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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 2402 By: Fetgatter of the House
and
Murdock of the Senate
COMMITTEE SUBSTITUTE
[ revenue and taxation - Oklahoma Advanced
Manufacturing Incentive Act of 2025 - establishing
time period - eligibility requirements -
collaboration - effective date -
emergency ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows:
This act shall be known and may be cited as the "Oklahoma
Advanced Manufacturing Incentive Act of 2025".
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SECTION 2. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows:
The Oklahoma Advanced Manufacturing Incentive Act of 2025 shall
establish a tax incentive and direct grant program to attract
manufacturers of low -grade waste heat electrification techno logy to
Oklahoma. This program is intended to encourage investment, job
creation, and energy sector expansion.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 4520 of Title 68, unless the re
is created a duplication in numbering, reads as follows:
A. Eligible manufacturers, as defined by subsection D of this
section, entering the low -grade waste heat elec trification
technology market shall qualify for Oklahoma state corporate income
tax abatements. The tax abatements shall be tiered as follows:
1. Tier 1: Manufacturers who invest Ten Million Dollars
($10,000,000.00) or more and the creation of at least fifty jobs in
Oklahoma shall receive up to thirty percent (30%) abatement on
corporate income taxes for five (5) years; and
2. Tier 2: Manufacturers who invest Twenty Million Dollars
($20,000,000.00) or more and the creation of at least one hundred
jobs in Oklahoma shall receive up to fifty percent (50%) abatement
on corporate income taxe s for five (5) years.
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Both Tier 1 and Tier 2 abatements shall be renewable for an
additional five-year period, contingent upon compliance and
continued investment.
B. The Oklahoma Department of Commerce is authorized to
administer a direct grant program w hich shall be capped at Twenty
Million Dollars ($20,000,000.00) over five (5) years. The grants
shall be prioritized as follows:
1. Manufacturing facilities located in areas qualifying for the
federal New Markets Tax Credit or within existing manufacturi ng hubs
as defined by the United States Department of Commerce; and
2. Projects with substantial contributions to Oklahoma's energy
sector and the state's economy.
C. The total amount of incentives provided under this act in
any fiscal year shall not exc eed Eight Million Dollars
($8,000,000.00). Any unused funds in any fiscal year shall roll
over to subsequent years within the program's five -year term.
D. To qualify for incentives under this act, manufacturers
shall meet the following criteria:
1. Establish new manufacturing operations in Oklahoma for the
production of low-grade waste heat electrification technology,
defined as technology recovering waste heat below two hundred (200)
degrees Celsius or four hundred (400) degrees Fahrenheit and
incorporating advanced heat exchangers (HXs) for OEM applications;
and
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2. Submit an eligibility application to the Oklahoma Department
of Commerce, including:
a. business and operational plans, and
b. investment and job creation commitments.
E. The recipients of any incentive provided under this act
shall file an annual report with the Oklahoma Department of Commerce
detailing the total dollar amount of investments made, number of
jobs created and retained, and progress and contributions to the
state's energy and economic development goals. The Oklahoma
Department of Commerce shall compile an annual program performance
report for submission to the Governor and the Legislature.
F. The Oklahoma Department of Commerce shall collaborate with
state educational instit utions and workforce development agencies to
develop training programs tailored to low -grade waste heat
electrification technology manufacturing and ensure a skilled labor
pool is available to support the sector's growth.
G. The Oklahoma Department of Com merce shall promulgate
administrative rules within ninety (90) days of this act's effective
date to ensure transparent and efficient implementation.
H. This act shall ce ase to have the force and effect of law on
July 1, 2030.
SECTION 4. This act shall become effective July 1, 2025.
SECTION 5. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
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declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON RULES, dated 02/25/2025 - DO PASS,
As Amended and Coauthored.