2011 Other Tax Credits Form

              1 Oklahoma Investment/New Jobs Credit (enclose Form 506)....................................1
2 Coal Credit...................................................................................................................2
3a Credit for Investment in a Clean-Burning Motor Vehicle Fuel Property
(enclose Form 567-A)
Enter the number of Form(s) 567-A enclosed with this return: ...... 3a
3b Credit for Investment in Qualified Electric Motor Vehicle Property (placed in
service before July 1, 2010)......................................................................................3b
4 Small Business Capital Credit (enclose Form 527-A)................................................4
5 Oklahoma Agricultural Producers Credit (enclose Form 520)....................................5
6 Small Business Guaranty Fee Credit (enclose Form 529).........................................6
7 Credit for Food Service Establishments
that Pay for Hepatitis A Vaccination for their Employees.............................................7
8 Credit for Energy Assistance Fund Contribution..........................................................8
9 Credit for Venture Capital Investment (enclose Form 518-A or 518-B).....................9
10 Credit for Hazardous Waste Control.......................................................................... 10
11 Credit for Qualified Recycling Facility........................................................................ 11
12 Credit for Employers Providing Child Care Programs............................................... 12
13 Credit for Entities in the Business of Providing Child Care Services......................... 13
14 Credit for Commercial Space Industries.................................................................... 14
15 Reserved .................................................................................................................. 15
16 Credit for Tourism Development or Qualified Media Production Facility................... 16
17 Oklahoma Local Development and Enterprise Zone Incentive Leverage Act Credit... 17
18 Credit for Qualified Rehabilitation Expenditures ....................................................... 18
19 Credit for Space Transportation Vehicle Provider...................................................... 19
Other Credits Form
State of Oklahoma
Name as shown on return:
Enclose this form and supporting documents with your Oklahoma tax return. 511CR
FORM
2011
Social Security Number:
Federal Employer
Identification Number:
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Attention members of pass-through entities: Enter your share of the pass-through entities’ credit on the appropriate line for the type
of credit. For example: Your share of the pass-through entities’ Coal Credit would be entered on line 2.
See instructions for details on qualifications and required enclosures.
• Tax Credit Moratorium: Many Oklahoma credits available against corporate and individual income taxes are subject to a
moratorium. Refer to the instructions for the specific credit for more information.
• Carryover provisions: Credits established before July 1, 2010 are eligible to be claimed under normal carryover provisions if
applicable.
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20 Rural Small Business Capital Credit (enclose Form 526-A).................................... 20
21 Credit for Electricity Generated by Zero-Emission Facilities..................................... 21
22 Credit for Financial Institutions Making Loans under the Rural Economic
Development Loan Act.............................................................................................. 22
23 Credit for Manufacturers of Small Wind Turbines...................................................... 23
24 Credit for Qualified Ethanol Facilities........................................................................ 24
25 Poultry Litter Credit.................................................................................................... 25
26 Volunteer Firefighter Credit (enclose COFT’s Form, see instructions on page 7).... 26
27 Credit for Qualified Biodiesel Facilities...................................................................... 27
28 Film or Music Project Credit (enclose Form 562)..................................................... 28
29 Credit for Breeders of Specially Trained Canines...................................................... 29
30 Credit for Wages Paid to an Injured Employee......................................................... 30
31 Credit for Modification Expenses Paid for an Injured Employee............................... 31
32 Dry Fire Hydrant Credit ............................................................................................. 32
33 Credit for the Construction of Energy Efficient Homes.............................................. 33
34 Credit for Railroad Modernization.............................................................................. 34
35 Research and Development New Jobs Credit (enclose Form 563)......................... 35
36 Credit for Stafford Loan Origination Fee (for banks & credit unions filing Form 512).. 36
37 Gas Used in Manufacturing Credit............................................................................ 37
38 Credit for Biomedical Research Contribution............................................................ 38
39 Credit for Employees in the Aerospace Sector (enclose Form 564)........................ 39
40 Credits for Employers in the Aerospace Sector (enclose Form 565)....................... 40
41 Wire Transfer Fee Credit........................................................................................... 41
42 Credit for Manufacturers of Electric Vehicles
Enter the number of vehicles manufactured upon which the credit is used .. 42
43 Business Activity Tax Credit....................................................................................... 43
44 Credit for Cancer Research Contribution.................................................................. 44
45 Oklahoma Capital Investment Board Tax Credit........................................................ 45
46 Total (add lines 1 through 45)................................................................................... 46
Enter on the applicable line of income tax return and enter the number in the box
for the type of credit. If more than one credit is claimed, enter “99” in the box.
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Other Credits Form
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Name as shown on return: Social Security/Federal Employer Identification Number:
2011 Form 511CR - Page 2
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Other Credits Information
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Form 511CR – page 3 (Do not mail pages 3 - 11 with your income tax return)
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Oklahoma Investment/New Jobs Credit
Manufacturers, who hold a manufacturer’s exemption permit, may qualify for the Oklahoma Investment/New Jobs Credit
based on either an investment in depreciable property of at least $50,000 or on the addition of full-time equivalent employees
engaged in manufacturing, processing or aircraft maintenance. A web search portal establishment may also qualify
for the credit based on an investment in depreciable property of at least $50,000. The credit, once established, is also
allowed in each of the four subsequent years if the level of new employees is maintained or the qualified property is not
sold, disposed of or transferred. Any credit allowed but not used may be carried over in order to each of the four years
following the year of qualification and to the extent not used in those years in order to each of the 15 years following the
initial five-year period. To the extent not used, any credit from qualified depreciable property placed in service on or after
January 1, 2000, may be utilized in subsequent tax years after the initial twenty-year period. Enclose Form 506. 68 OS
Sec. 2357.4 and Rule 710:50-15-74.
