The Oklahoma Tax Commission has issued a letter ruling concerning the affect of recently enacted SB 1582 on the investment and jobs tax credit available against corporate and personal income tax liabilities. Credits limited because of the cap may be carried forward and may be available to offset income tax in later years. The Tax Commission will calculate the percentage limitation for each of the three years (2016, 2017, 2018) based on credits used (not earned) in the second preceding year. SB 1582 does not adjust or limit the calculation of the total amount of credits a taxpayer earns during a tax year for making an investment in qualifying property or incremental jobs, rather limits the amount that may be claimed. Further, SB 1582 does not affect the status of the credits carried over from tax years prior to January 1, 2016 and those carry over tax credits are available to offset income tax, subject to the newly proposed percentage limitation, during the 2016, 2017 and 2018 income tax years. Finally, credits carried over or earned during 2016, 2017, and 2018 tax years that are not allowed to offset income tax due to the $25 million cap may be carried forward and available to offset tax in 2019 and later tax years.
LR 16-018, Oklahoma Tax Commission, June 6, 2016, ¶201-189