SECTION 710:50-15-78. Qualification as a venture capital company

(a)   The venture capital credit is an income tax credit for the investment in qualified venture capital companies.

(b)   To qualify as a venture capital company, capitalization must be at a level of at least five million dollars. Capitalization may consist of cash and/or property or debt obligations. Each venture capital company claiming something other than cash to meet the qualification will be closely examined for compliance with statute and with the Rules of the Oklahoma Tax Commission. Effective for capitalization after January 1, 1999, seventy-five percent (75%) of a Venture Capital Company's funds must be invested in Oklahoma business ventures.

(c)   The tax credit allowed shall be twenty percent (20%) of the cash amount invested; for example: Investors contribute three million in cash and use debt obligation of two million to qualify as a venture capital company. The tax credit will be limited to twenty percent (20%) of three million, or $600,000.00.

(d)   No qualified establishment, nor its contractors or subcontractors, that has received or is receiving an incentive payment pursuant to Section 3601 et seq. of the Oklahoma Statutes, (Oklahoma Quality Jobs Program Act), or Section 3901 et seq. of the Oklahoma Statutes, (Small Employer Quality Jobs Incentive Act), shall be eligible to receive the credit described in this Section in connection with the activity and establishment for which incentive payments have been, or are being received. [See: 68 O.S. §§ 3607, 3909]

[Source: Amended at 11 Ok Reg 555, eff 11-10-93 (emergency); Amended at 11 Ok Reg 3497, eff 6-26-94; Amended at 15 Ok Reg 2811, eff 6-25-98; Amended at 16 Ok Reg 2646, eff 6-25-99]