Two energy-related bills are among several approved by the Oklahoma Senate Joint Committee on Appropriations and Budget as the legislature gets serious about resolving the $1.3 billion budget shortfall. One goes after tax credits meant to help Oklahoma’s CNG industry.
Senate Bill 1581 limits the amount of tax credits for investment in clean-burning motor fuel equipment. The bill, according to the State Senate, could generate $5.773 million a year.
The original law created a one-time credit against the income tax imposed for investments in qualified clean-burning motor vehicle fuel property placed in service after 1990. It applied to those cars and trucks running on CNG or a hydrogen fuel cell. Language in the new bill limits the amount of annual credits to $6 million and will apply to the tax years beginning after Jan. 1, 2016 and ending Dec. 31, 2018.
The authors of the bill are Senators Clark Jolley and Greg Treat and Representatives Earl Sears and Dennis Casey.
The second energy-related measure to win conference committee approval is House Bill 3204 by the same set of legislators. It reduces a tax credit for railroad construction, a move that is expected to generate $136,000. The bill amends a law that granted a $500 tax credit in 2007 and $2,000 credit in 2008 and subsequent years. HB 3204 proposed a 25% cut in the credits after Jan. 1, 2016.
Senate leaders say the approval of the two measures along with others would generate nearly $190 million toward addressing the $1.3 billion budget shortfall.
“The Senate has said all along that all responsible options are on the table,” said Sen. Clark Jolley, chairman of the committee. “By approving these measures, the Senate is showing its willingness to make tough decisions on reforming tax credits and incentives to help address the shortfall.”