Oklahoma § 68-3645.4 - Investment rebate program

§ 68-3645.4. Investment rebate program

A. 1. There is hereby created until July 1, 2032, an

investment rebate program for the cost of qualified capital

expenditures by establishments which create not less than a

threshold number of new direct jobs as provided in this section.

2.

a.

The threshold number of new direct jobs required for

establishments to qualify and remain qualified for

investment rebate payments created in paragraph 1 of

this subsection shall be as follows:

(1) five hundred (500) new direct jobs in year one of

the rebate payment period,

(2) one thousand (1,000) cumulative new direct jobs

in year two of the rebate payment period,

(3) two thousand five hundred (2,500) cumulative new

direct jobs in year three of the rebate payment

period,

(4) three thousand five hundred (3,500) cumulative

new direct jobs in year four of the rebate

payment period, and

(5) three thousand five hundred (3,500) cumulative

new direct jobs in year five of the rebate

payment period.

b.

For establishments qualifying for investment rebate

payments pursuant to division (2) of subparagraph a of

paragraph 1 of subsection E of this section, the

threshold numbers provided in this paragraph shall be

reduced proportionally to reflect the lesser capital

expenditure of such establishment. Such reduction

shall be achieved by multiplying the thresholds in

paragraph 2 of this subsection by a fractional

equivalent equal to the following: the capital

expenditure plan amount of the establishment

Oklahoma Statutes - Title 68. Revenue and Taxation

qualifying pursuant to division (2) of subparagraph a

of paragraph 1 of subsection E of this section,

divided by the capital expenditure plan amount of the

establishment qualifying pursuant to division (1) of

subparagraph a of paragraph 1 of subsection E of this

section.

3. New direct jobs in this state of a subsidiary of a primary

establishment, if such subsidiary is defined or classified in the

NAICS Manual under Industry Group No. 5132, 5222, or 5413, shall be

aggregated with the number of new direct jobs in the state of the

primary establishment for the purpose of determining if the

thresholds provided in paragraph 2 of this subsection are met.

B. The investment rebate program shall be administered by the

Oklahoma Department of Commerce and the Oklahoma Tax Commission.

C. By October 1 of each year, the Oklahoma Department of

Commerce shall submit electronically an annual report to the Speaker

of the House of Representatives, the President Pro Tempore of the

Senate, the Chair of the Appropriations and Budget Committee of the

House of Representatives, the Chair of the Appropriations Committee

of the Senate, and the Executive Director of the Legislative Office

of Fiscal Transparency detailing the program and investment rebate

payments.

D. The Oklahoma Department of Commerce and the Oklahoma Tax

Commission may promulgate rules to implement the provisions of the

Large-scale Economic Activity and Development Act of 2022 (LEAD

Act).

E. To be eligible for consideration for an investment rebate

payment awarded under the provisions of the LEAD Act, a primary

establishment shall:

1.

a.

(1) Submit an application and documentation to the

Oklahoma Department of Commerce, as required by

the Department, outlining a capital expenditure

plan in this state associated with qualified

capital expenditures totaling no less than Three

Billion Six Hundred Six Million Dollars

($3,606,000,000.00), or

(2) Submit an application and documentation to the

Oklahoma Department of Commerce, as required by

the Department, outlining a capital expenditure

plan in this state associated with qualified

capital expenditures totaling no less than Five

Hundred Million Dollars ($500,000,000.00),

provided a separate establishment has been

approved by the Oklahoma Department of Commerce

to participate in the investment rebate program

pursuant to division (1) of this subparagraph,

and such establishment participating pursuant to

Oklahoma Statutes - Title 68. Revenue and Taxation

division (1) of this subparagraph remains in

compliance with such approved application, and

b.

Have made qualified capital expenditures of no less

than twenty percent (20%) of the capital expenditure

plan outlined in the application submitted by the

primary establishment and approved by the Oklahoma

Department of Commerce, pursuant to the provisions of

the LEAD Act.

New investment in this state of a subsidiary of a primary

establishment, if such subsidiary is defined or classified in the

NAICS Manual under Industry Group No. 5132, 5222, or 5413, shall be

aggregated with the investment in this state of the primary

establishment for the purpose of determining if the thresholds

provided in this paragraph are met;

2. Be qualified to receive payments pursuant to the provisions

of the Oklahoma Quality Jobs Program Act created pursuant to Section

3601 of Title 68 of the Oklahoma Statutes; and

3. Have filed all Oklahoma tax returns and tax documents

required by law.

F. 1. Notwithstanding any other provision of law, if a primary

establishment receives an investment rebate payment pursuant to the

provisions of the LEAD Act, neither the qualified establishment nor

its subsidiaries shall be eligible to receive the credits provided

for in Section 2357.4 of Title 68 of the Oklahoma Statutes, in

connection with the project or development for which the investment

rebate payment was based; provided, however, the limitation provided

in this paragraph, on claiming credits, shall not apply to the

amount of qualifying capital expenditure in excess of Four Billion

Five Hundred Million Dollars ($4,500,000,000.00) made by an

establishment on a project or development in this state.

2. Notwithstanding any other provision of law, no investment

expenditure shall be utilized for calculation purposes in a way that

results in the qualification of more than one establishment under

the provisions of the LEAD Act, for investment rebate payments based

on the same expenditure.

3. Notwithstanding any other provision of law, no investment

rebate payment amount pre-qualified or pre-encumbered by the

Oklahoma Department of Commerce for an establishment qualifying for

payment under the provisions of division (1) of subparagraph a of

paragraph 1 of subsection E of this section, shall be reallocated to

an establishment that at such time is participating under an

approved application pursuant to division (2) of subparagraph a of

paragraph 1 of subsection E of this section.

G. 1. Except as limited by paragraph 2 of this subsection, the

Oklahoma Department of Commerce shall approve or disapprove claims

for rebates and shall notify the Tax Commission subject to the

limitations set forth in Section 3645.5 of this title. Upon

Oklahoma Statutes - Title 68. Revenue and Taxation

notification of approval from the Department, the Commission shall

issue payment for all approved claims from funds held in the Largescale Economic Activity and Development Fund created pursuant to

Section 3645.6 of this title and subject to the limitations set

forth in Section 3645.5 of this title.

2. The Department shall disapprove all applications and claims,

as well as portions of applications and claims, for rebates that

would exceed the balance of available funds in the Large-scale

Economic Activity and Development Fund.

H. The total amount of applications approved and investment

rebate payments awarded under the provisions of the LEAD Act shall

not exceed the total amount of monies designated by law for deposit

to the Large-scale Economic Activity and Development Fund.

Added by Laws 2022, c. 66, § 4. Amended by Laws 2023, c. 1, § 1,

emerg. eff. March 2, 2023.