Oklahoma 2026 Regular Session Status: In Committee 1 R cosponsors

SB 718 — Oklahoma Capital Investment Board; repealing the Oklahoma Capital Formation Act and Board. Effective date.

Last action — Placed on General Order

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the Senate. Introduced February 03, 2025. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the Senate.

Prognosis

Advancing 36% · moderate confidence

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

  • In Committee

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 R).

  • Cleared a recorded vote

    Passed 1 recorded vote so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

328 added · 604 removed

Plain-language change summary

The changes to Senate Bill 718 mainly refine the existing tax credit provisions for investments in qualified venture capital companies in Oklahoma. Specifically, the amended version clarifies the criteria for these companies and limits the credits that can be claimed against certain tax liabilities. This matters because it aims to ensure that state funds are managed effectively while still encouraging investment in local businesses, which can help stimulate economic growth in the region. Additionally, the removal of outdated sections related to the Oklahoma Capital Investment Board streamlines the legislation, ensuring it reflects current practices.

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STATE OF OKLAHOMA 2 1st Session of the 60th Legislature (2025) 3 SENATE BILL 718 By:
SENATE FLOOR VERSION February 19, 2025 AS AMENDED SENATE BILL NO.
Daniels 4 5 AS INTRODUCED 7 An Act relating to the Oklahoma Capital Investment Board;
718 By:
amending 68 O.S.
Daniels 5 [ credit against tax - repealers - effective date ] 8 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
2021, Section 2357.7, which relates to credit against tax for investments in qualified venture capital companies;
updating statutory language;
amending 74 O.S.
2021, Sections 85.42 and 3601.1, as last amended by Section 36, Chapter 29, O.S.L.
2023 (74 O.S.
Supp.
2024, Section 3601.1), which relate to the Oklahoma Central Purchasing Act and the State Employment Review Board;
conforming language;
updating statutory language;
updating statutory reference;
repealing 74 O.S.
2021, Sections 5085.1 through 5085.16, which relate to the Oklahoma Capital Investment Board;
and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
Req.
Provided, tax credits against liabilities imposed pursuant to Section 624 of Title 36 of the Oklahoma Statutes shall be limited to the amount that would otherwise be collected and allocated to the General Revenue Fund of the State Treasury.
No.
B.
605 Page 1 Provided, tax credits against liabilities imposed pursuant to 2 Section 624 of Title 36 of the Oklahoma Statutes shall be limited to 3 the amount that would otherwise be collected and allocated to the General Revenue Fund of the State Treasury.
5 B.
6 1.
1.
“Qualified venture capital company” means a C corporation, 7 as defined by the Internal Revenue Code of 1986, as amended, incorporated pursuant to the laws of Oklahoma or a registered 9 business partnership with a certificate of partnership filed 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:
“Qualified venture capital company” means a C corporation, as defined by the Internal Revenue Code of 1986, as amended, SENATE FLOOR VERSION - SB718 SFLR Page 1 (Bold face denotes Committee Amendments) incorporated pursuant to the laws of Oklahoma or a registered business partnership with a certificate of partnership filed 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:
The temporary investment of funds by a qualified venture capital company in obligations of the United States, state and municipal bonds, bank certificates of deposit, or money market securities pending investment in Oklahoma business ventures is hereby authorized, and Req.
The temporary investment of funds by a qualified venture capital company in obligations of the United States, state and municipal bonds, bank certificates of deposit, or money market securities pending investment in Oklahoma business ventures is hereby authorized, and c.
No.
investment of not more than ten percent (10%) of its funds in any one company;
605 Page 2 c.
2.
investment of not more than ten percent (10%) of its 2 funds in any one company;
3 2.
5 a.
a.
has or will have, within one hundred eighty (180) days 6 after an investment is made by a qualified venture 7 capital company, at least fifty percent (50%) of its employees or assets located in Oklahoma, 9 b.
has or will have, within one hundred eighty (180) days after an investment is made by a qualified venture capital company, at least fifty percent (50%) of its employees or assets located in Oklahoma, SENATE FLOOR VERSION - SB718 SFLR Page 2 (Bold face denotes Committee Amendments) b.
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 such prohibition, and Req.
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 such prohibition, and d.
No.
expends within eighteen (18) months after the date of the investment at least fifty percent (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 to provide working capital for the active conduct of such trade or business.