Note: Tax Credit Moratorium - No credit may be claimed for assets placed in service or new jobs created on or after July
1, 2010 through June 30, 2012, until July 1, 2012. Credits generated during this time period are deferred, and may be
claimed beginning with tax year 2012 returns, subject to the limitations.
Coal Credit
Sec. 2357.11 (B) provides for a coal credit, for the purchase of Oklahoma-mined coal, to businesses providing water, heat,
light or power from coal to the citizens of Oklahoma or to those which burn coal to generate heat, light or power for use in
manufacturing operations in Oklahoma. An additional credit is allowed for Oklahoma-mined coal purchased.
Sec. 2357.11 (D) provides for a coal credit to businesses primarily engaged in mining, producing or extracting coal in this
state. A valid permit issued by the Oklahoma Department of Mines must be held. The credit provided for in this paragraph
will be allowed for coal mined, produced or extracted in any month in which the average price of coal is $68 or more per
ton, excluding freight charges.
Any credit allowed but not used will have a five year carryover provision following the year of qualification. The credit is
freely transferable to any taxpayer at any time during the five years following the year of qualification upon the filing of the
transfer agreement, Form 572, along with an Oklahoma Tax Commission (OTC) acknowledgment of credits earned. The
transferee shall enclose these same forms with the Form 511CR. Note: This credit, upon the election of the taxpayer, may
be claimed as a payment or prepayment of tax or as an estimated tax payment. If this election is made, the credit should
be claimed on this line of Form 511CR. 68 OS Sec. 2357.11 and Rule 710:50-15-76.
Note: Tax Credit Moratorium - No credit may be claimed for coal purchased, mined, produced or extracted during the
period of July 1, 2010 through June 30, 2012, for which the credit would otherwise be allowable. This credit may be
claimed for tax year 2012 and subsequent tax years, for Oklahoma-mined coal for qualifying purposes purchased, mined,
produced or extracted on or after July 1, 2012.
Credit for Investment in a Clean-Burning Motor Vehicle Fuel Property
or Investment in Qualified Electric Motor Vehicle Property
a) A credit is allowed for investments in qualified clean-burning motor vehicle fuel property. For credits established in tax
year 2010 and thereafter, any credit allowed but not used will have a five year carryover provision. For credits established
in tax years 2009 and prior, any credit allowed but not used will have a three year carryover provision. Enclose
Form 567-A for the Credit for Investment in a Clean-Burning Motor Vehicle Fuel Property.
b) A credit for investment in qualified electric motor vehicle property that was established in a prior year but not used due
to the limitations provided may be carried over. The unused credit may be carried over for a period not to exceed three
years if the credit was established in tax years 2009 and prior. The unused credit may be carried over for a period not
to exceed five years if the credit was established in tax year 2010.
68 OS Sec. 2357.22 and Rule 710:50-15-81.
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Notice
Effective July 1, 2011
Tax credits transferred or allocated must be reported on Oklahoma Tax Commission Form 569. Failure to file Form 569
will result in the affected credits being denied by the Oklahoma Tax Commission pursuant to 68 Oklahoma Statutes (OS)
Sec. 2357.1A-2.
Small Business Capital Credit
There shall be allowed a credit equal to 20% of the cash invested in, or in conjunction with, a qualified Small Business
Capital Company. Any credit allowed but not used will have a three year carryover provision. Enclose Form 527-A. 68 OS
Sec. 2357.60 - 2357.65 and Rule 710:50-15-86.
Note: Tax credit moratorium. No credit may be claimed for qualified investments in Oklahoma small business ventures
during the period of June 1, 2010 through December 31, 2011. No amount of a qualified investment made in a qualified
small business capital company which has not been invested in one or more Oklahoma small business ventures prior to
June 1, 2010 is eligible for any credit otherwise authorized, and no investment made during the moratorium is eligible for a
credit.
Oklahoma Agricultural Producers Credit
An Oklahoma Agricultural Producers Credit that was established in a prior year but not used due to the limitations provided
may be carried over. The unused credit may be carried over for a period not to exceed six years. Enclose Form 520
for the year the credit was originally established. 68 OS Sec. 2357.25 and Rule 710:50-15-85.
Small Business Guaranty Fee Credit
Every small business operating within this state shall be entitled to claim as a credit any amount paid to the U.S. Small
Business Administration (SBA) as a guaranty fee pursuant to the obtaining of financing guaranteed by the Small Business
Administration. Any credit allowed but not used will have a five year carryover provision. Enclose Form 529. 68 OS Sec.
2357.30 and Rule 710:50-15-110.
Any financial institutions, subject to the “in lieu” tax, shall be entitled to claim as a credit the amount of the guaranty fees
the financial institution pays to the SBA under certain SBA loan programs. Enclose Form 529. 68 OS Sec. 2370.1.
Note: Tax credit moratorium. Specifically guarantee fees paid between July 1, 2010 and June 30, 2012 are ineligible to
be claimed as an income tax credit under 68 OS Sec. 2357.30.
