| 39 | 46 | | |
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| 40 | 47 | | [ revenue and taxation - Oklahoma taxable income - |
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| 41 | 48 | | adjusted gross income - exemption for retirement |
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| 42 | 49 | | income amounts - effective date ] |
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| 43 | 50 | | |
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| 44 | 51 | | |
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| 45 | 52 | | |
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| 46 | 53 | | |
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| 47 | 54 | | BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAH OMA: |
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| 48 | 55 | | SECTION 1. AMENDATORY 68 O.S. 2021, Section 2358, as |
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| 49 | 56 | | last amended by Section 155, Chapter 452, O.S.L. 2024 (68 O.S. Supp. |
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| 50 | 57 | | 2024, Section 2358), is amended to read as follows: |
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| 51 | 58 | | Section 2358. For all tax years beginning after De cember 31, |
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| 52 | 59 | | 1981, taxable income and adjusted gross income shall be adjusted to |
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| 53 | 60 | | arrive at Oklahoma taxable income and Oklahoma adjusted gross income |
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| 54 | 61 | | as required by this section. |
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| 86 | 94 | | exempted pursuant to other laws of this state, to the extent that |
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| 87 | 95 | | such interest is not included in taxable income and adjusted gross |
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| 88 | 96 | | income. |
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| 89 | 97 | | 2. There shall be deducted amounts included in such income that |
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| 90 | 98 | | the state is prohibited from taxing because of the provisions of the |
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| 91 | 99 | | Federal Constitution, the State Constitution, federal laws or laws |
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| 92 | 100 | | of Oklahoma. |
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| 93 | 101 | | 3. The amount of any federal net operating loss deduction sh all |
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| 94 | 102 | | be adjusted as follows: |
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| 95 | 103 | | a. For carryovers and carrybacks to taxable years |
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| 96 | 104 | | beginning before January 1, 1981, the amount of any |
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| 97 | 105 | | net operating loss deduction allowed to a taxpayer for |
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| 98 | 106 | | federal income tax purposes shall be reduced to an |
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| 99 | 107 | | amount which is the same portion thereof as the loss |
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| 100 | 108 | | from sources within this state, as determined pursuant |
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| 101 | 109 | | to this section and Section 2362 of this ti tle, for |
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| 102 | 110 | | the taxable year in which such loss is sustained is of |
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| 103 | 111 | | the total loss for such year; |
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| 136 | 145 | | separately determined by reference to Section 172 of |
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| 137 | 146 | | the Internal Revenue Code, 26 U.S.C., Section 1 72, as |
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| 138 | 147 | | modified by the Oklahoma Income Tax Act, Section 2351 |
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| 139 | 148 | | et seq. of this title, and shall be allowed without |
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| 140 | 149 | | regard to the existence of a federal net operating |
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| 141 | 150 | | loss. For tax years beginning after December 31, |
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| 142 | 151 | | 2000, and ending before January 1, 2008, t he years to |
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| 143 | 152 | | which such losses may be carried shall be determined |
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| 144 | 153 | | solely by reference to Section 172 of the Internal |
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| 145 | 154 | | Revenue Code, 26 U.S.C., Section 172, with the |
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| 146 | 155 | | exception that the terms "net operating loss" and |
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| 147 | 156 | | "taxable income" shall be replaced with "Oklahoma net |
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| 148 | 157 | | operating loss" and "Oklahoma taxable income ". For |
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| 149 | 158 | | tax years beginning after December 31, 2007, and |
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| 150 | 159 | | ending before January 1, 2009, years to which such |
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| 151 | 160 | | losses may be carried back shall be limited to two (2) |
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| 152 | 161 | | years. For tax years beginning after December 31, |
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| 153 | 162 | | 2008, the years to which such losses may be carried |
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| 186 | 196 | | 4. Items of the following nature shall be allocated as |
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| 187 | 197 | | indicated. Allowable deductions attributable to items separately |
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| 188 | 198 | | allocable in subparagraphs a, b and c of this parag raph, whether or |
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| 189 | 199 | | not such items of income were actually received, shall be allocated |
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| 190 | 200 | | on the same basis as those items: |
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| 191 | 201 | | a. Income from real and tangible personal property, such |
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| 192 | 202 | | as rents, oil and mining production or royalties, and |
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| 193 | 203 | | gains or losses from sales of such property, shall be |
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| 194 | 204 | | allocated in accordance with the situs of such |
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| 195 | 205 | | property; |
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| 196 | 206 | | b. Income from intangible personal prope rty, such as |
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| 197 | 207 | | interest, dividends, patent or copyright royalties, |
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| 198 | 208 | | and gains or losses from sales of such property, shall |
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| 199 | 209 | | be allocated in accordance with the domiciliary situs |
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| 200 | 210 | | of the taxpayer, except that: |
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| 201 | 211 | | (1) where such property has acquired a nonunitary |
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| 202 | 212 | | business or commercial situs apart from the |
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| 203 | 213 | | domicile of the taxpayer such income shall be |
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| 236 | 247 | | separate commercial or busi ness situs insofar as |
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| 237 | 248 | | undistributed income is concerned, but shall not |
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| 238 | 249 | | be treated as having a separate commercial or |
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| 239 | 250 | | business situs insofar as distributed income is |
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| 240 | 251 | | concerned, |
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| 241 | 252 | | (2) for taxable years beginning after December 31, |
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| 242 | 253 | | 2003, capital or ordinary gai ns or losses from |
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| 243 | 254 | | the sale of an ownership interest in a publicly |
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| 244 | 255 | | traded partnership, as defined by Section 7704(b) |
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| 245 | 256 | | of the Internal Revenue Code, shall be allocated |
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| 246 | 257 | | to this state in the ratio of the original cost |
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| 247 | 258 | | of such partnership's tangible property in this |
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| 248 | 259 | | state to the original cost of such partnership 's |
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| 249 | 260 | | tangible property everywhere, as determined at |
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| 250 | 261 | | the time of the sale; if more than fifty percent |
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| 251 | 262 | | (50%) of the value of the partnership 's assets |
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| 252 | 263 | | consists of intangible assets, capital or |
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| 253 | 264 | | ordinary gains or losses from the sale of an |
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| 286 | 298 | | division shall only apply if the capital or |
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| 287 | 299 | | ordinary gains or losses fro m the sale of an |
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| 288 | 300 | | ownership interest in a partnership do not |
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| 289 | 301 | | constitute qualifying gain receiving capital |
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| 290 | 302 | | treatment as defined in su bparagraph a of |
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| 291 | 303 | | paragraph 2 of subsection F of this section, |
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| 292 | 304 | | (3) income from such property which is required to be |
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| 293 | 305 | | allocated pursuant to the provisions of paragraph |
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| 294 | 306 | | 5 of this subsection shall be allocated as herein |
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| 295 | 307 | | provided; |
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| 296 | 308 | | c. Net income or loss from a bu siness activity which is |
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| 297 | 309 | | not a part of business carried on within or without |
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| 298 | 310 | | the state of a unitary character shall be separa tely |
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| 299 | 311 | | allocated to the state in which such activity is |
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| 300 | 312 | | conducted; |
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| 301 | 313 | | d. In the case of a manufacturing or processing |
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| 302 | 314 | | enterprise the business of which in Oklahoma consists |
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| 303 | 315 | | solely of marketing its products by: |
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| 336 | 349 | | tariffs, as prescribed and allowed by the |
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| 337 | 350 | | Interstate Commerce Commission, to a purchaser |
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| 338 | 351 | | within the state, |
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| 339 | 352 | | (3) sales of the product stored in public warehouses |
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| 340 | 353 | | within the state where the shipment to such |
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| 341 | 354 | | warehouses is not covered by "in transit" |
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| 342 | 355 | | tariffs, as prescribed and allowed by the |
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| 343 | 356 | | Interstate Commerce Commission, to a purchaser |
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| 344 | 357 | | within or without the state, |
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| 345 | 358 | | the Oklahoma net income shall, at the option of the |
