1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 SENATE BILL 1498 By: Garvin
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6 AS INTRODUCED
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7 An Act relating to income tax credit; amending 68
7 O.S. 2021, Section 2357.45, which relates to credit
8 for donations to certain research institutes;
8 modifying credit limit for certain institute in
9 certain tax years; updating statutory reference;
9 updating statutory language; and providing an
10 effective date.
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12 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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13 SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.45, is
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14 amended to read as follows:
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15 Section 2357.45. A. 1. For tax years beginning after December
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16 31, 2004, there shall be allowed against the tax imposed by Section
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17 2355 of this title, a credit for any taxpayer who makes a donation
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18 to an independent biomedical research institute and for tax years
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19 beginning after December 31, 2010, a credit for any taxpayer who
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20 makes a donation to a cancer research institute.
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21 2. The credit authorized by paragraph 1 of this subsection
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22 shall be limited as follows:
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23 a. for calendar year 2007 and all subsequent years tax
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24 years 2007 through 2024, the credit percentage, not to
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 1 exceed fifty percent (50%), shall be adjusted annually
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2 so that the total estimate of the credits does not
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3 exceed Two Million Dollars ($2,000,000.00) annually.
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4 The formula to be used for the percentage adjusted
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5 shall be fifty percent (50%) times One Million Dollars
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6 ($1,000,000.00) divided by the credits claimed in the
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7 preceding year for each donation to an independent
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8 biomedical research institute and fifty percent (50%)
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9 times One Million Dollars ($1,000,000.00) divided by
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10 the credits claimed in the preceding year for each
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11 donation to a cancer research institute,
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12 b. for tax year 2025 and subsequent tax years, the credit
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13 percentage, not to exceed fifty percent (50%), shall
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14 be adjusted annually so that the total estimate of the
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15 credits does not exceed One Million Dollars
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16 ($1,000,000.00) annually for donations to independent
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17 biomedical research institutes. The formula to be
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18 used for the percentage adjusted shall be fifty
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19 percent (50%) times One Million Dollars
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20 ($1,000,000.00) divided by the credits claimed in the
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21 preceding year for each donation to an independent
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22 biomedical research institute,
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23 c. for tax year 2025 and subsequent tax years, the credit
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24 percentage, not to exceed fifty percent (50%), shall
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 1 be adjusted annually so that the total estimate of the
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2 credits does not exceed Five Hundred Thousand Dollars
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3 ($500,000.00) annually for donations to cancer
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4 research institutes. The formula to be used for the
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5 percentage adjusted shall be fifty percent (50%) times
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6 Five Hundred Thousand Dollars ($500,000.00) divided by
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7 the credits claimed in the preceding year for each
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8 donation to a cancer research institute,
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9 d. in no event shall a taxpayer claim more than one
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10 credit for a donation to any independent biomedical
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11 research institute and one credit for a donation to a
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12 cancer research institute in each taxable year nor
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13 shall the credit exceed One Thousand Dollars
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14 ($1,000.00) for each taxpayer for each type of
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15 donation,
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16 c. e. for tax year 2011, no more than Fifty Thousand
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17 Dollars ($50,000.00) in total tax credits for
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18 donations to a cancer research institute shall be
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19 allowed,
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20 d. f. in no event shall more than fifty percent (50%)
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21 of the Two Million Dollars ($2,000,000.00) in total
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22 tax credits authorized by this section, for any
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23 calendar year after the effective date of this act
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 1 January 1, 2011, be allocated for credits for
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2 donations to a cancer research institute, and
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3 e. g. in the event the total tax credits authorized by
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4 this section exceed One Million Dollars
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5 ($1,000,000.00) for tax years 2011 through 2024, and
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6 Five Hundred Thousand Dollars ($500,000.00) for tax
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7 year 2025 and subsequent tax years, in any calendar
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8 year for either a cancer research institute or One
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9 Million Dollars ($1,000,000.00) for an independent
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10 biomedical research institute, the Oklahoma Tax
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11 Commission shall permit any excess over One Million
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12 Dollars ($1,000,000.00) but shall factor such excess
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13 into the percentage adjustment formula for subsequent
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14 years for that type of donation. However, any such
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15 adjustment to the formula for donations to an
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16 independent biomedical research institute shall not
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17 affect the formula for donations to a cancer research
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18 institute, and any such adjustment to the formula for
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19 donations to a cancer research institute shall not
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20 affect the formula for donations to an independent
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21 biomedical research institute.
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22 3. For purposes of this section, “independent biomedical
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23 research institute” means an organization which is exempt from
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24 taxation pursuant to the provisions of Section 501(c)(3) of the
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 1 Internal Revenue Code, 26 U.S.C., Section 501(c)(3) whose primary
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2 focus is conducting peer-reviewed basic biomedical research. The
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3 organization shall:
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4 a. have a board of directors,
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5 b. be able to accept grants in its own name,
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6 c. be an identifiable institute that has its own
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7 employees and administrative staff, and
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8 d. receive at least Fifteen Million Dollars
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9 ($15,000,000.00) in National Institute Institutes of
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10 Health funding each year.
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11 4. For purposes of this section, “cancer research institute”
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12 means an organization which is exempt from taxation pursuant to the
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13 Internal Revenue Code and whose primary focus is raising the
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14 standard of cancer clinical care in Oklahoma through peer-reviewed
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15 cancer research and education or a not-for-profit supporting
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16 organization, as that term is defined by the Internal Revenue Code,
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17 affiliated with a tax-exempt organization whose primary focus is
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18 raising the standard of cancer clinical care in Oklahoma through
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19 peer-reviewed cancer research and education. The tax-exempt
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20 organization whose primary focus is raising the standard of cancer
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21 clinical care in Oklahoma through peer-reviewed cancer research and
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22 education shall:
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23 a. either be an independent research institute or a
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24 program that is part of a state university which is a
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 1 member of The Oklahoma State System of Higher
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2 Education, and
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3 b. receive at least Four Million Dollars ($4,000,000.00)
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4 in National Cancer Institute funding each year.
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5 B. In no event shall the amount of the credit exceed the amount
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6 of any tax liability of the taxpayer.
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7 C. Any credits allowed but not used in any tax year may be
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8 carried over, in order, to each of the four (4) years following the
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9 year of qualification.
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10 D. The Tax Commission shall have the authority to prescribe
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11 forms for purposes of claiming the credit authorized by this
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12 section.
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13 SECTION 2. This act shall become effective November 1, 2024.
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15 59-2-2544 QD 12/15/2023 9:46:11 PM
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