Credit for Food Service Establishments that Pay for Hepatitis A Vaccination for their Employees
This credit is for food service establishments, licensed pursuant to the provisions of 63 OS Sec. 1-1118, that pay for
Hepatitis A vaccinations for their employees who work in such establishments. The credit is the cost of the vaccinations,
but cannot exceed the usual and customary fee that would be allowed by the State and Education Employees Group
Insurance Board. The credit is available in the tax year in which the employee was immunized and shall not be refunded
or carried forward to subsequent years. Enclose a schedule showing the name and social security number of each employee
immunized and the cost of the immunization. 68 OS Sec. 2357.33 and Rule 710:50-15-110.
Note: Tax credit moratorium. Specifically immunization expenses incurred between July 1, 2010 and June 30, 2012 are
ineligible to be claimed as an income tax credit.
Credit for Energy Assistance Fund Contribution
Any person contributing monies to the Oklahoma Energy Conservation Assistance Fund is entitled to a nonrefundable income
tax credit of 50% of the amount contributed. This credit may not be carried forward or back. A copy of your cancelled
check or receipt must be enclosed with your return. 68 OS Sec. 2357.6 and Rule 710:50-15-110.
Note: Tax credit moratorium. Specifically contributions made between July 1, 2010 and June 30, 2012 are ineligible to
be claimed as an income tax credit.
Credit for Venture Capital Investment
A credit for venture capital investment that was established in a prior year but not used due to the limitations provided may
be carried over or transferred. Any credit allowed but not used will have a three year carryover provision. Enclose the applicable
Form 518-A or 518-B. 68 OS Sec. 2357.7 and 8 and Rule 710:50-15-77 and 78.
Credit for Hazardous Waste Control
Any person engaged in recycling, reuse or source reduction of any hazardous waste, the process of which is certified by
the Oklahoma Department of Environmental Quality (DEQ), shall be entitled to a one-time credit limited to 20% of amount
certified or actual cost, whichever is less. A verification certificate from DEQ must be enclosed. 27A OS Sec. 2-11-303 and
Rule 710:50-15-75 and Rule 710:50-15-110.
Note: Tax credit moratorium. Specifically the installation and actual use of a recycling, reuse or source reduction of any
hazardous waste process between July 1, 2010 and June 30, 2012 is ineligible to be claimed as an income tax credit.
Other Credits Information
Form 511CR – page 4
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Credit for Qualified Recycling Facility
A credit for an investment in a qualified recycling facility that was established in a prior year but not used due to the limitations
provided may be carried over. The unused credit may be carried over for a period not to exceed 14 years. 68 OS
Sec. 2357.59 and Rule 710:50-15-84.
Note: Tax credit moratorium. No credit may be claimed for investments made during the period of July 1, 2010 through
June 30, 2012, for which the credit would otherwise be allowable. This credit may be claimed for tax year 2012 and subsequent
tax years, for investments in qualified recycling facilities made on or after July 1, 2012.
Credit for Employers Providing Child Care Programs
Employers providing Oklahoma child care services for the children of their employees will be allowed a credit. The credit
will be 20% of the amount of eligible expenses and the eligible expenses must be added back to arrive at Oklahoma
taxable income. Any credit allowed but not used will have a four year carryover provision. Enclose a schedule of eligible
expenses and the computation of the credit. 68 OS Sec. 2357.26 and Rule 710:50-15-91.
Note: Tax credit moratorium. No credit may be claimed for any expenditure occurring during the period of July 1, 2010
through June 30, 2012, for which the credit would otherwise be allowable. This credit may be claimed for tax year 2012
and subsequent tax years, for eligible expenditures occurring on or after July 1, 2012.
Credit for Entities in the Business of Providing Child Care Services
Entities primarily engaged in the business of providing child care services will be allowed a 20% credit for eligible expenses.
Eligible expenses are amounts incurred to comply with the standards promulgated by a national accrediting
association recognized by the Department of Human Services and which would not have been incurred to comply with the
Oklahoma Child Care Facilities Licensing Act. The credit will not be allowed for any amounts for which the entity claims
or receives an income tax credit, exemption or deduction. Any credit allowed but not used will have a four year carryover
provision. 68 OS Sec. 2357.27 and Rule 710:50-15-110.
Note: Tax credit moratorium. Specifically eligible expenses incurred between July 1, 2010 and June 30, 2012 are ineligible
to be claimed as an income tax credit.
Credit for Commercial Space Industries
There shall be allowed a credit for investments in qualifying projects, the purpose of which is to encourage the development
of commercial space industries in this state. The credit shall be 5% of the eligible capital costs generated by a qualifying
project. In order to qualify for the credit an application shall first be made to the OTC. Any credit allowed but not used
will have a four year carryover provision following the year of qualification subject to limitations. 68 OS Sec. 2357.13.
Reserved
Credit for Tourism Development or Qualified Media Production Facility
Enclose the income tax credit memorandum granting the credit which was issued by the OTC. Any credit allowed but not
used will have a 10 year carryover provision. 68 OS Sec. 2357.34-2357.40.
Oklahoma Local Development and Enterprise Zone Incentive Leverage Act Credit
There shall be allowed a credit in conjunction with the “Oklahoma Local Development and Enterprise Zone Incentive
Leverage Act” created under 62 OS Sections 840-847. The credit will equal 100% of the amount of ad valorem taxes exempted
pursuant to the provisions of such act. Any credit allowed but not used will have a 10 year carryover provision. 68
OS Sec. 2357.81 and Rule 710:50-15-110.
Note: Tax credit moratorium. Specifically ad valorem taxes exempted per 62 OS Sec. 860 for facilities in an enterprise
zone between July 1, 2010 and June 30, 2012 are ineligible to be claimed as an income tax credit.
