Bill Summary – FastDemocracy

1                                STATE OF OKLAHOMA
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 2                   2nd Session of the 59th Legislature (2024)
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 3   SENATE BILL 1497                        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; modifying credit limit for
 9            taxpayer in certain tax years; modifying definition;
10            updating statutory reference; updating statutory
10            language; and providing an effective date.
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13   BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14       SECTION 1.       AMENDATORY      68 O.S. 2021, Section 2357.45, is
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15   amended to read as follows:
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16       Section 2357.45.    A.   1.   For tax years beginning after December
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17   31, 2004, there shall be allowed against the tax imposed by Section
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18   2355 of this title, a credit for any taxpayer who makes a donation
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19   to an independent biomedical research institute and for tax years
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20   beginning after December 31, 2010, a credit for any taxpayer who
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21   makes a donation to a cancer research institute.
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22       2.   The credit authorized by paragraph 1 of this subsection
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23   shall be limited as follows:
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     Req. No. 2543                                                  Page 1
 1           a.      for calendar year 2007 and all subsequent years tax
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 2                   years 2007 through 2024, the credit percentage, not to
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 3                   exceed fifty percent (50%), shall be adjusted annually
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 4                   so that the total estimate of the credits does not
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 5                   exceed Two Million Dollars ($2,000,000.00) annually.
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 6                   The formula to be used for the percentage adjusted
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 7                   shall be fifty percent (50%) times One Million Dollars
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 8                   ($1,000,000.00) divided by the credits claimed in the
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 9                   preceding year for each donation to an independent
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10                   biomedical research institute and fifty percent (50%)
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11                   times One Million Dollars ($1,000,000.00) divided by
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12                   the credits claimed in the preceding year for each
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13                   donation to a cancer research institute,
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14           b.      for tax year 2025 and subsequent tax years, the credit
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15                   percentage, not to exceed fifty percent (50%), shall
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16                   be adjusted annually so that the total estimate of the
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17                   credits does not exceed Two Million Dollars
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18                   ($2,000,000.00) annually for donations to independent
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19                   biomedical research institutes.   The formula to be
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20                   used for the percentage adjusted shall be fifty
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21                   percent (50%) times Two Million Dollars
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22                   ($2,000,000.00) divided by the credits claimed in the
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23                   preceding year for each donation to an independent
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24                   biomedical research institute,
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     Req. No. 2543                                                 Page 2
 1           c.      for tax year 2025 and subsequent tax years, the credit
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 2                   percentage, not to exceed fifty percent (50%), shall
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 3                   be adjusted annually so that the total estimate of the
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 4                   credits does not exceed One Million Dollars
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 5                   ($1,000,000.00) annually for donations to cancer
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 6                   research institutes.   The formula to be used for the
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 7                   percentage adjusted shall be fifty percent (50%) times
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 8                   One Million Dollars ($1,000,000.00) divided by the
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 9                   credits claimed in the preceding year for each
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10                   donation to a cancer research institute,
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11           d.      in no event shall a taxpayer claim more than one
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12                   credit for a donation to any independent biomedical
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13                   research institute and one credit for a donation to a
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14                   cancer research institute in each taxable year nor
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15                   shall the credit exceed One Thousand Dollars
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16                   ($1,000.00) for each taxpayer for tax years 2005
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17                   through 2024, and One Thousand Dollars ($1,000.00) for
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18                   single filers and married filing separate, Two
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19                   Thousand Dollars ($2,000.00) for married filing joint,
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20                   head of household, qualifying widow, and for any
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21                   taxpayer that is a business entity formed under the
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22                   laws of any state, including limited and general
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23                   partnerships, corporations, and limited liability
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24                   companies, for tax year 2025 and subsequent tax years,
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     Req. No. 2543                                                  Page 3
 1                   for each type of the donation to a cancer research
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 2                   institute.   For tax year 2025 and subsequent tax
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 3                   years, the credit shall not exceed One Thousand
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 4                   Dollars ($1,000.00) for single filers and married
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 5                   filing separate, Two Thousand Dollars ($2,000.00) for
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 6                   married filing joint, head of household, and
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 7                   qualifying widow, and Fifty Thousand Dollars
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 8                   ($50,000.00) for any taxpayer that is a business
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 9                   entity formed under the laws of any state, including