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| 346 | 359 | | taxpayer, be that portion of the total net income of |
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| 347 | 360 | | the taxpayer for federal income tax purposes derived |
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| 348 | 361 | | from the manufacture and/or processing and sales |
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| 349 | 362 | | everywhere as determined by the ratio of the sales |
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| 350 | 363 | | defined in this section made to the purchaser within |
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| 351 | 364 | | the state to the total sales everywhere. The term |
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| 352 | 365 | | "public warehouse" as used in this subparagraph means |
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| 353 | 393 | | a licensed public warehouse, the pri ncipal business of |
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| 354 | 394 | | which is warehousing merchandise for the public; |
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| 355 | 395 | | e. In the case of insurance companies, Oklahoma taxable |
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| 356 | 396 | | income shall be taxable income of the taxpayer for |
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| 357 | 397 | | federal tax purposes, as adjusted for the adjustments |
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| 358 | 398 | | provided pursuant to the pr ovisions of paragraphs 1 |
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| 359 | 399 | | and 2 of this subsection, apportioned as follows: |
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| 386 | 400 | | (1) except as otherwise provided by division (2) of |
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| 387 | 401 | | this subparagraph, taxable income of an insurance |
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| 388 | 402 | | company for a taxable year shall be apportioned |
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| 389 | 403 | | to this state by multiplying su ch income by a |
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| 390 | 404 | | fraction, the numerator of which is the direct |
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| 391 | 405 | | premiums written for insurance on property or |
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| 392 | 406 | | risks in this state, an d the denominator of which |
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| 393 | 407 | | is the direct premiums written for insurance on |
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| 394 | 408 | | property or risks everywhere. For purposes of |
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| 395 | 409 | | this subsection, the term "direct premiums |
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| 396 | 410 | | written" means the total amount of direct |
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| 397 | 411 | | premiums written, assessments and annuity |
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| 398 | 412 | | considerations as reported for the taxable year |
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| 399 | 413 | | on the annual statement filed by the company with |
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| 400 | 414 | | the Insurance Commissioner in the form approved |
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| 401 | 415 | | by the National Association of Insurance |
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| 402 | 443 | | Commissioners, or such other form as may be |
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| 403 | 444 | | prescribed in lieu thereof, |
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| 404 | 445 | | (2) if the principal source of premiums written by an |
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| 405 | 446 | | insurance company consists of premiums for |
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| 406 | 447 | | reinsurance accepted by it, the taxable income of |
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| 407 | 448 | | such company shall be apportioned to this state |
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| 408 | 449 | | by multiplying such income by a fraction, the |
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| 409 | 450 | | numerator of which is the sum of (a) direct |
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| 436 | 451 | | premiums written for insurance on property or |
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| 437 | 452 | | risks in this state, plus (b) premiums written |
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| 438 | 453 | | for reinsurance accepted in respect of property |
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| 439 | 454 | | or risks in this state, and the denominator of |
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| 440 | 455 | | which is the sum of (c) direct premiums wri tten |
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| 441 | 456 | | for insurance on property or risks everywhere, |
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| 442 | 457 | | plus (d) premiums written for reinsurance |
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| 443 | 458 | | accepted in respect of property or risks |
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| 444 | 459 | | everywhere. For purposes of this paragraph, |
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| 445 | 460 | | premiums written for reinsurance accepted in |
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| 446 | 461 | | respect of property or risks in this state, |
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| 447 | 462 | | whether or not otherwise determinable, may at the |
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| 448 | 463 | | election of the company be determined on the |
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| 449 | 464 | | basis of the proportion which premiums written |
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| 450 | 465 | | for insurance accepted from companies |
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| 451 | 466 | | commercially domiciled in Oklahoma bears to |
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| 486 | 502 | | 5. The net income or loss remaining after the se parate |
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| 487 | 503 | | allocation in paragraph 4 of this subsection, being that which is |
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| 488 | 504 | | derived from a unitary business enterprise, shall be appor tioned to |
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| 489 | 505 | | this state on the basis of the arithmetical average of three factors |
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| 490 | 506 | | consisting of property, payroll and sales or g ross revenue |
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| 491 | 507 | | enumerated as subparagraphs a, b and c of this paragraph. Net |
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| 492 | 508 | | income or loss as used in this paragraph includes that derived from |
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| 493 | 509 | | patent or copyright royalties, purchase discounts, and interest on |
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| 494 | 510 | | accounts receivable relating to or arising fr om a business activity, |
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| 495 | 511 | | the income from which is apportioned pursuant to this subsection, |
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| 496 | 512 | | including the sale or other disposition o f such property and any |
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| 497 | 513 | | other property used in the unitary enterprise. Deductions used in |
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| 498 | 514 | | computing such net income or loss shall not include taxes based on |
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| 499 | 515 | | or measured by income. Provided, for corporations whose property |
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| 500 | 516 | | for purposes of the tax imposed by Section 2355 of this title has an |
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| 501 | 517 | | initial investment cost equaling or exceeding Two Hundred Million |
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| 502 | 545 | | Dollars ($200,000,000. 00) and such investment is made on or after |
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| 503 | 546 | | July 1, 1997, or for corporations which expand their property or |
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| 504 | 547 | | facilities in this sta te and such expansion has an investment cost |
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| 505 | 548 | | equaling or exceeding Two Hundred Million Dollars ($200,000,000.00) |
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| 506 | 549 | | over a period not to exceed three (3) years, and such expansion is |
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| 507 | 550 | | commenced on or after January 1, 2000, the three factors shall be |
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| 508 | 551 | | apportioned with property and payroll, each comprising twenty -five |
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| 509 | 552 | | percent (25%) of the apportionment factor and sales comprising fifty |
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| 536 | 553 | | percent (50%) of the apportionment factor. The apportionment |
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| 537 | 554 | | factors shall be computed as follows: |
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| 538 | 555 | | a. The property factor is a fr action, the numerator of |
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| 539 | 556 | | which is the average value of the taxpayer 's real and |
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| 540 | 557 | | tangible personal property owned or rented and used in |
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| 541 | 558 | | this state during the tax period and the denominator |
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| 542 | 559 | | of which is the average value of all the taxpayer 's |
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| 543 | 560 | | real and tangible personal property everywhere owned |
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| 544 | 561 | | or rented and used during the tax period. |
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| 545 | 562 | | (1) Property, the income from which is separate ly |
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| 546 | 563 | | allocated in paragraph 4 of this subsection, |
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| 547 | 564 | | shall not be included in determining this |
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| 548 | 565 | | fraction. The numerator of the fraction shall |
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| 549 | 566 | | include a portion of the investment in |
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| 550 | 567 | | transportation and other equipment having no |
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| 551 | 568 | | fixed situs, such as rolling stock, buses, trucks |
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| 552 | 596 | | and trailers, including machinery and equipment |
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| 553 | 597 | | carried thereon, airplanes, salespersons ' |
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| 554 | 598 | | automobiles and other simi lar equipment, in the |
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| 555 | 599 | | proportion that miles traveled in Oklahoma by |
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| 556 | 600 | | such equipment bears to total miles traveled, |
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| 557 | 601 | | (2) Property owned by the taxpayer is valued at its |
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| 558 | 602 | | original cost. Property rented by the taxpayer |
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| 559 | 603 | | is valued at eight times the net annual re ntal |
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| 586 | 604 | | rate. Net annual rental rate is the annual |
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| 587 | 605 | | rental rate paid by the taxpayer, less any annual |
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| 588 | 606 | | rental rate received by th e taxpayer from |
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| 589 | 607 | | subrentals, |
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| 590 | 608 | | (3) The average value of property shall be determined |
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| 591 | 609 | | by averaging the values at the beginning and |
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| 592 | 610 | | ending of the tax period but the Oklahoma Tax |
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| 593 | 611 | | Commission may require the averaging of monthly |
