As used in this act: 1. "Affiliate" means an entity that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under the common control with another entity. An entity is controlled by another entity if the controlling entity holds, directly or indirectly, the majority of voting or ownership interest in the controlled entity or has control over day-to-day operations of the controlled entity by contract or by law; 2. "Applicable percentage" means zero percent (0%) for the first two credit allowance dates, and fifteen percent (15%) for the next four credit allowance dates; 3. "Capital investment" means any equity investment in a rural fund by a rural investor which: a. is acquired after the effective date of this act at its original issuance solely i
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As used in this act: 1. "Affiliate" means an entity that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under the common control with another entity. An entity is controlled by another entity if the controlling entity holds, directly or indirectly, the majority of voting or ownership interest in the controlled entity or has control over day-to-day operations of the controlled entity by contract or by law; 2. "Applicable percentage" means zero percent (0%) for the first two credit allowance dates, and fifteen percent (15%) for the next four credit allowance dates; 3. "Capital investment" means any equity investment in a rural fund by a rural investor which: a. is acquired after the effective date of this act at its original issuance solely in exchange for cash, b. has one hundred percent (100%) of its cash purchase price used by the rural fund to make qualified investments in eligible businesses located in this state by the third anniversary of the initial credit allowance date, and c. is designated by the rural fund as a capital investment under this act and is certified by the Department under the provisions of Section 3 of this act. This shall include any capital investment that does not meet the provisions of paragraph 1 of subsection A of Section 3 of this act, if such investment was a capital investment in the hands of a prior holder; 4. "Credit allowance date" means the date on which the Department certifies a rural fund's capital investment and each of the five anniversary dates of such date thereafter; 5. "Department" means the Oklahoma Department of Commerce; 6. "Eligible business" means a business that, at the time of the initial qualified investment in the business: a. has fewer than two hundred fifty employees, and b. has its principal business operations in the state. Any business which is classified as an eligible business at the time of the initial investment in such business by a rural fund shall remain classified as an eligible business and may receive follow-on investments from any rural fund, and such follow-on investments shall be qualified investments even though such business may not meet the definition of an eligible business at the time of such follow-on investment; 7. "Principal business operations" means the location where at least sixty percent (60%) of a business's employees work or where employees who are paid at least sixty percent (60%) of such business's payroll work. A business that has agreed to relocate employees using the proceeds of a qualified investment to establish its principal business operations in a new location shall be deemed to have its principal business operations in such new location if it satisfied the requirements of this paragraph no later than one hundred eighty (180) days after receiving a qualified investment; 8. "Purchase price" means the amount paid to the rural fund that issues a capital investment which shall not exceed the amount of capital investment authority certified under the provisions of Section 3 of this act; 9. "Qualified investment" means any investment in an eligible business or any loan to an eligible business with a stated maturity date of at least one (1) year after the date of issuance, excluding revolving lines of credit and senior-secured debt unless the chief executive or similar officer of the eligible business certifies that the eligible business sought and was denied similar financing from a depository institution, by a rural fund; provided that, with respect to any one eligible business, the maximum amount of investments made in such business by one or more rural funds, on a collective basis with all of the businesses' affiliates, with the proceeds of the capital investments, shall be the greater of twenty percent (20%) of the rural fund's capital investment authority or Six Million Five Hundred Thousand Dollars ($6,500,000.00), exclusive of investments made with repaid or redeemed investments or interest or profits realized thereon; 10. "Rural area" means any county of this state that has a population of less than seventy-five thousand (75,000) or any city or town of this state that has a population not to exceed seven thousand (7,000) according to the 2020 Federal Decennial Census of the United States; 11. "Rural fund" means an entity certified by the Department under the provisions of Section 3 of this act; 12. "Rural investor" means an entity that makes a capital investment in a rural fund; 13. "Senior-secured debt" means any loan that is secured by a first mortgage on real estate with a loan-to-value ratio of less than eighty percent (80%); and 14. "State tax liability" means the tax imposed under Section 2355, 2355.1P-4, or 2370 of Title 68 of the Oklahoma Statutes or Section 624 or 628 of Title 36 of the Oklahoma Statutes. An insurance company claiming a credit against state premium tax or retaliatory tax or any other tax imposed by Section 624 or 628 of Title 36 of the Oklahoma Statutes shall not be required to pay any additional retaliatory tax under Section 628 of Title 36 of the Oklahoma Statutes as a result of claiming the credit. The credit may fully offset any retaliatory tax imposed by Section 628 of Title 36 of the Oklahoma Statutes.