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ENGROSSED HOUSE
BILL NO. 2402 By: Fetgatter of the House
and
Murdock of the Senate
[ revenue and taxation - Oklahoma Advanced
Manufacturing Incentive Act of 2025 - establishing
time period - eligibility requirements -
collaboration ]
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 Manufacturi ng Incentive Act of 2025".
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 gr ant program to attract
manufacturers of low -grade waste heat electrification technology to
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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 there
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 electri fication
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 fif ty 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 taxes for five (5) years.
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 which shall be capped at Twenty
Million Dollars ($20,000,000.00) over five (5) years. The grants
shall be prioritized as follows:
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1. Manufacturing facilities located in are as qualifying for the
federal New Markets Tax Credit or within existing manufacturing 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 exceed 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
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
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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 institutions 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 Commerce shall promulgate
administrative rules within ninety (90) days of this act's effective
date to ensure transparent and efficient implementation.
H. This act shall cease to have the force and effect of law on
July 1, 2030.
Passed the House of Representatives the 3rd day of March, 2025.
Presiding Officer of the House
of Representatives
Passed the Senate the _____ day of __________, 2025.
Presiding Officer of the Senate