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| 594 | 612 | | values during the tax period if rea sonably |
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| 595 | 613 | | required to reflect properly the average value of |
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| 596 | 614 | | the taxpayer's property; |
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| 597 | 615 | | b. The payroll factor is a fraction, the numerat or of |
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| 598 | 616 | | which is the total compensation for services rendered |
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| 599 | 617 | | in the state during the tax period, and the |
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| 600 | 618 | | denominator of which is the total compensation for |
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| 601 | 619 | | services rendered everywhere during the tax period. |
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| 602 | 647 | | "Compensation", as used in this subsection means those |
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| 603 | 648 | | paid-for services to the extent related to the unitary |
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| 604 | 649 | | business but does not include officers ' salaries, |
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| 605 | 650 | | wages and other compensation. |
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| 606 | 651 | | (1) In the case of a transportation enterprise, the |
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| 607 | 652 | | numerator of the fraction shall include a portion |
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| 608 | 653 | | of such expenditure in connection with employees |
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| 609 | 654 | | operating equipment over a fixed route, such as |
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| 636 | 655 | | railroad employees, airline pilots, or b us |
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| 637 | 656 | | drivers, in this state only a part of the time, |
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| 638 | 657 | | in the proportion that mileage traveled in |
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| 639 | 658 | | Oklahoma bears to total mileage trave led by such |
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| 640 | 659 | | employees, |
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| 641 | 660 | | (2) In any case the numerator of the fraction shall |
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| 642 | 661 | | include a portion of such expenditures in |
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| 643 | 662 | | connection with itinerant employees, such as |
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| 644 | 663 | | traveling salespersons, in this state only a part |
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| 645 | 664 | | of the time, in the proportion that time spe nt in |
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| 646 | 665 | | Oklahoma bears to total time spent in furtherance |
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| 647 | 666 | | of the enterprise by such employees; |
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| 648 | 667 | | c. The sales factor is a fractio n, the numerator of which |
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| 649 | 668 | | is the total sales or gross revenue of the taxpayer in |
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| 650 | 669 | | this state during the tax period, and the denomina tor |
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| 651 | 670 | | of which is the total sales or gross revenue of the |
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| 652 | 698 | | taxpayer everywhere during the tax period. "Sales", |
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| 653 | 699 | | as used in this subsection does not include sales or |
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| 654 | 700 | | gross revenue which are separately allocated in |
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| 655 | 701 | | paragraph 4 of this subsection. |
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| 656 | 702 | | (1) Sales of tangible personal property have a situs |
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| 657 | 703 | | in this state if the property is delivered or |
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| 658 | 704 | | shipped to a purchaser other than the Un ited |
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| 659 | 705 | | States government, within this state regardless |
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| 686 | 706 | | of the FOB point or other conditions of the sale; |
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| 687 | 707 | | or the property is shipped f rom an office, store, |
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| 688 | 708 | | warehouse, factory or other place of storage in |
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| 689 | 709 | | this state and (a) the purchaser is the United |
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| 690 | 710 | | States government or (b) the taxpayer is not |
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| 691 | 711 | | doing business in the state of the destination of |
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| 692 | 712 | | the shipment. |
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| 693 | 713 | | (2) In the case of a railroad or interurban railway |
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| 694 | 714 | | enterprise, the numerator of the fraction shall |
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| 695 | 715 | | not be less than the allocation of revenues to |
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| 696 | 716 | | this state as shown in its annual report to the |
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| 697 | 717 | | Corporation Commission. |
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| 698 | 718 | | (3) In the case of an airline, truck or bus |
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| 699 | 719 | | enterprise or freight c ar, tank car, refrigerator |
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| 700 | 720 | | car or other railroad equipment enterprise, the |
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| 701 | 721 | | numerator of the fraction shall include a portion |
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| 736 | 757 | | allocated to Oklahoma based upon miles moved, at |
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| 737 | 758 | | the option of the taxpayer, and the denominator |
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| 738 | 759 | | of which shall be the total of traffic units of |
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| 739 | 760 | | the enterprise or the revenue of the enterprise |
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| 740 | 761 | | everywhere as appropriate to the numerator. A |
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| 741 | 762 | | "traffic unit" is hereby defined as the |
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| 742 | 763 | | transportation for a distanc e of one (1) mile of |
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| 743 | 764 | | one (1) barrel of oil, one (1) gallon of gasoline |
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| 744 | 765 | | or one thousand (1,000) cubic feet of natural or |
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| 745 | 766 | | casinghead gas, as the case may be. |
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| 746 | 767 | | (5) In the case of a telephone or telegraph or other |
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| 747 | 768 | | communication enterprise, the numerator of the |
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| 748 | 769 | | fraction shall include that portion of the |
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| 749 | 770 | | interstate revenue as is allocated pursuant to |
|---|
| 750 | 771 | | the accounting procedures prescribe d by the |
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| 751 | 772 | | Federal Communications Commission; provided that |
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| 752 | 800 | | in respect to each corporation or business entity |
|---|
| 753 | 801 | | required by the Federal Communications Commission |
|---|
| 754 | 802 | | to keep its books and records in accordance with |
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| 755 | 803 | | a uniform system of accounts prescribed by such |
|---|
| 756 | 804 | | Commission, the intrastate net income shall be |
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| 757 | 805 | | determined separately in the manner provided by |
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| 758 | 806 | | such uniform system of accounts and o nly the |
|---|
| 759 | 807 | | interstate income shall be subject to allocation |
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| 786 | 808 | | pursuant to the provisions of this subsection. |
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| 787 | 809 | | Provided further, th at the gross revenue factors |
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| 788 | 810 | | shall be those as are determined pursuant to the |
|---|
| 789 | 811 | | accounting procedures prescribed by the Federal |
|---|
| 790 | 812 | | Communications Commission. |
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| 791 | 813 | | In any case where the apportionment of the three factors |
|---|
| 792 | 814 | | prescribed in this paragraph attributes to Okl ahoma a portion of net |
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| 793 | 815 | | income of the enterprise out of all appropriate proportion to the |
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| 794 | 816 | | property owned and/or business transacted within this state, because |
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| 795 | 817 | | of the fact that one or more of the factors so prescribed are not |
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| 796 | 818 | | employed to any appreciable exte nt in furtherance of the enterprise; |
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| 797 | 819 | | or because one or more factors not so prescribed are employed to a |
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| 798 | 820 | | considerable extent in furt herance of the enterprise; or because of |
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| 799 | 821 | | other reasons, the Tax Commission is empowered to permit, after a |
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| 800 | 822 | | showing by taxpayer that an excessive portion of net income has been |
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| 801 | 823 | | attributed to Oklahoma, or require, when in its judgment an |
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| 802 | 851 | | insufficient portion of net income has been attributed to Oklahoma, |
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| 803 | 852 | | the elimination, substitution, or use of additional factors, or |
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| 804 | 853 | | reduction or increase in the weight of such prescribed factors. |
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| 805 | 854 | | Provided, however, that any such variance from such prescribed |
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| 806 | 855 | | factors which has the effect of increasing the portion of net income |
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| 807 | 856 | | attributable to Oklahoma must not be inherently arbitrary, and |
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| 808 | 857 | | application of the recomputed final apportionment to the net income |
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| 835 | 858 | | of the enterprise must attribute to Oklahoma only a reasonable |
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| 836 | 859 | | portion thereof. |
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| 837 | 860 | | 6. For calendar years 1997 and 1998, the owner of a new or |
|---|
| 838 | 861 | | expanded agricultural commodity processing facility in th is state |
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| 839 | 862 | | may exclude from Oklahoma taxable income, or in the case of an |
|---|
| 840 | 863 | | individual, the Oklahoma adjusted gross income, fifteen per cent |
|---|
| 841 | 864 | | (15%) of the investment by the owner in the new or expanded |
|---|
| 842 | 865 | | agricultural commodity processing facility. For calendar ye ar 1999, |
|---|
| 843 | 866 | | and all subsequent years, the percentage, not to exceed fifteen |
|---|
| 844 | 867 | | percent (15%), available to the owner of a new or expanded |
|---|
| 845 | 868 | | agricultural commodity processing facility in this state claiming |
|---|
| 846 | 869 | | the exemption shall be adjusted annually so that the total estimated |
|---|
| 847 | 870 | | reduction in tax liability does not exceed One Million Dollars |
|---|
| 848 | 871 | | ($1,000,000.00) annually. The Tax Commission shall promu lgate rules |
|---|
