HB 2894 — Oklahoma Rural Jobs Act; cap on capital investment tax credits; authorizing and limiting additional participation in program under certain conditions.

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2894 Page 3 pass-through of such sales tax credit to an Entertainment District Tenant Party.

An approved company whose agreement provides that it shall expend approved costs in excess of One Million Dollars ($1,000,000.00) shall be entitled to a sales tax credit if the company certifies to the Tax Commission that it has expended at least One Million Dollars ($1,000,000.00) in approved costs and the Executive Director certifies that the approved company is in compliance with the Oklahoma Tourism Development Act.

The Tax Commission shall then issue a tax credit memorandum to the approved company granting a sales tax credit in the amount of up to twenty- five percent (25%) of the approved costs, but limited to the percent of the approved costs that will result in the project being revenue- neutral to this state as determined by the Oklahoma Department of Commerce.

The credit on all subsequent additional certified approved costs shall be in the amount of up to twenty-five percent (25%) of the costs, but limited to the percent of the approved costs that will result in the project being revenue-neutral to this state as determined by the Oklahoma Department of Commerce.

For a tourism attraction project that is an Entertainment District, an approved company may elect to receive an incentive payment based on sales tax collections of Entertainment District Tenant Parties rather than a sales tax credit.

The incentive payment shall be in the amount of up to twenty-five percent (25%) of the approved costs but limited to ENGR.

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2894 Page 4 the percent of the approved costs that will result in the project being revenue-neutral to this state as determined by the Oklahoma Department of Commerce;

provided that, (A) in no event shall the incentive payments exceed the increased state sales tax liability of the approved company and the Entertainment District Tenant Parties that is actually received by the Tax Commission, and (B) the approved company shall be entitled to receive only ten percent (10%) of the incentive payment amount during each calendar year.

The Tax Commission shall issue an incentive payment memorandum to the approved company granting a right to receive an incentive payment from the Tax Commission in the amount of up to twenty-five percent (25%) of the approved costs but limited to the percent of the approved costs that will result in the project being revenue-neutral to this state as determined by the Oklahoma Department of Commerce.

As soon as practicable after the end of each calendar year during the term of the agreement, the approved company shall file a claim for the incentive payment with the Tax Commission, and the Tax Commission shall be responsible for ensuring that the amount of the incentive payment claimed does not exceed the increased state sales tax liability of the approved company and the Entertainment District Tenant Parties that has been actually received by the Tax Commission, which may include accessing the Oklahoma sales tax returns of the Entertainment District Tenant Parties as permitted by this section.

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2894 Page 5 The cumulative inducements provided pursuant to the Oklahoma Tourism Development Act shall not exceed Thirty Million Dollars ($30,000,000.00) per year.

The Tax Commission shall require proof of expenditures prior to issuing a tax credit memorandum or incentive payment memorandum to the approved company which may be satisfied by a report from an independent certified public accountant.

Additional credit memoranda or incentive memoranda may be issued as the approved company certifies additional expenditures of approved costs.

No tax credit memorandum or incentive payment memorandum shall be issued for any approved costs expended after the expiration of three (3) years from the date the agreement was signed by the Executive Director and the approved company.

However, the Executive Director, with the advice and consent of the Tax Commission, may authorize inducements for approved costs expended up to five (5) years from the date the agreement was signed if the Executive Director determines that the failure to complete the tourism attraction project within three (3) years resulted from:

1.

Unanticipated and unavoidable delay in the construction of the tourism attraction;

2.

An original completion date for the tourism attraction, as originally planned, which will be more than three (3) years from the date construction began;

or ENGR.

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2894 Page 6 3.

A change in business ownership or business structure resulting from a merger or acquisition.

A salesrural taxfund, creditbefore allowedmaking pursuanta toqualified theinvestment, provisions of this section may berequest usedfrom tothe offsetDepartment a portionwritten ofopinion theas reportedto statewhether sales tax liability of the approvedbusiness companyin orwhich anit Entertainmentproposes Districtto Tenantinvest Party,is ifan applicable,eligible forbusiness. all sales tax reporting periods following the issuance of the credit memorandum subject to the following limitations:

1.The Department, no later than fifteen (15) business days after the date of receipt of such request, shall notify the rural fund of its determination.

