Bill > SB1117

This bill modifies the existing income tax credit program for economic development and infrastructure expenditures by adjusting the population threshold for qualifying project locations. Specifically, the bill changes the population limit for eligible areas from less than 100,000 persons to less than 100,000 for expenditures made prior to tax year 2026, and less than 400,000 persons for expenditures made in tax year 2026 and subsequent years. The bill maintains the existing framework where eligible entities can receive tax credits up to 10% of qualified economic development expenditures, with a maximum credit of $6 million per qualifying project. The credits can be used for various development activities such as land improvements, building construction, and infrastructure development, particularly in smaller counties or near railroad facilities. The bill allows unused credits to be carried forward for up to five years and permits credits to be assigned to project affiliates. The Oklahoma Department of Commerce will continue to review and allocate these credits, with a total annual cap of $12 million across all qualifying projects. The bill will become effective on November 1, 2025, providing businesses with more flexibility in seeking economic development incentives in a broader range of geographic areas.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb1117&Session=2600