| 849 | 872 | | for determining the percentage of the investment which each eligible |
|---|
| 850 | 873 | | taxpayer may exclude. The exclusion provide d by this paragraph |
|---|
| 851 | 874 | | shall be taken in the taxable year when the investment is made. In |
|---|
| 852 | 902 | | the event the total reduction in tax liabil ity authorized by this |
|---|
| 853 | 903 | | paragraph exceeds One Million Dollars ($1,000,000.00) in any |
|---|
| 854 | 904 | | calendar year, the Tax Commission shall p ermit any excess over One |
|---|
| 855 | 905 | | Million Dollars ($1,000,000.00) and shall factor such excess into |
|---|
| 856 | 906 | | the percentage for subsequent years. A ny amount of the exemption |
|---|
| 857 | 907 | | permitted to be excluded pursuant to the provisions of this |
|---|
| 858 | 908 | | paragraph but not used in any year may be carried forward as an |
|---|
| 885 | 909 | | exemption from income pursuant to the provisions of this paragraph |
|---|
| 886 | 910 | | for a period not exceeding six (6) yea rs following the year in which |
|---|
| 887 | 911 | | the investment was originally made. |
|---|
| 888 | 912 | | For purposes of this paragraph: |
|---|
| 889 | 913 | | a. "Agricultural commodity processing facility" means |
|---|
| 890 | 914 | | building, structures, fixtures and improvements used |
|---|
| 891 | 915 | | or operated primarily for the processing or produc tion |
|---|
| 892 | 916 | | of marketable products from agricultural commodities. |
|---|
| 893 | 917 | | The term shall also mean a dairy operation that |
|---|
| 894 | 918 | | requires a depreciable investment of at least Two |
|---|
| 895 | 919 | | Hundred Fifty Thousand Dollars ($250,000.00) and which |
|---|
| 896 | 920 | | produces milk from dairy cows. The term do es not |
|---|
| 897 | 921 | | include a facility that provides only, and nothing |
|---|
| 898 | 922 | | more than, storage, cleaning, drying or transportation |
|---|
| 899 | 923 | | of agricultural commodities, and |
|---|
| 900 | 924 | | b. "Facility" means each part of the facility which is |
|---|
| 901 | 925 | | used in a process primarily for: |
|---|
| 935 | 960 | | (3) packaging or otherwis e preparing the product for |
|---|
| 936 | 961 | | sale or shipment. |
|---|
| 937 | 962 | | 7. Despite any provision to the contrary in paragraph 3 of this |
|---|
| 938 | 963 | | subsection, for taxable years beginning after December 31, 1999, in |
|---|
| 939 | 964 | | the case of a taxpayer which has a farming loss, such farming loss |
|---|
| 940 | 965 | | shall be considered a net operating loss carryback in accordance |
|---|
| 941 | 966 | | with and to the extent of the Internal Revenue Code, 26 U.S.C., |
|---|
| 942 | 967 | | Section 172(b)(G). However, the amount of the net operating loss |
|---|
| 943 | 968 | | carryback shall not exceed the lesser of: |
|---|
| 944 | 969 | | a. Sixty Thousand Dollars ($6 0,000.00), or |
|---|
| 945 | 970 | | b. the loss properly shown on Schedule F of the Internal |
|---|
| 946 | 971 | | Revenue Service Form 1040 reduced by one -half (1/2) of |
|---|
| 947 | 972 | | the income from all other sources other than reflected |
|---|
| 948 | 973 | | on Schedule F. |
|---|
| 949 | 974 | | 8. In taxable years beginning after December 31, 1995, all |
|---|
| 950 | 975 | | qualified wages equal to the federal income tax credit set forth in |
|---|
| 951 | 976 | | 26 U.S.C.A., Section 45A, shall be deducted from taxable income. |
|---|
| 952 | 1004 | | The deduction allowed pursuant to this paragraph shall only be |
|---|
| 953 | 1005 | | permitted for the tax years in which the federal tax credit pursuant |
|---|
| 954 | 1006 | | to 26 U.S.C.A., Section 45A, is allowed. For purposes of this |
|---|
| 955 | 1007 | | paragraph, "qualified wages" means those wages used to calculate the |
|---|
| 956 | 1008 | | federal credit pursuant to 26 U.S.C.A., Section 45A. |
|---|
| 957 | 1009 | | 9. In taxable years beginning after December 31, 2005, an |
|---|
| 958 | 1010 | | employer that is eligible for and utilizes the Safety Pays OSHA |
|---|
| 985 | 1011 | | Consultation Service provided by the Oklahoma Department of Lab or |
|---|
| 986 | 1012 | | shall receive an exemption from taxable income in the amount of One |
|---|
| 987 | 1013 | | Thousand Dollars ($1,000.00) for the tax year that the servi ce is |
|---|
| 988 | 1014 | | utilized. |
|---|
| 989 | 1015 | | 10. For taxable years beginning on or after January 1, 2010, |
|---|
| 990 | 1016 | | there shall be added to Oklahoma taxable income an amount equal to |
|---|
| 991 | 1017 | | the amount of deferred income not included in such taxable income |
|---|
| 992 | 1018 | | pursuant to Section 108(i)(1) of the Internal Revenue Code of 1986 |
|---|
| 993 | 1019 | | as amended by Section 1231 of the American Recovery and Reinvestment |
|---|
| 994 | 1020 | | Act of 2009 (P.L. No. 111 -5). There shall be subtracted from |
|---|
| 995 | 1021 | | Oklahoma taxable income an amount equal to the amount of deferred |
|---|
| 996 | 1022 | | income included in such taxable incom e pursuant to Section 108(i)(1) |
|---|
| 997 | 1023 | | of the Internal Revenue Code by Section 1231 of the American |
|---|
| 998 | 1024 | | Recovery and Reinvestment Act of 2009 (P.L. No. 111-5). |
|---|
| 999 | 1025 | | 11. For taxable years beginning on or after January 1, 2019, |
|---|
| 1000 | 1026 | | there shall be subtracted from Oklahoma taxab le income or adjusted |
|---|
| 1001 | 1027 | | gross income any item of income or gain, and there shall be added to |
|---|
| 1035 | 1062 | | provisions of the Pass -Through Entity Tax Equity Act of 2019, and |
|---|
| 1036 | 1063 | | (ii) the total amount of tax attributable to any resulting Oklahoma |
|---|
| 1037 | 1064 | | net entity income has been paid. The Oklahoma Tax Commission shall |
|---|
| 1038 | 1065 | | promulgate rules for the reporting of such exclusion to direct and |
|---|
| 1039 | 1066 | | indirect members of the electing pass -through entity. As used in |
|---|
| 1040 | 1067 | | this paragraph, "electing pass-through entity", "indirect member", |
|---|
| 1041 | 1068 | | and "member" shall be defined in the same manner as prescribed by |
|---|
| 1042 | 1069 | | Section 2355.1P-2 of this title. Notwithstanding the application of |
|---|
| 1043 | 1070 | | this paragraph, the adjusted tax basis of any ownership interest in |
|---|
| 1044 | 1071 | | a pass-through entity for purposes of Section 2351 et seq. of this |
|---|
| 1045 | 1072 | | title shall be equal to its adjusted tax basis for federal income |
|---|
| 1046 | 1073 | | tax purposes. |
|---|
| 1047 | 1074 | | B. 1. The taxable income of any corporation shall be further |
|---|
| 1048 | 1075 | | adjusted to arrive at Oklahoma ta xable income, except those |
|---|
| 1049 | 1076 | | corporations electing treatment as provided in subchapter S of the |
|---|
| 1050 | 1077 | | Internal Revenue Code, 26 U.S.C., Sec tion 1361 et seq., and Section |
|---|
| 1051 | 1078 | | 2365 of this title, deductions pursuant to the provisions of the |
|---|
| 1052 | 1106 | | Accelerated Cost Recovery Sys tem as defined and allowed in the |
|---|
| 1053 | 1107 | | Economic Recovery Tax Act of 1981, Public Law 97 -34, 26 U.S.C., |
|---|
| 1054 | 1108 | | Section 168, for depreciation of assets placed into service after |
|---|
| 1055 | 1109 | | December 31, 1981, shall not be allowed in calculating Oklahoma |
|---|
| 1056 | 1110 | | taxable income. Such corpor ations shall be allowed a deduction for |
|---|
| 1057 | 1111 | | depreciation of assets placed into service after December 31, 1981, |
|---|
| 1058 | 1112 | | in accordance with prov isions of the Internal Revenue Code, 26 |
|---|
| 1085 | 1113 | | U.S.C., Section 1 et seq., in effect immediately prior to the |
|---|
| 1086 | 1114 | | enactment of the Accele rated Cost Recovery System. The Oklahoma tax |
|---|
| 1087 | 1115 | | basis for all such assets placed into service after December 31, |
|---|
| 1088 | 1116 | | 1981, calculated in this section shall be retained and utilized for |
|---|
| 1089 | 1117 | | all Oklahoma income tax purposes through the final disposition of |
|---|
| 1090 | 1118 | | such assets. |
|---|
| 1091 | 1119 | | Notwithstanding any other provisions of the Oklahoma Income Tax |
|---|
| 1092 | 1120 | | Act, Section 2351 et seq. of this title, or of the Internal Reven ue |
|---|
| 1093 | 1121 | | Code to the contrary, this subsection shall control calculation of |
|---|
| 1094 | 1122 | | depreciation of assets placed into service after Decemb er 31, 1981, |
|---|
| 1095 | 1123 | | and before January 1, 1983. |
|---|
| 1096 | 1124 | | For assets placed in service and held by a corporation in which |
|---|
| 1097 | 1125 | | accelerated cost recovery system was previously disallowed, an |
|---|
| 1098 | 1126 | | adjustment to taxable income is required in the first taxable year |
|---|
| 1099 | 1127 | | beginning after Decem ber 31, 1982, to reconcile the basis of such |
|---|
| 1100 | 1128 | | assets to the basis allowed in the Internal Revenue Code. The |
|---|
| 1101 | 1129 | | purpose of this adjustm ent is to equalize the basis and allowance |
|---|
| 1102 | 1157 | | for depreciation accounts between that reported to the Internal |
|---|
| 1103 | 1158 | | Revenue Service and that reported to Oklahoma. |
|---|
| 1104 | 1159 | | 2. For tax years beginning on or after January 1, 2009, and |
|---|
| 1105 | 1160 | | ending on or before December 31, 2009, th ere shall be added to |
|---|
| 1106 | 1161 | | Oklahoma taxable income any amount in excess of One Hundred Seventy - |
|---|
| 1107 | 1162 | | five Thousand Dollars ($175,000.00) which has been deducted as a |
|---|
| 1134 | 1163 | | small business expense under Internal Revenue Code, Section 179 as |
|---|
| 1135 | 1164 | | provided in the American Recovery and Reinvestment Act of 2009. |
|---|
| 1136 | 1165 | | C. 1. For taxable years beginning after December 31, 1987, the |
|---|
| 1137 | 1166 | | taxable income of any corporat ion shall be further adjusted to |
|---|
| 1138 | 1167 | | arrive at Oklahoma taxable income for transfers of technology to |
|---|
| 1139 | 1168 | | qualified small businesses locate d in Oklahoma. Such transferor |
|---|
| 1140 | 1169 | | corporation shall be allowed an exemption from taxable income of an |
|---|
| 1141 | 1170 | | amount equal to the amoun t of royalty payment received as a result |
|---|
| 1142 | 1171 | | of such transfer; provided, however, such amount shall not exceed |
|---|
| 1143 | 1172 | | ten percent (10%) of th e amount of gross proceeds received by such |
|---|
| 1144 | 1173 | | transferor corporation as a result of the technology transfer. Such |
|---|
| 1145 | 1174 | | exemption shall be allowed for a period not to exceed ten (10) years |
|---|
| 1146 | 1175 | | from the date of receipt of the first royalty payment accruing from |
|---|
| 1147 | 1176 | | such transfer. No exemption may be claimed for transfers of |
|---|
| 1148 | 1177 | | technology to qualified small businesses made prior to January 1, |
|---|
| 1149 | 1178 | | 1988. |
|---|
| 1150 | 1179 | | 2. For purposes of this subsection: |
|---|
| 1151 | 1207 | | a. "Qualified small business " means an entity, whether |
|---|
| 1152 | 1208 | | organized as a corporation, partnersh ip, or |
|---|
| 1153 | 1209 | | proprietorship, organized for profit with its |
|---|
| 1154 | 1210 | | principal place of business located within this state |
|---|
| 1155 | 1211 | | and which meets the following criteria: |
|---|
| 1156 | 1212 | | (1) Capitalization of not more than Two Hundred Fifty |
|---|
| 1157 | 1213 | | Thousand Dollars ($250,000.00), |
|---|
| 1184 | 1214 | | (2) Having at least fifty percent (50%) of its |
|---|
| 1185 | 1215 | | employees and assets located in Oklahoma at the |
|---|
| 1186 | 1216 | | time of the transfer, and |
|---|
| 1187 | 1217 | | (3) Not a subsidiary or aff iliate of the transferor |
|---|
| 1188 | 1218 | | corporation; |
|---|
| 1189 | 1219 | | b. "Technology" means a proprietary process, formula, |
|---|
| 1190 | 1220 | | pattern, device or compilation of scien tific or |
|---|
| 1191 | 1221 | | technical information which is not in the public |
|---|
| 1192 | 1222 | | domain; |
|---|
| 1193 | 1223 | | c. "Transferor corporation " means a corporation which is |
|---|
| 1194 | 1224 | | the exclusive and undisputed owner of the technology |
|---|
| 1195 | 1225 | | at the time the transfer is made; and |
|---|
| 1196 | 1226 | | d. "Gross proceeds" means the total amount of |
|---|
| 1197 | 1227 | | consideration for the transfer of technology, whether |
|---|
| 1198 | 1228 | | the consideration is in money or otherwise. |
|---|
| 1199 | 1229 | | D. 1. For taxable yea rs beginning after December 31, 2005, the |
|---|
| 1200 | 1230 | | taxable income of any corporation, estate or trust, shall be further |
|---|
| 1201 | 1258 | | adjusted for qualify ing gains receiving capital treatment. Such |
|---|
| 1202 | 1259 | | corporations, estates or trusts shall be allowed a deduction from |
|---|
| 1203 | 1260 | | Oklahoma taxable income for the amount of qualifying gains receiving |
|---|
| 1204 | 1261 | | capital treatment earned by the corporation, estate or trust during |
|---|
| 1205 | 1262 | | the taxable year and included in the federal taxable income of such |
|---|
| 1206 | 1263 | | corporation, estate or trust. |
|---|
| 1207 | 1264 | | 2. As used in this subsection: |
|---|
