Instructions For Form 512 - Oklahoma Corporation Income Tax

Line by Line Instructions

Page Three - Schedule B continued

Computation of Tax Accrual

Line 8 - Oklahoma Accrued Tax

When Tax Credits Are Allowable

Oklahoma accrued tax is computed by dividing

line 7 (Oklahoma Net Income before Oklahoma

1. Oklahoma income before tax accrual

100,000

Income Tax) by the number 17.6667.

2. Allowable Oklahoma credits

2,000

When filing a consolidated return, the accrual of

Computation of accrued tax allowed

Oklahoma state income tax must be made after

A. Oklahoma income (Line 1 above)

100 ,000

the combination of the income and loss from all

B. Line 2 above divided by 6%

33,333

companies included in the combination. The

C. Subtract Line B from Line A

66,6 67

accrued tax cannot be less than zero.

D. Divide Line C by 17.6667

3,774

(If Line D is less than 0, enter 0)

When credits are allowed, the accrual of Okla-

homa tax will not be allowed on the amount of

3. Subtract Line D from Line 1 above.

96,226

Oklahoma taxable income that is covered by the

(Enter Line 3 above on Line 1, page 1 of your

credit. Tax accrual is allowed on the amount of

Oklahoma corporation income tax Form 512)

income for which tax is actually paid. The follow-

ing example shows how the accrual should be

Total tax due

5,774

calculated. A schedule, such as the example to

Tax accrual allowed

3,774

the right, should be enclosed and submitted with

Tax credit allowed

2,000

Form 512.

Page One

whose primary focus is conducting peer-

Line 3 - Oklahoma Investment Jobs Credit

reviewed basic biomedical research. The

Corporations engaged in manufacturing or that

organization shall have a board of directors,

are a web search portal (including partnership

be able to accept grants in its own name, be

or Sub-S pass-through) who are entitled to

an identifiable institute that has its own em-

Oklahoma Investment/New Jobs Credit see

ployees and administrative staff, and receive

Form 506. (This credit has no relationship to

at least $15 million in National Institute of

Federal Investment Credit.) Title 68 O.S.

Health funding each year. A copy of the can-

Section 2357.4.

celed check or receipt must be provided as

proof of the donation. Title 68 O.S. Section

Line 4 - Gas Used in Manufacturing

2357.45.

A credit is available at the rate of three mills

per thousand cubic feet of gas used or con-

sumed during each taxable year when used in

Line 6 - Other Credits

manufacturing. This shall not apply to the first

The amount of other credits as claimed on

twenty-five thousand MCF used or consumed.

Form 511CR should be entered on this line.

Title 68 O.S. Section 2357(C).

Enter in the box the number that corresponds

with the credit to which you are entitled. Enter

Line 5 - Credit for Biomedical Research

“99” if entitled to more than one credit. See

Contribution

below for a list of the credits available on

A credit is allowed to any taxpayer who makes

Form 511CR. If you are claiming any of the

a donation to a qualified independent biomedi-

credits on Form 511CR, enclose the form, and

cal research institute. The credit is 50% of the

any applicable forms or schedules, with your

amount donated, but may not exceed $1,000.

Form 512 return.

Any credit allowed, but not used, will have a

four year carryover provision. An “independent

The Form 511CR can be obtained by calling

biomedical research institute” means an orga-

our forms request line at (405) 521-3108 or

nization which is exempt from taxation under

from our website at

the Internal Revenue Code section 501(c)(3)

Instructions For Form 512 - Oklahoma Corporation Income Tax - 2006 Page 10

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