Newspaper article THE JOURNAL RECORD

Schirf: Broader Credits Would Bring in Industry

Newspaper article THE JOURNAL RECORD

Schirf: Broader Credits Would Bring in Industry

Article excerpt

to primary employers, as provided in a measure passed by the Senate Finance Committee Tuesday, would bring new industry to Oklahoma, in the opinion of Dean Schirf, director of government relations for the Oklahoma City Chamber of Commerce.

The chamber is supporting Senate Bill 421, by Sen. Ben Brown, D-Oklahoma City, and another measure passed by the finance committee, Senate Joint Resolution 30, by Senate President Pro Tempore Bob Cullison, D-Skiatook.

Senate Bill 421 basically expands current definitions on industries eligible for refunds on sales and use taxes on the goods, property and other materials purchased for the purpose of commencing or expanding business activities.

"There are certain industries which aren't eligible for such credits because they are not manufacturers," said Schirf.

These refunds would be extended to a primary employer - defined in the measure as any enterprise which derives at least 60 percent of its annual gross revenues from the sale of a product or service to an out-of-state buyer or consumer.

Schirf said the definition covers a large number of firms which would consider establishing operations in Oklahoma that otherwise couldn't apply for tax credits or refunds, such as computer companies and aviation firms.

The amount of both the sales tax and use tax refunds could not exceed the total of either of those taxes paid on items purchased for a two-year period from the date of expansion or construction.

In addition, Senate Bill 421 provides an investment tax credit on the purchase of qualified depreciable property. Legislation granting such a credit for manufacturers was passed by the Oklahoma Legislature in 1987.

Senate Bill 421 extends the availability of such credit to primary employers for the purchase not only of machinery or property, but for computer equipment as well. …

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