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An Act
ENROLLED HOUSE
BILL NO. 2768 By: Caldwell (Trey) and Kane of
the House
and
Hall and Haste of the
Senate
An Act relating to revenue and taxation; amending 68
O.S. 2021, Sections 3653 and 3658, which relate to
the Oklahoma Quality Jobs Incentive Leverage Act;
modifying definition; and increasing certain
limitation caps related to qualifying investment
amounts.
SUBJECT: Revenue and taxation
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 3653, is
amended to read as follows:
Section 3653. As used in this act:
1. "Establishment" means a business that:
a. has at least One Hundred Fifteen Million Dollars
($115,000,000.00) in annual gross compensation paid
with respect to jobs located in Oklahoma according to
Oklahoma Employment Security records and company
reports for the three (3) years prior to the
irrevocable election filing date provided by Section
3658 of this title,
b. has an average salary of at least Forty Thousand
Dollars ($40,000.00) paid to employees as of the
ENR. H. B. NO. 2768 Page 2
irrevocable election filing date provided by Section
3658 of this title,
c. intends to add substantial gross compensation, as
defined below, with respect to full-time-equivalent
employment located in Oklahoma within three (3) years
of filing an initial irrevocable election with the
Oklahoma Department of Commerce pursuant to the
provisions of subsection A of Section 3658 of this
title,
d. has at least Two Hundred Million Dollars
($200,000,000.00) total investment in Oklahoma,
e. intends to add investment for additional modernization
and retooling of a facility located in the state, on
or after the effective date of this act, of at least
One Hundred Million Dollars ($100,000,000.00), but for
purposes of this act not in excess of an additional
Two Hundred Fifty Million Dollars ($250,000,000.00)
Seven Hundred Million Dollars ($700,000,000.00) within
five (5) years of filing a second irrevocable election
with the Oklahoma Department of Commerce pursuant to
the provisions of subsection A of Section 3658 of this
title, unless the establishment has completed at least
eighty percent (80%) of the expenditures for the
additional investment by the end of the five-year
period in which case the establishment shall be
allowed a one-year extension for completion of the
investment,
f. for purposes of an initial irrevocable election filed
prior to the effective date of this act, has and
maintains at least one thousand five hundred fifty
(1,550) full-time employees in the state, and
g. is described by Industry Number 3011, Industry Group
Number 301, Major Group 30 of the Standard Industrial
Classification Manual (SIC), latest revision;
2. "Gross compensation" means wages, as defined in Section
2385.1 of Title 68 of the Oklahoma Statutes, and benefits paid on
behalf of employees receiving wages; and
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3. "Substantial gross compensation" means annualized
compensation of Four Million Dollars ($4,000,000.00) or more within
three (3) years of filing the initial irrevocable election with the
Oklahoma Department of Commerce pursuant to Section 3658 of this
title.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 3658, is
amended to read as follows:
Section 3658. A. An establishment, as defined in Section 3653
of this title, which has been authorized to receive incentive
payments pursuant to the Oklahoma Quality Jobs Program Act prior to
the effective date of this act, and that intends to use proceeds
derived from the sale of obligations issued pursuant to Section 3654
of this title which obligations are issued on or after the effective
date of this act, shall, as a condition of being eligible to make
use of such proceeds, file a second irrevocable election with the
Oklahoma Department of Commerce.
B. An establishment shall file its second irrevocable election
with the Oklahoma Department of Commerce not later than one hundred
eighty (180) days prior to the last date that withholding tax
revenues attributable to the payroll of the establishment are
legally required to be used in satisfaction of any debt service
requirements or related costs imposed pursuant to an issuance of
obligations by the Oklahoma Development Finance Authority if such
issuance occurred prior to the effective date of this act. Such
second irrevocable election shall be required in order for the
establishment to be eligible for use of any proceeds from the sale
of additional obligations authorized by Section 3654 of this title
which obligations are issued on or after the effective date of this
act. From the date upon which the second irrevocable election is
filed until the last date upon which withholding tax revenues
attributable to the payroll of the establishment are legally
required to be used in satisfaction of any debt service requirements
or related costs imposed as a result of obligations issued by the
Oklahoma Development Finance Authority prior to the effective date
of this act, the five-year period of time within which the
establishment would otherwise be required to make investment
pursuant to this act shall be extended.
C. Upon filing such second irrevocable election, any incentive
payments which would have been paid to the establishment pursuant to
the Oklahoma Quality Jobs Program Act after such filing shall be
deposited to the Quality Jobs Program Incentive Leverage Fund. Such
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incentive payments shall be treated as an asset of the establishment
which has been paid to the State of Oklahoma for purposes of this
act.
