Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB315

Introduced
2/6/23  
Refer
2/7/23  
Report Pass
2/13/23  
Refer
2/13/23  

Caption

Income tax credit; limiting certain credit for investment in depreciable property to certain years. Effective date.

Impact

The amendments set forth by SB315 will have significant implications for businesses engaged in manufacturing within Oklahoma. By allowing tax credits for major investments within particular taxable years, it incentivizes companies to enhance their physical and human resources. Such enhancements could lead to increased production capacity and improved operational efficiencies, allowing manufacturing businesses to compete more effectively both within the state and nationally. The bill is structured to ensure that the economic advantages of such investments are shared across several tax years, fostering continuity in employment and investment stability.

Summary

Senate Bill 315 aims to amend existing tax legislation in Oklahoma, specifically concerning income tax credits related to the investment in depreciable property and the hiring of new employees in manufacturing sectors. The bill states that a tax credit will be permitted for investments made in qualified depreciable property that is employed in manufacturing operations. Furthermore, it includes specific provisions for a net increase in the number of full-time-equivalent employees, providing incentives for businesses to enhance their workforce stability and productivity.

Sentiment

The sentiment around SB315 appears to be generally positive among members of the legislature who view these tax credits as a means to drive economic growth within the state. By encouraging investment and job creation, supporters argue that the bill has the potential to bolster the manufacturing sector substantially. However, there may also be concerns from critics regarding the long-term sustainability of such tax credits and their comprehensive impact on state revenue. The extent to which these credits will translate into real economic benefits remains a topic for ongoing analysis among stakeholders.

Contention

Notable points of contention surrounding SB315 include the exact eligibility criteria for the tax credits and potential constraints on local versus state decision-making in implementing these tax policies. Discussions may arise concerning whether businesses could exploit tax credits without achieving the intended economic benefits, such as genuine job creation. Additionally, the relationship between the state’s revenue needs and the incentives provided to businesses will likely continue to be scrutinized, as balancing these interests is critical for fiscal responsibility.

Companion Bills

OK SB315

Carry Over Income tax credit; limiting certain credit for investment in depreciable property to certain years. Effective date.

Previously Filed As

OK SB315

Income tax credit; limiting certain credit for investment in depreciable property to certain years. Effective date.

OK SB305

Income tax credit; limiting certain credit for investment in depreciable property to certain years. Effective date.

OK SB210

Income tax; credits; North American Industry Classification System; formula. Effective date.

OK SB750

Revenue and taxation; tax credits; medical research activities; vision research. Effective date.

OK SB207

Income tax incentives; limiting certain credit and exemption to certain tax years. Effective date.

OK SB311

Income tax incentives; limiting certain credit and exemption to certain tax years. Effective date.

OK HB1600

Digital asset mining; sales tax exemption; effective date.

OK SB589

Income tax credit; modifying credit for clean-burning motor vehicle fuel property for certain tax years. Effective date.

OK SB378

Income tax; modifying certain definition pertaining to the deduction for qualified equity investment; records; report; filing fee. Effective date.

OK SB586

Income tax credit; providing credit for investments in qualified clean-burning motor vehicle fuel property; requiring registration of vehicle in this state to qualify for credit. Effective date.

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