Oklahoma 2026 Regular Session

Oklahoma Senate Bill SB1117

Introduced
2/3/25  

Caption

Income tax; modifying definition of qualified project for economic development and infrastructure expenditures credit. Effective date.

Impact

The amendments proposed in SB 1117 will significantly impact state tax law by allowing tax credits up to 10% for qualifying projects and a higher percentage for initial infrastructure expenditures. Notably, the maximum cap on tax credits also establishes a clear financial limit for projects, which aims to manage state resources effectively while supporting business development. Eligible projects must be part of a review process conducted by the Oklahoma Department of Commerce, ensuring that the expenditures are verified and accounted for, thereby aiming for accountable fiscal management.

Summary

Senate Bill 1117 focuses on modifying the existing income tax credit provisions for qualified economic development and infrastructure expenditures in Oklahoma. The bill aims to expand the definition of what constitutes a 'qualified project' by including new constructions and expansions by eligible entities, as well as developing initial infrastructure specifically tied to these projects. The modifications within the bill intend to incentivize growth in areas where these projects are located, particularly in smaller counties and regions adjacent to railroads, promoting economic activity where it is often needed most.

Contention

Some potential points of contention surrounding SB 1117 could revolve around the allocation of resources and the effectiveness of tax credits as a means of encouraging sustainable economic growth versus merely providing funding that does not lead to long-term benefits. Critics may raise concerns about whether the benefits of these tax credits justify the costs to the state and whether small towns will truly see the development promised by such incentivization. The bill anticipates a thorough verification process; however, the effectiveness of this oversight could also become a topic of debate among lawmakers and the public.

Companion Bills

OK SB1117

Carry Over Income tax; modifying definition of qualified project for economic development and infrastructure expenditures credit. Effective date.

Previously Filed As

OK SB1117

Income tax; modifying definition of qualified project for economic development and infrastructure expenditures credit. Effective date.

OK SB234

Income tax credit; providing credit for certain qualified expenditures on adaptive reuse project. Effective date.

OK SB287

Income tax; modifying tax years for aerospace tax credit. Effective date.

OK SB119

Economic development; creating investment rebate program for certain qualified expenditures; making appropriation. Effective date. Emergency.

OK SB227

Taxation; modifying and limiting certain credits, deductions, and exemptions; modifying income tax rate for certain years. Effective date. Emergency.

OK HB1602

Revenue and taxation; income tax credits; qualified employees; qualified employers effective date.

OK SB183

Kratom products; modifying certain definitions. Effective date.

OK SB256

Income tax; providing credit for certain employer child care expenditures; providing refundability credit for qualified child care worker. Effective date.

OK SB295

Income tax; modifying certain income tax rate for certain tax years. Effective date.

OK SB740

Mental health; modifying certain definitions. Effective date.

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