OKLAHOMA CITY – The Incentive Evaluation Commission has submitted and posted its final report on 11 state economic tax incentives reviewed this year.
As required under the state’s Incentive Evaluation Act, the report was submitted Dec. 14, 2016, to Gov. Mary Fallin, Senate President Pro Tempore-elect Mike Schulz and House Speaker-elect Charles McCall. The report was posted Dec. 15 on the Oklahoma Department of Commerce website, documents.ok.gov and here on the documents page.
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 approved of all PFM’s recommendations except to repeal the Industrial Road Access Program incentive.
PFM’s recommendations approved by the commission included retaining three aerospace engineering tax credits; reconfiguring incentives for electricity generated by zero-emission facilities, aircraft sales and the Quality Events Program; retaining but making some revision to the five-year ad valorem property tax exemption and a historic rehabilitation tax credit; retaining the Oklahoma Capital Investment Board incentive and allowing it to complete its activities before its legislated sunset; and allowing the Oklahoma Film Enhancement Rebate to sunset as scheduled in 2024.
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 The reviews must recommend whether the incentives be retained, reconfigured or repealed before submitting a final report for consideration by lawmakers.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 will meet Dec. 21 to discuss the schedule of incentives to review in 2017.