed three (3) years, and such expansion is
512512 commenced on or after January 1, 2000, the three factors shall be
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539539 apportioned with pro perty and payroll, each comprising twenty -five
540540 percent (25%) of the apportionm ent factor and sales comprising fifty
541541 percent (50%) of the apportionment factor. The apportionment
542542 factors shall be computed as follows:
543543 a. The property factor is a fraction, th e numerator of
544544 which is the average value of the taxpayer 's real and
545545 tangible personal property owned or rented and used in
546546 this state during the tax period and the denominator
547547 of which is the average value of all the taxpayer 's
548548 real and tangible personal property everywhere owned
549549 or rented and used during the tax period.
550550 (1) Property, the income from which is separately
551551 allocated in paragraph 4 of this subsection,
552552 shall not be included in determining this
553553 fraction. The numerator of the fraction shall
554554 include a portion of the investment in
555555 transportation and other equipment having no
556556 fixed situs, such as rolling stock, buses, trucks
557557 and trailers, including machinery and equipment
558558 carried thereon, airplanes, salespersons '
559559 automobiles and other similar equipm ent, in the
560560 proportion that miles traveled in Oklahoma by
561561 such equipment bears to total miles traveled,
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588588 (2) Property owned by the taxpayer is valued at its
589589 original cost. Property rented by the taxpayer
590590 is valued at eight times the net annual rental
591591 rate. Net annual rental rate is the annual
592592 rental rate paid by the taxpayer, less any annual
593593 rental rate received by the taxpayer from
594594 subrentals,
595595 (3) The average value of property shall be determined
596596 by averaging the values at the beginning and
597597 ending of the tax period but the Oklahoma Tax
598598 Commission may require the averaging of monthl y
599599 values during the tax period if reasonably
600600 required to reflect properly the average value of
601601 the taxpayer's property;
602602 b. The payroll factor is a fraction, the numerator of
603603 which is the total compensation for services rendered
604604 in the state during the tax period, and the
605605 denominator of which is the total compensation for
606606 services rendered everywhere during the tax period.
607607 "Compensation", as used in this subsection means those
608608 paid-for services to the extent related to the unitary
609609 business but does not incl ude officers' salaries,
610610 wages and other compensation.
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637637 (1) In the case of a transportation enterprise, the
638638 numerator of the fraction shall include a portion
639639 of such expenditure in connection with employees
640640 operating equipment over a fixed route, such as
641641 railroad employees, airline pilots, or bus
642642 drivers, in this state only a part of the time,
643643 in the proportion that mileage traveled in
644644 Oklahoma bears to total mileage traveled by suc h
645645 employees,
646646 (2) In any case the numerator of the fraction shall
647647 include a portion of such expenditures in
648648 connection with itinerant employees, such as
649649 traveling salespersons, in this state only a part
650650 of the time, in the proportion that time spent in
651651 Oklahoma bears to total time spent in furtherance
652652 of the enterprise by such employees;
653653 c. The sales factor is a fraction, the numerator of which
654654 is the total sales or gross revenue of the taxpayer in
655655 this state during the tax period, and the denominator
656656 of which is the total sales or gross revenue of the
657657 taxpayer everywhere during the t ax period. "Sales",
658658 as used in this subsection does not include sales or
659659 gross revenue which are separately allocated in
660660 paragraph 4 of this subsection.
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687687 (1) Sales of tangible pe rsonal property have a situs
688688 in this state if the property is delivered or
689689 shipped to a purchaser other than the United
690690 States government, within this state regardless
691691 of the FOB point or other conditions of the sale;
692692 or the property is shipped from an off ice, store,
693693 warehouse, factory or other place of storage in
694694 this state and (a) the purchaser is the United
695695 States government or (b) the taxpayer is not
696696 doing business in the state of the destination of
697697 the shipment.
698698 (2) In the case of a railroad or interur ban railway
699699 enterprise, the numerator of the fraction shall
700700 not be less than the allocation of revenues to
701701 this state as shown in its annual report to the
702702 Corporation Commission.
703703 (3) In the case of an airline, truck or bus
704704 enterprise or freight car, tank c ar, refrigerator
705705 car or other railroad equipment enterprise, the
706706 numerator of the fraction shall include a portion
707707 of revenue from interstate transportation in the
708708 proportion that interstate mileage traveled in
709709 Oklahoma bears to total interstate mileage
710710 traveled.
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737737 (4) In the case of an oil, gasoline or gas pipeline
738738 enterprise, the numerator of the fraction shall
739739 be either the total of traffic units of the
740740 enterprise within Oklahoma or the revenue
741741 allocated to Oklahoma based upon miles moved, at
742742 the option of the taxpayer, and the denominator
743743 of which shall be the total of traffic unit s of
744744 the enterprise or the revenue of the enterprise
745745 everywhere as appropriate to the numerator. A
746746 "traffic unit" is hereby defined as the
747747 transportation for a distance of one ( 1) mile of
748748 one (1) barrel of oil, one (1) gallon of gasoline
749749 or one thousand (1,000) cubic feet of natural or
750750 casinghead gas, as the case may be.
751751 (5) In the case of a telephone or telegraph or other
752752 communication enterprise, the numerator of the
753753 fraction shall include that portion of the
754754 interstate revenue as is allocated pursuant t o
755755 the accounting procedures prescribed by the
756756 Federal Communications Commission; provided that
757757 in respect to each corporation or business entity
758758 required by the Federal Communica tions Commission
759759 to keep its books and records in accordance with
760760 a uniform system of accounts prescribed by such
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787787 Commission, the intrastate net income shall be
788788 determined separately in the manner provided by
789789 such uniform system of accounts and only the
790790 interstate income shall be subject to allocation
791791 pursuant to the provisions of t his subsection.
792792 Provided further, that the gross revenue factors
793793 shall be those as are determined pursuant to the
794794 accounting procedures prescribed by the Federal
795795 Communications Commission.
796796 In any case where the apportionment of the three factors
797797 prescribed in this paragraph attributes to Oklahoma a portion of net
798798 income of the enterprise out of all appropriate proportion to the
799799 property owned and/or business transacted within thi s state, because
800800 of the fact that one or more of the factors so prescribed are not
801801 employed to any appreciable extent in furtherance of the enterprise;
802802 or because one or more factors not so prescribed are employed to a
803803 considerable extent in furtherance of the enterprise; or because of
804804 other reasons, the Tax Commission is empowered to permit, after a
805805 showing by taxpayer that an excessive portion of net income has been
806806 attributed to Oklahoma, or require, when in its judgment an
807807 insufficient portion of net in come has been attributed to Oklahoma,
808808 the elimination, substitution, or use of additional factors, or
809809 reduction or increase in the weight of such prescribed factors.
810810 Provided, however, that any such variance from such prescribed
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837837 factors which has the effe ct of increasing the portion of net income
838838 attributable to Oklahoma must not be inherently arbitrary, and
839839 application of the recomputed final apportionment to the net income
840840 of the enterprise must attribute to Oklahoma only a reasonable
841841 portion thereof.
842842 6. For calendar years 1997 and 1998, the owner of a new or
843843 expanded agricultura l commodity processing facility in this state
844844 may exclude from Oklahoma taxable income, or in the case of an
845845 individual, the Oklahoma adjusted gross income, fifteen percent
846846 (15%) of the investment by the owner in the new or expanded
847847 agricultural commodity processing facility. For calendar year 1999,
848848 and all subsequent years, the percentage, not to exceed fifteen
849849 percent (15%), available to the owner of a new or expanded
850850 agricultural commodity processing facility in this state claiming
851851 the exemption shall b e adjusted annually so that the total estimated
852852 reduction in tax liability does not exceed One Million Dollars
853853 ($1,000,000.00) annually. The Tax Commission shall promulgate rule s
854854 for determining the percentage of the investment which each eligible
855855 taxpayer may exclude. The exclusion provided by this paragraph
856856 shall be taken in the taxable year when the investment is made. In
857857 the event the total reduction in tax liability author ized by this
858858 paragraph exceeds One Million Dollars ($1,000,000.00) in any
859859 calendar year, the Tax Commission shall permit any excess over One
860860 Million Dollars ($1,000,000.00) and shall factor such excess into
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887887 the percentage for subsequent years. Any amount of the exemption
888888 permitted to be excluded pursuant to the provisions of this
889889 paragraph but not used in any year may be carried forward as an
890890 exemption from income pursuant to the provisions of this paragraph
891891 for a period not exceeding six (6) years followi ng the year in which
892892 the investment was originally made.