D. Beginning upon the later date of July 1, 2009, or the first
date upon which the revenues payable to the Authority from the
Quality Jobs Program Incentive Leverage Fund are no longer committed
to the payment of debt service requirements and related costs in
connection with obligations issued by the Authority pursuant to the
Quality Jobs Incentive Leverage Act prior to the effective date of
this act, and for each fiscal year thereafter as otherwise required
by this act, monies transferred to the Quality Jobs Program
Incentive Leverage Fund shall be used for the payment of principal
and interest or other costs associated with the additional issuance
of obligations by the Oklahoma Development Finance Authority
pursuant to the provisions of Section 3654 of this title as a result
of a second irrevocable election. Not later than January 1 and July
1 of each year, the Oklahoma Development Finance Authority shall
certify to the Oklahoma Department of Commerce and the Oklahoma Tax
Commission the amount which will be required for payment of
principal, interest and other costs associated with the issuance of
such obligations for the succeeding six-month period.
E. Beginning on the later date of July 1, 2009, or the first
date upon which the revenues payable to the Authority from the
Quality Jobs Program Incentive Leverage Fund are no longer committed
to the payment of debt service requirements and related costs in
connection with obligations issued by the Authority pursuant to the
Quality Jobs Incentive Leverage Act prior to the effective date of
this act, and for each fiscal year thereafter as otherwise required
by this act, as often as may be necessary for the Oklahoma
Development Finance Authority to make payments with respect to
indebtedness issued pursuant to the provisions of this act as a
result of a second irrevocable election, the Tax Commission shall
transfer from the revenues specified in Section 3659 of this title
an amount required to equal the difference between the incentive
payment deposit and the amount certified pursuant to the provisions
of subsection C of this section. The Tax Commission shall then
transfer the total amount required pursuant to the certification to
the Oklahoma Development Finance Authority.
F. An establishment to which proceeds from the sale of any
obligations issued by the Oklahoma Development Finance Authority are
made available as provided by this act pursuant to a second
irrevocable election shall not claim any tax credits that would
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otherwise be authorized pursuant to Section 2357.4 of Title 68 of
the Oklahoma Statutes as a result of jobs created or capital
investment made as a direct result of the use of such bond proceeds.
For purposes of this subsection and for purposes of computing any
tax credit pursuant to Section 2357.4 of Title 68 of the Oklahoma
Statutes, "bond proceeds" shall mean the amount transferred, paid or
made available to the establishment together with the total amount
of principal and interest paid by the Oklahoma Development Finance
Authority with respect to any amount of proceeds transferred, paid
or made available to the establishment.
G. An establishment that files a second irrevocable election
authorized by this section and to which proceeds from the sale of
obligations authorized by Section 3654 of this title are paid or
made available may utilize income tax credits earned prior to the
effective date of this act pursuant to Section 2357.4 of Title 68 of
the Oklahoma Statutes for a period of fifteen (15) taxable years
subsequent to the year in which the election is filed.
H. An establishment that files a second irrevocable election
authorized by this section and to which any proceeds from the sale
of obligations authorized by Section 3654 of this title are paid or
made available shall not be eligible to claim any exemption pursuant
to Section 6B of Article X of the Oklahoma Constitution or Section
2902 of Title 68 of the Oklahoma Statutes with respect to real or
personal property constituting the facility described by the
establishment pursuant to the disclosure document as provided by
Section 3655 of this title. The maximum amount of investment in any
facility for purposes of the foregone exemption required by this
subsection shall be Five Hundred Million Dollars ($500,000,000.00)
Seven Hundred Million Dollars ($700,000,000.00), inclusive of any
amounts invested prior to the effective date of this act.
I. An establishment that files a second irrevocable election
authorized by this section and to which any proceeds from the sale
of obligations authorized by Section 3654 of this title are paid or
made available shall not be eligible to claim any exemption
otherwise available pursuant to Section 1359 of Title 68 of the
Oklahoma Statutes with respect to the facility constructed,
acquired, improved or equipped with such proceeds. The provisions
of this subsection shall not require any waiver of sales tax
exemption with respect to personal property acquired for the
manufacturing process after completion of construction of the
applicable facility.
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Passed the House of Representatives the 20th day of May, 2025.
Presiding Officer of the House
of Representatives
Passed the Senate the 22nd day of May, 2025.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________