Economic development is always a major focus of concern for lawmakers at the State Capitol. If we can help our communities and our state create wealth by bringing in more job creators and higher-paying jobs, we all benefit with a better quality of life and in numerous other ways. It’s this wealth, after all, that funds our schools, our roads, our health care, our public safety services and so much more. This week’s column focuses on economic development measures that were passed during this year’s legislative session.
House Bill 4455 creates the Large-scale Economic Activity and Development (LEAD) Act of 2022, which provides for a 10-year investment rebate program for the cost of qualified capital expenditures for certain establishments based on creation of new direct jobs. The threshold number of new direct jobs required for qualification are as follows:
500 new direct jobs in year one of the rebate payment period;
1,000 cumulative new direct jobs in year two of the rebate payment period;
2,500 cumulative new direct jobs in year three of the rebate payment period;
4,000 cumulative new direct jobs in year four of the rebate payment period; and
4,000 cumulative new direct jobs in year five of the rebate payment period.
To be eligible for the program, the primary establishment must provide a capital expenditure plan with qualified capital expenditures totaling no less than $3.606 billion.
An establishment with expenditures of no less than $500 million may be eligible if a separate establishment with $3.606 billion has been approved by the Department of Commerce. Additionally, to be eligible, an establishment must have made qualified capital expenditures of no less than 20% of its capital expenditure plan, be qualified to receive payments through the Oklahoma Quality Jobs Program Act, and have filed all Oklahoma tax returns and documents.
For establishments qualifying for the program that have capital expenditures of no less than $500 million, the threshold numbers of new direct jobs will be reduced proportionally to reflect the lesser capital expenditure.
The investment rebate payment will be 3.4% of the cost of the qualified capital expenditure in the year of expenditure, and is payable for five consecutive years, so long as the establishment remains eligible.
Primary establishment capital expenditure amounts less than $4.5 billion will not be eligible to receive the current investment tax credit.
While this bill was passed with a specific employer in mind, it could be used for others that meet the qualifications.
Senate Bill 1461 establishes the Oklahoma Air Service Development Grant Program (OASDGP) within the Oklahoma Aeronautics Commission and creates the framework and guidelines for the program. OASDGP is designed to offer financial assistance by grant to private, public, or nonprofit entities for the purpose of assisting commercial air service development. Eligible entities include the following: airport sponsors of publicly owned airports, Oklahoma municipalities, chambers of commerce, and community organizations that promote economic development.
This bill will help our rural and municipalowned airports and continue our work of growing Oklahoma into a central transportation hub for the nation.
This year Tulsa’s Southern Hills Country Club hosted the PGA Championship for the fifth time, and the Legislature passed three measures that build on that excitement and extend it to courses throughout the state.
House Bill 3647 creates the Oklahoma Golf Trail to promote the state’s golfing opportunities by featuring 15 to 25 golf courses that can be marketed much like the Oklahoma Fishing Trail that launched in 2019. A nine-member commission will approve the list of featured courses and revise the list every year.
House Bill 3646 establishes the third Wednesday in June as “Golf Day” in Oklahoma.
Senate Bill 1749 allows mixed beverage licensees and on-premises beer and wine licensees with licensed premises on a golf course or country club to sell beer in sealed original packages for on-premises consumption.
