HB 2894: Oklahoma Rural Jobs Act; cap on capital investment tax credits; authorizing and limiting additional participation in program under certain conditions. - Oklahoma

Floor (House) → Floor (Senate) · 5 edits

MODERATE

The bill was revised to transition from a House to a Senate version, updating the summary description to reflect a change in the date prohibiting certain sales tax credits rather than extending a sunset date. The text was reorganized to include new provisions allowing approved companies to pass-through sales tax credits to Entertainment District tenants and introducing an alternative incentive payment option based on sales tax collections for these specific projects.

Scope change

The bill's scope was expanded to include specific mechanisms for Entertainment District projects, allowing for the pass-through of tax credits to tenants and the option to receive incentive payments based on sales tax collections instead of standard sales tax credits.

TIMELINE

The summary description was changed from extending a sunset date to changing the date that prohibits granting certain sales tax credits and incentive payment rights.

ELIGIBILITY

New provisions allow approved companies to pass-through sales tax credits to one or more Entertainment District Tenant Parties if the project is designated as an Entertainment District.

REQUIREMENT

A requirement was added for the approved company and the tenant party to jointly file a written credit pass-through agreement with the Tax Commission within 30 days of the agreement's effective date.

FISCAL

A new option was created for Entertainment District projects where an approved company can elect to receive an incentive payment based on sales tax collections from tenants rather than a direct sales tax credit.

ENFORCEMENT

The Tax Commission is now required to develop a standard form and a tracking system to record and verify the ownership and validity of sales tax credits passed through to tenants.

HB2894 (4-15-26) (HOWARD) FS FA1.PDF → Floor (House) · 6 edits

MODERATE

The bill was revised from a House Floor Substitute to a Committee Substitute, changing the legislative session from the 2nd Session of 2026 to the 1st Session of 2025. The substantive policy shift involves replacing the Oklahoma Rural Jobs Act with the Oklahoma Tourism Development Act, significantly altering the tax credit structure, funding caps, and eligibility requirements for tourism projects.

Scope change

The bill's scope changed from supporting rural job creation via capital investment to supporting tourism development via sales tax credits and incentive payments.

SCOPE

The bill's subject matter was changed from the Oklahoma Rural Jobs Act to the Oklahoma Tourism Development Act.

FISCAL

The maximum state tax credit cap was reduced from $15 million to $500,000 for smaller projects and $1 million for larger projects.

The sales tax credit percentage was increased from 10% to 25% for projects exceeding $1 million in approved costs.

ELIGIBILITY

New provisions allow approved companies to pass sales tax credits to tenants in Entertainment Districts or receive incentive payments based on sales tax collections.

TIMELINE

The sunset provision for the tax inducements was extended.

TECHNICAL

The legislative session was updated from the 2nd Session of 2026 to the 1st Session of 2025.

House Committee Substitute → HB2894 (4-15-26) (HOWARD) FS FA1.PDF · 6 edits

MODERATE

The document was updated from a House Committee Substitute to a Floor Substitute version, changing the legislative session from the 2025 session to the 2026 session. The bill text was completely replaced with a new version focusing on the Oklahoma Rural Jobs Act, which sets a $15 million cap on capital investment tax credits and outlines rules for rural funds to receive cash investments from investors.

Scope change

The bill's scope shifted entirely from the Oklahoma Tourism Development Act to the Oklahoma Rural Jobs Act, changing the subject matter from tourism inducements to rural job creation tax credits.

SCOPE

The bill subject changed from tourism tax credits to rural job creation tax credits.

TIMELINE

The legislative session changed from the 2025 session to the 2026 session.

A 95-day deadline was established for rural funds to issue capital investment after receiving certification.

FISCAL

A new $15 million cap was established for state tax credits under the Rural Jobs Act.

REQUIREMENT

New requirements were added mandating that at least 10% of capital investments in rural funds must come directly from investors.

ENFORCEMENT

Procedures were added for handling lapsed certifications if cash investments are not received within the required timeframe.

Engrossed → House Committee Substitute · 3 edits

MINOR

The bill was converted from an 'Engrossed' version to a 'Committee Substitute,' which typically indicates changes made by the House Committee after the bill passed the Senate. The substantive policy changes include updating the bill title to reflect an increased cap on cumulative inducements per year and extending the sunset date. The text of the actual legal sections regarding tax credits and incentive payments appears unchanged in this specific diff, though the header notes suggest the overall financial limits have been raised.

