Senate Bill No. 577 revises Oklahoma's ad valorem tax exemption laws for manufacturing facilities, introducing new requirements for qualifying entities. The bill mandates that manufacturing concerns provide specific information to the Oklahoma Tax Commission, which must then share relevant data with the Incentive Evaluation Commission. It clarifies definitions and eligibility criteria for manufacturing facilities, including updated investment cost criteria that now encompass capital expenditures for the replacement, refurbishment, repair, or maintenance of machinery or equipment eligible for depreciation under the Internal Revenue Code. Additionally, facilities must maintain or increase their base payroll and offer a basic health benefits plan to employees to qualify for the exemption.

The bill also specifies that entities engaged in electric power generation through wind will no longer qualify for tax exemptions effective January 1, 2017, and no applications from such entities will be accepted after January 1, 2018. It allows certain manufacturing facilities that missed payroll requirements due to nonrecurring bonuses to receive exemptions starting in 2016, provided they meet other payroll thresholds. New reporting requirements for entities receiving exemptions are introduced, mandating annual job creation and payroll data submissions to the Tax Commission for evaluation purposes. The bill further updates references to tax credits and incentives, ensures confidentiality of tax records, and outlines penalties for violations, with the act set to take effect on November 1, 2025.

Statutes affected:
Introduced: 68-2902, 68-205
Floor (House): 68-2902, 68-205
Floor (Senate): 68-2902, 68-205
Engrossed: 68-2902, 68-205
Enrolled (final version): 68-2902, 68-205