Instructions For Form 512 - Oklahoma Corporation Income Tax

General Filing Information

Refundable Credits...

A refundable credit is available for qualified capital

expenditures, wages and training expenses

incurred by a business enterprise whose principal

activity is the manufacture of wing components for

activity is data processing services, computer

large commercial aircraft and other aerospace

systems design services or other computer related

structures and components for commercial and

services that, as of July 1, 2005, maintains an

government aerospace products. The Aerospace

Oklahoma annual payroll of at least $85 million and

Industry Credit may be claimed by filing Form 581

an Oklahoma labor force of 1,000 or more persons.

any time on or after July 1, 2006. Or, the credit may

The Computer Industry Credit may be claimed by

be claimed on the estimated tax line of the income

filing Form 580 any time on or after July 1, 2006, or

tax return. Form 581 must be enclosed with the

the credit may be claimed on the estimated tax line

return. Title 68 O.S. Section 2357.202 and Rule

of the income tax return. Form 580 must be

710:50-15-100.

enclosed with the return. Title 68 O.S. Section

2357.201 and Rule 710:50-15-100.

Line by Line Instructions

Qualified Refinery Property:

General Instructions

(Title 68 O.S. Section 2357.204)

for Determining Oklahoma

• The election to expense instead of depreciate

Taxable Income

A refinery may elect to treat 100% of the cost of

qualified refinery property located in Oklahoma as

Income Computation...

an expense that is not chargeable to a capital

account. Any cost so treated is allowed as a

Beginning with Federal taxable income, proper

deduction for the year in which the qualified

adjustments are to be made to arrive at Okla-

refinery property expense is incurred. Once made,

homa taxable income. Some of the adjust-

the election is irrevocable without the consent of

ments may be to add interest income from

the Oklahoma Tax Commission. The depreciation

obligations of state and political sub-divisions

deducted on the Federal return for such property

thereof, and to deduct interest from U.S.

must be added back in this and in all subsequent

obligations. Oil and mining production or

years.

royalities and gain or loss from disposition of

such property shall be allocated according to

A report must be attached to certify that the provisions of

Note:

their situs. General and administrative ex-

Title 68 O.S. Section 2357.204(E) & (F) have been met. No

penses, such as interest expense, etc., will

deduction allowed under this section will be allowed unless this

ordinarily be allocated on the basis of Okla-

certification is enclosed with the refinery’s income tax return.

homa direct expense to total direct expense.

If you are the Refinery -

(Schedule A, Line 26, column B or

Safety Pays OSHA Consultation Service

Schedule B, Line 3 - as a deduction)

Exemption:

To make the election to expense the cost of

Schedule A, Line 26, column B or Schedule B, Line 3)

(

qualified refinery property located in Oklahoma in

An employer that is eligible for and utilizes the

the tax year in which the expense is incurred,

Safety Pays OSHA Consultation Service provided

deduct the cost of the property on a timely filed

by the Oklahoma Department of Labor shall

return, unless a second election is made by the

receive a $1,000 exemption for the tax year the

refinery to allocate all or a portion of the deduction

service is utilized. Employers must be able to

to its owners. If the second election is made, do

substantiate their participation in the Oklahoma

not deduct such portion on Form 512. Each owner

Department of Labor’s Safety Pays Consultation

will report their allowable share of the deduction on

Service upon request.

their own income tax return; see “The election to

allocate expense to owners” on page 6.

Instructions For Form 512 - Oklahoma Corporation Income Tax - 2006 Page 5

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