Form 529 Draft - Small Business Guaranty Fee Credit

SBA Guaranty Fee Credit

Credit Available for Small Business

Title 68 O.S. Section 2357.30

As used in this section, “small business” means any corporation, partnership, sole proprietorship or other business entity

qualifying as “small” under the standards contained in Section 121 of Title 13 of the Code of Federal Regulations.

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 as a guaranty fee pursuant to the obtaining of financing guaranteed by the Small Business Ad-

ministration. The credit shall be claimable only by the small business which is the primary obligor in the financing transac-

tion and which actually paid the guaranty fee.

The credit shall only be claimed against the tax liability resulting from income generated by the small business. If an

income tax return upon which this credit is claimed includes taxable income from sources other than the small business,

the credit shall only be allowed to be claimed upon a percentage of the income tax liability which does not exceed the

percentage of income generated by the small business as compared to the total Oklahoma adjusted gross income for

individuals or Oklahoma taxable income for corporations and fiduciaries.

If the credit exceeds the amount of income taxes due or if there are no state income taxes due on the income of the tax-

payer, the amount of the credit not used may be carried forward as a credit against subsequent income tax liability for a

period not to exceed five (5) years.

Credit Available for Banks and Credit Unions

Title 68 O.S. Section 2370.1

There shall be a credit against the tax imposed by Section 2370 of Title 68 of the Oklahoma Statutes for any state bank-

ing association, national banking association and credit union organized under the laws of this state for the amount of the

guaranty fee paid by the banking association or credit union to the United States Small Business Administration pursuant

to the “7(a)” loan guaranty program.

No credit may be claimed pursuant to this section if, pursuant to the agreement between the banking association or credit

union and the entity to which proceeds are made available, the banking association or credit union adds the amount of the

SBA 7(a) loan guaranty fee to the amount financed by the borrower or in any other way recovers the guaranty fee from the

borrower.

If the credit exceeds the amount of income taxes due or if there are no state income taxes due on the income of the tax-

payer, the amount of the credit not used may be carried forward as a credit against subsequent income tax liability for a

period not to exceed five (5) years.

Form 529 Draft - Small Business Guaranty Fee Credit - 2007 Page 2