Instructions and Guidelines for Preparing
Venture Capital Company Information Report
Title 68 Section 2357.7 - 2357.8A and Rule 710:50-15-77
Reporting Requirements
Each Qualied Venture Capital Company shall le Form 518 with the Oklahoma Tax Commission by April 30th following the year in
which investments were made.
The report shall contain information regarding the investments made by the Venture Capital Company in each Oklahoma Business
Venture. The report shall state the name and identication number of the business in which the investment was made, the type of the
business, the date of the investment and the type and amount of the investment.
Additional Reporting Requirement
Each qualied Venture Capital Company shall also make Form 518-A available to all investors in such company by January 31st. This
form shall show the name of the qualied Venture Capital Company, the name of the investor, the date of the investment, the total
amount of the investment in the company made by such investor and the amount of credit currently available. This form shall be led
with the Oklahoma income tax return of the taxpayer claiming the credit. No investor in a Venture Capital Company organized after July
1, 1992 may claim the tax credit.
Denitions
“Qualied Venture Capital Company” means a C corporation, as dened by the Internal Revenue Code, incorporated pursuant to
the laws of Oklahoma or a registered business partnership with a certicate of partnership led as required by law if such corporation
or partnership is organized to provide the direct investment of debt and equity funds to companies within this state, with its principal
place of business located within this state and which meets the following criteria:
a. capitalization of not less than Five Million Dollars,
b. having a purpose and objective of investing at least 75% of its capitalization in Oklahoma Business Ventures. The temporary
investment of funds by a qualied Venture Capital Company in obligations of the United States, state and municipal bonds,
bank certicates of deposit, or money market securities pending investment in Oklahoma Business Ventures is hereby
authorized, and
c. investment of not more than 10% of its funds in any one company.
“Oklahoma Business Venture” means a business, incorporated or unincorporated, which:
a. has or will have, within 180 days after an investment is made by a qualied Venture Capital Company, at least 50% of its
employees or assets located in Oklahoma,
b. needs nancial assistance in order to commence or expand such business which provides or intends to provide goods or
services,
c. is not engaged in oil and gas exploration, real estate development, real estate sales, retail sales of food or clothing, farming,
ranching, banking, or lending or investing funds in other businesses. Provided, however, businesses which provide or
intend to provide goods or services, including, but not limited to, goods or services involving new technology, equipment, or
techniques to such businesses listed in this subparagraph, and investments in the development of tourism facilities in the form
of amusement parks, entertainment parks, theme parks, golf courses, or museums shall not be subject to said prohibition, and
d. expends within 18 months after the date of the investment at least 50% of the proceeds of the investment for the acquisition
of tangible or intangible assets which are used in the active conduct of the trade or business of the Oklahoma Business
Venture or, effective August 21, 2008, for working capital for the active conduct of such trade or business. Working capital
does not include consulting, brokerage or transaction fees. Provided, that the Oklahoma T
ax Commission, upon request and
demonstration of need by a qualied Venture Capital Company or an Oklahoma Business Venture, may extend the 18-month
period for a period not to exceed six months. Provided, the expenditure of the invested funds by the Oklahoma Business
Venture shall otherwise comply with the requirements applicable to the usage of tax credits for investment in the Oklahoma
Business Venture.
“Direct investment” means the purchase of securities of a private company, or securities of a public company if the securities
constitute a new issue of a public company and such public company had previous year sales of less than T
en Million Dollars.
“Debt and equity funds” means investments in debt securities; including unsecured, undersecured, subordinated or convertible loans
or debt securities; and/or equity securities, including common and preferred stock, royalty rights, limited partnership interest, and any
other securities or rights that evidence ownership in businesses; provided such investment of debt and equity funds shall not have a
repayment schedule that is faster than a level principal amortization over ve years.
This information return must be led by April 30th.
Mail to: Oklahoma Tax Commission
Compliance Division: Corporate Income Tax
Post Ofce Box 269054
Oklahoma City, OK 73126-9054
Form 518
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