Oklahoma Senate Bill SB900

Oklahoma 2022 Regular Session

• Introduced: 2/1/21
• Refer: 2/2/21
• Report Pass: 2/19/21
• Refer: 2/19/21
• Report Pass: 3/3/21
• Engrossed: 3/10/21
• Refer: 3/22/21
• Refer: 3/23/21
• Report Pass: 4/15/21

Caption

Income tax; credits; equity investments; Department of Commerce. Effective date. Emergency.

Impact

If enacted, SB900 would significantly impact state tax laws by establishing a new tax credit mechanism specifically targeted at encouraging equity investments in technology-based industries. The credit allows investors to claim 50% of their investment amount as a deduction against their tax liability, promoting capital influx into sectors defined as eligible by the bill. However, the total amount of tax credits permitted annually is capped at $7.5 million, which creates a structured, albeit limited, incentive framework for potential investors.

Summary

Senate Bill 900 is a legislation proposed in Oklahoma that introduces a tax credit for equity investments in eligible businesses operating within predefined technology-based industries. This bill aims to stimulate economic development in the state by providing investors with a financial incentive to invest in businesses that are either technologically focused or supported by federal grants. The Oklahoma Department of Commerce is designated to oversee the parameters of these investments, ensuring they align with the criteria specified in the bill.

Sentiment

The surrounding sentiment for SB900 appears generally supportive, particularly among those in favor of advancing Oklahoma's technological landscape and fostering business innovation. Proponents argue that such measures are crucial for increasing competitive advantages in technology and attracting skilled labor. Conversely, there may be concerns regarding the sustainability of such tax credits in the long run, especially if they translate into significant losses in state revenue without guaranteed economic returns.

Contention

Despite its intentions, SB900 may face scrutiny regarding its reliance on state funding through tax credits which could affect other areas of public spending. Critics might argue that these credits prioritize certain industries over others, neglecting the needs of diverse sectors within the state's economy. Furthermore, the stipulations regarding who qualifies as an 'eligible business' could lead to questions about fairness and whether it adequately supports startups and small businesses that do not fit the established mold of technology-driven enterprises.