| 1234 | 1265 | | a. "qualifying gains receiving capital treatment " means |
|---|
| 1235 | 1266 | | the amount of net capital gains, as defined in Section |
|---|
| 1236 | 1267 | | 1222(11) of the Interna l Revenue Code, included in the |
|---|
| 1237 | 1268 | | federal income tax return of the corporation, estate |
|---|
| 1238 | 1269 | | or trust that result from: |
|---|
| 1239 | 1270 | | (1) the sale of real property or tangible personal |
|---|
| 1240 | 1271 | | property located within Oklahoma that has been |
|---|
| 1241 | 1272 | | directly or indirectly owned by the corporatio n, |
|---|
| 1242 | 1273 | | estate or trust for a holding period of at least |
|---|
| 1243 | 1274 | | five (5) years prior to the date of the |
|---|
| 1244 | 1275 | | transaction from which such net c apital gains |
|---|
| 1245 | 1276 | | arise, |
|---|
| 1246 | 1277 | | (2) the sale of stock or on the sale of an ownership |
|---|
| 1247 | 1278 | | interest in an Oklahoma company, limited |
|---|
| 1248 | 1279 | | liability company, or partnership where such |
|---|
| 1249 | 1280 | | stock or ownership interest has been directly or |
|---|
| 1250 | 1281 | | indirectly owned by the corporation, estate or |
|---|
| 1284 | 1316 | | company, limited liability company, or |
|---|
| 1285 | 1317 | | partnership where such property has been directly |
|---|
| 1286 | 1318 | | or indirectly owned by such entity owned by the |
|---|
| 1287 | 1319 | | owners of such entity, and used in or derived |
|---|
| 1288 | 1320 | | from such entity for a period of at least three |
|---|
| 1289 | 1321 | | (3) years prior to the date of the transaction |
|---|
| 1290 | 1322 | | from which the net capital gains arise, |
|---|
| 1291 | 1323 | | b. "holding period" means an uninterrupted period of |
|---|
| 1292 | 1324 | | time. The holding period shall include any additional |
|---|
| 1293 | 1325 | | period when the property was held by another |
|---|
| 1294 | 1326 | | individual or entity, if such additional period is |
|---|
| 1295 | 1327 | | included in the taxpayer 's holding period for the |
|---|
| 1296 | 1328 | | asset pursuant to the Internal Revenue Code, |
|---|
| 1297 | 1329 | | c. "Oklahoma company", "limited liability company ", or |
|---|
| 1298 | 1330 | | "partnership" means an entity whose primary |
|---|
| 1299 | 1331 | | headquarters have been located in Oklahoma for at |
|---|
| 1300 | 1332 | | least three (3) uninterrupted years prior to the date |
|---|
| 1333 | 1366 | | entities) that sells the asset that gives rise to the |
|---|
| 1334 | 1367 | | qualifying gains receiving capital treatment. |
|---|
| 1335 | 1368 | | (1) With respect to sales of real property or |
|---|
| 1336 | 1369 | | tangible personal propert y located within |
|---|
| 1337 | 1370 | | Oklahoma, the deduction described in this |
|---|
| 1338 | 1371 | | subsection shall not apply unless the pass - |
|---|
| 1339 | 1372 | | through entity that makes the sale has held the |
|---|
| 1340 | 1373 | | property for not less than five (5) uninterrupted |
|---|
| 1341 | 1374 | | years prior to the date of the transaction that |
|---|
| 1342 | 1375 | | created the capital gain, and each pass -through |
|---|
| 1343 | 1376 | | entity included in the chain of ownership has |
|---|
| 1344 | 1377 | | been a member, partner, or shareholder of the |
|---|
| 1345 | 1378 | | pass-through entity in the tier immediately below |
|---|
| 1346 | 1379 | | it for an uninterrupted period of not less than |
|---|
| 1347 | 1380 | | five (5) years. |
|---|
| 1348 | 1381 | | (2) With respect to sales of stock or ownership |
|---|
| 1349 | 1382 | | interest in or sales of all or substantially all |
|---|
| 1350 | 1383 | | of the assets of an Oklahoma company, limite d |
|---|
| 1383 | 1417 | | transaction that created the capital gain, and |
|---|
| 1384 | 1418 | | each pass-through entity included in the chain of |
|---|
| 1385 | 1419 | | ownership has been a member, partner or |
|---|
| 1386 | 1420 | | shareholder of the pass -through entity in the |
|---|
| 1387 | 1421 | | tier immediately below it for an uninterrupted |
|---|
| 1388 | 1422 | | period of not less than three (3) years. |
|---|
| 1389 | 1423 | | E. The Oklahoma adjusted gross income of any individual |
|---|
| 1390 | 1424 | | taxpayer shall be further adjusted as follows to arrive at Oklahoma |
|---|
| 1391 | 1425 | | taxable income: |
|---|
| 1392 | 1426 | | 1. a. In the case of individuals, there shall be added or |
|---|
| 1393 | 1427 | | deducted, as the case m ay be, the difference necessary |
|---|
| 1394 | 1428 | | to allow personal exemptions of One Thousand Dollars |
|---|
| 1395 | 1429 | | ($1,000.00) in lieu of the personal exem ptions allowed |
|---|
| 1396 | 1430 | | by the Internal Revenue Code. |
|---|
| 1397 | 1431 | | b. There shall be allowed an additional exemption of One |
|---|
| 1398 | 1432 | | Thousand Dollars ($1,000.00) for each taxpayer or |
|---|
| 1399 | 1433 | | spouse who is blind at the close of the tax year. For |
|---|
| 1400 | 1434 | | purposes of this subparagraph, an individual is b lind |
|---|
| 1432 | 1467 | | widest diameter of the visual field subtends an angle |
|---|
| 1433 | 1468 | | no greater than twenty (20) degrees. |
|---|
| 1434 | 1469 | | c. There shall be allowed an additi onal exemption of One |
|---|
| 1435 | 1470 | | Thousand Dollars ($1,000.00) for each taxpayer or |
|---|
| 1436 | 1471 | | spouse who is sixty-five (65) years of age or older a t |
|---|
| 1437 | 1472 | | the close of the tax year based upon the filing status |
|---|
| 1438 | 1473 | | and federal adjusted gross income of the taxpayer. |
|---|
| 1439 | 1474 | | Taxpayers with the fol lowing filing status may claim |
|---|
| 1440 | 1475 | | this exemption if the federal adjusted gross income |
|---|
| 1441 | 1476 | | does not exceed: |
|---|
| 1442 | 1477 | | (1) Twenty-five Thousand Dollars ($25,000.00) if |
|---|
| 1443 | 1478 | | married and filing jointly, |
|---|
| 1444 | 1479 | | (2) Twelve Thousand Five Hundred Dollars ($12,500.00) |
|---|
| 1445 | 1480 | | if married and filing sep arately, |
|---|
| 1446 | 1481 | | (3) Fifteen Thousand Dollars ($15,000.00) if single, |
|---|
| 1447 | 1482 | | and |
|---|
| 1448 | 1483 | | (4) Nineteen Thousand Dollars ($19,000.00) if a |
|---|
| 1449 | 1484 | | qualifying head of household. |
|---|
| 1482 | 1518 | | purposes of the income thresholds provided in this |
|---|
| 1483 | 1519 | | subparagraph. |
|---|
| 1484 | 1520 | | 2. a. For taxable years beginning on or before December 31, |
|---|
| 1485 | 1521 | | 2005, in the case of individuals who use the standard |
|---|
| 1486 | 1522 | | deduction in determining taxable income, there shall |
|---|
| 1487 | 1523 | | be added or deducted, as the case may be, the |
|---|
| 1488 | 1524 | | difference necessary to allow a standard de duction in |
|---|
| 1489 | 1525 | | lieu of the standard deduction allowed by the Internal |
|---|
| 1490 | 1526 | | Revenue Code, in an amount equal to the larger of |
|---|
| 1491 | 1527 | | fifteen percent (15%) of the Oklahoma adjusted gross |
|---|
| 1492 | 1528 | | income or One Thousand Dollars ($1,000.00), but not to |
|---|
| 1493 | 1529 | | exceed Two Thousand Dollars ($2, 000.00), except that |
|---|
| 1494 | 1530 | | in the case of a married individual filing a separate |
|---|
| 1495 | 1531 | | return such deduction shall be the larger of fifte en |
|---|
| 1496 | 1532 | | percent (15%) of such Oklahoma adjusted gross income |
|---|
| 1497 | 1533 | | or Five Hundred Dollars ($500.00), but not to exceed |
|---|
| 1498 | 1534 | | the maximum amount of One Thousand Dollars |
|---|
| 1499 | 1535 | | ($1,000.00). |
|---|
| 1500 | 1563 | | b. For taxable years beginning on or after January 1, |
|---|
| 1501 | 1564 | | 2006, and before January 1, 2007, in the case of |
|---|
| 1502 | 1565 | | individuals who use the standard deduction in |
|---|
| 1503 | 1566 | | determining taxable income, there shall be added or |
|---|
| 1504 | 1567 | | deducted, as the case may be, the difference necessary |
|---|
| 1505 | 1568 | | to allow a standard deduction in lieu of the standard |
|---|
| 1532 | 1569 | | deduction allowed by the Internal Rev enue Code, in an |
|---|
| 1533 | 1570 | | amount equal to: |
|---|
| 1534 | 1571 | | (1) Three Thousand Dollars ($3,000.00), if the filing |
|---|
| 1535 | 1572 | | status is married filing joint, head of hou sehold |
|---|
| 1536 | 1573 | | or qualifying widow, or |
|---|
| 1537 | 1574 | | (2) Two Thousand Dollars ($2,000.00), if the filing |
|---|
| 1538 | 1575 | | status is single or married filing separat e. |
|---|
| 1539 | 1576 | | c. For the taxable year beginning on January 1, 2007, and |
|---|
| 1540 | 1577 | | ending December 31, 2007, in the case of individuals |
|---|
| 1541 | 1578 | | who use the standard deduction in determining taxable |
|---|
| 1542 | 1579 | | income, there shall be added or deducted, as the case |
|---|
| 1543 | 1580 | | may be, the difference necessary t o allow a standard |
|---|
| 1544 | 1581 | | deduction in lieu of the standard deduction allowed by |
|---|
| 1545 | 1582 | | the Internal Revenue Code, in an amount equal to: |
|---|
| 1546 | 1583 | | (1) Five Thousand Five Hundred Dollars ($5,500.00), |
|---|
| 1547 | 1584 | | if the filing status is married filing joint or |
|---|
| 1548 | 1585 | | qualifying widow, or |
|---|
| 1549 | 1613 | | (2) Four Thousand One Hundred Twenty -five Dollars |
|---|
| 1550 | 1614 | | ($4,125.00) for a head of household, or |
|---|
| 1551 | 1615 | | (3) Two Thousand Seven Hundred Fifty Dollars |
|---|
| 1552 | 1616 | | ($2,750.00), if the filing status is single or |
|---|
| 1553 | 1617 | | married filing separate. |
|---|
| 1554 | 1618 | | d. For the taxable year beginning on January 1, 2008, and |
|---|
| 1555 | 1619 | | ending December 31, 2008, in the case of individuals |
|---|
| 1582 | 1620 | | who use the standard deduction in determining taxable |
|---|
| 1583 | 1621 | | income, there shall be add ed or deducted, as the case |
|---|
| 1584 | 1622 | | may be, the difference necessary to allow a standard |
|---|
| 1585 | 1623 | | deduction in lieu of the standard deduction allowed by |
|---|
| 1586 | 1624 | | the Internal Revenue Code, in an amount equal to: |
|---|
| 1587 | 1625 | | (1) Six Thousand Five Hundred Dollars ($6,500.00), if |
|---|
| 1588 | 1626 | | the filing status is married filing joint or |
|---|
| 1589 | 1627 | | qualifying widow, |
|---|
| 1590 | 1628 | | (2) Four Thousand Eight Hundred Seventy -five Dollars |
|---|
| 1591 | 1629 | | ($4,875.00) for a head of household, or |
|---|
| 1592 | 1630 | | (3) Three Thousand Two Hundred Fifty Dollars |
|---|
| 1593 | 1631 | | ($3,250.00), if the filing status is single or |
|---|
| 1594 | 1632 | | married filing separate. |
|---|
| 1595 | 1633 | | e. For the taxable year beginning on January 1, 2009, and |
|---|
| 1596 | 1634 | | ending December 31, 2009, in the case of individuals |
|---|
| 1597 | 1635 | | who use the standard deduction in determining taxable |
|---|
| 1598 | 1636 | | income, there shall be added or deducted, as the case |
|---|
| 1631 | 1670 | | (2) Six Thousand Three Hundred Seventy -five Dollars |
|---|
| 1632 | 1671 | | ($6,375.00) for a head of household, or |
|---|
| 1633 | 1672 | | (3) Four Thousand Two Hundred Fifty Dollars |
|---|
| 1634 | 1673 | | ($4,250.00), if the filing status is single or |
|---|
| 1635 | 1674 | | married filing separate. |
|---|
| 1636 | 1675 | | Oklahoma adjusted gross income shall be increased by |
|---|
| 1637 | 1676 | | any amounts paid for motor vehicle excise taxes which |
|---|
| 1638 | 1677 | | were deducted as allowed by the Internal Revenue Code. |
|---|
| 1639 | 1678 | | f. For taxable years begin ning on or after January 1, |
|---|
| 1640 | 1679 | | 2010, and ending on December 31, 2016, in the case of |
|---|
| 1641 | 1680 | | individuals who use the standard deduction in |
|---|
| 1642 | 1681 | | determining taxable income, there shall be added or |
|---|
| 1643 | 1682 | | deducted, as the case may be, the difference necessary |
|---|
| 1644 | 1683 | | to allow a standard d eduction equal to the standard |
|---|
| 1645 | 1684 | | deduction allowed by the Internal Revenue Code, based |
|---|
| 1646 | 1685 | | upon the amount and filing status prescribed b y such |
|---|
| 1647 | 1686 | | Code for purposes of filing federal individual income |
|---|
| 1648 | 1687 | | tax returns. |
|---|
| 1680 | 1720 | | lieu of the standard deduction allowed by the Internal |
|---|
| 1681 | 1721 | | Revenue Code, as follows: |
|---|
| 1682 | 1722 | | (1) Six Thousand Three Hundred Fifty Dollars |
|---|
| 1683 | 1723 | | ($6,350.00) for single or married filing |
|---|
| 1684 | 1724 | | separately, |
|---|
| 1685 | 1725 | | (2) Twelve Thousand Seven Hundred Dollars |
|---|
| 1686 | 1726 | | ($12,700.00) for married filing jointly or |
|---|
| 1687 | 1727 | | qualifying widower with dependent chil d, and |
|---|
| 1688 | 1728 | | (3) Nine Thousand Three Hundred Fifty Dollars |
|---|
| 1689 | 1729 | | ($9,350.00) for head of household. |
|---|
| 1690 | 1730 | | 3. a. In the case of resident and part -year resident |
|---|
| 1691 | 1731 | | individuals having adjusted gross income from sources |
|---|
| 1692 | 1732 | | both within and without the state, the itemized or |
|---|
| 1693 | 1733 | | standard deductions and personal exemptions shall be |
|---|
| 1694 | 1734 | | reduced to an amount which is the same portion of the |