605 Page 3 d.
For purposes of this subparagraph, “working SENATE FLOOR VERSION - SB718 SFLR Page 3 (Bold face denotes Committee Amendments) capital” shall not include consulting, brokerage or transaction fees.
expends within eighteen (18) months after the date of 2 the investment at least fifty percent (50%) of the 3 proceeds of the investment for the acquisition of tangible or intangible assets which are used in the 5 active conduct of the trade or business of the 6 Oklahoma business venture or to provide working 7 capital for the active conduct of such trade or business.
For purposes of this subparagraph, “working 9 capital” shall not include consulting, brokerage or transaction fees.
As used in this subparagraph, “tangible assets” shall include the acquisition of real property and the construction of improvements upon real property if such acquisition and construction otherwise complies with the requirements applicable to the usage of tax Req.
As used in this subparagraph, “tangible assets” shall include the acquisition of real property and the construction of improvements upon real property if such acquisition and construction otherwise complies with the requirements applicable to the usage of tax credits for investment in the Oklahoma business venture and “intangible assets” shall be limited to computer software, licenses, patents, copyrights, and similar items;
No.
3.
605 Page 4 credits for investment in the Oklahoma business 2 venture and “intangible assets” shall be limited to 3 computer software, licenses, patents, copyrights, and similar items;
“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 SENATE FLOOR VERSION - SB718 SFLR Page 4 (Bold face denotes Committee Amendments) had previous year sales of less than Ten Million Dollars ($10,000,000.00);
5 3.
“Direct investment” means the purchase of securities of a 6 private company, or securities of a public company if the securities 7 constitute a new issue of a public company and such public company had previous year sales of less than Ten Million Dollars 9 ($10,000,000.00);
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The credit shall be allowed for the amount of the Req.
The credit shall be allowed for the amount of the investment in an Oklahoma business venture if the funds are used in pursuit of a legitimate business purpose of the Oklahoma business venture consistent with its organizational instrument, bylaws or other agreement responsible for the governance of the business venture.
No.
The qualified venture capital company shall issue such reports as the Oklahoma Tax Commission may require attributing the source of funds of each investment it makes in an Oklahoma business SENATE FLOOR VERSION - SB718 SFLR Page 5 (Bold face denotes Committee Amendments) venture.
605 Page 5 investment in an Oklahoma business venture if the funds are used in 2 pursuit of a legitimate business purpose of the Oklahoma business 3 venture consistent with its organizational instrument, bylaws or other agreement responsible for the governance of the business 5 venture.
The Oklahoma Capital Investment Board shall have the authority to certify an entity as a qualified venture capital company and to certify an investment to be a qualifying Oklahoma business venture for purposes of complying with subsection B of this section.
The qualified venture capital company shall issue such 6 reports as the Oklahoma Tax Commission may require attributing the 7 source of funds of each investment it makes in an Oklahoma business venture.
The Oklahoma Capital Investment Board shall have the 9 authority to certify an entity as a qualified venture capital company and to certify an investment to be a qualifying Oklahoma business venture for purposes of complying with subsection B of this section.
Req.
D.
No.
No taxpayer may claim the credit provided for in subsection A of this section for investments in qualified venture capital companies made prior to January 1, 1987.
605 Page 6 D.
No taxpayer may claim the credit provided for in subsection 2 A of this section for investments in qualified venture capital 3 companies made prior to January 1, 1987.
No investor whose capital is guaranteed by the Oklahoma 5 Capital Investment Board may claim or transfer the credit provided 6 for in subsection A of this section for investments in such 7 guaranteed portfolio.
No investor whose capital is guaranteed by the Oklahoma Capital Investment Board may claim or transfer the credit provided for in subsection A of this section for investments in such guaranteed portfolio.
F.
SENATE FLOOR VERSION - SB718 SFLR Page 6 (Bold face denotes Committee Amendments) F.
The credit provided for in subsection A of this section, to 9 the extent not previously utilized, shall be freely transferable to and by subsequent transferees for a period of three (3) years from the date of investment in the Oklahoma business venture.
The credit provided for in subsection A of this section, to the extent not previously utilized, shall be freely transferable to and by subsequent transferees for a period of three (3) years from the date of investment in the Oklahoma business venture.
