Extension of Quality Investment Act Clears Senate

Senator Debbe Leftwich announced today that a measure to extend the Oklahoma Quality Investment Act that was signed by the Governor during the last legislative session, has cleared yet another legislative hurdle. Senate Bill 755 also renames the Act, which served as a pilot program for Dayton Tire, to the Oklahoma Specialized Quality Investment Act.

“The pilot program that was enacted last legislative session for Dayton Tire has proven to be a success and I am very pleased that my friends in the Senate agree that this benefit should be extended to other manufacturers in Oklahoma,” stated the Democrat from South Oklahoma City. “SB 755 not only creates a specialized program for tire manufacturers, but also allows other manufacturers in Oklahoma to enter into an agreement with the state to refurbish their business and ensure our manufacturers will continue to be a productive member of Oklahoma’s economy.”

The Oklahoma Quality Investment Act is administered by the Oklahoma Department of Commerce and the Oklahoma Tax Commission. The measure will allow Oklahoma manufacturers who have been in the state for at least ten years to enter into a five year quality investment agreement for capital costs.

Under provisions of SB 755, businesses will be eligible to receive an investment payment for the purpose of purchasing land, buildings, improvement of buildings, fixtures and for machinery, equipment and other personal property used in and for the manufacturing process.

The total amount of capital costs eligible for investment payments are not to exceed $50 million and in exchange the state will agree to make an annual payment in an amount equal to ten percent of the amount of invested capital costs by the business. The amount of the investment payment by the state is not to exceed $1 million for any fiscal year during the five year agreement.

“SB 755 is an important aspect to maintain Oklahoma’s steadily improving economy,” said Leftwich. “By investing in our current manufacturers, we are sending a message to businesses looking to relocate that Oklahoma is serious about economic development.”

The measure cleared the Senate and is now on its way to the respective House of Representatives committee.