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 allows approved companies that enter into tourism project agreements to receive sales tax credits based on their expenditures, with specific percentages depending on the amount spent. For projects costing between $500,000 and $1 million, companies can receive up to 10% in sales tax credits, while those spending over $1 million can receive up to 25%. Additionally, the bill introduces provisions for passing through sales tax credits to Entertainment District Tenant Parties, provided certain conditions are met.

The bill also outlines the requirements for the Oklahoma Tax Commission to issue tax credit memoranda and incentive payment memoranda, including the need for proof of expenditures and the ability to track the pass-through of credits. It stipulates that no sales tax credit or incentive payment rights will be granted after January 1, 2032, but companies with existing agreements prior to this date will still be eligible for inducements. Furthermore, all administrative rules related to the Oklahoma Tourism Development Act will be transferred to the Oklahoma Department of Commerce, which will have the authority to amend these rules as necessary. The act is set to become effective 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