New Oklahoma State Tax Credit Program (SIDE Credit)
On Thursday, May 26th, Governor Kevin Stitt of Oklahoma signed into law the Strategic Industrial Development Enhancement Tax Credit program (“SIDE Credit”). This new program will provide a 50% tax credit incentive for the development of new rail infrastructure to serve new and expanding businesses located adjacent to Class II/III railroads in rural Oklahoma. The SIDE Credit program also provides a 10% tax credit incentive for the companies that expand or locate adjacent to a Class II/III railroads in rural Oklahoma. The SIDE Credit can be claimed or assigned to a customer or project finance partner that is an Oklahoma state income taxpayer. The SIDE Credit creates a potential $12 million in annual funding for rail-related economic development projects beginning in 2023 and is initially available for a five-year period. The Oklahoma Department of Commerce will administer the program and to submit an application for tax credits an eligible project must be sponsored by a Class II/III railroad, port, or local economic development entity.
Click here to read more on Oklahoma House Bill 3081: http://webserver1.lsb.state.ok.us/cf_pdf/2021-22%20ENR/hB/HB3081%20ENR.PDF
This successful effort was supported by the Class II/III railroads in Oklahoma and a number of economic development groups. A special thank you goes to WATCO (Laura McNichol/Spencer Guinn) for spearheading this legislation and to Ryan Pidde who played a critical role supporting them in this effort.
Please call or email with any questions.
Mickelson & Company, LLC
101 N Main Ave Ste 210
Sioux Falls, SD 57104