Senator Kristen Thompson Applauds Passage of Landmark Research & Development Rebate Legislation

OKLAHOMA CITY — The Oklahoma Senate today gave final approval to Senate Bill 324, authored by Senator Kristen Thompson, establishing a long-overdue Research and Development (R&D) Rebate Program aimed at boosting high-tech investment and innovation across the state.

“Oklahoma is in the heart of the central United States — geographically and economically positioned to lead,” said Senator Thompson, R-Edmond, who also serves as Co-Chair of the Senate's LEAD (Legislative Evaluation and Development) Committee. “This new law sends a clear message: we’re ready to compete on a global scale by investing in innovation.”

Under Senate Bill 324, businesses conducting qualified research activities in Oklahoma will be eligible for a 5% rebate on in-state R&D expenditures. The rebate, capped at $20 million annually, is structured to reward innovation without risking state revenue. Oklahoma currently ranks among just 12 states nationwide that offer no Research & Development incentive — a gap this legislation decisively closes.

“This is not just about economics, it’s about global positioning,” Thompson said. “From aerospace to energy to biosciences, innovation is driving worldwide change – and we have the talent, infrastructure, and drive to lead that charge right here in Oklahoma. We shouldn’t be following; we should be setting the pace.”

Administered by the Oklahoma Department of Commerce, the rebate program will support job creation, attract new business, and incentivize companies already invested in Oklahoma to expand their research footprint within the state.

Senator Thompson credited industry partners like Boeing and Phillips 66 for supporting the legislation and emphasized that the program was designed with accountability and fiscal responsibility in mind. Claims will be processed on a first-come, first-served basis, and all participating businesses must verify their tax compliance and in-state R&D activities.

“As Co-Chair of the LEAD Committee, I’ve seen firsthand how targeted, pro-growth policies like this one can move the needle,” Thompson said. “We’ve spent years watching other states pull ahead. It’s time to reclaim our place as a national leader in innovation — and that starts with smart, competitive policy.”

Senate Bill 324 now heads to the Governor’s desk for signature.

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For more information, contact: (405) 521-5592 or Kristen.Thompson@oksenate.gov