Scope change

The bill's scope remains focused on the Oklahoma Tourism Development Act, but the header indicates an expansion of the cumulative inducement cap and an extension of the program's sunset date.

TIMELINE

The sunset date for the tourism tax credit program has been extended.

FISCAL

The cap on cumulative inducements per year has been increased.

TECHNICAL

The document type was changed from 'Engrossed' to 'Committee Substitute,' indicating the House Committee made amendments to the bill text.

Amended And Engrossed → Engrossed · 4 edits · Apr 28, 2026

MODERATE

The bill was amended to update the authors and streamline the text. Substantively, the law now distinguishes between two types of tourism projects: smaller projects ($500k-$1M) receive a 10% tax credit, while larger projects ($1M+) receive a 25% tax credit. A new provision allows companies with large 'Entertainment District' projects to choose between a tax credit or a direct cash incentive payment based on sales tax collections.

Scope change

The bill's scope was expanded to include a new option for cash incentive payments specifically for large Entertainment District projects, replacing a single uniform tax credit structure.

ELIGIBILITY

Tax credit rates are now tiered by project size: 10% for projects between $500,000 and $1,000,000, and 25% for projects over $1,000,000.

FISCAL

Added a new mechanism allowing approved companies in Entertainment Districts to elect a cash incentive payment based on sales tax collections instead of a traditional tax credit.

REQUIREMENT

Introduced a new requirement for Entertainment District projects to file a written agreement with the Tax Commission to pass through tax credits to tenant parties.

TECHNICAL

Updated the bill's title and authorship information to reflect the current legislative sponsors.

Enrolled (final version) → Amended And Engrossed · 5 edits · Apr 28, 2026

MODERATE

The bill was amended to change its subject matter from the Oklahoma Tourism Development Act to the Oklahoma Rural Jobs Act, effectively replacing tourism tax incentives with rural job creation incentives. Additionally, the bill's authors were updated to reflect new legislative sponsors, and the text was reorganized into a standard engrossed format.

Scope change

The bill's scope changed from providing sales tax credits for tourism projects to providing capital investment tax credits for rural job creation projects.

SCOPE

The bill's title and purpose were changed from the Oklahoma Tourism Development Act to the Oklahoma Rural Jobs Act.

ELIGIBILITY

The specific statute being amended changed from Section 2397 (Tourism) to Section 3933 (Rural Jobs), altering which businesses can receive tax benefits.

FISCAL

The funding mechanism changed from sales tax credits for tourism attractions to capital investment tax credits for rural businesses.

TECHNICAL

The bill's authors were updated, removing Townley as the principal House author and Thompson as the principal Senate author, while adding Howard as the new Senate author.

The document structure was updated from an enrolled version to an engrossed amendment format with new page headers and footers.

Introduced → Enrolled (final version) · 6 edits · Mar 27, 2025

MODERATE

The bill was completely rewritten to change its subject matter from tourism incentives to rural job creation. The original text focused on sales tax credits for tourism projects, while the new text establishes a $15 million cap on capital investment tax credits for rural funds and adds strict requirements for cash investment and eligibility verification.

Scope change

The bill's scope shifted entirely from the Oklahoma Tourism Development Act to the Oklahoma Rural Jobs Act, changing the target audience from tourism companies to rural investment funds.

SCOPE

Removed all provisions related to the Oklahoma Tourism Development Act and sales tax credits for tourism attractions.

FISCAL

Added a $15 million annual cap on state tax credits for rural funds, split between applications approved before and after the effective date.

REQUIREMENT

Introduced new requirements for rural funds to receive cash investment within 90 days of certification or lose eligibility.

Mandated that at least 10% of the rural investor's capital must come from internal sources like directors or employees.

ENFORCEMENT

Added a process for rural funds to request written opinions on business eligibility, with a 15-day response deadline.

TIMELINE

Changed the bill's effective date and legislative session details to reflect the 2026 session.

Oklahoma Rural Jobs Act; cap on capital investment tax credits; authorizing and limiting additional participation in program under certain conditions.

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