House Bill No. 2894 amends the Oklahoma Tourism Development Act by increasing the cap on cumulative inducements from $30 million to a new limit per year, extending the sunset date for these inducements from January 1, 2026, to January 1, 2032. The bill outlines the process for approved companies to claim sales tax credits based on their expenditures for tourism attraction projects, with specific percentages of credits available 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 exceeding $1 million can receive up to 25%. Additionally, the bill allows for the pass-through of these credits to Entertainment District Tenant Parties under certain conditions.

The legislation also includes provisions for the Oklahoma Tax Commission to track and verify the issuance of tax credits and incentive payments, ensuring that they do not exceed the allowed amounts. It mandates 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, the bill transfers all current 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