893893 For purposes of this paragraph:
894894 a. "Agricultural commodity processing facility " means
895895 building, structures, fixtures and improvements used
896896 or operated primarily for the processing or production
897897 of marketable products from agricultural commodities.
898898 The term shall also mean a dairy operation that
899899 requires a depreciable investment of at least Two
900900 Hundred Fifty Thousand Dollars ($250,000.00) and which
901901 produces milk from dairy cows. The term does not
902902 include a facility that provides only, and nothing
903903 more than, storage, cleaning, drying or transportation
904904 of agricultural commodities, and
905905 b. "Facility" means each part of the facility which is
906906 used in a process primarily for:
907907 (1) the processing of agricultur al commodities,
908908 including receiving or storing agricultural
909909 commodities, or the production of milk at a dairy
910910 operation,
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937937 (2) transporting the agricultural commodities or
938938 product before, during or after the processing,
939939 or
940940 (3) packaging or otherwise preparin g the product for
941941 sale or shipment.
942942 7. Despite any provision to the contrary in paragraph 3 of this
943943 subsection, for taxable years beginning after December 31, 1999, in
944944 the case of a taxpayer which has a farming loss, such farming loss
945945 shall be considered a net operating loss carryback in accordance
946946 with and to the extent of the Internal Revenue Code, 26 U.S.C.,
947947 Section 172(b)(G). However, the amount of the net operating loss
948948 carryback shall not exceed the lesser of:
949949 a. Sixty Thousand Dollars ($60,000.00), or
950950 b. the loss properly shown on Schedule F of the Internal
951951 Revenue Service Form 1040 reduced by one -half (1/2) of
952952 the income from all other sources other than reflected
953953 on Schedule F.
954954 8. In taxable years beginning after December 31, 1995, all
955955 qualified wages equal to the federal income tax credit set forth in
956956 26 U.S.C.A., Section 45A, shall be deducted from taxable income.
957957 The deduction allowed pursuant to this paragraph shall only be
958958 permitted for the tax years in which the federal tax credit pursuant
959959 to 26 U.S.C.A., Section 45A, is allowed. For purposes of this
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986986 paragraph, "qualified wages" means those wages used to calculate the
987987 federal credit pursuant to 26 U.S.C.A., Section 45A.
988988 9. In taxable years beginning after December 31, 2005, an
989989 employer that is eligible for and utilizes the Safety Pays OSHA
990990 Consultation Service provided by the Oklahoma Department of Labor
991991 shall receive an exemption from taxable income in the amount of One
992992 Thousand Dollars ($1,000.00) for the tax year that the service is
993993 utilized.
994994 10. For taxable years beginning on or after January 1, 2010,
995995 there shall be added to Oklahoma taxable income an amount equal to
996996 the amount of deferred income not included in such taxable income
997997 pursuant to Section 108(i)(1) of the Internal Revenue C ode of 1986
998998 as amended by Section 1231 of the American Recovery and Reinvestment
999999 Act of 2009 (P.L. No. 111 -5). There shall be subtracted from
10001000 Oklahoma taxable income an amount equal to the amount of deferred
10011001 income included in such taxable income pursuant to Section 108(i)(1)
10021002 of the Internal Revenue Code by Section 1231 of the Amer ican
10031003 Recovery and Reinvestment Act of 2009 (P.L. No. 111 -5).
10041004 11. For taxable years beginning on or after January 1, 2019,
10051005 there shall be subtracted from Oklahoma taxable income or adjusted
10061006 gross income any item of income or gain, and there shall be added to
10071007 Oklahoma taxable income or adjusted gross income any item of loss or
10081008 deduction that in the absence of an election pursuant to the
10091009 provisions of the Pass -Through Entity Tax Equ ity Act of 2019 would
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10361036 be allocated to a member or to an indirect member of an electing
10371037 pass-through entity pursuant to Section 2351 et seq. of this title,
10381038 if (i) the electing pass -through entity has accounted for such item
10391039 in computing its Oklahoma net ent ity income or loss pursuant to the
10401040 provisions of the Pass -Through Entity Tax Equity Act of 2019, and
10411041 (ii) the total amount of tax attributable to any resulting Oklahoma
10421042 net entity income has been paid. The Oklahoma Tax Commission shall
10431043 promulgate rules for the reporting of such exclusion to direct and
10441044 indirect members of the electi ng pass-through entity. As used in
10451045 this paragraph, "electing pass-through entity", "indirect member",
10461046 and "member" shall be defined in the same manner as prescribed by
10471047 Section 2355.1P-2 of this title. Notwithstanding the application of
10481048 this paragraph, the adjusted tax basis of any ownership interest in
10491049 a pass-through entity for purposes of Section 2351 et seq. of this
10501050 title shall be equal to its adjusted tax basis for federal in come
10511051 tax purposes.
10521052 B. 1. The taxable income of any corporation shall be furt her
10531053 adjusted to arrive at Oklahoma taxable income, except those
10541054 corporations electing treatment as provided in subchapter S of the
10551055 Internal Revenue Code, 26 U.S.C., Section 1361 et seq., and Section
10561056 2365 of this title, deductions pursuant to the provisions of the
10571057 Accelerated Cost Recovery System as defined and allowed in the
10581058 Economic Recovery Tax Act of 1981, Public Law 97 -34, 26 U.S.C.,
10591059 Section 168, for depreciation of assets pla ced into service after
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10861086 December 31, 1981, shall not be allowed in calculating Oklahoma
10871087 taxable income. Such corporations shall be allowed a deduction for
10881088 depreciation of assets placed into service after December 31, 1981,
10891089 in accordance with provisions of the Internal Revenue Code, 26
10901090 U.S.C., Section 1 et seq., in effect immediately prior to the
10911091 enactment of the Accelerated Cost Recovery System. The Oklahoma tax
10921092 basis for all such assets placed into service after December 31,
10931093 1981, calculated in this secti on shall be retained and utilized for
10941094 all Oklahoma income tax purposes through the final disposition of
10951095 such assets.
10961096 Notwithstanding any other provisions of the Oklahoma Income Tax
10971097 Act, Section 2351 et seq. of this title, or of the Internal Revenue
10981098 Code to the contrary, this subsection shall control calculation of
10991099 depreciation of assets placed into service after December 31, 1981,
11001100 and before January 1, 1983.
11011101 For assets placed in service and held by a corporation in which
11021102 accelerated cost recovery system was previously disallowed, an
11031103 adjustment to taxable income is required in the fir st taxable year
11041104 beginning after December 31, 1982, to reconcile the basis of such
11051105 assets to the basis allowed in the Internal Revenue Code. The
11061106 purpose of this adjustment is to equalize the basis and allowance
11071107 for depreciation accounts between that reported to the Internal
11081108 Revenue Service and that reported to Oklahoma.
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11351135 2. For tax years beginning on or after January 1, 2009, and
11361136 ending on or before December 31, 2009, there shall be added to
11371137 Oklahoma taxable income any amount in excess of One Hundred Sevent y-
11381138 five Thousand Dollars ($175,000.00) which has been deducted as a
11391139 small business expense under Internal Revenue Code, Section 179 as
11401140 provided in the American Recovery and Reinve stment Act of 2009.
11411141 C. 1. For taxable years beginning after December 31, 1987, the
11421142 taxable income of any corporation shall be further adjusted to
11431143 arrive at Oklahoma taxable income for transfers of technology to
11441144 qualified small businesses located in Oklah oma. Such transferor
11451145 corporation shall be allowed an exemption from taxable i ncome of an
11461146 amount equal to the amount of royalty payment received as a result
11471147 of such transfer; provided, however, such amount shall not exceed
11481148 ten percent (10%) of the amount o f gross proceeds received by such
11491149 transferor corporation as a result of the technology transfer. Such
11501150 exemption shall be allowed for a period not to exceed ten (10) years
11511151 from the date of receipt of the first royalty payment accruing from
11521152 such transfer. No exemption may be claimed for transfers of
11531153 technology to qualified small bus inesses made prior to January 1,
11541154 1988.
