OKLAHOMA CITY – The Incentive Evaluation Commission has submitted and posted its final report on 12 state economic tax incentives reviewed this year.
As required under the state’s Incentive Evaluation Act, the report was submitted today to Gov. Mary Fallin, Senate President Pro Tempore Mike Schulz and House Speaker Charles McCall. The report was posted today on the Oklahoma Department of Commerce website, documents.ok.gov and on the commission’s website.
The commission’s report includes the final evaluations of independent consultant Public Financial Management Inc. after the firm spent several months in Oklahoma analyzing data and meeting with stakeholders; the commissioners’ votes on PFM’s recommendations; and written comments commissioners submitted on the evaluations and incentives.
The commission's actions were as follows: PFM recommended reconfiguring the High Impact Quality Jobs Program incentive, while the commission voted to repeal the program; PFM recommended the Capital Gains Deduction be repealed, but the commission voted to retain; the recommendation from PFM on the Clean-burning Fuel Vehicle Credit was to retain and reconfigure, with the commission voting to modify the recommendation to not sunset the vehicle credit, but retain the infrastructure of the program while improving the reporting on the credit.
PFM’s recommendations approved by the commission included reconfiguring the Home Office Tax Credit incentive; retaining but making some revision to the 21st Century Quality Jobs incentive; retaining the Quality Jobs and the Small Employer Quality Jobs incentives, but making some revision to include Oklahoma Department of Commerce modifications; and repealing the Ethanol Fuel Retailer Tax Credit, the Economically At-risk Lease Tax Credit, the Production Enhancement Rebate and the Re-established Production Rebate.
On the Coal Tax Credit Program, there was a split vote of 2-2 due to an absent commiossioner.
Under a law enacted in 2015, all state tax incentives must be reviewed by the commission once every four years. The reviews must recommend whether the incentives be retained, reconfigured or repealed before submitting a final report for consideration by lawmakers.
Under the state’s Incentive Evaluation Act, the incentives are evaluated by an independent consultant using criteria approved by the commission. The commission approved PFM to move forward with evaluations of the year three incentives scheduled for 2018.
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