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An Act
ENROLLED SENATE
BILL NO. 1826 By: Reinhardt of the Senate
and
Osburn and Hill of the
House
An Act relating to development incentives; amending
62 O.S. 2021, Sections 842, as last amended by
Section 1, Chapter 203, O.S.L. 2025, and 843 (62 O.S.
Supp. 2025, Section 842), which relate to the
Oklahoma Local Development and Enterprise Zone
Incentive Leverage Act; eliminating sunset date
provisions; updating statutory reference; updating
statutory language; and providing an effective date.
SUBJECT: Oklahoma Local Development and Enterprise Zone Incentive
Leverage Act
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 842, as last
amended by Section 1, Chapter 203, O.S.L. 2025 (62 O.S. Supp. 2025,
Section 842), is amended to read as follows:
Section 842. A. An enterprise which locates its facility
within an enterprise zone or which expands its existing facility
after the designation of an enterprise zone as authorized by law and
which is located in an incentive district as authorized pursuant to
the provisions of the Local Development Act shall be eligible for
the state local enterprise matching payment authorized pursuant to
subsection A of Section 844 of this title.
B. 1. A local governmental entity which approves a project
plan pursuant to the provisions of the Local Development Act within
ENR. S. B. NO. 1826 Page 2
an enterprise zone or in support of a major tourism destination
project which the local governmental entity determines is likely to
significantly benefit contiguous or nearby enterprise zone census
tracts shall be eligible for the state local government matching
payment authorized pursuant to subsection D of Section 844 of this
title; provided, no state local government matching payment shall be
made for project costs in relation to:
a. any gambling establishment, or
b. any development within a project plan that provides
for more than fifty percent (50%) of the net leasable
space of such development to be used for retail
purposes except for such portions of a development
which includes grocery or specialty food store
enterprises defined under NAICS Manual Industry Group
No. 4451 or 4452 that provide healthy nutrition
options including fresh fruits, vegetables, whole
grains, seeds, nuts and healthy protein and that
improve access within one-half (1/2) mile of any low
income and low access geographies identified by the
United States Department of Agriculture.
State local government matching payments shall not be used to
supplant local revenue currently being expended within the increment
district boundaries.
2. In order to be eligible for state local government matching
payments for approving a project within an enterprise zone, a local
governmental entity shall provide to the Oklahoma Department of
Commerce as part of the application provided for in subsection J of
this section:
a. an estimate of incremental revenues likely to be
derived from the project, and
b. certification that all projects described within the
related project plan will generate, in the aggregate,
a minimum of either One Million Dollars
($1,000,000.00) in payroll, exclusive of payroll for
construction, or Five Million Dollars ($5,000,000.00)
in investment.
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3. In order to be eligible for state local government matching
payments in support of a major tourism destination project, a local
governmental entity shall provide to the Oklahoma Department of
Commerce as part of the application provided for in subsection K J
of this section:
a. an estimate of incremental revenues new to the state
likely to be derived from the project,
b. certification that the major tourism destination
project meets the applicable criteria described in
paragraph 12 of Section 841 of this title, and
c. an agreement to provide payment to the Oklahoma
Department of Commerce to defray the costs of the
study required by paragraph 4 of this subsection.
4. To determine if a project qualifies as a major tourism
destination project pursuant to subparagraph b of paragraph 12 of
Section 841 of this title and to assist in other required
determinations, the Oklahoma Department of Commerce shall cause a
market and feasibility study to be conducted by an independent
consultant with experience in the conduct of such studies. Upon
review of the feasibility report, the Oklahoma Department of
Commerce shall make its finding as to the reasonable probability
that the proposed project is a major tourism destination project as
provided in subparagraph b of paragraph 12 of Section 841 of this
title.
C. For purposes of the Oklahoma Local Development and
Enterprise Zone Incentive Leverage Act, an enterprise engaged in a
retail activity, where otherwise prohibited by the Oklahoma
Enterprise Zone Act for purposes of the benefits and incentives
extended pursuant to the Oklahoma Enterprise Zone Act, shall be
considered an eligible enterprise for purposes of the state local
enterprise matching payment authorized by the Oklahoma Local
Development and Enterprise Zone Incentive Leverage Act.
D. The maximum amount of state local enterprise matching
payments for an enterprise per fiscal year shall not exceed Two
Hundred Thousand Dollars ($200,000.00).
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E. Except as provided in subsection H of this section, for
purposes of the Oklahoma Local Development and Enterprise Zone
Incentive Leverage Act, the maximum amount of aggregate investment
in all qualifying facilities located in any single county which can
qualify for a state local enterprise matching payment pursuant to
subsection A of Section 844 of this title shall be computed for each
county of the state by multiplying Two Hundred Dollars ($200.00)
times the population of the county according to the most recent
estimate provided by the United States Bureau of the Census prior to
the date an application is made.
F. The computation required by subsection E of this section
shall be the maximum amount of aggregated investment qualifying for
the purposes of all enterprises for the duration of the Oklahoma
Local Development and Enterprise Zone Incentive Leverage Act.
G. The aggregate investment limit for all facilities located
within a county which may qualify for the state local enterprise
matching payments pursuant to subsection A of Section 844 of this
title shall:
1. Not be less than Twenty Million Dollars ($20,000,000.00) for
counties with a population less than one hundred thousand (100,000)
persons; and
2. Not be greater than Forty Million Dollars ($40,000,000.00)
for all other counties of the state.