11551155 2. For purposes of this subsection:
11561156 a. "Qualified small business " means an entity, whether
11571157 organized as a corporation, partnership, or
11581158 proprietorship, organized for profit with its
11591159
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11851185 principal place of business located within this state
11861186 and which meets the following criteria:
11871187 (1) Capitalization of not more than Two Hundred Fifty
11881188 Thousand Dollars ($250,000.00),
11891189 (2) Having at least fifty percent (50%) of its
11901190 employees and assets located in Oklahoma at the
11911191 time of the transfer, and
11921192 (3) Not a subsidiary or affiliate of the transferor
11931193 corporation;
11941194 b. "Technology" means a proprietary process, formula,
11951195 pattern, device or compilation of scientific or
11961196 technical information which is not in the public
11971197 domain;
11981198 c. "Transferor corporation " means a corporation which is
11991199 the exclusive and undisputed owner of the technology
12001200 at the time the transfer is made; and
12011201 d. "Gross proceeds" means the total amount of
12021202 consideration for the transfer of technology, whether
12031203 the consideration is in money or otherwise.
12041204 D. 1. For taxable years beginning after December 31, 2005, the
12051205 taxable income of any corporation, estate or trust, shall be further
12061206 adjusted for qualifying gains receiving capital treatment. Such
12071207 corporations, estates or trusts shall be allowed a deduction from
12081208 Oklahoma taxable income for the amount of qualifying gains receiving
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12351235 capital treatment earned by the corporation, estate or trust during
12361236 the taxable year and included in the federal taxable income of such
12371237 corporation, estate or trust .
12381238 2. As used in this subsection:
12391239 a. "qualifying gains receiving capital treatment " means
12401240 the amount of net capital gains, as defined in Section
12411241 1222(11) of the Internal Revenue Code, included in the
12421242 federal income tax return of the corporation, estate
12431243 or trust that result from:
12441244 (1) the sale of real property or tangible personal
12451245 property located within Oklahoma that has been
12461246 directly or indirectly owned by the corporation,
12471247 estate or trust for a holding period of at least
12481248 five (5) years prior to the date of the
12491249 transaction from which such net capital gains
12501250 arise,
12511251 (2) the sale of stock or on the sale of an ownership
12521252 interest in an Oklahoma company, limited
12531253 liability company, or partn ership where such
12541254 stock or ownership interest has been directly or
12551255 indirectly owned by the corporation, estate or
12561256 trust for a holding period of at least three (3)
12571257 years prior to the date of the transaction from
12581258 which the net capital gains arise, or
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12851285 (3) the sale of real property, tangible personal
12861286 property or intangible personal prop erty located
12871287 within Oklahoma as part of the sale of all or
12881288 substantially all of the assets of an Oklahoma
12891289 company, limited liability company, or
12901290 partnership where such property h as been directly
12911291 or indirectly owned by such entity owned by the
12921292 owners of such entity, and used in or derived
12931293 from such entity for a period of at least three
12941294 (3) years prior to the date of the transaction
12951295 from which the net capital gains arise,
12961296 b. "holding period" means an uninterrupted period of
12971297 time. The holding period shall inc lude any additional
12981298 period when the property was held by another
12991299 individual or entity, if such additional period is
13001300 included in the taxpayer 's holding period for the
13011301 asset pursuant to the Internal Revenue Code,
13021302 c. "Oklahoma company", "limited liability company ", or
13031303 "partnership" means an entity whose primary
13041304 headquarters have been located in Oklahoma for at
13051305 least three (3) uninterrupted years prior to the date
13061306 of the transaction f rom which the net capital gains
13071307 arise,
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13341334 d. "direct" means the taxpayer directly owns the asset,
13351335 and
13361336 e. "indirect" means the taxpayer owns an interest in a
13371337 pass-through entity (or chain of pass -through
13381338 entities) that sells the asset that gives rise to the
13391339 qualifying gains receiving capital treatment.
13401340 (1) With respect to sales of real property or
13411341 tangible personal property located within
13421342 Oklahoma, the deduction described in this
13431343 subsection shall not apply unless the pass -
13441344 through entity that makes the sale has held the
13451345 property for not less than five (5) uninterrupted
13461346 years prior to the date of the transaction that
13471347 created the capital gain, and each pass -through
13481348 entity included in the chain of ownership has
13491349 been a member, partner, or shareholder of the
13501350 pass-through entity in the tier immediately below
13511351 it for an uninterrupted period of not less than
13521352 five (5) years.
13531353 (2) With respect to sales of stock or ownership
13541354 interest in or sales of all or substantially all
13551355 of the assets of an Oklahoma company, limited
13561356 liability company, or partnership, the deduction
13571357 described in this subsection shall no t apply
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13841384 unless the pass-through entity that makes the
13851385 sale has held the stock or ownership interest or
13861386 the assets for not less than three (3)
13871387 uninterrupted years prior to the dat e of the
13881388 transaction that created the capital gain, and
13891389 each pass-through entity included in the chain of
13901390 ownership has been a member, partner or
13911391 shareholder of the pass -through entity in the
13921392 tier immediately below it for an uninterrupted
13931393 period of not less than three (3) years.
13941394 E. The Oklahoma adjusted gross income of any individu al
13951395 taxpayer shall be further adjusted as follows to arrive at Oklahoma
13961396 taxable income:
13971397 1. a. In the case of individuals, there shall be added or
13981398 deducted, as the case may be, the difference necessary
13991399 to allow personal exemptions of One Thousand Dollars
14001400 ($1,000.00) in lieu of the personal exemptions allowed
14011401 by the Internal Revenue Code.
14021402 b. There shall be allowed an additional exemption of One
14031403 Thousand Dollars ($1,000.00) for each t axpayer or
14041404 spouse who is blind at the close of the tax year. For
14051405 purposes of this subparagraph, an individual is blind
14061406 only if the central visual acuity of the individual
14071407 does not exceed 20/200 in the better eye with
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14341434 correcting lenses, or if the visual ac uity of the
14351435 individual is greater than 20/200, but is accompanied
14361436 by a limitation in the fields of vision such that the
14371437 widest diameter of the visual field subtends an angle
14381438 no greater than twenty (20) degrees.
14391439 c. There shall be allowed an additional exemp tion of One
14401440 Thousand Dollars ($1,000.00) for each taxpayer or
14411441 spouse who is sixty-five (65) years of age or older at
14421442 the close of the tax year based upon the filing status
14431443 and federal adjusted gross income of the taxpayer.
14441444 Taxpayers with the following fil ing status may claim
14451445 this exemption if the federal adjusted gross income
14461446 does not exceed:
14471447 (1) Twenty-five Thousand Dollars ($25,000.00) if
14481448 married and filing jointly,
14491449 (2) Twelve Thousand Five Hundred Dollars ($12,500.00)
14501450 if married and filing separately,
14511451 (3) Fifteen Thousand Dollars ($15,000.00) if single,
14521452 and
14531453 (4) Nineteen Thousand Dollars ($19,000.00) if a
14541454 qualifying head of household.
14551455 Provided, for taxable years beginning after December
14561456 31, 1999, amounts included in the calculation of
14571457 federal adjusted gro ss income pursuant to the
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14841484 conversion of a traditional individual retirement
14851485 account to a Roth individual retirement account shall
14861486 be excluded from federal adjusted gross income for
14871487 purposes of the income thresholds provided in this
14881488 subparagraph.
