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 its first legislative hurdle. Senate Bill 755 also renames the Act that was specifically geared toward keeping Dayton Tire Company from uprooting its multi-million dollar industry and moving to another state to the Oklahoma Specialized Quality Investment Act.
“The pilot program for Dayton Tire has proven to be a success and I believe it is time to extend those benefits to other manufacturers within 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 Oklahoma’s manufacturers will continue to be a productive member of our 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.
“This measure will help to provide the necessary incentives to support retention of Oklahoma’s manufacturing facilities that are at risk of leaving our state,” said Leftwich. “Oklahoma’s economy is improving and if we were to lose just one facility, it would be detrimental not only to the state, but to future generations as well.”