Credit for Qualified Rehabilitation Expenditures
Provides for a credit for qualified rehabilitation expenditures incurred with any certified historic structure as defined in Sec.
2357.41. The credit is to be equal to the amount of the Federal rehabilitation investment credit allowed under the Internal
Revenue Code, Sec. 47. Any credit allowed but not used will have a 10 year carryover provision following the qualified expenditures.
The credit may be freely transferred, at any time during the five years following the year of qualification, to any
taxpayer upon the filing of the transfer agreement, Form 572. If this credit which has been transferred is subsequently reduced
as the result of an adjustment by the Internal Revenue Service, OTC, or any other applicable government agency,
only the transferor originally allowed the credit and not any subsequent transferee of the credit, will be held liable to repay
any amount of disallowed credit. 68 OS Sec. 2357.41 and Rule 710:50-15-108.
Note: Tax credit moratorium. No credit may be claimed for any qualified rehabilitation expenditures made during the period
of July 1, 2010 through June 30, 2012, prior to the taxable year beginning January 1, 2012. No credits which accrue
during the period of July 1, 2010, through June 30, 2012, may be used to file an amended tax return for any taxable year
prior to the taxable year beginning January 1, 2012.
Other Credits Information
Form 511CR – page 5
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Credit for Space Transportation Vehicle Provider
A credit for space transportation vehicle provider that was established in a prior year but not used due to the limitations
provided may be carried over or transferred. Any credit allowed but not used will have a carryover provision for a period
not to exceed three years from the year in which such credit was originally allowed. The credit may be freely transferred,
at any time during the three years following the year of qualification, to any taxpayer upon the filing of the transfer agreement,
Form 572. 68 OS Sec. 2357.42 and Rule 710:50-15-93.
Rural Small Business Capital Credit
Provides for income tax credits for investments in Rural Small Business Capital Companies which in turn invest in rural
business ventures; and also for investments made in conjunction with investments made by Rural Small Business Capital
Companies. Any credit allowed but not used will have a three year carryover provision. Enclose Form 526-A. 68 OS Sec.
2357.71-2357.76 and Rule 710:50-15-87.
Note: Tax credit moratorium. No credit may be claimed for qualified investments in Oklahoma rural small business
ventures during the period of June 1, 2010 through December 31, 2011. No amount of a qualified investment made in a
qualified rural small business capital company which has not been invested in one or more Oklahoma rural small business
ventures prior to June 1, 2010 is eligible for any credit otherwise authorized, and no investment made during the moratorium
is eligible for a credit.
Credit for Electricity Generated by Zero-Emission Facilities
A credit shall be allowed for the production and sale, to an unrelated person, of electricity generated by zero-emission
facilities located in this state. For facilities placed in operation before January 1, 2007, the credit for electricity generated is
$0.0025 per kilowatt-hour. For facilities placed in operation on or after January 1, 2007, the credit for the electricity generated
is $0.0050 per kilowatt-hour. Any credit allowed but not used will have a 10 year carryover provision. The credit may
be freely transferable, at any time during the 10 years following the year of qualification, to any taxpayer upon filing of the
transfer agreement, Form 572. Enclose a schedule showing the number of kilowatt-hours of electricity generated during
each month of the taxable year and the calculation of the credit. Note: This credit, upon election of the taxpayer, may be
claimed as a payment or prepayment of tax or as an estimated tax payment on or after July 1 of the calendar year following
the year of qualification. If this election is made, the credit should be claimed on this line of Form 511CR. 68 OS Sec.
2357.32A and Rule 710:50-15-110.
Note: Tax credit moratorium. The credit is subject to a one-year moratorium from July 1, 2010 through June 30, 2011.
Credits can be established during the moratorium; however, any credits established will accrue and may not be claimed
until tax year 2012.
Credit for Financial Institutions Making Loans Under the Rural Economic Development Loan Act
Oklahoma financial institutions shall be allowed a credit against the bank in lieu tax in an amount equal to the taxable
income received pursuant to a loan made under the “Rural Economic Development Loan Act” 62 OS Sec. 90.1 through
90.9. The credit is limited each year to 5% of the amount of annual payroll directly attributable to new jobs that are created
as a result of the loan made under the act. The Rural Economic Development Loan Program Review Board certifies
payroll eligible for the credit. The credit may be claimed for any number of years necessary until the total amount of credits
claimed is equal to the total amount of taxable income received. Any credit allowed but not used will have a five year carryover
provision. 68 OS Sec. 2370 and Rule 710:50-15-110.
Note: Tax credit moratorium. Specifically loans made between July 1, 2010 and June 30, 2012 cannot be claimed as an
income tax credit.
Credit for Manufacturers of Small Wind Turbines
A credit shall be allowed for Oklahoma manufacturers of advanced small wind turbine products, including rotor blade and
alternator fabrication. The credit is $25 per square foot of rotor swept area of advanced small wind turbines manufactured
in this state. Any credit allowed but not used will have a 10 year carryover provision. The credit may be freely transferable,
at any time during the 10 years following the year of qualification, to any taxpayer upon the filing of the transfer agreement,
Form 572. Enclose a schedule showing the square footage of rotor swept area produced each month of the taxable
year and the calculation of the credit. Note: This credit, upon election of the taxpayer, may be claimed as a payment or
prepayment of tax or as an estimated tax payment on or after July 1 of the calendar year following the year of qualification.
If this election is made, the credit should be claimed on this line of Form 511CR. 68 OS Sec. 2357.32B and Rule
710:50-15-92.
