Bill No. 577 amends existing laws concerning ad valorem tax exemptions for manufacturing facilities in Oklahoma, establishing a five-year exemption period for qualifying manufacturing concerns on new, expanded, or acquired facilities. The bill requires these facilities to submit specific information to the Oklahoma Tax Commission, which will share relevant data with the Incentive Evaluation Commission. It clarifies definitions and eligibility criteria, including investment thresholds and employment requirements, and introduces provisions for including capital expenditures related to existing machinery as part of the investment cost. Additionally, it mandates that facilities provide a basic health benefits plan to employees and outlines conditions for granting or revoking exemptions based on payroll increases and wage compliance.

The bill also modifies existing tax exemption provisions, ensuring that personal property within improvements exempt from ad valorem taxation before November 1, 2021, remains exempt if placed in service by December 31, 2036. It specifies that entities engaged in electric power generation by wind are not eligible for tax exemptions and prohibits applications from these entities after January 1, 2018. New reporting requirements for entities receiving exemptions are introduced, mandating annual reports on job creation and payroll data. The bill emphasizes confidentiality of tax records and outlines conditions for information disclosure by the Tax Commission. It also establishes guidelines for the examination of records related to felony investigations and sets penalties for violations, with an effective date of November 1, 2025.

Statutes affected:
Introduced: 68-2902, 68-205
Floor (Senate): 68-2902, 68-205
Engrossed: 68-2902, 68-205