The full Senate has passed legislation that would require any new tax credits to have a maximum sunset of 10 years and a measurable goal that can be used as a benchmark for success.
Senate Bill 1280, authored by Sen. Julia Kirt, D-Oklahoma City, addresses the issues found by the Incentive Evaluation Commission when they analyzed the state’s tax credits. The commission was formed by the legislature in 2015 to objectively evaluate Oklahoma’s economic incentives.
“From working with the Incentive Evaluation Commission, we’ve found that many of our tax credits have inadequate data to evaluate their results,” Kirt said. “This has resulted in the commission having to recreate the legislative intent of each credit. If we want our tax incentives to be successful, we must have measurable goals attached to each one so we can analyze their performance.”
Under the bill, a “measurable goal” would be defined as a statement explaining the expected long-term result of the credit to use as a foundation for data collection, comparison and evaluation.
“Any tax credit created to spur economic development should have two things – a sunset and a clear goal,” Kirt said. “This legislation provides accountability to confirm these incentives are working as intended. I’m glad my colleagues are committed to ensuring our tax credits are working for both Oklahomans and the state.”
The measure now heads to the House of Representatives for consideration. Rep. Jeff Boatman, R-Tulsa, is the House author for the bill.
For more information, contact: Sen. Julia Kirt at 405-521-5636, or email Julia.Kirt@oksenate.gov.
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