Oklahoma Senate Bill SB1792

Oklahoma 2022 Regular Session

• Introduced: 2/7/22
• Refer: 2/8/22

Caption

Income tax; making certain credit refundable for attraction or expansion of supply chain company. Effective date.

Impact

The proposed legislation specifies that manufacturing establishments that qualify for existing tax credits can now receive refunds for those credits if they attract or expand a supply chain company that meets job creation and wage criteria. The bill stipulates threshold job creation numbers based on the population of the county, indicating a targeted approach to economic development across diverse regions of Oklahoma. Furthermore, the refundability of tax credits is capped at a maximum limit to ensure fiscal responsibility. Overall, this move signals a commitment to enhancing business operations while potentially generating greater employment opportunities for residents.

Summary

Senate Bill 1792 introduces a modification to the state's income tax credit policy by making certain credits refundable, specifically aimed at encouraging the attraction or expansion of supply chain companies within Oklahoma. This bill is designed to incentivize manufacturing establishments to create new jobs while meeting specific criteria set forth by the Oklahoma Department of Commerce. The intended effect is to bolster economic growth and job creation in the state by supporting businesses that have a substantial impact on the local economy.

Contention

Debate surrounding SB1792 might center on the implications of expanding tax credits and the definition of a 'supply chain company,' which may lead to concerns about fairness in how these credits are awarded. Opponents could argue that refundable tax credits may strain state finances or disproportionately benefit larger corporations at the expense of small businesses. Conversely, proponents will likely contend that these measures are necessary for fostering a competitive economic environment, thus enhancing Oklahoma's attractiveness for new investments. The effectiveness of the bill in achieving its goals will be scrutinized as businesses and local governments gauge its impact.