Personal loan for tenant

Oklahoma: Credits enacted for participants in rural development loan program

Effective January 1, 2003, a credit is enacted against the Oklahoma privilege tax imposed on financial institutions in lieu of corporate income tax for taxable income received by participants in the newly created Rural Economic Development Loan Program, and the definition of "income" for purposes of Oklahoma corporate and personal income taxes under the Oklahoma Small Business Incubators Incentives Act is amended.

Credit against privilege tax added: In addition to establishing the Rural Economic Development Loan Program, the legislation provides for a credit against the Oklahoma privilege tax in the amount of the taxable income received by a financial institution participating in the program up to a limit of 5% each year of the amount of annual payroll certified by the Rural Economic Development Loan Program Review Board. The credit may be claimed until the amount of total credits is equal to the total amount of taxable income received by the financial institution that made the loan. Any credit not used in the taxable year it was earned may be carried forward for up to five tax years. The credit is not transferable or refundable.

Definition of incubator "income" modified: For purposes of Oklahoma corporate and personal income taxes, income distributed to partners, shareholders of a Subchapter S corporation, or members of a limited liability company (LLC), is now included in the definition of "income" earned by a tenant of an incubator that is exempt from state income tax under the Oklahoma Small Business Incubators Incentives Act. (S.B. 1442, Laws 2002, effective as noted above.)