Economic Development

(See also Revenue and Taxation)

 

SB 1324(1) (Fisher/Kinnamon): Amends the Small Business Capital Formation Incentive Act by allowing lending institutions to claim a tax credit for capital invested in qualified small business capital companies in which the institution is a shareholder or partner. Effective 7-1-01

SB 1326(1) (Fisher/Ervin): Modifies the Oklahoma Quality Jobs Program Act to provide that the net benefit rate is 5% for an establishment located in an opportunity zone or a county in which per capita personal income is 80% or less of the statewide average, the population has decreased over the previous ten years or the unemployment rate exceeds the lesser of 5% or two percentage points above the state average. For establishments located in a municipality with a population exceeding 60,000 in a metropolitan statistical area with a population exceeding 700,000, the principal seat of government of which is located in a high-employment county, the average salary must exceed $22,500 in 2001 and $26,000 in 2002 and following years. Effective 1-1-01.

HB 1937(1) (Bonny/Capps): Permits the Board of Directors of the Oklahoma Space Industry Development Authority to appoint one of their members to serve as treasurer and authorizes the Board to contract for the services of attorneys, underwriters and other financial professionals for the purpose of issuing bonds. Effective upon signature.

HB 1938(1) (Bonny/Capps): Modifies provisions of the Oklahoma Space Industry Development Act, enacted last session, by clarifying that the Oklahoma Space Industry Development Authority is subject to permitting requirements and procedures of the Oklahoma Water Resources Board when exercising its powers. Prohibits the Authority from using its powers within a spaceport territory in a manner that prohibits the agricultural use of land, access to water for agricultural uses, and erection of outbuildings and personal residences on such land, subject to certain population density requirements. The bill limits the types of projects and services that the Authority may provide outside of a spaceport territory. The bill also deletes the $300 stipend provided for Board members for attending Board meetings. Effective 4-28-00

HB 2010(1) (Roach/Fisher): Modifies various provisions related to economic development, as follows:

  • Creates the Rural Venture Capital Formation Incentive Act;

  • Creates an income tax credit for investment in qualified rural small business capital pools, in the amount of 30% of the investment. The credit may not be claimed until funds are invested in rural small business venture;

  • Creates an income tax credit for investment in qualified rural small business entities, in the amount of 30% of the amount invested in business enterprise. The credit is available for entities that form the qualified investment pool. Benefits are limited to level of risk assumed by entities forming the venture capital pool;

  • Modifies Oklahoma Enterprise Zone Act definitions and eliminates the competitive process to qualify for benefits under the Oklahoma Enterprise Zone Act;

  • Creates the Oklahoma Local Development and Enterprise Zone Incentive Leverage Act;

  • Creates state-level incentives to match sales tax exemptions granted by local government for construction or expansion of facilities under the Local Development Act when the facility is also located in an enterprise zone as defined by the Oklahoma Enterprise Zone Act;

  • Creates maximum county investment levels for the state matching incentive program and clarifies the maximum on aggregate investment for all facilities located in a county;

  • Creates minimum and maximum investment levels by county based on population;

  • Establishes time periods for investments placed into incentive districts;

  • Prescribes procedures for payment of state matching incentive for locally provided sales tax exemption;

  • Creates an income tax credit equal to the amount of sales tax exemption received by local business enterprise constructing or expanding a facility within an enterprise zone which is also included in a Local Development Act increment district or incentive
    district;

  • Creates the "Oklahoma Local Development and Enterprise Zone Incentive Leverage Act Incentive Payment Fund";

  • Authorizes the Oklahoma Tax Commission to withhold taxes levied and collected to be used for the purpose of the Oklahoma Local Development and Enterprise Zone Incentive Leverage Act;

  • Requires Oklahoma Tax Commission to issue a warrant to the qualifying establishment in the amount of the sales tax which was exempt;

  • Creates an income tax credit equal to property tax abatement received by local business enterprise constructing or expanding a facility within an enterprise zone which is also included in a Local Development Act increment district or incentive district. The credit equals 100% of property tax abatement amount;

  • Requires the Oklahoma Finance Authorities to utilize incentive programs available to induce private investment. The incentives may be available in conjunction with the Small Business Capital Formation Incentive Act and provisions of the Rural Venture Capital Formation Incentive Act;

  • Modifies various provisions relating to income tax credits for investors in certain airlines. The responsibility of local governmental entities (currently 1/3 of the amount the tax credits exceed Quality Jobs Program payments) is changed to a capitalization commitment of $15 million or more, which may be proceeds from the issuance of revenue bonds or other indebtedness. Credit enhancement from the Oklahoma Development Finance authority up to a maximum of $10 million is authorized, subject to approval of the bond oversight commissions. The amount of credit is not changed,
    but a three-year carry forward period is specified;

  • Allows payroll for leased employees to be included for purposes of payroll thresholds for the five-year ad valorem tax exemption for manufacturing facilities;

  • Allows the Department of Commerce to enter into a contract for professional services related to international business development with a person who has retired from state service, and deletes various provisions related to contracts between the Department of Central Services and the Greater Sand Springs Trust Authority and deletes certain require-ments with respect to rights of the Authority to access certain roads.

Effective 1-1-01 (Sections 1-6) and 7-1-00 (Sections 7-18).

HB 2031(1) (Leist/Shurden): Modifies the qualifications under the Quality Jobs Program Act for an establishment locating on a site which is environmentally contaminated. Under current law, at least 80% of the total gross revenue of the establishment must be derived from activity conducted at the site; HB 2031 modifies this threshold to 50% of Oklahoma taxable income or adjusted gross income. A letter of concurrence from the Department of Environmental Quality must be obtained to qualify for incentive payments. Effective 4-28-00

HB 2434(1) (Turner/Fisher): Creates the Rural Housing Incentive Study Task Force, consisting of six persons appointed by the Governor, President Pro Tempore of the Senate and Speaker of the House of Representatives and one person appointed by the board of trustees of the Oklahoma Housing Finance Agency, to study incentives and programs available to private developers and private sources of capital for the construction of housing in rural areas. The Task Force must also review county housing market surveys to determine the types and number of housing units needed in rural Oklahoma. The Department of Commerce and the Housing Finance Agency, along with the Senate and House of Representatives, will provide staffing assistance. The Task Force must file a written report by 12-31-00. Effective 7-1-00.


(1) Passed, signed by Governor (2) Passed, pending Governor's approval/disapproval (3) Vetoed by Governor
(4) Pending in Legislature (5) Failed in Legislature (6) Enrolled with the Sec. of State



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