|---|
| 1695 | 1735 | | total thereof as Oklahoma adjusted gross income is of |
|---|
| 1696 | 1736 | | adjusted gross income. To the extent itemized |
|---|
| 1697 | 1737 | | deductions include allowable moving expense, proration |
|---|
| 1698 | 1738 | | of moving expense shall not be required or permitted |
|---|
| 1730 | 1771 | | exemptions shall be subject to proration as provided |
|---|
| 1731 | 1772 | | by law. |
|---|
| 1732 | 1773 | | b. For taxable years beginning on or after January 1, |
|---|
| 1733 | 1774 | | 2018, the net amount of itemized deductions allowable |
|---|
| 1734 | 1775 | | on an Oklahoma income tax return, subject to the |
|---|
| 1735 | 1776 | | provisions of paragraph 24 of this subsection, shall |
|---|
| 1736 | 1777 | | not exceed Seventeen Thousand Dollars ($17,000.00). |
|---|
| 1737 | 1778 | | For purposes of this subparagraph, charitable |
|---|
| 1738 | 1779 | | contributions and medical expenses deductible for |
|---|
| 1739 | 1780 | | federal income tax purposes sha ll be excluded from the |
|---|
| 1740 | 1781 | | amount of Seventeen Thousand Dollars ($17,000.00) as |
|---|
| 1741 | 1782 | | specified by this subparagraph. |
|---|
| 1742 | 1783 | | 4. A resident individ ual with a physical disability |
|---|
| 1743 | 1784 | | constituting a substantial handicap to employment may deduct from |
|---|
| 1744 | 1785 | | Oklahoma adjusted gross inco me such expenditures to modify a motor |
|---|
| 1745 | 1786 | | vehicle, home or workplace as are necessary to compensate for his or |
|---|
| 1746 | 1787 | | her handicap. A vetera n certified by the Department of Veterans |
|---|
| 1747 | 1788 | | Affairs of the federal government as having a service -connected |
|---|
| 1748 | 1789 | | disability shall be conclusively presumed to be an individual with a |
|---|
| 1780 | 1822 | | 5. a. Before July 1, 2010, the first One Thousand Five |
|---|
| 1781 | 1823 | | Hundred Dollars ($1,500.00) received by any person |
|---|
| 1782 | 1824 | | from the United States as salary or c ompensation in |
|---|
| 1783 | 1825 | | any form, other than retirement benefits, as a member |
|---|
| 1784 | 1826 | | of any component of the Armed Forces of the United |
|---|
| 1785 | 1827 | | States shall be deducted from taxable income. |
|---|
| 1786 | 1828 | | b. On or after July 1, 2010, one hundred percent (100%) |
|---|
| 1787 | 1829 | | of the income received by any pers on from the United |
|---|
| 1788 | 1830 | | States as salary or compensation in any form, other |
|---|
| 1789 | 1831 | | than retirement benefits, as a member of any component |
|---|
| 1790 | 1832 | | of the Armed Forces of the United States shall be |
|---|
| 1791 | 1833 | | deducted from taxable income. |
|---|
| 1792 | 1834 | | c. Whenever the filing of a timely income tax retu rn by a |
|---|
| 1793 | 1835 | | member of the Armed Forces of the United States is |
|---|
| 1794 | 1836 | | made impracticable or impossible of accomplishment by |
|---|
| 1795 | 1837 | | reason of: |
|---|
| 1796 | 1838 | | (1) absence from the United States, which term |
|---|
| 1797 | 1839 | | includes only the states and the District of |
|---|
| 1798 | 1840 | | Columbia, |
|---|
| 1830 | 1873 | | the time for filing a return and paying an income tax |
|---|
| 1831 | 1874 | | shall be and is hereby extended without incurring |
|---|
| 1832 | 1875 | | liability for interest or penalties, to the fifteenth |
|---|
| 1833 | 1876 | | day of the third month following the month in which: |
|---|
| 1834 | 1877 | | (a) Such individual shall return to the U nited |
|---|
| 1835 | 1878 | | States if the extension is granted pursuant |
|---|
| 1836 | 1879 | | to subparagraph a of this paragraph, return |
|---|
| 1837 | 1880 | | to the State of Oklahoma if the extension is |
|---|
| 1838 | 1881 | | granted pursuant to subparagraph b of this |
|---|
| 1839 | 1882 | | paragraph or be discharged from such |
|---|
| 1840 | 1883 | | hospital if the extension is granted |
|---|
| 1841 | 1884 | | pursuant to subparagraph c of this |
|---|
| 1842 | 1885 | | paragraph, or |
|---|
| 1843 | 1886 | | (b) An executor, administrator, or conservator |
|---|
| 1844 | 1887 | | of the estate of the taxpayer is appointed, |
|---|
| 1845 | 1888 | | whichever event occurs the earliest. |
|---|
| 1846 | 1889 | | Provided, that the Tax Commission may, in its discretion, grant |
|---|
| 1847 | 1890 | | any member of the Armed Forces of the United States an extension of |
|---|
| 1848 | 1891 | | time for filing of income tax returns and payment of income tax |
|---|
| 1880 | 1924 | | 6. Before July 1, 2010, the salary or any other form of |
|---|
| 1881 | 1925 | | compensation, received from the Unite d States by a member of any |
|---|
| 1882 | 1926 | | component of the Armed Forces of the United States, shall be |
|---|
| 1883 | 1927 | | deducted from taxable income during the time in which the person is |
|---|
| 1884 | 1928 | | detained by the enemy in a conflict, is a prisoner of war or is |
|---|
| 1885 | 1929 | | missing in action and not deceased; provided, after July 1, 2010, |
|---|
| 1886 | 1930 | | all such salary or compensation shall be subject to the deduction as |
|---|
| 1887 | 1931 | | provided pursuant to para graph 5 of this subsection. |
|---|
| 1888 | 1932 | | 7. a. An individual taxpayer, whether resident or |
|---|
| 1889 | 1933 | | nonresident, may deduct an amount equal to the federa l |
|---|
| 1890 | 1934 | | income taxes paid by the taxpayer during the taxable |
|---|
| 1891 | 1935 | | year. |
|---|
| 1892 | 1936 | | b. Federal taxes as described in subparagraph a of this |
|---|
| 1893 | 1937 | | paragraph shall be deductible by any individual |
|---|
| 1894 | 1938 | | taxpayer, whether resident or nonresident, only to the |
|---|
| 1895 | 1939 | | extent they relate to income subject to taxation |
|---|
| 1896 | 1940 | | pursuant to the provisions of the Oklahoma Income Tax |
|---|
| 1897 | 1941 | | Act. The maximum amount allowable in the preceding |
|---|
| 1898 | 1942 | | paragraph shall be prorated on the ratio of the |
|---|
| 1930 | 1975 | | the taxpayer was on the accrual basis. In determining |
|---|
| 1931 | 1976 | | the amount of deduction for federal income taxes for |
|---|
| 1932 | 1977 | | tax year 2001, the amount of the deduction shall not |
|---|
| 1933 | 1978 | | be adjusted by the amount of any accelerated ten |
|---|
| 1934 | 1979 | | percent (10%) tax rate bracket cr edit or advanced |
|---|
| 1935 | 1980 | | refund of the credit received during the tax year |
|---|
| 1936 | 1981 | | provided pursuant to the federal Economic Growth and |
|---|
| 1937 | 1982 | | Tax Relief Reconciliation Act of 2001, P.L. No. 107 - |
|---|
| 1938 | 1983 | | 16, and the advanced refund of such credit shall not |
|---|
| 1939 | 1984 | | be subject to taxation. |
|---|
| 1940 | 1985 | | d. The provisions of this paragraph shall apply to all |
|---|
| 1941 | 1986 | | taxable years ending after December 31, 1978, and |
|---|
| 1942 | 1987 | | beginning before January 1, 2006. |
|---|
| 1943 | 1988 | | 8. Retirement benefits not to exceed Five Thousand Five Hundred |
|---|
| 1944 | 1989 | | Dollars ($5,500.00) for the 2004 tax year, Seven Thousand F ive |
|---|
| 1945 | 1990 | | Hundred Dollars ($7,500.00) for the 2005 tax year and Ten Thousand |
|---|
| 1946 | 1991 | | Dollars ($10,000.00) for the 2006 tax year , and Twenty Thousand |
|---|
| 1947 | 1992 | | Dollars ($20,000.00) for the 2026 tax year and all subsequent tax |
|---|
| 1948 | 1993 | | years, which are received by an individual from the civ il service of |
|---|
| 1980 | 2026 | | to Section 951 et seq. of Title 19 of the O klahoma Statutes, the |
|---|
| 1981 | 2027 | | Uniform Retirement System for Justices and Judges, the Oklahoma |
|---|
| 1982 | 2028 | | Wildlife Conservation Department Retire ment Fund, the Oklahoma |
|---|
| 1983 | 2029 | | Employment Security Commission Retirement Plan, or the employee |
|---|
| 1984 | 2030 | | retirement systems created by municipalitie s pursuant to Section 48 - |
|---|
| 1985 | 2031 | | 101 et seq. of Title 11 of the Oklahoma Statutes shall be exempt |
|---|
| 1986 | 2032 | | from taxable income. |
|---|
| 1987 | 2033 | | 9. In taxable years beginning after December 3l, 1984, Social |
|---|
| 1988 | 2034 | | Security benefits received by an individual shall be exempt from |
|---|
| 1989 | 2035 | | taxable income, to the extent such benefits are included in the |
|---|
| 1990 | 2036 | | federal adjusted gross income pursuant to the provisions of Section |
|---|
| 1991 | 2037 | | 86 of the Internal Revenue Code, 26 U.S.C., Section 86. |
|---|
| 1992 | 2038 | | 10. For taxable years beginning after December 31, 1994, lump - |
|---|
| 1993 | 2039 | | sum distributions from employer plans of deferred compensation, |
|---|
| 1994 | 2040 | | which are not qualified plans within the meaning of Section 401(a) |
|---|
| 1995 | 2041 | | of the Internal Revenue Code, 26 U.S.C., Section 401(a), and which |
|---|
| 1996 | 2042 | | are deposited in and accounted for within a separate bank account or |
|---|
| 1997 | 2043 | | brokerage account in a financial institution within this state, |
|---|
| 1998 | 2044 | | shall be excluded from taxable income in the same manner as a |
|---|
| 2030 | 2077 | | individual retirement accounts within the meaning of Section 4 08 of |
|---|
| 2031 | 2078 | | the Internal Revenue Code. |
|---|
| 2032 | 2079 | | 11. In taxable years beginning after December 31, 1995, |
|---|
| 2033 | 2080 | | contributions made to and interest received from a medical savings |
|---|
| 2034 | 2081 | | account established pursuant to Sections 2621 through 2623 of Title |
|---|
| 2035 | 2082 | | 63 of the Oklahoma Statutes sha ll be exempt from taxable income. |
|---|
| 2036 | 2083 | | 12. For taxable years beginning after December 31, 1996, the |
|---|
| 2037 | 2084 | | Oklahoma adjusted gross incom e of any individual taxpayer who is a |
|---|
| 2038 | 2085 | | swine or poultry producer may be further adjusted for the deduction |
|---|
| 2039 | 2086 | | for depreciation allowed for new construction or expansion costs |
|---|
| 2040 | 2087 | | which may be computed using the same depreciation method elected for |
|---|
| 2041 | 2088 | | federal income tax purposes except that the useful life shall be |
|---|
| 2042 | 2089 | | seven (7) years for purposes of this paragraph. If depreciation is |
|---|
| 2043 | 2090 | | allowed as a deduction in determining the adjusted gross income of |
|---|
| 2044 | 2091 | | an individual, any depreciation calculated and claimed pursuant to |
|---|
| 2045 | 2092 | | this section shall in no event be a duplication of any depreciation |
|---|
| 2046 | 2093 | | allowed or permitted on the federal income tax return of the |
|---|
| 2047 | 2094 | | individual. |
|---|
| 2080 | 2128 | | status is single, head of household, or married filing |
|---|
| 2081 | 2129 | | separate, or Fifty Thousand Dollars ($50,000.00) or |
|---|
| 2082 | 2130 | | less if the filing status is married filing joint or |
|---|
| 2083 | 2131 | | qualifying widow, shall be exemp t from taxable income. |
|---|
| 2084 | 2132 | | In taxable years beginning after December 31, 2004, |
|---|
| 2085 | 2133 | | retirement benefits not to exceed the amounts |
|---|
| 2086 | 2134 | | specified in this paragraph, which are received by an |
|---|
| 2087 | 2135 | | individual whose Oklahoma adjusted gross income is |
|---|
| 2088 | 2136 | | less than the qualifying amou nt specified in this |
|---|
| 2089 | 2137 | | paragraph, shall be exempt from taxable income. |
|---|
| 2090 | 2138 | | b. For purposes of this paragraph, the qualifying amount |
|---|
| 2091 | 2139 | | shall be as follows: |
|---|
| 2092 | 2140 | | (1) in taxable years beginning after December 31, |
|---|
| 2093 | 2141 | | 2004, and prior to January 1, 2007, the |
|---|
| 2094 | 2142 | | qualifying amount shall be Thirty-seven Thousand |
|---|
| 2095 | 2143 | | Five Hundred Dollars ($37,500.00) or less if the |
|---|
| 2096 | 2144 | | filing status is single, head of household, or |
|---|
| 2097 | 2145 | | married filing separate, or Seventy -five Thousand |
|---|
| 2098 | 2173 | | Dollars ($75,000.00) or less if the filing status |
|---|
| 2099 | 2174 | | is married filing jointly or q ualifying widow, |
|---|
| 2100 | 2175 | | (2) in the taxable year beginning January 1, 2007, |
|---|
| 2101 | 2176 | | the qualifying amount shall be Fifty Thousand |
|---|
| 2102 | 2177 | | Dollars ($50,000.00) or less if the filing status |
|---|
| 2103 | 2178 | | is single, head of household, or married filing |
|---|
| 2130 | 2179 | | separate, or One Hundred Thousand Dollars |
|---|
| 2131 | 2180 | | ($100,000.00) or less if the filing status is |
|---|
| 2132 | 2181 | | married filing jointly or qualifying widow, |
|---|
| 2133 | 2182 | | (3) in the taxable year beginning Jan uary 1, 2008, |
|---|
| 2134 | 2183 | | the qualifying amount shall be Sixty -two Thousand |
|---|
| 2135 | 2184 | | Five Hundred Dollars ($62,500.00) or less if the |
|---|
| 2136 | 2185 | | filing status is single, head of household, or |
|---|
| 2137 | 2186 | | married filing separate, or One Hundred Twenty - |
|---|
| 2138 | 2187 | | five Thousand Dollars ($125,000.00) or less if |
|---|
| 2139 | 2188 | | the filing status is married filing jointly or |
|---|
| 2140 | 2189 | | qualifying widow, |
|---|
