Oklahoma City, OK 73105
For Immediate Release: May 12, 2016
Sen. Clark Jolley
Senate committee approves additional measures to better
protect core services
The Oklahoma Senate Joint Committee on Appropriations
and Budget Thursday approved three additional measures aimed at
helping close the budget gap for the 2017 fiscal year budget. The
measures approved by the committee reform various tax credits and
incentive programs, generating new revenues for the state.
Appropriations Chairman Clark
Jolley said between the various bills reforming tax credits
and preferences as well as those aimed at reforming the budget process
approved by JCAB in the last two weeks and as those approved on
the floor, these measures could generate more than $400 million
in FY 2017.
“We still have more measures to consider, and we’ll
be voting on those in the coming days,” said Jolley, R-Edmond.
“Every dollar that we generate through these budget and tax
preference reforms means we are better able to shield education,
public safety, healthcare and mental health programs—the core
services that are so critical to Oklahomans in every community of
The measures passed by the committee on Thursday include:
• SB 1604, which makes the earned income tax credit nonrefundable.
Currently this can be claimed by individuals who pay nothing in
state taxes as well as those with tax liability. If approved, those
who owe taxes could still claim this credit. This change would generate
$28,910,000, with $24,573,500 for the General Revenue Fund (GRF).
• SB 1606, which eliminates the “double deduction.”
Taxpayers who itemize on federal returns may deduct certain state
and local taxes paid. This change would require the amount of state
and local sales and income taxes deducted at the federal level to
be added back to Oklahoma income on state returns. Nearly every
state in the country does not allow this deduction at the state
level for simply paying your state taxes. This reform will only
affect tax filers who itemize their deductions. These taxpayers
are typically middle- to high-income earners. This would generate
$97,302,000, of which $83,348,893 would go to GRF.
• SB 1605, which eliminates the child care facility credit.
This credit is for the facility itself and the owners. This would
mean a difference of $129,000, with $110,321 going to GRF.
For more information,
Sen. Jolley: (405) 521-5622