Fillable Form 506 - Investment/new Jobs Credit

2012 Form 506 - Page 4

Investment/New Jobs Credit Instructions

68 OS Sec. 2357.4 and Rule 710:50-15-74

Allowable Credit - Carryover **

Column 9: The credit is allowed for the greater of New Jobs Credit or Investment Credit, but not both. Enter the greater

amount from Column 4 or Column 7. Once the type of allowable credit is determined in the first year, that type

of credit will be used in all remaining tax years on that particular Form 506.

Column 10: Enter the amount of credit used this tax year.

Column 11: Enter the amount of credit not used this tax year. Any credit claimed and not used in any taxable year may be

carried over, in order, to each of the four years following the year of qualification and to the extent not used in

those years, in order, to each of the fifteen years following the initial five-year period. To the extent not used,

any credit from qualified depreciable property may be utilized in subsequent tax years after the initial twenty-

year period. Enclose schedule showing all carryover credits by tax year claimed and used.

** If a C corporation that otherwise qualified for the credits under subsection A of 68 OS Sec. 2357.4 subsequently changes

its operating status to that of a pass-through entity which is being treated as the same entity for federal tax purposes, the

credits will continue to be available as if the pass-through entity had originally qualified for the credits subject to the limitations

of such Section. The pass-through entity shall provide, to each member, documentation showing their share of the credit.

Such documentation must be enclosed with the member’s income tax return when their share of the credit is being claimed.

Notices:

• If the business entity manufactures any product described in Division D of Part I of the Standard Industrial Classification

Manual, latest revision, they may be entitled to double their Investment/New Jobs Credit. To qualify for the double credit the

total cost of qualified depreciable property used in the manufacture of such product must be at least $40 million dollars and

be placed in service in this state within 3 years from the date of the initial qualifying expenditure. The credit for each new

employee in Column 4 will be $1,000 and the rate for qualified depreciable property in column 6 will be 2%. Enter the amount

of doubled credit in Column 4 and/or Column 7 and note the reason for the double credit.

• If you receive an incentive payment under one of the Quality Jobs incentives (such as 68 OS Sec. 3601, 3801, 3901 or

3911) or under one of the Quality Investment incentives (such as 68 OS Sec. 4101 or 4201) you may not be eligible for this

credit.

• Credit may not be claimed during the period of time that any withholding taxes are being paid to the Community Economic

Development Pooled Finance Revolving Fund or in any manner used for the payment of principal, interest or other costs

“Oklahoma

associated with any obligation issued by the Oklahoma Development Finance Authority in accordance with the

Community Economic Development Pooled Finance Act”.

(62 OS Sec. 891.12)

• Credit may not be claimed for jobs created or capital investments made as a direct result of bond proceeds which are

“Oklahoma Quality Jobs Incentive Leverage Act”

provided in accordance with the

pursuant to a second irrevocable election.

(68 OS Sec. 3651)

• Tax credits transferred or allocated must be reported on Oklahoma Tax Commission (OTC) Form 569. Failure to file

Form 569 will result in the affected credits being denied by the OTC pursuant to 68 OS Sec. 2357.1A-2.

Form 506 - Investment/new Jobs Credit - 2012 Page 4