Bill > HB4458

This bill clarifies existing law regarding a five-year exemption from ad valorem taxes (property taxes) for qualifying manufacturing concerns, which are businesses engaged in transforming materials into new products. The bill specifically addresses how a "manufacturer exemption permit" is handled, stating that a business can still qualify for the tax exemption even if it doesn't have this permit, as long as it otherwise meets the criteria for mechanical or chemical transformation of materials. It also clarifies that the exemption applies to new, expanded, or acquired manufacturing facilities, including those involved in research and development, and sets forth various definitions and requirements for what constitutes a "manufacturing facility" and "research and development" for the purpose of this exemption, including specific investment costs, job creation, and wage requirements. The bill also specifies how the five-year exemption period begins and includes provisions for how applications for the exemption are processed and reviewed. Importantly, Section 2 of the bill states that these changes are intended to clarify existing law and not to alter it, and the bill is set to become effective on November 1, 2026.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb4458&Session=2600