Note: Tax credit moratorium. No credit may be claimed for any advanced small wind turbines manufactured during
the period of July 1, 2010 through June 30, 2012, for which the credit would otherwise be allowable. This credit may be
claimed for tax year 2012 and subsequent tax years, for advanced small wind turbines manufactured on or after July 1,
2012.
Other Credits Information
Form 511CR – page 6
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Credit for Qualified Ethanol Facilities
Establishes an income tax credit for new qualified ethanol facilities in this state, the construction of which must be completed
after July 1, 2003. The facility must be in production at a rate of at least 25% of its capacity by December 31, 2010.
The credit is 20-cents per-gallon of ethanol produced and is allowed for up to 60 months.
An additional credit of 20-cents per-gallon of ethanol produced in excess of its original capacity as a result of an expansion
completed after July 1, 2003 but before December 31, 2008 will be allowed. The credit will be allowed for up to 60
months beginning with the first month for which production from the expanded facility is eligible to receive such tax credit
and ending not later than December 31, 2012. 68 OS Sec. 2357.66 and Rule 710:50-15-106.
Note: Tax credit moratorium. No credit may be claimed for any ethanol production during the period of July 1, 2010
through June 30, 2012, for which the credit would otherwise be allowable. This credit may be claimed for tax year 2012
and subsequent tax years, for ethanol production at certain ethanol facilities produced on or after July 1, 2012.
Poultry Litter Credit
A credit of $10 per ton shall be allowed for the purchase and transportation of poultry litter. To qualify for the credit the
poultry litter must be purchased from an Oklahoma-based poultry operation registered with the State Board of Agriculture
and located within an environmentally sensitive and nutrient-limited watershed area; used or spread in a watershed that
is not environmentally sensitive and nutrient-limited and applied by a certified poultry waste applicator. Any credit allowed
but not used will have a five year carryover provision. Enclose a copy of the current license of the Certified Poultry Waste
Applicator and a copy of the Waste Applier Annual Report for the period affected. 68 OS Sec. 2357.100 and Rule 710:50-
15-95.
Note: Tax credit moratorium. No credit may be claimed for purchases occurring during the period of July 1, 2010
through June 30, 2012, for which the credit would otherwise be allowable. This credit may be claimed for tax year 2012
and subsequent tax years, for poultry litter purchased and transported on or after July 1, 2012.
Volunteer Firefighter Credit
For taxpayers who qualify for the $200 or $400 Oklahoma Volunteer Firefighter Tax Credit, the completed and signed
Council on Firefighter Training’s (COFT) form must be enclosed as supporting documentation. The form must have all of
the necessary signatures. For further explanations, questions or to obtain a form contact the Council on Firefighter Training
(COFT) at (405) 601-8862 or visit their website at: www.coft-oklahoma.org. 68 OS Sec. 2358.7 and Rule 710:50-15-
94.
Credit for Qualified Biodiesel Facilities
Establishes an income tax credit for new qualified biodiesel facilities in Oklahoma, the construction of which must be completed
after July 1, 2005. The facility must be in production at a rate of at least 25% of its capacity by December 31, 2008.
The credit is 20-cents per-gallon of biodiesel produced and is allowed for 60 months.
An additional credit of 20-cents per-gallon of biodiesel produced in excess of its original capacity as a result of an expansion
completed after July 1, 2005 but before December 31, 2008 will be allowed. The credit will be allowed for 60 months
beginning with the first month for which production from the expanded facility is eligible to receive such tax credit and ending
not later than December 31, 2012.
Any credit allowed but not used will have a five year carryover provision. 68 OS Sec. 2357.67 and Rule 710:50-15-98.
Note: Tax credit moratorium. No credit may be claimed for any biodiesel production during the period of July 1, 2010
through June 30, 2012, for which the credit would otherwise be allowable. This credit may be claimed for tax year 2012
and subsequent tax years, for biodiesel production at certain biodiesel facilities produced on or after July 1, 2012.
Film or Music Project Credit
Establishes an income tax credit equal to 25% of the amount of profit made from an investment with a production company
to pay for production costs in an existing Oklahoma film or music project produced after July 1, 2005. In order to
claim the credit, the taxpayer must reinvest the profit with the production company, to pay for the production cost of a new
Oklahoma film or music project. Enclose Form 562. 68 OS Sec. 2357.101 and Rule 710:50-15-101.
Note: Tax credit moratorium. No credit may be claimed for reinvestments occurring during the period of July 1, 2010
through June 30, 2012, for which the credit would otherwise be allowable. This credit may be claimed for tax year 2012
and subsequent tax years, for reinvestments on or after July 1, 2012, of the profit from the investment in an existing Oklahoma
film or music project with a production company for a new Oklahoma film or music project.
Other Credits Information
Form 511CR – page 7
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Credit for Breeders of Specially Trained Canines
Establishes a credit equal to 50% of the qualified direct costs associated with the operation of a business which the principal
purpose is the rearing of specially trained canines. “Specially trained canines” means dogs that are raised by a person
who is officially licensed as a dog breeder by the U.S. Department of Agriculture (USDA). “Qualified direct costs” means
expenditures, other than nonqualified operating expenditures, to construct dog kennels, fences, pens, training areas for
canines, structures for office space or other improvements to real property necessary for the proper training of a specially
trained canine, including the cost of food, water, veterinary expenses and other costs directly related to the operation of
the training facility. “Nonqualified operating expenditures” means labor costs, salary and other compensation, whether direct
or indirect, paid to directors, officers, limited liability company members, limited liability company managers, partners
or other principals or employees of the business. Any credit allowed but not used will have a five year carryover provision.
