Gross production tax; creating the Carbon Sequestration Gross Production Rebate Program; Effective date.
Impact
The bill amends current statutes regarding the apportionment of gross production tax revenues and establishes a special account within the State Treasury specifically for managing the rebate payments. By requiring documentation to be submitted for claims within a two-year window after a federal credit is received, the program aims to streamline the rebate process. The Oklahoma Tax Commission has been designated as the administrator of the program, which indicates a formalized effort to manage and promote environmental initiatives through financial incentives.
Summary
Senate Bill 588, sponsored by Senator Montgomery, introduces the Carbon Sequestration Gross Production Rebate Program in Oklahoma. This legislation creates a new rebate program aimed at incentivizing carbon dioxide sequestration efforts by certain entities that qualify for federal tax credits under the Internal Revenue Code. The rebate provided by the state is equal to the amount of the federal tax credit received for each tax year, thereby enhancing the financial benefits of engaging in carbon sequestration activities.
Contention
One notable point of contention surrounding SB588 is the source of funding for the rebate program. As the rebates will be drawn from collections of gross production taxes, financial stakeholders may question the long-term sustainability of utilizing these funds, especially if gross production tax revenues fluctuate significantly. Moreover, some legislators may argue over the fairness of the program, particularly regarding its potential advantages for larger corporations that have more capacity to invest in carbon sequestration technologies versus smaller entities. This conversation could lead to debates on equity and effectiveness within the state's environmental policy framework.
Revenue and taxation; Oklahoma taxable income and adjusted gross income; deduction; sale proceeds; real estate transactions; limitations; effective date.
Revenue and taxation; Filmed in Oklahoma Act of 2021; modifying incentive related to certain post production activity; logo; effective date; emergency.
Revenue and taxation; Senior Service Corps Act of 2023; income tax; Oklahoma adjusted gross income; exemption; school support services; wages; withholding tax; effective date.
Sales and use tax; modifying basis for calculation of gross receipts for sales tax and purchase price calculation for use tax on motor vehicles. Effective date.