Senate’s Vote to Delay the Suspension of Tax Credit

Frustrated by their lack of involvement in budget negotiations, Senate Democrats of Oklahoma City voted to delay the suspension of two tax credit programs that would have saved the state about $23 million.

In a straight party-line vote, minority Democrats opposed putting the tax credit programs on hold. Although the bill passed 26-22, the emergency clause on the measure did not get the two-thirds vote needed for passage delaying the effective date of the bill for three months.

The move could reduce the amount of money the state saves from a moratorium on the two programs as leaders try to plug an estimated $1.2 billion hole in the state budget. Democrats have vowed to oppose any spending plan that does not include funding for senior nutrition and rural programs, a new hospital provider fee and an assessment on insurance claims.

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The tax credits involve certain investments in rural business ventures and investments by qualified small business capital companies. During debate on the bill, some rural Democrats questioned why Republican leaders planned to target tax credits that could help locate businesses in economically depressed sections of the state.

Senate President Pro Tem Glenn Coffee, R-Oklahoma City, said the Democrats' move to delay the suspension of the tax credits could ultimately reduce the amount of revenue available to close the budget gap.