Full Senate advances plan to review tax credits, economic incentives

The full Senate on Wednesday advanced legislation that would develop a system for evaluating tax credits and economic incentives to determine their effectiveness. Authored by Senate President Pro Tempore Brian Bingman, Senate Bills 806 and 815 would establish a process to provide lawmakers with independent evaluations of economic incentives, and a clear picture of those that encourage growth and those that do not.

“Under current law, once tax credits and economic incentives are approved by the Legislature, we don’t have a system to provide us with reliable data on their effectiveness,” said Bingman, R-Sapulpa. “This legislation would correct that problem, and ensure that lawmakers have the information to determine whether incentives are working as intended. Ultimately, our goal is to ensure that Oklahoma job creators are succeeding, and we can do that by making fiscally sound decisions on tax credits and economic incentives.”

SB 806 requires that any economic incentive include a measurable goal or goals when enacted.

SB 815 will provide legislators with measurable data on economic incentives, including estimated fiscal impacts and assessments of whether incentives are achieving their goals.

Sen. Rick Brinkley presented both proposals on the Senate floor.

“It’s time for us to give greater scrutiny to the numerous tax credits and incentives offered by the state and determine whether they are providing us with a return on our investment,” said Brinkley, R-Owasso. “This legislation will help give us the data we need to accurately evaluate incentives both before we consider them and after they are advanced through the Legislature. We currently provide more than $1.7 billion in economic incentives, and in order to protect taxpayers we need to ensure they are accomplishing their goals.”

Senate Bills 806 and 815 now advance to the House for consideration.