OklahomaSB 575Oklahoma 2026 Regular SessionSenate

Oklahoma Local Development and Enterprise Zone Leverage Act; prescribing reporting requirements. Effective date.

Sponsored By: Dave Rader (Republican)

Became Law

Senate Committee

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 1 benefits, 4 costs, 2 mixed.

State matching help for qualifying businesses

Beginning November 1, 2025, businesses can qualify for state matching payments for opening or expanding facilities after enterprise-zone designation. The facility must be in both an enterprise zone and an incentive district. The business must also qualify under the Local Development Act. Retail businesses excluded from other enterprise-zone benefits remain eligible for these payments.

Aid recipients must report results publicly

Beginning November 1, 2025, matching-payment recipients must report yearly on project jobs, payroll, capital investment, and assessed property-value changes. They must consent to sharing the data with the Incentive Evaluation Commission or its designee solely for evaluation. The Department of Commerce must publish the reported information online and provide evaluation data separately for each project. The department must adopt rules for applications, reporting, and data sharing with the Oklahoma Tax Commission. Those rules must also keep the program fiscally neutral.

Local matching aid faces county caps

Beginning November 1, 2025, state local-government matching payments to public entities within a county face an aggregate limit. The limit applies for the duration of the act. It equals the net benefit rate times taxable project sales during the local sales-tax allocation period. The Oklahoma Secretary of Commerce certifies the sales and the period used.

Matching aid depends on project deadlines

Beginning November 1, 2025, matching payments cover qualifying investments or improvements made before December 31, 2007. Another eligibility path covers investments in incentive districts or improvements in increment districts created before December 31, 2028. That work must begin no later than December 31, 2029. The entity and project must also qualify under the Local Development Act.

Business matching payments face funding limits

Beginning November 1, 2025, each business can receive no more than $200,000 in state enterprise matching payments per fiscal year. A separate county limit covers total qualifying investment across businesses for the duration of the act. That limit equals $200 times the latest U.S. Census county population estimate available before application. Counties with fewer than 100,000 people have a minimum limit of $20 million. Other counties have a maximum limit of $40 million.

Local project aid carries eligibility limits

Beginning November 1, 2025, local governments can qualify for state matching payments for approved enterprise-zone projects under the Local Development Act. Applications must estimate added project revenue. Related projects together must generate at least $1 million in payroll, excluding construction, or $5 million in investment. Payments cannot cover gambling establishments or developments using more than 50% of net leasable space for retail. An exception covers portions with grocery or specialty food stores classified under NAICS 4451 or 4452. These stores must provide healthy foods, including fresh produce, whole grains, seeds, nuts, and healthy protein. They must be within 0.5 miles of USDA-identified areas with low incomes and low food access. Payments cannot replace local revenue already being spent in the increment district.

Tourism project aid requires paid studies

Beginning November 1, 2025, local governments can seek state matching help for projects supporting major tourism destinations. The local government must find that the project likely significantly benefits bordering or nearby enterprise-zone census areas. Applications must estimate added revenue new to Oklahoma and certify that the destination meets state tourism criteria. Applicants must reimburse the Department of Commerce for an independent market and feasibility study. The department must assess whether the destination is reasonably likely to qualify. Gambling and majority-retail exclusions apply, with the healthy-food-store exception. Payments cannot replace existing local spending in the increment district.

Sponsors & Cosponsors

Sponsor

  • Dave Rader

    Republican • Senate

Cosponsors

  • Daniel Pae

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 139 • No: 28

House vote • 5/6/2025

THIRD READING

Yes: 66 • No: 24

House vote • 4/17/2025

DO PASS

Yes: 14 • No: 2

House vote • 4/8/2025

DO PASS

Yes: 8 • No: 0

Senate vote • 3/13/2025

THIRD READING

Yes: 42 • No: 2

Senate vote • 2/19/2025

Committee vote: Economic Development, Workforce & Tourism

Yes: 9 • No: 0

Bill Text

  • Enrolled (final version)

    5/7/2025

  • Floor (House)

    4/21/2025

  • House Committee Report

    4/17/2025

  • House Policy Committee Report

    4/8/2025

  • Engrossed

    3/17/2025

  • Floor (Senate)

    2/20/2025

  • Senate Committee Report

    2/19/2025

  • Introduced

    1/13/2025

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