Newspaper article THE JOURNAL RECORD

Committee Passes Income Tax Credit Measure

Newspaper article THE JOURNAL RECORD

Committee Passes Income Tax Credit Measure

Article excerpt

A planned $240 million, 150-employee expansion of Kimberly-Clark in Tulsa will be aided by income tax credits if a bill approved by the House Revenue and Taxation Committee on Wednesday makes it into law.

Senate Bill 1300, by Sen. Ted Fisher, D-Sapulpa, and Rep. Russ Roach, D-Tulsa, expands state law providing income tax credits for new or expanding industries to include companies who invest more than $200 million over a three-year period. Construction must have commenced on or after Jan. 1 of this year. The bill increases the carry-forward period for unused tax credits from five to 15 years.

Another part of the bill extends a five-year ad valorem exemption to new plants or expansions on which construction starts prior to July 1. Roach said this part of the measure would serve as an incentive for a large distribution center. To qualify, a company must invest at least $5 million and employ at least 100 full-time employees.

Roach said he will offer a floor substitute on the bill that will adjust its provisions to jibe with a measure intended to persuade General Motors to move its sport utility vehicle operations to its Oklahoma City plant.

The committee also approved several other business-incentive measures.

Senate Bill 1324, by Sen. Ted Fisher, D-Sapulpa, and House Executive Majority Leader Don Kinnamon, D-Stroud, would allow financial lending institutions to take advantage of an income tax credit for qualified investment in qualified small business capital companies.

Under current law, banks and other financial institutions are ineligible to claim the credit. The bill would allow them to utilize the credit with respect to amounts invested in a qualified small business capital company in which the institution is a shareholder or partner.

The credit amounts to 20 percent of the cash amount invested in qualified small business capital companies, with a 10-year carryforward provision for unused credits.

Senate Bill 1389, by Sen. Brad Henry, D-Shawnee, and Rep. Randy Beutler, D-Elk City, takes up an issue that has been introduced in previous sessions -- establishing a double tax-exemption for bonds issued by municipalities and political subdivisions of the state. …

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