Enclose a copy of your certificate and acknowledgement letter issued by the USDA and a schedule of the qualified direct
costs upon which the credit was based. 68 OS Sec. 2357.203 and Rule 710:50-15-97.
Note: Tax credit moratorium. No credit may be claimed for any expenditure occurring during the period of July 1, 2010
through June 30, 2012, for which the credit would otherwise be allowable. This credit may be claimed for tax year 2012
and subsequent tax years, for expenditures occurring on or after July 1, 2012 for qualified direct costs associated with the
operation of a business enterprise whose principal purpose is the rearing of specially trained canines.
Credit for Wages Paid to an Injured Employee
Establishes a credit for eligible wages paid by an employer to an employee who is injured as a result of an injury which
is compensable under the Workers’ Compensation Act. The credit is 10% of the amount of the gross wages paid to the
employee beginning when the employee returns to work with restricted duties as provided by the employee’s treating
physician or an independent medical examiner before the employee has reached maximum medical improvement, and
ending after 90 days or when the employee has reached maximum medical improvement if earlier. In no event shall the
credit exceed $5,000 for each employee of each taxpayer and the total credit claimed shall not exceed $25,000 in any one
year for any taxpayer. Enclose a schedule showing the computation of the credit; include employee name, social security
number, eligible wages paid, and the number of days for which the eligible wages were paid. 68 OS Sec. 2357.47 and
Rule 710:50-15-107.
Note: Tax credit moratorium. No credit may be claimed for any expenditure made during the period of July 1, 2010
through June 30, 2012, for which the credit would otherwise be allowable. This credit may be claimed for tax year 2012
and subsequent tax years, for wages paid on or after July 1, 2012.
Credit for Modification Expenses Paid for an Injured Employee
Establishes a credit for eligible modification expenses incurred by an employer to modify a workplace, tools or equipment
or to obtain new tools or equipment and which are incurred by an employer solely to enable a specific employee who has
incurred an injury that is compensable under the Workers’ Compensation Act to return to work with restricted duties as
provided by the employee’s treating physician or an independent medical examiner before the employee has reached
maximum medical improvement, and which workplace, tools or equipment are used primarily by the injured employee.
The credit is 50% of the amount of funds expended for eligible modification expenses. In no event shall the credit exceed
$1,000 for eligible modification expenses incurred for any single employee and the total credit claimed shall not exceed
$10,000 in any year for any taxpayer. Enclose a schedule showing the computation of the credit; include employee name
and social security number and the eligible modification expenses for such employee. 68 OS Sec. 2357.47 and Rule
710:50-15-107.
Note: Tax credit moratorium. No credit may be claimed for any expenditure made during the period of July 1, 2010
through June 30, 2012, for which the credit would otherwise be allowable. This credit may be claimed for tax year 2012
and subsequent tax years, for modification expenses made on or after July 1, 2012.
Dry Fire Hydrant Credit
Establishes a credit for the cost of the purchase of a dry fire hydrant or the cost to provide an acceptable means of water
storage for such dry fire hydrant including a pond, tank, or other storage facility with the primary purpose of fire protection
within Oklahoma. The credit is 50% of the purchase price of the dry fire hydrant or the actual expenditure for any new
water storage construction, equipment, development and installation of the dry hydrant, including pipes, valves, hydrants,
and labor for each installation of a dry hydrant or new water storage facility but in no event shall the amount of the credit
exceed $5,000 for each taxpayer. In order to qualify for the tax credit, the dry fire hydrant or new water storage facility
must meet minimum requirements. Any credit allowed but not used will have a four year carryover provision. Enclose
either an invoice for the purchase price or a schedule of actual expenditures upon which the credit was based. 68 OS
Sec. 2357.102 and Rule 710:50-15-99.
Other Credits Information
Form 511CR – page 8
(Dry Fire Hydrant Credit continued on page 9)
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Other Credits Information
Form 511CR – page 9
Dry Fire Hydrant Credit (continued)
Note: Tax credit moratorium. No credit may be claimed for purchases occurring during the period of July 1, 2010
through June 30, 2012, for which the credit would otherwise be allowable. This credit may be claimed for tax year 2012
and subsequent tax years, for purchases on or after July 1, 2012 of a dry fire hydrant or the cost to provide an acceptable
means of water storage for such dry fire hydrants including a pond, tank, or other storage facility with the primary purpose
of fire protection within the State of Oklahoma.
Credit for the Construction of Energy Efficient Homes
Establishes a credit equal to the eligible expenses incurred by a contractor in the construction of energy efficient residential
property of 2,000 square feet or less located in Oklahoma and which has been certified by a Residential Energy
Services Network provider. “Eligible expenses” means any energy efficient heating or cooling system; insulation material
or system designed to reduce the heat gain or loss; exterior windows, including skylights; exterior doors; and Energy Star
program metal roof. In no event shall the credit exceed $4,000 for residential property certified at 40% or more above the
2003 International Energy Conservation Code (IECC), including any supplement, or exceed $2,000 for residential property
certified at between 20% and 39% of the 2003 IECC, including any supplement. The contractor shall not be allowed
a credit for residential property certified at less than 20% of the 2003 IECC, including supplements. Any credit allowed but
not used will have a four year carryover provision. The credit may be freely transferable to any taxpayer upon the filing of
the transfer agreement, Form 572. For each home, enclose proof of the energy rating, such as a copy of the Energy Star
Certification sticker or the Energy Star Certificate. You must be able to document the type and amount of expenses upon
which the credit was based upon request. 68 OS Sec. 2357.46 and Rule 710:50-15-104.