14891489 2. a. For taxable years beginning on or before December 31,
14901490 2005, in the case of individ uals who use the standard
14911491 deduction in determining taxable income, there shall
14921492 be added or deducted, as the case may be, the
14931493 difference necessary to allow a standard deduction in
14941494 lieu of the standard deduction allowed by the Internal
14951495 Revenue Code, in an amount equal to the larger of
14961496 fifteen percent (15%) of the Oklahoma adjusted gross
14971497 income or One Thousand Dollars ($1,000.00), but not to
14981498 exceed Two Thousand Dollars ($2,000.00), e xcept that
14991499 in the case of a married individual filing a separate
15001500 return such deduction shall be the larger of fifteen
15011501 percent (15%) of such Oklahoma adjusted gross income
15021502 or Five Hundred Dollars ($500.00), but not to exceed
15031503 the maximum amount of One Thousa nd Dollars
15041504 ($1,000.00).
15051505 b. For taxable years beginning on or after January 1,
15061506 2006, and before January 1, 2007, in the case of
15071507 individuals who use the standard deduction in
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15341534 determining taxable income, there shall be added or
15351535 deducted, as the case may be, t he difference necessary
15361536 to allow a standard deduction in lieu of the standard
15371537 deduction allowed by the Internal Revenue Code, in an
15381538 amount equal to:
15391539 (1) Three Thousand Dollars ($3,000.00), if the filing
15401540 status is married filing joint, head of household
15411541 or qualifying widow, or
15421542 (2) Two Thousand Dollars ($2,000.00), if the filing
15431543 status is single or married filing separate.
15441544 c. For the taxable year beginning on January 1, 2007, and
15451545 ending December 31, 2007, in the case of individuals
15461546 who use the standard deduct ion in determining taxable
15471547 income, there shall be added or deducted, as the ca se
15481548 may be, the difference necessary to allow a standard
15491549 deduction in lieu of the standard deduction allowed by
15501550 the Internal Revenue Code, in an amount equal to:
15511551 (1) Five Thousand Five Hundred Dollars ($5,500.00),
15521552 if the filing status is married filing joint or
15531553 qualifying widow, or
15541554 (2) Four Thousand One Hundred Twenty -five Dollars
15551555 ($4,125.00) for a head of household, or
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15821582 (3) Two Thousand Seven Hundred Fifty Dollars
15831583 ($2,750.00), if the filing status is single or
15841584 married filing separate.
15851585 d. For the taxable year beginning on January 1, 2008, and
15861586 ending December 31, 2008, in the case of individuals
15871587 who use the standard deduction in determining taxable
15881588 income, there shall be added or dedu cted, as the case
15891589 may be, the difference necessary to allow a standard
15901590 deduction in lieu of the standard deduction allowed by
15911591 the Internal Revenue Code, in an amount equal to:
15921592 (1) Six Thousand Five Hundred Dollars ($6,500.00), if
15931593 the filing status is marri ed filing joint or
15941594 qualifying widow,
15951595 (2) Four Thousand Eight Hundred Seventy -five Dollars
15961596 ($4,875.00) for a head of household, or
15971597 (3) Three Thousand Two Hundred Fifty Dollars
15981598 ($3,250.00), if the filing status is single or
15991599 married filing separate.
16001600 e. For the taxable year beginning on January 1, 2009, and
16011601 ending December 31, 2009, in the case of individuals
16021602 who use the standard deduction in determining taxable
16031603 income, there shall be added or deducted, as the case
16041604 may be, the difference necessary to allow a st andard
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16311631 deduction in lieu of the standard deduction allowed by
16321632 the Internal Revenue Code, in an amount equal to:
16331633 (1) Eight Thousand Five Hundred Dollars ($8,500.00),
16341634 if the filing status is married filing joint or
16351635 qualifying widow,
16361636 (2) Six Thousand Three Hu ndred Seventy-five Dollars
16371637 ($6,375.00) for a head of household, or
16381638 (3) Four Thousand Two Hundred Fifty Dollars
16391639 ($4,250.00), if the filing status is single or
16401640 married filing separate.
16411641 Oklahoma adjusted gross income shall be increased by
16421642 any amounts paid for motor vehicle excise taxes which
16431643 were deducted as allowed by the Internal Rev enue Code.
16441644 f. For taxable years beginning on or after January 1,
16451645 2010, and ending on December 31, 2016, in the case of
16461646 individuals who use the standard deduction in
16471647 determining taxable income, there shall be added or
16481648 deducted, as the case may be, the difference necessary
16491649 to allow a standard deduction equal to the standard
16501650 deduction allowed by the Internal Revenue Code, based
16511651 upon the amount and filing status prescribed by such
16521652 Code for purposes of filing federal individual income
16531653 tax returns.
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16801680 g. For taxable years beginning on or after January 1,
16811681 2017, in the case of individuals who use the standard
16821682 deduction in determining taxable income, there shall
16831683 be added or deducted, as the ca se may be, the
16841684 difference necessary to allow a standard deduction in
16851685 lieu of the standard deduction allowed by the Internal
16861686 Revenue Code, as follows:
16871687 (1) Six Thousand Three Hundred Fifty Dollars
16881688 ($6,350.00) for single or married filing
16891689 separately,
16901690 (2) Twelve Thousand Seven Hundred Dollars
16911691 ($12,700.00) for married filing jointly or
16921692 qualifying widower with dependent child, and
16931693 (3) Nine Thousand Three Hundred Fifty Dollars
16941694 ($9,350.00) for head of household.
16951695 3. a. In the case of resident and part -year resident
16961696 individuals having adjusted gross income from sources
16971697 both within and without the state, the itemized or
16981698 standard deductions and personal exemptions shall be
16991699 reduced to an amount which is the same portion of the
17001700 total thereof as Oklahoma adjusted gross inc ome is of
17011701 adjusted gross income. To the extent itemized
17021702 deductions include al lowable moving expense, proration
17031703 of moving expense shall not be required or permitted
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17301730 but allowable moving expense shall be fully deductible
17311731 for those taxpayers moving within or into Oklahoma and
17321732 no part of moving expense shall be deductible for
17331733 those taxpayers moving without or out of Oklahoma.
17341734 All other itemized or standard deductions and personal
17351735 exemptions shall be subject to proration as provided
17361736 by law.
17371737 b. For taxable years beginning on or after January 1,
17381738 2018, the net amount of itemized deductions allowable
17391739 on an Oklahoma income tax return, subject to the
17401740 provisions of paragraph 24 of this subsection, shall
17411741 not exceed Seventeen Thousand Dollars ($17,000.00).
17421742 For purposes of this subparagraph, charitable
17431743 contributions and medical expenses deductible for
17441744 federal income tax purposes shall be excluded from the
17451745 amount of Seventeen Thousand Dollars ($17,000.00) as
17461746 specified by this subparagraph.
17471747 4. A resident individual with a physical disability
17481748 constituting a substantial handicap to employment may ded uct from
17491749 Oklahoma adjusted gross income such expenditures to modify a motor
17501750 vehicle, home or workplace as are necessary to compensate for his or
17511751 her handicap. A veteran certifie d by the Department of Veterans
17521752 Affairs of the federal government as having a service -connected
17531753 disability shall be conclusively presumed to be an individual with a
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17801780 physical disability constituting a substantial handicap to
17811781 employment. The Tax Commission shall promulgate rules containing a
17821782 list of combinations of common disabilitie s and modifications which
17831783 may be presumed to qualify for this deduction. The Tax Commission
17841784 shall prescribe necessary requirements for verification.
17851785 5. a. Before July 1, 2010, t he first One Thousand Five
17861786 Hundred Dollars ($1,500.00) received by any person
17871787 from the United States as salary or compensation in
17881788 any form, other than retirement benefits, as a member
17891789 of any component of the Armed Forces of the United
17901790 States shall be deduc ted from taxable income.
17911791 b. On or after July 1, 2010, one hundred percent (100 %)
17921792 of the income received by any person from the United
17931793 States as salary or compensation in any form, other
17941794 than retirement benefits, as a member of any component
17951795 of the Armed Forces of the United States shall be
17961796 deducted from taxable income.