Req.
For purposes of this act the Oklahoma Income Tax Act, “pass-through entity” means a corporation that for the applicable tax years is treated as an S corporation under the Internal Revenue Code of 1986, as amended, general partnership, limited partnership, limited liability partnership, trust or limited liability company that for the applicable tax year is not taxed as a corporation for federal income tax purposes.
No.
SENATE FLOOR VERSION - SB718 SFLR Page 7 (Bold face denotes Committee Amendments) SECTION 2.
605 Page 7 For purposes of this act the Oklahoma Income Tax Act, “pass-through 2 entity” means a corporation that for the applicable tax years is 3 treated as an S corporation under the Internal Revenue Code of 1986, as amended, general partnership, limited partnership, limited 5 liability partnership, trust or limited liability company that for 6 the applicable tax year is not taxed as a corporation for federal 7 income tax purposes.
SECTION 2.
2021, Section 85.42, is 9 amended to read as follows:
2021, Section 85.42, is amended to read as follows:
Any chief administrative officer of an agency, whether or not such agency is subject to the Oklahoma Central Purchasing Act, shall not enter into any contract for nonprofessional or professional services for the purpose of or which would result in Req.
Any chief administrative officer of an agency, whether or not such agency is subject to the Oklahoma Central Purchasing Act, shall not enter into any contract for nonprofessional or professional services for the purpose of or which would result in the circumvention of the full-time equivalent employee limitation established by law for such agency.
No.
B.
605 Page 8 the circumvention of the full-time equivalent employee limitation 2 established by law for such agency.
Each contract entered into by any person or firm with the State of Oklahoma this state shall include a statement certifying that no person who has been involved in any manner in the development of that contract while employed by the state shall be employed to fulfill any of the services provided for under the contract.
3 B.
This subsection shall not preclude faculty and staff of SENATE FLOOR VERSION - SB718 SFLR Page 8 (Bold face denotes Committee Amendments) the institutions within The Oklahoma State System of Higher Education from negotiating and participating in research grants and educational contracts.
Each contract entered into by any person or firm with the State of Oklahoma this state shall include a statement certifying 5 that no person who has been involved in any manner in the 6 development of that contract while employed by the state shall be 7 employed to fulfill any of the services provided for under the contract.
This subsection shall not preclude faculty and staff of 9 the institutions within The Oklahoma State System of Higher Education from negotiating and participating in research grants and educational contracts.
Req.
D.
No.
Notwithstanding anything to the contrary in this section, the following sole source or professional services contracts are allowed at any time:
605 Page 9 D.
Notwithstanding anything to the contrary in this section, 2 the following sole source or professional services contracts are 3 allowed at any time:
A contract for professional services at any time with a 5 person who is a qualified interpreter for the deaf;
A contract for professional services at any time with a person who is a qualified interpreter for the deaf;
and 6 2.
and 2.
A contract between a business entity that is a part-time 7 certified court reporter and the Administrative Office of the Courts, on behalf of the district courts, or the Office of the 9 Attorney General.
A contract between a business entity that is a part-time certified court reporter and the Administrative Office of the Courts, on behalf of the district courts, or the Office of the Attorney General.
E.
SENATE FLOOR VERSION - SB718 SFLR Page 9 (Bold face denotes Committee Amendments) E.
and Req.
and 3.
No.
The Department of Mental Health and Substance Abuse Services may contract with a physician, registered nurse Registered Nurse, registered pharmacist or person meeting the definition of a licensed mental health professional, as defined in Title 43A of the Oklahoma Statutes, who has separated and/or retired from state service.
605 Page 10 3.
SECTION 3.
The Department of Mental Health and Substance Abuse Services 2 may contract with a physician, registered nurse Registered Nurse, 3 registered pharmacist or person meeting the definition of a licensed mental health professional, as defined in Title 43A of the Oklahoma 5 Statutes, who has separated and/or retired from state service.
6 SECTION 3.
2021, Section 3601.1, as 7 last amended by Section 36, Chapter 29, O.S.L.
2021, Section 3601.1, as last amended by Section 36, Chapter 29, O.S.L.
9 Section 3601.1.
Section 3601.1.
For purposes of Sections 3601.1 through 3603 of this title, the term “employee” means a full-time employee or any number of part-time employees whose combined weekly hours of employment equal those of a full-time employee, but shall not include temporary employees working on a seasonal basis between May 1 and October 31.
