Rep. David Dank wants to stop Oklahoma companies from selling tax credits to ...

12.11.09

Rep. David Dank, R-Oklahoma City, said at last week’s job force meeting the state is losing money due to the bring out-ended and non-reporting practices of the program. Under the state’s transferable tax upon statute, a company that receives the credit may turn around and sell down the river the credit to receive up-front cash. In most cases, the company sells the tribute for a discount. But the purchasing company, usually a bank or insurance players, can use its share of the tax credit as it sees fit, which according to Dank may be selling the praise to another company, or writing off the company’s tax liability.

“Transferable tax credits are strange to me,” Dank said. “A company not having anything to do with (the work the tax credit is aimed at) can get money through the tax credit.”

One example is Rockeplane Universal, which in 2003 was awarded an $18 million tax credit from the articulate. The company, designed to launch space tourism flights from Oklahoma, sold the trust to a bank and received $15 million in up-front cash for the buy. But the bank then had an $18 million credit to spend at its will.

Source: Oklahoma Gazette