Note: Tax credit moratorium. No credit may be claimed for any expenditure made during the period of July 1, 2010
through June 30, 2012, for which the credit would otherwise be allowable. A credit will be allowed for eligible expenditures
made prior to July 1, 2010 regardless of when the property is substantially complete. This credit may be claimed for tax
year 2012 and subsequent tax years, for eligible expenditures made on or after July 1, 2012, by contractors who construct
either energy efficient residential property or energy efficient manufactured homes.
Credit for Railroad Modernization
Establishes a credit equal to 50% of a Class II or Class III railroad’s qualified railroad reconstruction or replacement expenditures.
The amount of credit shall be limited to the product of $2,000 and the number of miles of railroad track owned
or leased within Oklahoma as of the close of the taxable year. An election may be made to increase the limit to an amount
equal to three times the limit, provided only 1/3 of the credit is claimed in any one taxable period. A taxpayer who elected
to increase the limitation on the credit shall not be granted additional credits during the period of such election. “Qualified
railroad reconstruction or replacement expenditures” means expenditures for 1) reconstruction or replacement of railroad
infrastructure including track, roadbed, bridges, industrial leads and track-related structures or 2) new construction of
industrial leads, switches, spurs and sidings and extensions of existing sidings. Any credit allowed but not used will have a
five year carryover provision. The credit is freely transferable to any taxpayer and at any time during the five years following
the year of qualification upon the filing of the transfer agreement, Form 572. Enclose the “Affidavit” from the Department
of Transportation. 68 OS Sec. 2357.104 and Rule 710:50-15-103.
Note: Tax credit moratorium. No credit may be claimed for qualified railroad reconstruction or replacement expenditures
occurring during the period of July 1, 2010 through June 30, 2012, for which the credit would otherwise be allowable.
Qualified railroad reconstruction or replacement expenditures occurring before July 1, 2010 will qualify for the tax credit
regardless of when the Department of Transportation issues the certificate of verification of completion of the project. This
credit may be claimed for tax year 2012 and subsequent tax years, for qualified railroad reconstruction or replacement
expenditures on or after July 1, 2012.
Research and Development New Jobs Credit
Employers, primarily engaged in computer services, data processing or research and development, may qualify for the
Research and Development New Jobs Credit. The credit is $500 per employee and is computed on the average number
of new qualified employees whose salaries or wages are at least $35,000 and are subject to Oklahoma income tax withholding.
The credit, once established, is also allowed in each of the eight subsequent years if the level of new employees
is maintained. Any credit allowed but not used may be carried over in order to each of the four years following the year of
qualification and to the extent not used on those years in order to each of the following five years. Enclose Form 563.
68 OS Sec. 54006 and Rule 710:50-15-105.
Note: Tax credit moratorium. No credit may be claimed for jobs created during the period of July 1, 2010 through June
30, 2012, for which the credit would otherwise be allowable. This credit may be claimed for tax year 2012 and subsequent
tax years, for new jobs created on or after July 1, 2012.
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Other Credits Information
Form 511CR – page 10
Credit for Stafford Loan Origination Fee (available for banks and credit unions filing Form 512)
Oklahoma banks and credit unions paying the origination fee to the U.S. Department of Education pursuant to the “Stafford”
loan program for an Oklahoma resident will be allowed a credit against the bank in lieu tax. The credit is the amount
of origination fee paid by such bank or credit union; however, no credit will be allowed if the bank or credit union, in any
way, recovers the origination fee from the borrower. Any credit allowed but not used will have a five year carryover provision.
68 OS Sec. 2370.3 and Rule 710:50-15-110.
Note: Tax credit moratorium. Specifically origination fees paid between July 1, 2010 and June 30, 2012 are ineligible to
be claimed as an income tax credit.
Gas Used in Manufacturing Credit
A credit is available at the rate of three mills per thousand cubic feet of gas used or consumed during each taxable year
when used in manufacturing. This shall not apply to the first twenty-five thousand MCF used or consumed. Enclose a
schedule showing the computation of the credit. If you are a member of a pass-through entity, the schedule should also
contain the name and Federal Employer Identification Number of the pass-through entity and the portion of the credit allocated
to you. 68 OS Sec. 2357(C) and Rule 710:50-15-110.
Note: Tax credit moratorium. Specifically gas used between July 1, 2010 and June 30, 2012 is ineligible to be claimed
as an income tax credit.
Credit for Biomedical Research Contribution
A credit is allowed to any taxpayer who makes a donation to a qualified independent biomedical research institute. The
credit is 50% of the amount donated, but may not exceed $1,000 ($2,000 for a married filing joint return). An “independent
biomedical research institute” means an organization which is exempt from taxation under the Internal Revenue Code
section 501(c)(3) whose primary focus is conducting peer-reviewed basic biomedical research. The organization shall
have a board of directors, be able to accept grants in its own name, be an identifiable institute that has its own employees
and administrative staff, and receive at least $15 million in National Institute of Health funding each year. Any credit
allowed but not used will have a four year carryover provision. A copy of the canceled check or receipt must be provided
as proof of the donation. 68 OS Sec. 2357.45 and Rule 710:50-15-113.
Credit for Employees in the Aerospace Sector
Establishes a $5,000 credit for a qualified employee who has a degree in engineering and who, on or after January 1,
2009, is employed by or contracting with a qualified employer whose principal business activity is in the aerospace sector.
