Fillable Form 529 - Small Business Guaranty Fee Credit

2011 Form 529 - page 2

Small Business Guaranty Fee Credit

Credit Available for Small Business

68 Oklahoma Statutes (OS) Section 2357.30

Note: Tax Credit Moratorium on Credit Available for Small Business

No credit may be claimed for guaranty fee paid during the period of July 1, 2010 through June 30, 2012, for which

the credit would otherwise be allowable under 68 OS Sec. 2357.30. This credit may be claimed for tax year 2012 and

subsequent tax years, for guaranty fees paid on or after July 1, 2012.

Note: Credit Carryover - Credits established before July 1, 2010 are eligible to be claimed under normal carryover

provisions, if applicable.

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 in-

come 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 percent-

age 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 years.

Credit Available for Banks and Credit Unions

68 OS Sec. 2370.1

Note: There is no tax credit moratorium on credit available for banks and credit unions.

There shall be a credit against the tax imposed by 68 OS Sec. 2370 for any state banking 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 (SBA) 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 years.

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 OS Sec. 2357.1A-2.

Form 529 - Small Business Guaranty Fee Credit - 2011 Page 2