For purposes of Sections 3601.1 through 3603 of this title, the term “employee” means a full-time employee SENATE FLOOR VERSION - SB718 SFLR Page 10 (Bold face denotes Committee Amendments) or any number of part-time employees whose combined weekly hours of employment equal those of a full-time employee, but shall not include temporary employees working on a seasonal basis between May 1 and October 31.
MAXIMUM NUMBER OF FULL-TIME-EQUIVALENT EMPLOYEES Oklahoma Employment Security Commission 1150 Oklahoma Accountancy Board 11 Req.
MAXIMUM NUMBER OF FULL-TIME-EQUIVALENT EMPLOYEES Oklahoma Employment Security Commission 1150 Oklahoma Accountancy Board 11 Board of Governors of the Licensed Architects, Landscape Architects and Registered Commercial Licensed Interior Designers of Oklahoma 4 Board of Chiropractic Examiners 3 State Board of Cosmetology and Barbering 16 Board of Dentistry 10 Oklahoma Funeral Board 5 State Board of Licensure for Professional Engineers and Land Surveyors 10 SENATE FLOOR VERSION - SB718 SFLR Page 11 (Bold face denotes Committee Amendments) State Board of Medical Licensure and Supervision/ Board of Podiatric Medical Examiners/State Board of Examiners of Perfusionists 29 Oklahoma Energy Resources Board 5 Oklahoma New Motor Vehicle Commission 6 Oklahoma Board of Nursing 35 Oklahoma State Board of Examiners for Long-Term Care Administrators 4 Board of Examiners in Optometry 3 State Board of Osteopathic Examiners 7 State Board of Pharmacy 15 State Board of Examiners of Psychologists 2 Oklahoma Real Estate Commission 26 Board of Examiners for Speech-Language Pathology and Audiology 2 Oklahoma Used Motor Vehicle, Dismantler, and Manufactured Housing Commission 15 State Board of Veterinary Medical Examiners 6 Oklahoma Firefighters Pension and Retirement System 13 Oklahoma Police Pension and Retirement System 12 Teachers’ Retirement System of Oklahoma 52 Oklahoma Public Employees Retirement System 63 Oklahoma Student Loan Authority 85 SENATE FLOOR VERSION - SB718 SFLR Page 12 (Bold face denotes Committee Amendments) The Oklahoma Industrial Finance Authority/Oklahoma Development Finance Authority 10 State and Education Employees Group Insurance Board 178 Oklahoma Capital Investment Board 4 State Board of Licensed Social Workers 1 Oklahoma State Employees Benefits Council 38 Banking Department 46 Liquefied Petroleum Gas Administration 10 C.
No.
605 Page 11 Board of Governors of the Licensed Architects, 2 Landscape Architects and Registered Commercial 3 Licensed Interior Designers of Oklahoma 4 Board of Chiropractic Examiners 3 5 State Board of Cosmetology and Barbering 16 6 Board of Dentistry 10 7 Oklahoma Funeral Board 5 State Board of Licensure for Professional 9 Engineers and Land Surveyors 10 State Board of Medical Licensure and Supervision/ Board of Podiatric Medical Examiners/State Board of Examiners of Perfusionists 29 Oklahoma Energy Resources Board 5 Oklahoma New Motor Vehicle Commission 6 Oklahoma Board of Nursing 35 Oklahoma State Board of Examiners for Long-Term Care Administrators 4 Board of Examiners in Optometry 3 State Board of Osteopathic Examiners 7 State Board of Pharmacy 15 State Board of Examiners of Psychologists 2 Oklahoma Real Estate Commission 26 Board of Examiners for Speech-Language Pathology and Audiology 2 Req.
No.
605 Page 12 Oklahoma Used Motor Vehicle, Dismantler, and 2 Manufactured Housing Commission 15 3 State Board of Veterinary Medical Examiners 6 Oklahoma Firefighters Pension and Retirement 5 System 13 6 Oklahoma Police Pension and Retirement System 12 7 Teachers’ Retirement System of Oklahoma 52 Oklahoma Public Employees Retirement System 63 9 Oklahoma Student Loan Authority 85 The Oklahoma Industrial Finance Authority/Oklahoma Development Finance Authority 10 State and Education Employees Group Insurance Board 178 Oklahoma Capital Investment Board 4 State Board of Licensed Social Workers 1 Oklahoma State Employees Benefits Council 38 Banking Department 46 Liquefied Petroleum Gas Administration 10 C.
Req.
D.
No.
Temporary employees of the Oklahoma Used Motor Vehicle, Dismantler, and Manufactured Housing Commission between the dates of November 1 and January 31 annually shall not be counted toward the maximum number of full-time-equivalent employees provided for in this section.
605 Page 13 D.
SECTION 4.
Temporary employees of the Oklahoma Used Motor Vehicle, 2 Dismantler, and Manufactured Housing Commission between the dates of 3 November 1 and January 31 annually shall not be counted toward the maximum number of full-time-equivalent employees provided for in 5 this section.
6 SECTION 4.
2021, Sections 5085.1 7 through 5085.16, are hereby repealed.
2021, Sections 5085.1 through 5085.16, are hereby repealed.
9 60-1-605 RD 1/19/2025 5:41:56 AM Req.
COMMITTEE REPORT BY:
No.
COMMITTEE ON ECONOMIC DEVELOPMENT, WORKFORCE AND TOURISM February 19, 2025 - DO PASS AS AMENDED SENATE FLOOR VERSION - SB718 SFLR Page 13 (Bold face denotes Committee Amendments)
605 Page 14
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How this bill changes current law