17971797 c. Whenever the filing of a timely income tax return by a
17981798 member of the Armed Forces of the United States is
17991799 made impracticable or impossible of accomplishment by
18001800 reason of:
18011801 (1) absence from the United States, which term
18021802 includes only the states and the District of
18031803 Columbia,
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18301830 (2) absence from the State of Oklahoma while on
18311831 active duty, or
18321832 (3) confinement in a hospital within the United
18331833 States for treatment of wounds, injuries or
18341834 disease,
18351835 the time for filing a return and paying an income tax
18361836 shall be and is hereby extended without incurring
18371837 liability for interest or penalties, to the fifteenth
18381838 day of the third month following the month in which:
18391839 (a) Such individual shall return to the United
18401840 States if the extension is granted pursuant
18411841 to subparagraph a of this paragraph, r eturn
18421842 to the State of Oklahoma if the extension is
18431843 granted pursuant to subparagraph b of this
18441844 paragraph or be discharged from such
18451845 hospital if the extension is granted
18461846 pursuant to subparagraph c of this
18471847 paragraph, or
18481848 (b) An executor, administrator, or conservator
18491849 of the estate of the taxpayer is appointed,
18501850 whichever event occurs the earliest.
18511851 Provided, that the Tax Commission may, in its discretion, grant
18521852 any member of the Armed F orces of the United States an extension of
18531853 time for filing of income tax retur ns and payment of income tax
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18801880 without incurring liabilities for interest or penalties. Such
18811881 extension may be granted only when in the judgment of the Tax
18821882 Commission a good cause exists therefor and may be for a period in
18831883 excess of six (6) months. A record of every such extension granted,
18841884 and the reason therefor, shall be kept.
18851885 6. Before July 1, 2010, the salary or any other form of
18861886 compensation, received from the United States b y a member of any
18871887 component of the Armed Forces of the United States, shall be
18881888 deducted from taxable income during the time in which the person is
18891889 detained by the enemy in a conflict, is a prisoner of war or is
18901890 missing in action and not deceased; provided, after July 1, 2010,
18911891 all such salary or compensation shall be subject to the deduction as
18921892 provided pursuant to paragraph 5 of this subsection.
18931893 7. a. An individual taxpayer, whether resident or
18941894 nonresident, may deduct an amount equal to the federal
18951895 income taxes paid by the taxpayer during the taxable
18961896 year.
18971897 b. Federal taxes as describ ed in subparagraph a of this
18981898 paragraph shall be deductible by any individual
18991899 taxpayer, whether resident or nonresident, only to the
19001900 extent they relate to income subject to taxati on
19011901 pursuant to the provisions of the Oklahoma Income Tax
19021902 Act. The maximum amount allowable in the preceding
19031903 paragraph shall be prorated on the ratio of the
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19301930 Oklahoma adjusted gross income to federal adjusted
19311931 gross income.
19321932 c. For the purpose of this paragra ph, "federal income
19331933 taxes paid" shall mean federal income taxes, surtaxes
19341934 imposed on incomes or excess profits taxes, as though
19351935 the taxpayer was on the accrual basis. In determining
19361936 the amount of deduction for federal income taxes for
19371937 tax year 2001, the a mount of the deduction shall not
19381938 be adjusted by the amount of any accelerated ten
19391939 percent (10%) tax rate bracket credit or advanced
19401940 refund of the credit received during the tax year
19411941 provided pursuant to the federal Economic Growth and
19421942 Tax Relief Reconcilia tion Act of 2001, P.L. No. 107 -
19431943 16, and the advanced refund of such credit shal l not
19441944 be subject to taxation.
19451945 d. The provisions of this paragraph shall apply to all
19461946 taxable years ending after December 31, 1978, and
19471947 beginning before January 1, 2006.
19481948 8. Retirement benefits not to exceed Five Thousand Five Hundred
19491949 Dollars ($5,500.00) for the 2004 tax year, Seven Thousand Five
19501950 Hundred Dollars ($7,500.00) for the 2005 tax year and, Ten Thousand
19511951 Dollars ($10,000.00) for the 2006 tax year through the 2025 tax year
19521952 and one hundred percent (100%) of such retirement benefits for the
19531953 2026 tax year and all subsequent tax years, which are received by an
19541954
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19801980 individual from the civil service of the United States, the Oklahoma
19811981 Public Employees Retirement System, the Teachers ' Retirement System
19821982 of Oklahoma, the Oklahoma Law Enforcement Retirement System, the
19831983 Oklahoma Firefighters Pension and Retirement System, the Oklahoma
19841984 Police Pension and Retirement System, the employee retirement
19851985 systems created by counties pursuant to Sectio n 951 et seq. of Title
19861986 19 of the Oklahoma Statutes, the Uniform Retirement Sys tem for
19871987 Justices and Judges, the Oklahoma Wildlife Conservation Department
19881988 Retirement Fund, the Oklahoma Employment Security Commission
19891989 Retirement Plan, or the employee retiremen t systems created by
19901990 municipalities pursuant to Section 48 -101 et seq. of Title 11 of the
19911991 Oklahoma Statutes shall be exempt from taxable income.
19921992 9. In taxable years beginning after December 3l, 1984, Social
19931993 Security benefits received by an individual shal l be exempt from
19941994 taxable income, to the extent such benefits are included in t he
19951995 federal adjusted gross income pursuant to the provisions of Section
19961996 86 of the Internal Revenue Code, 26 U.S.C., Section 86.
19971997 10. For taxable years beginning after December 31, 1994, lump-
19981998 sum distributions from employer plans of deferred compensation,
19991999 which are not qualified plans within the meaning of Section 401(a)
20002000 of the Internal Revenue Code, 26 U.S.C., Section 401(a), and which
20012001 are deposited in and accounted for within a se parate bank account or
20022002 brokerage account in a financial institution within thi s state,
20032003 shall be excluded from taxable income in the same manner as a
20042004
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20302030 qualifying rollover contribution to an individual retirement account
20312031 within the meaning of Section 408 of t he Internal Revenue Code, 26
20322032 U.S.C., Section 408. Amounts withdrawn from such bank or brokerage
20332033 account, including any earnings thereon, shall be included in
20342034 taxable income when withdrawn in the same manner as withdrawals from
20352035 individual retirement accoun ts within the meaning of Section 408 of
20362036 the Internal Revenue Code.
20372037 11. In taxable years beginning after December 31, 1995,
20382038 contributions made to and interest received from a medical savings
20392039 account established pursuant to Sections 2621 through 2623 of Tit le
20402040 63 of the Oklahoma Statutes shall be exempt from taxable income.
20412041 12. For taxable years beginning after December 31, 1996, the
20422042 Oklahoma adjusted gross income of any individual taxpayer who is a
20432043 swine or poultry producer may be further adjusted for the d eduction
20442044 for depreciation allowed for new construction or expansion costs
20452045 which may be computed using the same depreciation method elected for
20462046 federal income tax purposes except that the useful life shall be
20472047 seven (7) years for purposes of this paragraph. If depreciation is
20482048 allowed as a deduction in determining the adjusted gross income of
20492049 an individual, any depreciation calculated and claimed pursuant to
20502050 this section shall in no event be a duplication of any depreciation
20512051 allowed or permitted on the federa l income tax return of the
20522052 individual.
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20792079 13. a. In taxable years beginning befor e January 1, 2005,
20802080 retirement benefits not to exceed the amounts
20812081 specified in this paragraph, which are received by an
20822082 individual sixty-five (65) years of age or older and
20832083 whose Oklahoma adjusted gross income is Twenty -five
20842084 Thousand Dollars ($25,000.00) or less if the filing
20852085 status is single, head of household, or married filing
20862086 separate, or Fifty Thousand Dollars ($50,000.00) or
20872087 less if the filing status is married filing joint o r
20882088 qualifying widow, shall be exempt from taxable income.
20892089 In taxable years beg inning after December 31, 2004,
20902090 retirement benefits not to exceed the amounts
20912091 specified in this paragraph, which are received by an
20922092 individual whose Oklahoma adjusted gross incom e is
20932093 less than the qualifying amount specified in this
20942094 paragraph, shall be exempt from taxable income.
