Oklahoma's Business Growth Program: A Trade-Off for Companies

In Oklahoma, a significant change has been made to how businesses can utilize tax credits.

Key Changes

• Business Expansion Incentive Program: Companies participating in this program can no longer use certain tax credits immediately.
• Delayed Usage: Tax credits must be deferred until the company completes the program.

Impact on Businesses

• Oklahoma Investment/New Jobs Tax Credit: Businesses receiving benefits from the program cannot use this credit during their participation.
• Earning New Credits: While businesses can still earn new credits, they must wait until after the program to use them.

The Rationale

• Balanced Growth: The restrictions aim to ensure that benefits are spread out over time, encouraging long-term growth and job creation.
• Prior Credits: Businesses cannot use any prior credit carryforwards while in the program.

Considerations for Businesses

• Decision-Making: Companies must carefully weigh the benefits against the restrictions before joining the program.
• Strategic Planning: The decision to participate should be made with a full understanding of the implications.