| 2141 | 2190 | | (4) in the taxable year beginning January 1, 2009, |
|---|
| 2142 | 2191 | | the qualifying amount shall be One Hundred |
|---|
| 2143 | 2192 | | Thousand Dollars ($100,000.00) or less if the |
|---|
| 2144 | 2193 | | filing status is single, head of household, or |
|---|
| 2145 | 2194 | | married filing separate, or Two Hundred Thousand |
|---|
| 2146 | 2195 | | Dollars ($200,000.00) or less if the filing |
|---|
| 2178 | 2228 | | c. For purposes of this paragraph, "retirement benefits" |
|---|
| 2179 | 2229 | | means the total distributions or withdrawals fr om the |
|---|
| 2180 | 2230 | | following: |
|---|
| 2181 | 2231 | | (1) an employee pension benefit plan which satisfies |
|---|
| 2182 | 2232 | | the requirements of Section 401 of the Internal |
|---|
| 2183 | 2233 | | Revenue Code, 26 U.S.C., Section 401, |
|---|
| 2184 | 2234 | | (2) an eligible deferred compensation plan that |
|---|
| 2185 | 2235 | | satisfies the requirements of Section 457 of the |
|---|
| 2186 | 2236 | | Internal Revenue Code, 26 U.S.C., Section 457, |
|---|
| 2187 | 2237 | | (3) an individual retirement account, annuity or |
|---|
| 2188 | 2238 | | trust or simplified employee pe nsion that |
|---|
| 2189 | 2239 | | satisfies the requirements of Section 408 of the |
|---|
| 2190 | 2240 | | Internal Revenue Code, 26 U.S.C., Section 408, |
|---|
| 2191 | 2241 | | (4) an employee annuity subject to the provisions of |
|---|
| 2192 | 2242 | | Section 403(a) or (b) of the Internal Revenue |
|---|
| 2193 | 2243 | | Code, 26 U.S.C., Section 403(a) or (b), |
|---|
| 2194 | 2244 | | (5) United States Retirement Bonds which satisfy the |
|---|
| 2195 | 2245 | | requirements of Section 86 of the Internal |
|---|
| 2196 | 2246 | | Revenue Code, 26 U.S.C., Section 86, or |
|---|
| 2227 | 2278 | | d. The amount of the exemption provided by this paragraph |
|---|
| 2228 | 2279 | | shall be limited to Five Thousand Five Hundre d Dollars |
|---|
| 2229 | 2280 | | ($5,500.00) for the 2004 tax year, Seven Thousand Five |
|---|
| 2230 | 2281 | | Hundred Dollars ($7,500.00) for the 2005 tax year and |
|---|
| 2231 | 2282 | | Ten Thousand Dollars ($10,000.00) for the tax year |
|---|
| 2232 | 2283 | | 2006 and for all subsequent tax years. Any individual |
|---|
| 2233 | 2284 | | who claims the exemption provid ed for in paragraph 8 |
|---|
| 2234 | 2285 | | of this subsection shall not be permitted to claim a |
|---|
| 2235 | 2286 | | combined total exemption pursuant to this paragrap h |
|---|
| 2236 | 2287 | | and paragraph 8 of this subsection in an amount |
|---|
| 2237 | 2288 | | exceeding Five Thousand Five Hundred Dollars |
|---|
| 2238 | 2289 | | ($5,500.00) for the 2004 tax year, S even Thousand Five |
|---|
| 2239 | 2290 | | Hundred Dollars ($7,500.00) for the 2005 tax year and |
|---|
| 2240 | 2291 | | Ten Thousand Dollars ($10,000.00) for the 2006 tax |
|---|
| 2241 | 2292 | | year, and Twenty Thousand Dollars ($20,000.00) for the |
|---|
| 2242 | 2293 | | 2026 tax year and all subsequent tax years. |
|---|
| 2243 | 2294 | | 14. In taxable years beginning a fter December 31, 1999, for an |
|---|
| 2244 | 2295 | | individual engaged in production agriculture who has filed a |
|---|
| 2245 | 2296 | | Schedule F form with the taxpayer 's federal income tax return for |
|---|
| 2246 | 2297 | | such taxable year, there shall be excluded from taxable income any |
|---|
| 2277 | 2329 | | 15. In taxable years beginning December 31, 2000, an amou nt |
|---|
| 2278 | 2330 | | equal to one hundred percent (100%) of the amount of any scholarship |
|---|
| 2279 | 2331 | | or stipend received from participation in the Oklahom a Police Corps |
|---|
| 2280 | 2332 | | Program, as established in Section 2 -140.3 of Title 47 of the |
|---|
| 2281 | 2333 | | Oklahoma Statutes shall be exempt from taxable income. |
|---|
| 2282 | 2334 | | 16. a. In taxable years beginning after December 31, 2001, |
|---|
| 2283 | 2335 | | and before January 1, 2005, there shall be allowed a |
|---|
| 2284 | 2336 | | deduction in the amount of contributions to accounts |
|---|
| 2285 | 2337 | | established pursuant to the Oklahoma College Savings |
|---|
| 2286 | 2338 | | Plan Act. The deduction shall equal the amount of |
|---|
| 2287 | 2339 | | contributions to accounts, but in no event shall the |
|---|
| 2288 | 2340 | | deduction for each contributor exceed Two Thousand |
|---|
| 2289 | 2341 | | Five Hundred Dollars ($2,500.00) each taxable year for |
|---|
| 2290 | 2342 | | each account. |
|---|
| 2291 | 2343 | | b. In taxable years beginning after December 31, 2004, |
|---|
| 2292 | 2344 | | each taxpayer shall be allowed a deduction for |
|---|
| 2293 | 2345 | | contributions to accounts established pursuant to the |
|---|
| 2294 | 2346 | | Oklahoma College Savings Plan Act. Th e maximum annual |
|---|
| 2295 | 2347 | | deduction shall equal the amount of contributions to |
|---|
| 2296 | 2348 | | all such accounts plus any contributions to such |
|---|
| 2327 | 2380 | | taxpayer or Twenty Thousand Dollars ($20,000.00) for |
|---|
| 2328 | 2381 | | taxpayers filing a joint return. Any amount of a |
|---|
| 2329 | 2382 | | contribution that is not deducted by the taxpayer in |
|---|
| 2330 | 2383 | | the year for which the contribution is made may be |
|---|
| 2331 | 2384 | | carried forward as a deduction from income for the |
|---|
| 2332 | 2385 | | succeeding five (5) years. For taxable years |
|---|
| 2333 | 2386 | | beginning after December 31, 2005, deductions may be |
|---|
| 2334 | 2387 | | taken for contributions and rollovers made during a |
|---|
| 2335 | 2388 | | taxable year and up to Apr il 15 of the succeeding |
|---|
| 2336 | 2389 | | year, or the due date of a taxpayer 's state income tax |
|---|
| 2337 | 2390 | | return, excluding extensions, whichever is later. |
|---|
| 2338 | 2391 | | Provided, a deduction for the same contribution may |
|---|
| 2339 | 2392 | | not be taken for two (2) different taxable years. |
|---|
| 2340 | 2393 | | c. In taxable years begi nning after December 31, 2006, |
|---|
| 2341 | 2394 | | deductions for contributions made pursuant to |
|---|
| 2342 | 2395 | | subparagraph b of this paragraph shall be limited as |
|---|
| 2343 | 2396 | | follows: |
|---|
| 2344 | 2397 | | (1) for a taxpayer who qualified for the five -year |
|---|
| 2345 | 2398 | | carryforward election and who takes a rollover or |
|---|
| 2346 | 2399 | | nonqualified withdrawal during that period, the |
|---|
| 2377 | 2431 | | (2) for a taxpayer who elects to take a rollover or |
|---|
| 2378 | 2432 | | nonqualified withdrawal within the same tax year |
|---|
| 2379 | 2433 | | in which a contribution was made to the |
|---|
| 2380 | 2434 | | taxpayer's account, the tax deduction oth erwise |
|---|
| 2381 | 2435 | | available pursuant to subparagraph b of this |
|---|
| 2382 | 2436 | | paragraph shall be reduced by the amount of the |
|---|
| 2383 | 2437 | | contribution which is equ al to the rollover or |
|---|
| 2384 | 2438 | | nonqualified withdrawal. |
|---|
| 2385 | 2439 | | d. If a taxpayer elects to take a rollover on a |
|---|
| 2386 | 2440 | | contribution for which a deduction h as been taken |
|---|
| 2387 | 2441 | | pursuant to subparagraph b of this paragraph within |
|---|
| 2388 | 2442 | | one (1) year of the date of contribution, the amount |
|---|
| 2389 | 2443 | | of such rollover shall be included in the adjusted |
|---|
| 2390 | 2444 | | gross income of the taxpayer in the taxable year of |
|---|
| 2391 | 2445 | | the rollover. |
|---|
| 2392 | 2446 | | e. If a taxpayer makes a nonqualified withdrawal of |
|---|
| 2393 | 2447 | | contributions for which a deduction was taken pursuant |
|---|
| 2394 | 2448 | | to subparagraph b of this paragraph, s uch nonqualified |
|---|
| 2395 | 2449 | | withdrawal and any earnings thereon shall be included |
|---|
| 2425 | 2480 | | (1) "non-qualified withdrawal " means a withdrawal |
|---|
| 2426 | 2481 | | from an Oklahoma College Savings Plan account |
|---|
| 2427 | 2482 | | other than one of the following: |
|---|
| 2428 | 2483 | | (a) a qualified withdrawal, |
|---|
| 2429 | 2484 | | (b) a withdrawal made as a resul t of the death |
|---|
| 2430 | 2485 | | or disability of the designated beneficiary |
|---|
| 2431 | 2486 | | of an account, |
|---|
| 2432 | 2487 | | (c) a withdrawal that is made on the account of |
|---|
| 2433 | 2488 | | a scholarship or the allowance or payment |
|---|
| 2434 | 2489 | | described in Section 135(d)(1)(B) or (C) or |
|---|
| 2435 | 2490 | | by the Internal Revenue Code, received by |
|---|
| 2436 | 2491 | | the designated beneficiary to the extent the |
|---|
| 2437 | 2492 | | amount of the refund does not exceed the |
|---|
| 2438 | 2493 | | amount of the scholarship, allowance, or |
|---|
| 2439 | 2494 | | payment, or |
|---|
| 2440 | 2495 | | (d) a rollover or change of designated |
|---|
| 2441 | 2496 | | beneficiary as permitted by subsection F of |
|---|
| 2442 | 2497 | | Section 3970.7 of Title 70 of Oklahoma |
|---|
| 2443 | 2498 | | Statutes, and |
|---|
| 2475 | 2531 | | the United States in an amount not to exceed the greater of seventy - |
|---|
| 2476 | 2532 | | five percent (75%) of such benefits or Ten Thousand Dollars |
|---|
| 2477 | 2533 | | ($10,000.00) shall be exempt from taxable income but in no case less |
|---|
| 2478 | 2534 | | than the amount of the exemp tion provided by paragraph 13 of this |
|---|
| 2479 | 2535 | | subsection. For tax year 2022 and subsequent tax years, retirement |
|---|
| 2480 | 2536 | | benefits received by an individual from any component of the Armed |
|---|
| 2481 | 2537 | | Forces of the United States shall be exempt from taxable income. |
|---|
| 2482 | 2538 | | 18. For taxable years beginning after December 31, 2006, |
|---|
| 2483 | 2539 | | retirement benefits received by federal civil service retirees, |
|---|
| 2484 | 2540 | | including survivor an nuities, paid in lieu of Social Security |
|---|
| 2485 | 2541 | | benefits shall be exempt from taxable income to the extent such |
|---|
| 2486 | 2542 | | benefits are included in t he federal adjusted gross income pursuant |
|---|
| 2487 | 2543 | | to the provisions of Section 86 of the Internal Revenue Code, 26 |
|---|
| 2488 | 2544 | | U.S.C., Section 86, according to the following schedule: |
|---|
| 2489 | 2545 | | a. in the taxable year beginning January 1, 2007, twenty |
|---|
| 2490 | 2546 | | percent (20%) of such benefits shal l be exempt, |
|---|
| 2491 | 2547 | | b. in the taxable year beginning January 1, 2008, forty |
|---|
| 2492 | 2548 | | percent (40%) of such benefits shall be exempt, |
|---|
| 2523 | 2580 | | e. in the taxable year beginning January 1, 2011, a nd |
|---|
| 2524 | 2581 | | subsequent taxable years, one hundred percent (100%) |
|---|
| 2525 | 2582 | | of such benefits shall be exempt. |
|---|
| 2526 | 2583 | | 19. a. For taxable years beginning after December 31, 2007, a |
|---|
| 2527 | 2584 | | resident individual may deduct up to Ten Thousand |
|---|
| 2528 | 2585 | | Dollars ($10,000.00) from Oklahoma adjusted gross |
|---|
| 2529 | 2586 | | income if the individual, or the dependent of the |
|---|
| 2530 | 2587 | | individual, while living, donates one or more human |
|---|
| 2531 | 2588 | | organs of the individual to anoth er human being for |
|---|
| 2532 | 2589 | | human organ transplantation. As used in this |
|---|
| 2533 | 2590 | | paragraph, "human organ" means all or part of a liver, |
|---|
| 2534 | 2591 | | pancreas, kidney, intestine, lung, or bone marrow. A |
|---|
| 2535 | 2592 | | deduction that is claimed under this paragraph may be |
|---|
| 2536 | 2593 | | claimed in the taxable year in which the human organ |
|---|
| 2537 | 2594 | | transplantation occurs. |
|---|
| 2538 | 2595 | | b. An individual may claim this deduction only once, and |
|---|
| 2539 | 2596 | | the deduction may be claimed only for unreimbursed |
|---|
| 2540 | 2597 | | expenses that are incurred by the individual and |
|---|
| 2541 | 2598 | | related to the organ donation of the individual. |
|---|
| 2572 | 2630 | | Commission shall prescribe necessary requirement s for |
|---|
| 2573 | 2631 | | verification. |
|---|
| 2574 | 2632 | | 20. For taxable years beginning after December 31, 2009, there |
|---|
| 2575 | 2633 | | shall be exempt from taxable income any a mount received by the |
|---|
| 2576 | 2634 | | beneficiary of the death benefit for an emergency medical technician |
|---|
| 2577 | 2635 | | or a registered emergency medical respon der provided by Section 1 - |
|---|
| 2578 | 2636 | | 2505.1 of Title 63 of the Oklahoma Statutes. |
|---|
| 2579 | 2637 | | 21. For taxable years beginning after December 31, 20 08, |
|---|
| 2580 | 2638 | | taxable income shall be increased by any unemployment compensation |
|---|
| 2581 | 2639 | | exempted under Section 85(c) of the Internal Revenue Code, 2 6 |
|---|
| 2582 | 2640 | | U.S.C., Section 85(c)(2009). |
|---|
| 2583 | 2641 | | 22. For taxable years beginning after December 31, 2008, there |
|---|
| 2584 | 2642 | | shall be exempt from taxable i ncome any payment in an amount less |
|---|
| 2585 | 2643 | | than Six Hundred Dollars ($600.00) received by a person as an award |
|---|
| 2586 | 2644 | | for participation in a comp etitive livestock show event. For |
|---|
| 2587 | 2645 | | purposes of this paragraph, the payment shall be treated as a |
|---|