20952095 b. For purposes of this paragraph, the qualifying amount
20962096 shall be as follows:
20972097 (1) in taxable years beginning after December 31,
20982098 2004, and prior to Januar y 1, 2007, the
20992099 qualifying amount shall be Thirty -seven Thousand
21002100 Five Hundred Dollars ($37,500.00) or less if the
21012101 filing status is single, head of household, or
21022102 married filing separate, or Seventy -five Thousand
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21292129 Dollars ($75,000.00) or less if the filing sta tus
21302130 is married filing jointly or qualifying widow,
21312131 (2) in the taxable year beginning January 1, 2007,
21322132 the qualifying amount shall be Fifty Thousand
21332133 Dollars ($50,000.00) or less if the filing status
21342134 is single, head of household, or married filing
21352135 separate, or One Hundred Thousand Dollars
21362136 ($100,000.00) or less if the filing status is
21372137 married filing jointly or qualifying widow,
21382138 (3) in the taxable year beginning January 1, 2008,
21392139 the qualifying amount shall be Sixty -two Thousand
21402140 Five Hundred Dollars ($62,500.00) or less if the
21412141 filing status is single, head of household, or
21422142 married filing separate, or One Hundred Twenty -
21432143 five Thousand Dollars ($125,000.00) or less if
21442144 the filing status is married filing jointly or
21452145 qualifying widow,
21462146 (4) in the taxable year beginning January 1, 2009,
21472147 the qualifying amount shall be One Hundred
21482148 Thousand Dollars ($100,000.00) or less if the
21492149 filing status is single, head of household, or
21502150 married filing separate, or Two Hundred Thousand
21512151 Dollars ($200,000.00) or less if the filing
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21782178 status is married filing jointly or qualifying
21792179 widow, and
21802180 (5) in the taxable year beginning January 1, 2010,
21812181 and subsequent taxable years, there shall be no
21822182 limitation upon the qualifying amount.
21832183 c. For purposes of this paragraph, "retirement benefits"
21842184 means the total distributions or withdrawals from the
21852185 following:
21862186 (1) an employee pension be nefit plan which satisfies
21872187 the requirements of Section 401 of the Internal
21882188 Revenue Code, 26 U.S.C., Section 401,
21892189 (2) an eligible deferred compensation plan that
21902190 satisfies the requirements of Section 457 of the
21912191 Internal Revenue Code, 26 U.S.C., Section 457,
21922192 (3) an individual retirement account, annuity or
21932193 trust or simplified employee pension that
21942194 satisfies the requirements of Section 408 of the
21952195 Internal Revenue Code, 26 U.S.C., Sec tion 408,
21962196 (4) an employee annuity subject to the provisions of
21972197 Section 403(a) or (b) of the Internal Revenue
21982198 Code, 26 U.S.C., Section 403(a) or (b),
21992199 (5) United States Retirement Bonds which satisfy the
22002200 requirements of Section 86 of the Internal
22012201 Revenue Code, 26 U.S.C., Section 86, or
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22282228 (6) lump-sum distributions from a retirement plan
22292229 which satisfies the requirements of Section
22302230 402(e) of the Internal Revenue Code, 26 U.S.C.,
22312231 Section 402(e).
22322232 d. The amount of the exemption provided by this paragraph
22332233 shall be limited to Five Thousand Five Hundred Dollars
22342234 ($5,500.00) for the 2004 tax year, Seven Thousand Five
22352235 Hundred Dollars ($7,500.00) for the 2005 tax year and,
22362236 Ten Thousand Dollars ($10,000.00) for the tax year
22372237 2006 through the 2025 tax year and for the 2026 tax
22382238 year and for all subsequent tax years there shall be
22392239 no limit on the amount of the exemption provided by
22402240 this paragraph. 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 and
22442244 paragraph 8 of this subsection in an amount exceeding
22452245 Five Thousand Five Hundred 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 tax year and all
22492249 subsequent tax years.
22502250 14. In taxable years beginning after December 31, 1999, for an
22512251 individual engaged in production agriculture who has filed a
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22782278 Schedule F form with the taxpayer 's federal income tax retu rn for
22792279 such taxable year, there shall be excluded from taxable income any
22802280 amount which was included as federal taxable income or federal
22812281 adjusted gross income and which consists of the discharge of an
22822282 obligation by a creditor of the taxpayer incurred to fi nance the
22832283 production of agricultural products.
22842284 15. In taxable years beginning December 31, 2000, an amount
22852285 equal to one hundred percent (100%) of the amount of any scholarship
22862286 or stipend received from participation in the Oklahoma Police Corps
22872287 Program, as established in Section 2 -140.3 of Title 47 of the
22882288 Oklahoma Statutes shall be exempt from taxable income.
22892289 16. a. In taxable years beginning after December 31, 2001,
22902290 and before January 1, 2005, there shall be allowed a
22912291 deduction in the amount of contributio ns to accounts
22922292 established pursuant to the Oklahoma College Savings
22932293 Plan Act. The deduction shall equal the amount of
22942294 contributions to accounts, but in no event shall the
22952295 deduction for each contributor exceed Two Thousand
22962296 Five Hundred Dollars ($2,500.00) each taxable year for
22972297 each account.
22982298 b. In taxable years beginning after Decemb er 31, 2004,
22992299 each taxpayer shall be allowed a deduction for
23002300 contributions to accounts established pursuant to the
23012301 Oklahoma College Savings Plan Act. The maximum annual
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23282328 deduction shall equal the amount of contributions to
23292329 all such accounts plus any contributions to such
23302330 accounts by the taxpayer for prior taxable years after
23312331 December 31, 2004, which were not deducted, but in no
23322332 event shall the deduction for each tax year exceed Ten
23332333 Thousand Dollars ($10,000.00) for each individual
23342334 taxpayer or Twenty Thousand Dollars ($20,000.00) for
23352335 taxpayers filing a joint return. Any amount of a
23362336 contribution that is not deducted by the taxpayer in
23372337 the year for which the contribution is made may b e
23382338 carried forward as a deduction from income for the
23392339 succeeding five (5) years. For taxable years
23402340 beginning after December 31, 2005, deductions may be
23412341 taken for contributions and rollovers made during a
23422342 taxable year and up to April 15 of the succeeding
23432343 year, or the due date of a taxpayer 's state income tax
23442344 return, excluding extensi ons, whichever is later.
23452345 Provided, a deduction for the same contribution may
23462346 not be taken for two (2) different taxable years.
23472347 c. In taxable years beginning after December 31, 2 006,
23482348 deductions for contributions made pursuant to
23492349 subparagraph b of this paragraph shall be limited as
23502350 follows:
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23772377 (1) for a taxpayer who qualified for the five -year
23782378 carryforward election and who takes a rollover or
23792379 nonqualified withdrawal during that period , the
23802380 tax deduction otherwise available pursuant to
23812381 subparagraph b of this par agraph shall be reduced
23822382 by the amount which is equal to the rollover or
23832383 nonqualified withdrawal, and
23842384 (2) for a taxpayer who elects to take a rollover or
23852385 nonqualified withdrawal w ithin the same tax year
23862386 in which a contribution was made to the
23872387 taxpayer's account, the tax deduction otherwise
23882388 available pursuant to subparagraph b of this
23892389 paragraph shall be reduced by the amount of the
23902390 contribution which is equal to the rollover or
23912391 nonqualified withdrawal.
23922392 d. If a taxpayer elects to take a rollover on a
23932393 contribution for which a deduction has been taken
23942394 pursuant to subparagraph b of this paragraph within
23952395 one (1) year of the date of contribution, the amount
23962396 of such rollover shall be includ ed in the adjusted
23972397 gross income of the taxpayer in the taxable year of
23982398 the rollover.
23992399 e. If a taxpayer makes a nonqualified withdrawal of
24002400 contributions for which a deduction was taken pursuant
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24272427 to subparagraph b of this paragraph, such nonqualified
24282428 withdrawal and any earnings thereon shall be included
24292429 in the adjusted gross income of t he taxpayer in the
24302430 taxable year of the nonqualified withdrawal.