H. The aggregate limit for all state local government matching
payments made to any public entity on behalf of any local
governmental entity within a single county pursuant to subsection D
of Section 844 of this title for the duration of the Oklahoma Local
Development and Enterprise Zone Incentive Leverage Act shall be an
amount equal to the net benefit rate multiplied by the taxable gross
sales derived from the project over the period of apportionment of
local sales taxes, as certified by the Secretary of Commerce.
I. The payments authorized by Section 844 of this title shall
be available for business and governmental entities qualifying
pursuant to the Local Development Act for investments made within an
incentive district or for improvements made within an increment
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district prior to December 31, 2007, or for which an incentive
district or an increment district has been created prior to December
31, 2028, if the investments or improvements are begun not later
than December 31, 2029.
J. An enterprise or entity receiving payments authorized
pursuant to the provisions of Section 844 of this title shall
annually report to the Oklahoma Department of Commerce the
following:
1. All employment resulting from the project or facility
location or expansion, including payroll amounts;
2. Capital investment amounts resulting from the project or
facility location or expansion; and
3. Changes in the assessed value of property resulting from the
project or facility location or expansion.
The enterprise or entity shall also provide consent for the
Department to furnish the reported information to the Incentive
Evaluation Commission only for evaluation purposes by the Commission
or a designee. The information furnished to the Commission shall be
disaggregated and on a per project basis. The Department shall make
available on the Department website the information reported
pursuant to this subsection.
K. J. The Oklahoma Department of Commerce shall promulgate
rules for administration of the Oklahoma Local Development and
Enterprise Zone Incentive Leverage Act. Such rules shall:
1. Include a procedure for an enterprise or local governmental
entity to make application for state local enterprise and state
local government matching payments pursuant to this section;
2. Reflect the intent that the Oklahoma Local Development and
Enterprise Zone Incentive Leverage Act be fiscally neutral to the
state; and
3. Establish reporting requirements, including the requirements
provided in subsection J I of this section, for successful
applicants which allow data collection and analysis by the
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Department on employment, capital investment, changes in assessed
value of a project and other impacts resulting from payments and
reporting of such data by the Department to the Oklahoma Tax
Commission for the purposes of subsection B of Section 847 of this
title.
SECTION 2. AMENDATORY 62 O.S. 2021, Section 843, is
amended to read as follows:
Section 843. A. In order to receive the state local enterprise
matching payment pursuant to the provisions of subsection A of
Section 844 of this title, the enterprise shall obtain a
certification, provided by the governing body of the local
governmental entity creating the incentive district, acknowledged by
the chief elected official of the local governing body that the
enterprise has qualified pursuant to the Local Development Act for
sales tax exemption. The certification document shall include:
1. The beginning date of the exemption;
2. The ending date of the exemption;
3. The total amount of projected investment to construct or
expand the facility during the period for which the incentives
available pursuant to the Local Development Act will be in force and
effect together with a certification by the Oklahoma Department of
Commerce that the facility is located in an enterprise zone; and
4. The legal name and business entity classification of the
entity to which exemption is afforded or to which sales tax payment
is made by the local governmental entity or entities pursuant to the
provisions of the Local Development Act.
B. The local governing body shall provide a copy of the
certification document to the Oklahoma Tax Commission.
C. After the enterprise provides a certification from the local
governing body, the Tax Commission shall make payment to the
enterprise identified in the certification document equal to the
amount of the sales tax from which the enterprise is certified as
exempt as identified in the certification in the manner prescribed
by subsection A of Section 844 of this title.
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D. The state local enterprise matching payment shall be made
only for sales tax foregone by local governmental entities or
rebated to the business enterprise by local entities for purchases
made by the business enterprise and not on the basis of any sales
tax collected by the business enterprise from consumers or users on
taxable sales made by the enterprise.
E. In order to receive the state local governmental matching
payment pursuant to the provisions of subsection D of Section 844 of
this title, the local governmental entity shall provide to the Tax
Commission a certification, acknowledged by its mayor or
chairperson, that such local governmental entity has created an
increment district pursuant to the Local Development Act which
qualifies for a state local government matching payment. The
certification document shall include:
1. The beginning date of the increment district;
2. The ending date of the increment district;
3. A description of the project costs authorized by the project
plan for which the state local government matching payments will be
used and the estimated date for substantial completion of the
project being assisted as described in the application;
4. A certification by the Oklahoma Department of Commerce that
the project plan is located in an enterprise zone or supports a
qualifying major tourism destination project, and that the
qualifying investment and development has been or will be
substantially completed no later than December 31, 2034;
5. The amount of the local sales taxes which have been
apportioned during the previous six-month period by the local
governmental entity for the payment of project costs pursuant to the
provisions of the Local Development Act; and
6. The name of the public entity identified in the project plan
pursuant to Section 858 of this title as the entity authorized to
carry out activities pursuant to the project plan.
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After the local governmental entity provides such certification,
the Tax Commission shall make payment to the designated public
entity in an amount equal to the lesser of the certified amount of
the local sales taxes apportioned during the previous six (6) months
or the estimated net direct state benefits as prescribed by
subsection D of Section 844 of this title.
SECTION 3. This act shall become effective November 1, 2026.
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Passed the Senate the 16th day of March, 2026.
Presiding Officer of the Senate
Passed the House of Representatives the 29th day of April, 2026.
Presiding Officer of the House
of Representatives
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: _________________________________