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AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill repeals tax credits related to investments in venture capital companies effective January 1, 2009.

  • 68 O.S. 2021, Section 2357.7

    For taxable years beginning after December 31, 1986, and before January 1, 2009, there shall be allowed a credit against the tax imposed by Section 2355 of this title or Section 624 of Title 36 of the Oklahoma Statutes for investments in qualified venture capital companies whose purpose is to establish or expand the development of business and industry within Oklahoma.

    The provision allowing a tax credit for investments in qualified venture capital companies for certain tax years is repealed.

  • 68 O.S. 2021, Section 2357.7

    No taxpayer may claim the credit provided for in subsection A of this section for investments in qualified venture capital companies made prior to January 1, 1987.

    The prohibition on claiming tax credits for investments made prior to January 1, 1987 is repealed.

  • 68 O.S. 2021, Section 2357.7

    The credit provided for in subsection A of this section, to the extent not previously utilized, shall be freely transferable to and by subsequent transferees for a period of three (3) years from the date of investment in the Oklahoma business venture.

    The provision allowing transferability of the tax credit for a specific duration is repealed.

  • 68 O.S. 2021, Section 2357.7

    For purposes of this section:

    The definitions stipulated in the section are no longer applicable due to the repeal of the section.

  • 68 O.S. 2021, Section 2357.7

    The qualified venture capital company shall issue such reports as the Oklahoma Tax Commission may require attributing the source of funds of each investment it makes in an Oklahoma business venture.

    The requirement for qualified venture capital companies to report to the Tax Commission is repealed.

Action History

  1. Placed on General Order

  2. Title stricken

  3. Reported Do Pass as amended Economic Development, Workforce and Tourism committee; CR filed

  4. Second Reading referred to Economic Development, Workforce and Tourism

  5. Authored by Senator Daniels

  6. First Reading

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 150 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (150)

150 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors SB 718?
SB 718 is sponsored by Julie Daniels (Republican).
What is the current status of SB 718?
This bill is in committee in the Senate. Introduced February 03, 2025. It must pass committee before a floor vote.
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