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