Fed tax incentives attract developers

Journal Record, The (Oklahoma City), Oct 11, 1996

OKLAHOMA CITY (AP) -- Tax incentives in a 3-year-old federal law are attracting interest among economic developers in Oklahoma and should be pursued further, Gov. Frank Keating said Thursday.

"I'm very interested in pursuing it," Keating said.

A provision of the federal Revenue Reconciliation Act of 1993 offers tax credits to businesses that locate on Indian reservations between 1994 and 2003. A 1974 law says the term "Indian reservations" also includes former Indian reservations in Oklahoma. Authorities say that definition includes most of Oklahoma since the state was once reservation land for various tribes relocated to the state. The tax law provides credits for salary increases or health insurance costs given employees or their spouses who are enrolled members of an Indian tribe. The tax incentives also allow a business on Indian lands to write off its "depreciable fixed assets" at a faster rate, according to business officials. An Ardmore accountant, James Chambers, has said the tax law could lead to hundreds of thousands of dollars in refunds to Oklahoma businesses. "If the taxpayers can be reimbursed, they should be reimbursed," Keating said during a state Capitol news conference. Developer Wes Stucky presented the law and an interpretation of it to economic development leaders at the Governor's Economic Development Team in Tulsa on Wednesday. Chambers said that the law could give Oklahoma tax incentives to entice businesses to relocate to the Sooner state that would be an economic edge over other states.