| 2588 | 2646 | | scholarship amount paid by t he entity sponsoring the event and the |
|---|
| 2589 | 2647 | | sponsoring entity shall cause the payment to be categorized as a |
|---|
| 2590 | 2648 | | scholarship in its books an d records. |
|---|
| 2622 | 2681 | | state return shall be increased only by the am ount actually deducted |
|---|
| 2623 | 2682 | | after any such limitations are applied. |
|---|
| 2624 | 2683 | | 24. For taxable years beginning after December 31, 2020, each |
|---|
| 2625 | 2684 | | taxpayer shall be allowed a deduction for contributions to accounts |
|---|
| 2626 | 2685 | | established pursuant to the Achieving a Better Life Experience |
|---|
| 2627 | 2686 | | (ABLE) Program as established in Section 4001.1 et seq. of Title 56 |
|---|
| 2628 | 2687 | | of the Oklahoma Statutes. For any tax year, the deduction pro vided |
|---|
| 2629 | 2688 | | for in this paragraph shall not exceed Ten Thousand Dollars |
|---|
| 2630 | 2689 | | ($10,000.00) for an individual taxpayer or Twenty Thousand Dollars |
|---|
| 2631 | 2690 | | ($20,000.00) for taxpayers filing a joint return. Any amount of |
|---|
| 2632 | 2691 | | contribution not deducted by the taxpayer in the tax year for which |
|---|
| 2633 | 2692 | | the contribution is made may be carried forward as a deduction from |
|---|
| 2634 | 2693 | | income for up to five (5) tax years. Deduction s may be taken for |
|---|
| 2635 | 2694 | | contributions made during the tax year and through April 15 of the |
|---|
| 2636 | 2695 | | succeeding tax year, or through the due date of a taxpayer's state |
|---|
| 2637 | 2696 | | income tax return excluding extensions, whichever is later. |
|---|
| 2638 | 2697 | | Provided, a deduction for the same contrib ution may not be taken in |
|---|
| 2639 | 2698 | | more than one (1) tax year. |
|---|
| 2672 | 2732 | | a. "qualifying gains receiving capital treatment " means |
|---|
| 2673 | 2733 | | the amount of net capital gains, as defined in Section |
|---|
| 2674 | 2734 | | 1222(11) of the Internal Revenue Code, included in an |
|---|
| 2675 | 2735 | | individual taxpayer's federal income tax return that |
|---|
| 2676 | 2736 | | result from: |
|---|
| 2677 | 2737 | | (1) the sale of real property or tangible personal |
|---|
| 2678 | 2738 | | property located within Oklahoma that has been |
|---|
| 2679 | 2739 | | directly or indirectly owned by the ind ividual |
|---|
| 2680 | 2740 | | taxpayer for a holding period of at least five |
|---|
| 2681 | 2741 | | (5) years prior to the date of the transaction |
|---|
| 2682 | 2742 | | from which such net capital g ains arise, |
|---|
| 2683 | 2743 | | (2) the sale of stock or the sale of a direct or |
|---|
| 2684 | 2744 | | indirect ownership interest in an Oklahoma |
|---|
| 2685 | 2745 | | company, limited liab ility company, or |
|---|
| 2686 | 2746 | | partnership where such stock or ownership |
|---|
| 2687 | 2747 | | interest has been directly or indirectly owned by |
|---|
| 2688 | 2748 | | the individual taxpay er for a holding period of |
|---|
| 2689 | 2749 | | at least two (2) years prior to the date of the |
|---|
| 2722 | 2783 | | company, limited liability company, or |
|---|
| 2723 | 2784 | | partnership or an Okl ahoma proprietorship |
|---|
| 2724 | 2785 | | business enterprise where such property has been |
|---|
| 2725 | 2786 | | directly or indirectly owned by such entity or |
|---|
| 2726 | 2787 | | business enterprise or owned by the owners of |
|---|
| 2727 | 2788 | | such entity or business enterprise for a period |
|---|
| 2728 | 2789 | | of at least two (2) years prior to the date o f |
|---|
| 2729 | 2790 | | the transaction from which the net capital gains |
|---|
| 2730 | 2791 | | arise, |
|---|
| 2731 | 2792 | | b. "holding period" means an uninterrupted period of |
|---|
| 2732 | 2793 | | time. The holding p eriod shall include any additional |
|---|
| 2733 | 2794 | | period when the property was held by another |
|---|
| 2734 | 2795 | | individual or entity, if such additional peri od is |
|---|
| 2735 | 2796 | | included in the taxpayer 's holding period for the |
|---|
| 2736 | 2797 | | asset pursuant to the Internal Revenue Code, |
|---|
| 2737 | 2798 | | c. "Oklahoma company," "limited liability company, " or |
|---|
| 2738 | 2799 | | "partnership" means an entity whose primary |
|---|
| 2739 | 2800 | | headquarters have been located in Oklahoma for at |
|---|
| 2771 | 2833 | | e. "indirect" means the individual taxpayer owns an |
|---|
| 2772 | 2834 | | interest in a pass-through entity (or chain of pass - |
|---|
| 2773 | 2835 | | through entities) that sells the asset that gives rise |
|---|
| 2774 | 2836 | | to the qualifying gains receiving capital treatment. |
|---|
| 2775 | 2837 | | (1) With respect to sales of real property or |
|---|
| 2776 | 2838 | | tangible personal property located within |
|---|
| 2777 | 2839 | | Oklahoma, the deduction described in t his |
|---|
| 2778 | 2840 | | subsection shall not apply unless the pass - |
|---|
| 2779 | 2841 | | through entity that makes the sale has held the |
|---|
| 2780 | 2842 | | property for not less than five (5) uninterrupted |
|---|
| 2781 | 2843 | | years prior to the date of the transaction that |
|---|
| 2782 | 2844 | | created the capital gain, and each pass -through |
|---|
| 2783 | 2845 | | entity included in the chain of ownership has |
|---|
| 2784 | 2846 | | been a member, partner, or shareholder of the |
|---|
| 2785 | 2847 | | pass-through entity in the tier immediately below |
|---|
| 2786 | 2848 | | it for an uninterrupted period of not less than |
|---|
| 2787 | 2849 | | five (5) years. |
|---|
| 2788 | 2850 | | (2) With respect to sales of stock or ownership |
|---|
| 2789 | 2851 | | interest in or sales of all or substantially all |
|---|
| 2821 | 2884 | | sale has held the stock or ownership interest for |
|---|
| 2822 | 2885 | | not less than two (2) uninterrupted years prior |
|---|
| 2823 | 2886 | | to the date of the transact ion that created the |
|---|
| 2824 | 2887 | | capital gain, and each pass -through entity |
|---|
| 2825 | 2888 | | included in the chain of ownership has been a |
|---|
| 2826 | 2889 | | member, partner or shareholder of the pass - |
|---|
| 2827 | 2890 | | through entity in the tier immediately below it |
|---|
| 2828 | 2891 | | for an uninterrupted period of not less than two |
|---|
| 2829 | 2892 | | (2) years. For purposes of this division, |
|---|
| 2830 | 2893 | | uninterrupted ownership prior to July 1, 2007, |
|---|
| 2831 | 2894 | | shall be included in the determination of the |
|---|
| 2832 | 2895 | | required holding period prescribed by this |
|---|
| 2833 | 2896 | | division, and |
|---|
| 2834 | 2897 | | f. "Oklahoma proprietorship business enterprise " means a |
|---|
| 2835 | 2898 | | business enterprise whose income and expenses have |
|---|
| 2836 | 2899 | | been reported on Schedule C or F of an individual |
|---|
| 2837 | 2900 | | taxpayer's federal income tax return , or any similar |
|---|
| 2838 | 2901 | | successor schedule published by the Internal Revenue |
|---|
| 2839 | 2902 | | Service and whose primary headquarters have been |
|---|
| 2871 | 2935 | | by federal law in computing net income of a real estate investment |
|---|
| 2872 | 2936 | | trust that is subject to federal income tax shall be adde d back in |
|---|
| 2873 | 2937 | | computing the tax imposed by this state under this title if the real |
|---|
| 2874 | 2938 | | estate investment trust is a captive real estate inv estment trust. |
|---|
| 2875 | 2939 | | 2. For purposes of computing its Oklahoma taxable income under |
|---|
| 2876 | 2940 | | this section, a taxpayer shall add back otherw ise deductible rents |
|---|
| 2877 | 2941 | | and interest expenses paid to a captive real estate investment trust |
|---|
| 2878 | 2942 | | that is not subject to the provisions of paragraph 1 of this |
|---|
| 2879 | 2943 | | subsection. As used in this subsection: |
|---|
| 2880 | 2944 | | a. the term "real estate investment trust " or "REIT" |
|---|
| 2881 | 2945 | | means the meaning ascribed to such term in Section 856 |
|---|
| 2882 | 2946 | | of the Internal Revenue Code, |
|---|
| 2883 | 2947 | | b. the term "captive real estate investment trust " means |
|---|
| 2884 | 2948 | | a real estate investment trust, the shares or |
|---|
| 2885 | 2949 | | beneficial interests of which are not regularly traded |
|---|
| 2886 | 2950 | | on an established securi ties market and more than |
|---|
| 2887 | 2951 | | fifty percent (50%) of the voting power or value of |
|---|
| 2888 | 2952 | | the beneficial interests or shares of which are owned |
|---|
| 2919 | 2984 | | (2) not exempt from federal income tax pursuant to |
|---|
| 2920 | 2985 | | the provisions of Section 501(a) of the Internal |
|---|
| 2921 | 2986 | | Revenue Code. |
|---|
| 2922 | 2987 | | The term shall not include a real estate investment |
|---|
| 2923 | 2988 | | trust that is intended to be regular ly traded on an |
|---|
| 2924 | 2989 | | established securities market, and that satisfies the |
|---|
| 2925 | 2990 | | requirements of Section 856(a)(5) and (6) of the U.S. |
|---|
| 2926 | 2991 | | Internal Revenue Code by reason of Section 856(h)(2) |
|---|
| 2927 | 2992 | | of the Internal Revenue Code, |
|---|
| 2928 | 2993 | | c. the term "association taxable as a corporation " shall |
|---|
| 2929 | 2994 | | not include the following entities: |
|---|
| 2930 | 2995 | | (1) any real estate investment trust as defined in |
|---|
| 2931 | 2996 | | paragraph a of this subsection other than a |
|---|
| 2932 | 2997 | | "captive real estate investment trust ", |
|---|
| 2933 | 2998 | | (2) any qualified real estate investment trust |
|---|
| 2934 | 2999 | | subsidiary under Section 856(i ) of the Internal |
|---|
| 2935 | 3000 | | Revenue Code, other than a qualified REIT |
|---|
| 2936 | 3001 | | subsidiary of a "captive real estate investment |
|---|
| 2937 | 3002 | | trust", |
|---|
| 2969 | 3035 | | Australia and is regularly trade d on an |
|---|
| 2970 | 3036 | | established securities market), or an entity |
|---|
| 2971 | 3037 | | organized as a trust, provided that a Listed |
|---|
| 2972 | 3038 | | Australian Property Trust o wns or controls, |
|---|
| 2973 | 3039 | | directly or indirectly, seventy -five percent |
|---|
| 2974 | 3040 | | (75%) or more of the voting power or value of the |
|---|
| 2975 | 3041 | | beneficial interests or shares of such trust, or |
|---|
| 2976 | 3042 | | (4) any Qualified Foreign Entity, meaning a |
|---|
| 2977 | 3043 | | corporation, trust, association or partnership |
|---|
| 2978 | 3044 | | organized outside the laws of the United States |
|---|
| 2979 | 3045 | | and which satisfies the following criteria: |
|---|
| 2980 | 3046 | | (a) at least seventy-five percent (75%) of the |
|---|
| 2981 | 3047 | | entity's total asset value at the close of |
|---|
| 2982 | 3048 | | its taxable year is represented by real |
|---|
| 2983 | 3049 | | estate assets, as defined in Section |
|---|
| 2984 | 3050 | | 856(c)(5)(B) of the Internal Revenue Code, |
|---|
| 2985 | 3051 | | thereby including shares or certificates of |
|---|
| 2986 | 3052 | | beneficial interest in any real estate |
|---|
| 3019 | 3086 | | (c) the entity is required to distribute at |
|---|
| 3020 | 3087 | | least eighty-five percent (85%) of its |
|---|
| 3021 | 3088 | | taxable income, as computed in the |
|---|
| 3022 | 3089 | | jurisdiction in which it is organized, to |
|---|
| 3023 | 3090 | | the holders of its shares or certificates of |
|---|
| 3024 | 3091 | | beneficial interest on an annual basis, |
|---|
| 3025 | 3092 | | (d) not more than ten percent (10%) of the |
|---|
| 3026 | 3093 | | voting power or value in such entity is held |
|---|
| 3027 | 3094 | | directly or indirectly or constructively by |
|---|
| 3028 | 3095 | | a single entity or individual, or the shares |
|---|
| 3029 | 3096 | | or beneficial interests of such entity are |
|---|
| 3030 | 3097 | | regularly traded on an established |
|---|
| 3031 | 3098 | | securities market, and |
|---|
| 3032 | 3099 | | (e) the entity is organized in a country which |
|---|
| 3033 | 3100 | | has a tax treaty with the United States. |
|---|
| 3034 | 3101 | | 3. For purposes of this subsection, the constructive ownership |
|---|
| 3035 | 3102 | | rules of Section 318(a) of the Internal Revenue Code, as modified by |
|---|
| 3036 | 3103 | | Section 856(d)(5) of the Internal Revenue Code, shall apply in |
|---|
| 3069 | 3137 | | established securities market, retroactive to the date it first |
|---|
| 3070 | 3138 | | became a real estate investment trust, and shall file an amended |
|---|
| 3071 | 3139 | | return reflecting such retroactive designation for any tax year or |
|---|
| 3072 | 3140 | | part year occurring during its initial year of status as a real |
|---|
| 3073 | 3141 | | estate investment trust. For purposes of this subsec tion, a real |
|---|
| 3074 | 3142 | | estate investment trust becomes a real estate investment trust on |
|---|
| 3075 | 3143 | | the first day it has both met the requirements of Se ction 856 of the |
|---|
| 3076 | 3144 | | Internal Revenue Code and has elected to be treated as a real estate |
|---|
| 3077 | 3145 | | investment trust pursuant to Section 85 6(c)(1) of the Internal |
|---|
| 3078 | 3146 | | Revenue Code. |
|---|
| 3079 | 3147 | | SECTION 2. This act shall become effective November 1, 2025. |
|---|