24312431 f. As used in this paragraph:
24322432 (1) "non-qualified withdrawal " means a withdrawal
24332433 from an Oklahoma College Savings P lan account
24342434 other than one of the following:
24352435 (a) a qualified withdrawal,
24362436 (b) a withdrawal made as a result of the death
24372437 or disability of the designated beneficiary
24382438 of an account,
24392439 (c) a withdrawal that is made on the account of
24402440 a scholarship or the allowanc e or payment
24412441 described in Section 135(d)(1)(B) or (C) or
24422442 by the Internal Reven ue Code, received by
24432443 the designated beneficiary to the extent the
24442444 amount of the refund does not exceed the
24452445 amount of the scholarship, allowance, or
24462446 payment, or
24472447 (d) a rollover or change of designated
24482448 beneficiary as permitted by subsection F of
24492449 Section 3970.7 of Title 70 of Oklahoma
24502450 Statutes, and
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24772477 (2) "rollover" means the transfer of funds from the
24782478 Oklahoma College Savings Plan to any other plan
24792479 under Section 529 of the Internal Reve nue Code.
24802480 17. For tax years 2006 through 2021, retirement benefits
24812481 received by an individual from any component of the Armed Forces of
24822482 the United States in an amount not to exceed the greater of seventy -
24832483 five percent (75%) of such benefits or Ten Thousand Dollars
24842484 ($10,000.00) shall be exempt from taxable income but in no case less
24852485 than the amount of the exemption provided by paragraph 13 of this
24862486 subsection. For tax year 2022 and subsequent tax years, retirement
24872487 benefits received by an individual from any c omponent of the Armed
24882488 Forces of the United States shall be exempt from taxable income.
24892489 18. For taxable years beginning after December 31, 2006,
24902490 retirement benefits received by federal civil service retirees,
24912491 including survivor annuities, paid in lieu of S ocial Security
24922492 benefits shall be exempt from taxable income to the extent such
24932493 benefits are included in the federal adjusted gross income pursuant
24942494 to the provisions of Section 86 of the Internal Revenue Code, 26
24952495 U.S.C., Section 86, according to the followi ng schedule:
24962496 a. in the taxable year beginning January 1, 2007, twenty
24972497 percent (20%) of such benefits shall be exempt,
24982498 b. in the taxable year beginning January 1, 2008, forty
24992499 percent (40%) of such benefits shall be exempt,
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25262526 c. in the taxable year beginning J anuary 1, 2009, sixty
25272527 percent (60%) of such benefits shall be exempt,
25282528 d. in the taxable year beginning January 1, 2010, eighty
25292529 percent (80%) of such benefits shall be exempt, and
25302530 e. in the taxable year beginning January 1, 2011, and
25312531 subsequent taxable year s, one hundred percent (100%)
25322532 of such benefits shall be exempt.
25332533 19. a. For taxable years beginning after December 31, 2007, a
25342534 resident individual may deduct up to Ten Thousand
25352535 Dollars ($10,000.00) from Oklahoma adjusted gross
25362536 income if the individual, or t he dependent of the
25372537 individual, while living, donates one or more human
25382538 organs of the individual to another human being for
25392539 human organ transplantation. As used in this
25402540 paragraph, "human organ" means all or part of a liver,
25412541 pancreas, kidney, intestine, lu ng, or bone marrow. A
25422542 deduction that is claimed under this paragraph may be
25432543 claimed in the taxable year in which the human organ
25442544 transplantation occurs.
25452545 b. An individual may claim this deduction only once, and
25462546 the deduction may be claimed only for unreimb ursed
25472547 expenses that are incurred by the individual and
25482548 related to the organ donation of the individual.
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25752575 c. The Oklahoma Tax Commission shall promulgate rules to
25762576 implement the provisions of this paragraph which shall
25772577 contain a specific list of expenses whic h may be
25782578 presumed to qualify for the deduction. The Tax
25792579 Commission shall pres cribe necessary requirements for
25802580 verification.
25812581 20. For taxable years beginning after December 31, 2009, there
25822582 shall be exempt from taxable income any amount received by the
25832583 beneficiary of the death benefit for an emergency medical technician
25842584 or a registered emergency medical responder provided by Section 1 -
25852585 2505.1 of Title 63 of the Oklahoma Statutes.
25862586 21. For taxable years beginning after December 31, 2008,
25872587 taxable income shall b e increased by any unemployment compensation
25882588 exempted under Section 85(c) of t he Internal Revenue Code, 26
25892589 U.S.C., Section 85(c)(2009).
25902590 22. For taxable years beginning after December 31, 2008, there
25912591 shall be exempt from taxable income any payment in an am ount less
25922592 than Six Hundred Dollars ($600.00) received by a person as an award
25932593 for participation in a competitive livestock show event. For
25942594 purposes of this paragraph, the payment shall be treated as a
25952595 scholarship amount paid by the entity sponsoring the e vent and the
25962596 sponsoring entity shall cause the payment to be categorized as a
25972597 scholarship in its books and records.
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26242624 23. For taxable years beginning on or after January 1, 2016,
26252625 taxable income shall be increased by any amount of state and local
26262626 sales or income taxes deducted under 26 U.S.C., Section 164 of the
26272627 Internal Revenue Code. If the amount of state and local taxes
26282628 deducted on the federal return is limited, taxable income on the
26292629 state return shall be increased only by the amount actually deducted
26302630 after any such limitations are applied.
26312631 24. For taxable years beginning after De cember 31, 2020, each
26322632 taxpayer shall be allowed a deduction for contributions to accounts
26332633 established pursuant to the Achieving a Better Life Experience
26342634 (ABLE) Program as establi shed in Section 4001.1 et seq. of Title 56
26352635 of the Oklahoma Statutes. For any tax year, the deduction provided
26362636 for in this paragraph shall not exceed Ten Thousand Dollars
26372637 ($10,000.00) for an individual taxpayer or Twenty Thousand Dollars
26382638 ($20,000.00) for taxpayers filing a joint return. Any amount of
26392639 contribution not deducted by th e taxpayer in the tax year for which
26402640 the contribution is made may be carried forward as a deduction from
26412641 income for up to five (5) tax years. Deductions may be taken for
26422642 contributions made during the tax year and through April 15 of the
26432643 succeeding tax year, or through the due date of a taxpayer 's state
26442644 income tax return excluding extensions, whichever is later.
26452645 Provided, a deduction for the same contribution may not be taken in
26462646 more than one (1) tax year.
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26732673 F. 1. For taxable years beginning after December 31, 2004, a
26742674 deduction from the Oklahoma adjusted gross income of any individual
26752675 taxpayer shall be allowed for qualifying gains receiving capital
26762676 treatment that are included in t he federal adjusted gross income of
26772677 such individual taxpayer during the taxable year.
26782678 2. As used in this subsection:
26792679 a. "qualifying gains receiving capital treatment " means
26802680 the amount of net capital gains, as defined in Section
26812681 1222(11) of the Internal Re venue Code, included in an
26822682 individual taxpayer's federal income tax return tha t
26832683 result from:
26842684 (1) the sale of real property or tangible personal
26852685 property located within Oklahoma that has been
26862686 directly or indirectly owned by the individual
26872687 taxpayer for a holding period of at least five
26882688 (5) years prior to the date of the transaction
26892689 from which such net capital gains arise,
26902690 (2) the sale of stock or the sale of a direct or
26912691 indirect ownership interest in an Oklahoma
26922692 company, limited liability company, or
26932693 partnership where such stock or ownership
26942694 interest has been directly or indirectly own ed by
26952695 the individual taxpayer for a holding period of
26962696 at least two (2) years prior to the date of the
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27232723 transaction from which the net capital gains
27242724 arise, or
27252725 (3) the sale of real property, tangible personal
27262726 property or intangible personal property located
27272727 within Oklahoma as part of the sale of all or
27282728 substantially all of the assets of an Oklahoma
27292729 company, limited liability company, or
27302730 partnership or an Oklahoma proprietorship
27312731 business enterprise where such property has been
27322732 directly or indirectly owned by su ch entity or
27332733 business enterprise or owned by the owners of
27342734 such entity or business enterprise for a period
27352735 of at least two (2) years prior to the date of
27362736 the transaction from whi ch the net capital gains
27372737 arise,
27382738 b. "holding period" means an uninterrupted period of
27392739 time. The holding period shall include any additional
27402740 period when the property was held by another
27412741 individual or entity, if such additional period is
27422742 included in the taxp ayer's holding period for the
27432743 asset pursuant to the Internal Revenue Code,
27442744 c. "Oklahoma company," "limited liability company, " or
27452745 "partnership" means an entity whose primary
27462746 headquarters have been located in Oklahoma for at
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27732773 least three (3) uninterrupted ye ars prior to the date
27742774 of the transaction from which the net capital gains
27752775 arise,
27762776 d. "direct" means the individual taxpayer directly owns
27772777 the asset,
27782778 e. "indirect" means the individual taxpayer owns an
27792779 interest in a pass-through entity (or chain of pass -
27802780 through entities) that sells the asset that gives rise
27812781 to the qualifying gains rec eiving capital treatment.