The credit is allowed each year for up to the first five years. To qualify for the credit the employee may not have been
employed in the aerospace sector in Oklahoma immediately preceding employment or contracting with a qualified employer.
Any credit allowed but not used will have a five year carryover provision. Enclose Form 564. 68 OS Sec. 2357.301
& 2357.304 and Rule 710:50-15-109.
Note: Tax credit moratorium. No credit may be claimed by a qualified employee for the period of July 1, 2010 through
June 30, 2011, for which the credit would otherwise be allowable.
Credits for Employers in the Aerospace Sector
Establishes credits for tuition reimbursement and for compensation paid to a qualified employee by a qualified employer. A
qualified employee is a person employed by or contracting with a qualified employer on or after January 1, 2009, who has
been awarded an undergraduate or graduate degree in engineering and who was not employed in the aerospace sector in
Oklahoma immediately preceding current employment. The credit for tuition reimbursement is 50% of amount reimbursed,
but may not exceed 50% of the average annual amount paid for enrollment and instruction in a qualified program at an
Oklahoma public institution. The credit for compensation paid to a graduate of an Oklahoma institution is 10% of such
compensation and if the employee graduated from an institution located outside Oklahoma the credit is 5%; this credit
may not exceed $12,500 annually for each qualified employee. Enclose Form 565. 68 OS Sec. 2357.301, 2357.302 &
2357.303 and Rule 710:50-15-109.
Note: Tax credit moratorium. No credit may be claimed for any tuition reimbursed by a qualified employer to a qualified
employee, or for compensation paid to a qualified employee, for the period July 1, 2010 through June 30, 2011, for which
the credit would otherwise be allowable. This credit may be claimed for tax year 2011 and subsequent tax years, for tuition
reimbursed or compensation paid on or after July 1, 2011.
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Other Credits Information
Form 511CR – page 11
Wire Transfer Fee Credit
A credit is allowed for the electronic funds transfer fee paid pursuant to the Drug Money Laundering and Wire Transmitter
Act (63 OS Sec. 2-503.1j). Any credit allowed but not used will have a five year carryover provision. Upon request
you must be able to document the amount of fees paid upon which the credit is based. 68 OS Sec. 2357.401 and Rule
710:50-15-111.
Credit for Manufacturers of Electric Vehicles
Establishes a one-time credit for a manufacturer of low-speed electric motor vehicles, medium-speed electric motor vehicles
or electric motor vehicles which are manufactured after June 30, 2010. The manufacturer must hold a manufacturer’s
exemption permit (MSEP).
The credit is as follows:
• For low-speed electric motor vehicles, the credit is $500 per vehicle manufactured.
• For medium-speed electric motor vehicles, the credit is $1,000 per vehicle manufactured.
• For electric motor vehicles, which are not low-speed or medium-speed vehicles, the credit is $2,000 per vehicle
manufactured.
Any credit allowed but not used will have a five year carryover provision. 68 OS Sec. 2357.402 and Rule 710:50-15-112.
Business Activity Tax Credit
• A credit equal to the $25 Oklahoma Business Activity Tax paid on Form 511 or 511NR is allowed. The credit may
only be taken for the year in which the Business Activity Tax is levied and if such tax is timely paid. Enclose Form
511-BAT “Oklahoma Business Activity Tax”.
• A credit equal to the $25 Business Activity Tax reported on Form BT-190 Part 2, line 1, is allowed. The credit may
only be taken for the year in which the Business Activity Tax is levied and if such tax is timely paid. A limited liability
company (LLC), including a single member LLC, does not qualify for this credit but will be entitled to a credit
with the Oklahoma Secretary of State. An entity whose Business Activity Tax reported on Part 2, line 1 of Form
BT-190 is greater than $25 does not qualify for this credit. The credit may not flow through to the members of a
pass-through entity.
68 OS Sec. 1219 and Rule 710:95-19-6.
Credit for Cancer Research Contribution
A credit is allowed to any taxpayer who makes a donation to a qualified cancer research institute. The credit is 50% of the
amount donated, but may not exceed $1,000 ($2,000 for a married filing joint return). A “cancer research institute” means
an organization which is exempt from taxation under the Internal Revenue Code (IRC) or a not-for-profit supporting organization,
as defined by the IRC, affiliated with a tax-exempt organization. The tax exempt organization must have raising
the standard of cancer clinical care, in Oklahoma, through peer-reviewed cancer research and education as its primary
focus; be either an independent research institute or a program that is part of a state university which is a member of The
Oklahoma State System of Higher Education; and receive at least $4 million in National Cancer Institute funding each
year. Any credit allowed but not used will have a four year carryover provision. A copy of the canceled check or receipt
must be provided as proof of the donation. 68 OS Sec. 2357.45 and Rule 710:50-15-113.
Oklahoma Capital Investment Board Tax Credit
Enclose the Tax Credit Certificate issued by the Oklahoma Capital Investment Board as provided for in the Oklahoma
Capital Formation Act. The Certificate will indicate the face amount of the tax credit and the State’s fiscal year in which the
credit may be claimed. The credit is freely transferable to subsequent transferees upon the filing of the transfer agreement,
Form 572. No tax credit shall be exercisable after July 1, 2015. Note: This credit, upon election of the taxpayer, may
be claimed as a payment or prepayment of tax or as an estimated tax payment. If this election is made, the credit should
be claimed on this line of the Form 511CR. 74 OS Sec. 5085.7.
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