Oklahoma R&D Tax Credits

Oklahoma does not offer a state-specific R&D tax credit, but businesses can claim the federal R&D tax credit for qualified research expenses incurred in Oklahoma. Additionally, the 2025 Research and Development Rebate Program provides a 5% rebate on in-state QREs, subject to a $20M cap and future legislative funding of the Rebate Fund. Contact Strike Tax to maximize your savings.

Qualifying activities must be technological, aimed at developing or improving a business component, eliminate uncertainty, and involve experimentation. Examples include software development or process improvements in industries like energy or tech. Strike Tax can identify qualifying projects. For the state rebate, QREs must be performed in Oklahoma and align with federal IRC §41 standards.

Yes, startups can claim the federal R&D credit, including a payroll tax offset of up to $500,000 annually for up to five years if gross receipts are under $5 million and no receipts for more than five years. Startups may also qualify for the 5% rebate if they meet in-state expenditure requirements. Strike Tax can guide eligibility.

Maintain contemporaneous records such as project descriptions, time tracking, wage allocations, supply costs, and contract research agreements. For 2025, the redesigned Form 6765 introduces Section G, which allows taxpayers to optionally provide detailed business component information. Section G is expected to become mandatory for most filers starting with 2026 tax years, subject to small taxpayer exceptions. For the rebate, submit supporting documentation to the Oklahoma Department of Commerce. Strike Tax ensures audit-ready documentation.

Attach Form 6765 to your federal tax return. In Oklahoma, report the federal credit on your state return if it impacts state taxes. For the rebate, apply via the Oklahoma Department of Commerce by December 31, 2025, with proof of in-state QREs and filed tax returns. Strike Tax streamlines the process.

In 2025, Oklahoma enacted SB 324, creating the Research and Development Rebate Program, which provides a 5 percent rebate on qualified in-state QREs with a $20 million annual fund cap and first-come, first-served allocation. The prior state R&D income tax credit remains repealed, so no traditional state credit exists. Rebates will be paid only if and when the legislature appropriates money to the Rebate Fund.

The federal credit offers up to 20% on incremental QREs or 14% via the Alternative Simplified Credit (ASC). Oklahoma businesses can stack this with the 5% rebate for enhanced savings on in-state activities. Strike Tax calculates your optimal method.

Federal R&D credits are part of the general business credit and can typically be carried back one year and carried forward for up to 20 years. Any amount not used within that period expires, so planning around utilization and timing is important. The state rebate is paid directly if approved, with no carryforward.

For the federal credit, expenses anywhere in the U.S. qualify, but the Oklahoma rebate is limited to in-state QREs only. Strike Tax helps apportion expenses accurately to maximize both federal and state rebate benefits.

Visit the Oklahoma Department of Commerce for rebate details, IRS.gov for federal guidance, or contact Strike Tax for a personalized review of federal credits and state rebate eligibility.