27822782 (1) With respect to sales of real property or
27832783 tangible personal property located within
27842784 Oklahoma, the deduction described in this
27852785 subsection shall not a pply unless the pass -
27862786 through entity that makes the sale has held the
27872787 property for not less than five (5) uninterrupted
27882788 years prior to the date of the transaction that
27892789 created the capital gain, and each pass -through
27902790 entity included in the chain of ownership has
27912791 been a member, partner, or shareholder of the
27922792 pass-through entity in the tier immediately below
27932793 it for an uninterrupted period of not less than
27942794 five (5) years.
27952795 (2) With respect to sales of stock or ownership
27962796 interest in or sales of all or substantiall y all
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28232823 of the assets of an Oklahoma company, limited
28242824 liability company, partnership or Oklahoma
28252825 proprietorship business enterprise, the deduction
28262826 described in this subsection shall not apply
28272827 unless the pass-through entity that makes the
28282828 sale has held the st ock or ownership interest for
28292829 not less than two (2) uninterrupted years prior
28302830 to the date of the transaction that created the
28312831 capital gain, and each pass -through entity
28322832 included in the chain of ownership has been a
28332833 member, partner or shareholder of the pas s-
28342834 through entity in the tier immediately below it
28352835 for an uninterrupted period of not less than two
28362836 (2) years. For purposes of this division,
28372837 uninterrupted ownership prior to July 1, 2007,
28382838 shall be included in the determination of the
28392839 required holding peri od prescribed by this
28402840 division, and
28412841 f. "Oklahoma proprietorship business enter prise" means a
28422842 business enterprise whose income and expenses have
28432843 been reported on Schedule C or F of an individual
28442844 taxpayer's federal income tax return, or any similar
28452845 successor schedule published by the Internal Revenue
28462846 Service and whose primary headquarters have been
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28732873 located in Oklahoma for at least three (3)
28742874 uninterrupted years prior to the date of the
28752875 transaction from which the net capital gains arise.
28762876 G. 1. For purposes of computing its Oklahoma taxable income
28772877 under this section, the dividends -paid deduction otherwise allowed
28782878 by federal law in computing net income of a real estate investment
28792879 trust that is subject to federal income tax shall be added back in
28802880 computing the tax imposed by this state under this title if the real
28812881 estate investment trust is a captive real estate investment trust.
28822882 2. For purposes of computing its Oklahoma taxable income under
28832883 this section, a taxpayer shall add back otherwise deductible rents
28842884 and interest expenses paid to a captive real estate investment trust
28852885 that is not subject to the provisions of paragraph 1 of this
28862886 subsection. As used in this subsection:
28872887 a. the term "real estate investment trust " or "REIT"
28882888 means the meaning ascribed to such te rm in Section 856
28892889 of the Internal Revenue Code,
28902890 b. the term "captive real estate investment trust " means
28912891 a real estate investment trust, the shares or
28922892 beneficial interests of which are not regularly traded
28932893 on an established securities market and more than
28942894 fifty percent (50%) of the voting power or value of
28952895 the beneficial interests o r shares of which are owned
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29222922 or controlled, directly or indirectly, or
29232923 constructively, by a single entity that is:
29242924 (1) treated as an association taxable as a
29252925 corporation under the Internal Revenue Code, and
29262926 (2) not exempt from federal income tax pursuant to
29272927 the provisions of Section 501(a) of the Internal
29282928 Revenue Code.
29292929 The term shall not include a real estate investment
29302930 trust that is intended to be regularly traded on an
29312931 established securities market, and that satisfies the
29322932 requirements of Section 856(a)(5) and (6) of the U.S.
29332933 Internal Revenue Code by reason of Section 856(h)(2)
29342934 of the Internal Revenue Code,
29352935 c. the term "association taxable as a corporation " shall
29362936 not include the following entities:
29372937 (1) any real estate investment trust as defined in
29382938 paragraph a of this subsection other than a
29392939 "captive real estate investment trust ",
29402940 (2) any qualified real estate investment trust
29412941 subsidiary under Section 856(i) of the Internal
29422942 Revenue Code, other than a qualified REIT
29432943 subsidiary of a "captive real estate investm ent
29442944 trust",
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29712971 (3) any Listed Australian Property Trust (meaning an
29722972 Australian unit trust registered as a "Managed
29732973 Investment Scheme" under the Australian
29742974 Corporations Act in which the principal class of
29752975 units is listed on a recognized stock exchange in
29762976 Australia and is regularly traded on an
29772977 established securities market), or an entity
29782978 organized as a trust, provided that a Listed
29792979 Australian Property Trust owns or controls,
29802980 directly or indirectly, seventy -five percent
29812981 (75%) or more of the voting power or value of the
29822982 beneficial interests or shares of such trust, or
29832983 (4) any Qualified Foreign Entity, meaning a
29842984 corporation, trust, association or partnership
29852985 organized outside the laws of the United States
29862986 and which satisfies the following criteria:
29872987 (a) at least seventy-five percent (75%) of the
29882988 entity's total asset value at the close of
29892989 its taxable year is represented by real
29902990 estate assets, as defined in Section
29912991 856(c)(5)(B) of the Interna l Revenue Code,
29922992 thereby including shares or certificates of
29932993 beneficial interest in any real estate
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30203020 investment trust, cash and cash equivalents,
30213021 and U.S. Government securities,
30223022 (b) the entity receives a dividend -paid
30233023 deduction comparable to Section 561 of t he
30243024 Internal Revenue Code, or is exempt from
30253025 entity level tax,
30263026 (c) the entity is required to distribute at
30273027 least eighty-five percent (85%) of its
30283028 taxable income, as computed in the
30293029 jurisdiction in which it is organized, to
30303030 the holders of its shares or certi ficates of
30313031 beneficial interest on an annual basis,
30323032 (d) not more than ten perce nt (10%) of the
30333033 voting power or value in such entity is held
30343034 directly or indirectly or constructively by
30353035 a single entity or individual, or the shares
30363036 or beneficial interests of s uch entity are
30373037 regularly traded on an established
30383038 securities market, and
30393039 (e) the entity is organized in a country which
30403040 has a tax treaty with the United States.
30413041 3. For purposes of this subsection, the constructive ownership
30423042 rules of Section 318(a) of the Internal Revenue Code, as modified by
30433043 Section 856(d)(5) of the Internal Revenu e Code, shall apply in
30443044
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30703070 determining the ownership of stock, assets, or net profits of any
30713071 person.
30723072 4. A real estate investment trust that does not become
30733073 regularly traded on an es tablished securities market within one (1)
30743074 year of the date on which it first becomes a real estate investment
30753075 trust shall be deemed not to have been regularly traded on an
30763076 established securities market, retroactive to the date it first
30773077 became a real estate investment trust, and shall file an amended
30783078 return reflecting such retroacti ve designation for any tax year or
30793079 part year occurring during its initial year of status as a real
30803080 estate investment trust. For purposes of this subsection, a real
30813081 estate investment trust becomes a real estate investment trust on
30823082 the first day it has both met the requirements of Section 856 of the
30833083 Internal Revenue Code and has elected to be treated as a real estate
30843084 investment trust pursuant to Section 856(c)(1) of the Internal
30853085 Revenue Code.
30863086 SECTION 2. This act shall become effective Novemb er 1, 2025.
30873087
30883088 60-1-10666 MAH 01/05/25