OnlyIf increasedthe stateDepartment salesfails taxto liabilitynotify maythe berural offsetfund of its determination by the issuedtwentieth credit;business day, the business in which the rural fund proposes to invest shall be deemed an eligible business.

2.ENR.

An approved company whose agreement provides that it shall expend approved costs in excess of One Million Dollars ($1,000,000.00) or an Entertainment District Party, if applicable, shall be entitled to use only ten percent (10%) of the amount of each issued credit to offset increased state sales tax liability during each calendar year, plus the amount of any unused credit carried forward from a prior calendar year, and an approved company whose agreement provides that it shall expend approved costs of more than the minimum amount for each project as listed in this subsection but less than One Million Dollars ($1,000,000.00) shall be entitled to use only twenty percent (20%) of the amount of each issued credit to offset increased state sales tax liability during each calendar year, plus the amount of any unused credit carried forward from a prior calendar year;

and ENGR.

2894 Page 72 3.Passed the House of Representatives the 6th day of May, 2026.

AllPresiding issuedOfficer creditof memoranda or incentive payment memoranda shall expire at the endHouse of theRepresentatives monthPassed following the expirationSenate of the agreement28th asday provided in Section 2396 of thisApril, title.2026.

ThePresiding approvedOfficer companyof orthe anSenate EntertainmentOFFICE DistrictOF TenantTHE Party,GOVERNOR ifReceived applicable,by shallthe haveOffice noof obligationthe toGovernor refundthis or____________________ otherwiseday return any amount of this___________________, inducement20_______, toat the_______ persono'clock from_______ whomM. the sales tax was collected.

D.By:

The_________________________________ TaxApproved Commissionby shallthe promulgateGovernor rulesof asthe areState necessaryof forOklahoma thethis proper_________ administrationday of the___________________, Oklahoma20_______, Tourismat Development_______ Act.o'clock _______ M.

The_________________________________ TaxGovernor Commissionof maythe alsoState developof formsOklahoma andOFFICE instructionsOF asTHE necessarySECRETARY forOF anSTATE approvedReceived companyby orthe EntertainmentOffice Districtof Tenantthe Party,Secretary ifof applicable,State tothis claim__________ orday receiveof or___________________, pass-through20_______, theat inducements_______ providedo'clock by_______ theM. Oklahoma Tourism Development Act.

E.By:

The_________________________________ TaxENR. Commission shall have the authority to obtain any information necessary from or regarding the approved company or an Entertainment District Tenant Party, if applicable, and the Executive Director to verify that approved companies or an Entertainment District Tenant Party, if applicable, have received the proper amounts of inducements as authorized by the Oklahoma Tourism Development Act.

The Oklahoma Tax Commission shall demand the repayment of any inducements taken or received in excess of the inducements allowed by the Oklahoma Tourism Development Act.

F.

No sales tax credit or incentive payment right authorized by this section shall be granted on or after January 1, 2026 January 1, ENGR.

2894 Page 83 2032.

Notwithstanding the foregoing, an approved company that has entered into a tourism attraction project agreement with the Oklahoma Department of Commerce pursuant to Section 2396 of this title prior to January 1, 2026 January 1, 2032, shall continue to be entitled to claim or receive any inducements authorized by this section as contemplated by the tourism project agreement.

G.

All currently approved tourism project agreements executed by the Oklahoma Tourism and Recreation Department are hereby transferred to the Oklahoma Department of Commerce upon November 1, 2021.

H.

On November 1, 2021, all administrative rules promulgated by the Oklahoma Tourism and Recreation Department regarding the Oklahoma Tourism Development Act shall be transferred to and become a part of the administrative rules of the Oklahoma Department of Commerce.

The Office of Administrative Rules in the Office of the Secretary of State shall provide adequate notice in the Oklahoma Register of the transferred rules and shall place the transferred rules under the Administrative Code section of the Oklahoma Department of Commerce.

On November 1, 2021, any amendment, repeal, or addition to the transferred rules shall be under the jurisdiction of the Oklahoma Department of Commerce, who shall have the authority to enact rules in order to carry out the provisions of the Oklahoma Tourism Development Act.

SECTION 2.

This act shall become effective November 1, 2025.

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2894 Page 9 Passed the House of Representatives the 26th day of March, 2025.

3 Presiding Officer of the House of Representatives 6 Passed the Senate the ___ day of __________, 2025.

8 Presiding Officer of the Senate ENGR.

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