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10                   limited and general partnerships, corporations, and
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11                   limited liability companies for donations to any
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12                   independent biomedical research institute,
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13           c. e.        for tax year 2011, no more than Fifty Thousand
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14                   Dollars ($50,000.00) in total tax credits for
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15                   donations to a cancer research institute shall be
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16                   allowed,
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17           d. f.        in no event shall more than fifty percent (50%)
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18                   of the Two Million Dollars ($2,000,000.00) in total
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19                   tax credits authorized by this section, for any
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20                   calendar year after the effective date of this act
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21                   January 1, 2011, be allocated for credits for
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22                   donations to a cancer research institute, and
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23           e. g.        in the event the total tax credits authorized by
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24                   this section exceed One Million Dollars
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     Req. No. 2543                                                   Page 4
 1                   ($1,000,000.00) in any calendar year for either a
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 2                   cancer research institute or One Million Dollars
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 3                   ($1,000,000.00) for tax years 2011 through 2024, and
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 4                   One Million Five Hundred Thousand Dollars
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 5                   ($1,500,000.00) for tax year 2025 and subsequent tax
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 6                   years, for an independent biomedical research
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 7                   institute, the Oklahoma Tax Commission shall permit
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 8                   any excess over One Million Dollars ($1,000,000.00)
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 9                   but shall factor such excess into the percentage
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10                   adjustment formula for subsequent years for that type
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11                   of donation.   However, any such adjustment to the
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12                   formula for donations to an independent biomedical
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13                   research institute shall not affect the formula for
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14                   donations to a cancer research institute, and any such
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15                   adjustment to the formula for donations to a cancer
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16                   research institute shall not affect the formula for
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17                   donations to an independent biomedical research
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18                   institute.
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19      3.   For purposes of this section, “independent biomedical
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20   research institute” means an organization in this state which is
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21   exempt from taxation pursuant to the provisions of Section 501(c)(3)
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22   of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3) whose
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23   primary focus is conducting peer-reviewed basic biomedical research.
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24   The organization shall:
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     Req. No. 2543                                                   Page 5
 1           a.      have a board of directors,
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 2           b.      be able to accept grants in its own name,
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 3           c.      be an identifiable institute that has its own
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 4                   employees and administrative staff, and
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 5           d.      receive at least Fifteen Million Dollars
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 6                   ($15,000,000.00) Twenty Million Dollars
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 7                   ($20,000,000.00) in National Institute Institutes of
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 8                   Health funding each year.
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 9      4.   For purposes of this section, “cancer research institute”
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10   means an organization which is exempt from taxation pursuant to the
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11   Internal Revenue Code and whose primary focus is raising the
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12   standard of cancer clinical care in Oklahoma through peer-reviewed
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13   cancer research and education or a not-for-profit supporting
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14   organization, as that term is defined by the Internal Revenue Code,
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15   affiliated with a tax-exempt organization whose primary focus is
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16   raising the standard of cancer clinical care in Oklahoma through
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17   peer-reviewed cancer research and education.    The tax-exempt
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18   organization whose primary focus is raising the standard of cancer
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19   clinical care in Oklahoma through peer-reviewed cancer research and
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20   education shall:
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21           a.      either be an independent research institute or a
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22                   program that is part of a state university which is a
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23                   member of The Oklahoma State System of Higher
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24                   Education, and
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     Req. No. 2543                                                   Page 6
 1              b.   receive at least Four Million Dollars ($4,000,000.00)
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 2                   in National Cancer Institute funding each year.
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 3      B.   In no event shall the amount of the credit exceed the amount
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 4   of any tax liability of the taxpayer.
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 5      C.   Any credits allowed but not used in any tax year may be
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 6   carried over, in order, to each of the four (4) years following the
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 7   year of qualification.
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 8      D.   The Tax Commission shall have the authority to prescribe
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 9   forms for purposes of claiming the credit authorized by this
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10   section.
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11      SECTION 2.    This act shall become effective November 1, 2024.
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13      59-2-2543        QD        12/15/2023 9:45:08 PM
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     Req. No. 2543                                                Page 7