House Bill No. 2894 amends the Oklahoma Tourism Development Act by increasing the cap on cumulative inducements per year from $30 million to a new limit, extending the sunset date for these inducements from January 1, 2026, to January 1, 2032. The bill also clarifies that approved companies that have entered into tourism project agreements prior to the new sunset date will continue to be eligible for the inducements outlined in the Act. Additionally, the bill allows for the pass-through of sales tax credits to Entertainment District Tenant Parties under certain conditions, and it mandates that the Oklahoma Tax Commission develop a system to track these credits.

The legislation also stipulates that the Tax Commission must require proof of expenditures before issuing tax credit or incentive payment memoranda, and it outlines the limitations on how these credits can be used to offset state sales tax liabilities. Furthermore, it transfers all currently approved tourism project agreements and related administrative rules from the Oklahoma Tourism and Recreation Department to the Oklahoma Department of Commerce, effective November 1, 2021. The act is set to take effect on November 1, 2025.

Statutes affected:
Introduced: 68-2397
House Committee Substitute: 68-2397
Floor (House): 68-2397
Floor (Senate): 68-2397
Engrossed: 68-2397
Sub Committee OR Policy Committee Recommendations (House) Sub Committee Recommendation: 68-2397