Committee extends qualified equity investment deduction through 2031 as sponsors cite venture capital growth; fiscal impact questioned

The committee passed House Bill 40 28 to extend the sunset on the qualified equity investment deduction through tax year 2031. Sponsor Senator Hall said the statutory cap has not changed and that the deduction has seen limited utilization in its first five years, but that it coincided with a surge in venture capital investment into Oklahoma companies.

During questioning Minority Leader Kurtz asked about the fiscal impact and how much the deduction has cost the state. The sponsor acknowledged that measurable utilization has been limited and said he had consulted OCAST and the Tax Commission to understand usage. Senator Hall cited an estimate of roughly $300 million in venture capital over recent years and an estimated 2,000 net new jobs attributed to investments related to the program.

Members asked whether taxpayers using the deduction could also claim incentives under other job-creation credits; the sponsor said he believed they could. The committee closed debate and passed the bill by a 16–5 vote.

Committee record: sponsor emphasized the deduction’s role in encouraging local venture capital and higher-paying jobs; opponents asked for clearer data on state revenue impacts and utilization rates. Sponsors committed to follow up with additional fiscal detail.