The event took place at Cultural Services in Ada.
Youth Heritage Day held at the Tishomingo Wildlife Refuge east of Tishomingo Oklahoma. Johnson O'Malley students learned about their heritage and had a day of fun.
The Ada Halloween Celebration Trick or Treat event held in the old Gym on the Headquarters Campus.
Background
The Taxpayer Relief Act of 1997 includes an amendment which clarifies qualifying areas of the state that constitute former Indian reservation land in Oklahoma as determined by the Secretary of Interior. Over two-thirds of the land in Oklahoma meets this definition and qualifies for an accelerated depreciation. Indian ownership is not required.
Oklahoma has the largest percentage of American Indians of any state. The federal employment tax credit is applicable to businesses located in the qualifying areas that employ enrolled American Indians and their spouses.
Employee Credit
Businesses located on qualified areas of former Indian reservations are eligible for a tax credit based on the increase in qualifying annual wages paid to enrolled Indian tribal members or their spouses from 1994-2003 as compared to year 1993. The credit equals 20% of the increased wages, including health insurance costs up to total wages of $30,000, indexed after 1993. IRS Form 8845 is used for computing and claiming the credit.Example: Company A has a qualified employee to whom the store pays $15,000 in total wages and health insurance in 1993. In 1994, the company pays the same person $20,000. The credit is computed as follows:
| 1994 Wage/Health Insurance | $20,000 |
| 1993 Wage/Health Insurance | $15,000 |
| (Increase) | $ 5,000 |
| Rate of Credit | x 20% |
| Indian Employment Credit | $ 1,000 |
Depreciation Incentive
The depreciation incentive provides a shorter recovery period of approximately 40% for most non-residential depreciable property. The property must have been placed in service between the calendar years 1994 and 2003 and must be used in an active trade or business which includes the rental of real property for such purposes.
This federal tax deferral can substantially increase the after-tax income of businesses. Since Oklahoma taxable income is based on federal taxable income, the depreciation benefit will automatically apply for Oklahoma tax purposes.
| In The Case Of | The Applicable Recover Period Is |
|
3-year property |
2 years |
|
5-year property |
3 years |
|
7-year property |
4 years |
|
10-year property |
6 years |
|
15-year property |
9 years |
|
20-year property |
12 years |
|
Non-residential real property (39 years) |
22 years |
Example: The regular depreciation on a commercial building with a cost of $1 million would be $25,641 for 39 years. The accelerated depreciation would be $45,454 for 22 years. This would substantially reduce the owner's taxes.
