Energy Stabilization Fund Legislation Headed to Governor

OKLAHOMA CITY (May 28, 2010) — A bill that would remove volatility of state gross production tax collections and help stabilize state budgeting over the long-term passed the House today.

House Bill 3032, by House Speaker Chris Benge, creates a state energy stabilization fund that aims to reduce the impact energy price volatility has on state revenue collections.

The legislation creates an automatic collection of any gross production taxes above a simple three-year average for deposit into the fund. In years when gross production taxes collected fall below the three-year average, the fund will automatically deposit the difference into the state’s general revenue fund to help mitigate budget shortfalls.
The fund will become active in 2015.

"This bill will allow us to capture gross production revenues in high collection years for use in reduced collection years," said Benge, R-Tulsa. "The budget impact of continued energy price volatility would be negated by this fund, which would take out the uncertainty in our budget planning as it relates to gross production revenues."

The bill passed the House and the Senate today and will now go to the governor for final review.

House Speaker Responds to State of the State Address

OKLAHOMA CITY (Feb. 1, 2010) — “As the governor said today, the budget will dominate this legislative session, and we intend to work in a fiscally responsible way to craft a budget that protects vital government services through strategic cuts while finding savings and efficiencies where possible to balance our budget,” said House Speaker Chris Benge, R-Tulsa.

“The governor’s speech lacked many policy initiatives, and I believe that though the budget will heavily influence the decisions we make this year, it doesn’t have to suck the wind out of the whole session. There are many policy positions, like government modernization, education reform, energy security and workers’ compensation reform that will help grow Oklahoma’s economy and create jobs. This will be a difficult session, but we are up to the task and I am confident the steps we take this session will position our state to prosper in the future,” Benge concluded.

Tax Incentive Legislation Passes House Committee

AP story in the Oklahoman

"Legislation to expand tax incentives for energy efficient homes and give tax relief to the victims of the Feb. 10 tornado has cleared a state House committee."

Tax Relief for Tornado Victims, Military Widows and Energy Efficient Homes

OKLAHOMA CITY (April 9, 2009) – Legislation to expand tax incentives for building energy efficient homes and give tax relief to the victims of the Feb. 10 tornado and spouses of fallen servicemen has been passed out of the House Appropriations and Budget Committee.

Senate Bill 481, by state Sen. Todd Lamb and state Rep. Jason Nelson, would expand the existing credit for construction of energy efficient residential property, so that the credit can be used on the construction of property of any size beginning Jan. 1, 2010. Currently, the eligible residential properties are limited to 2,000 square feet.

The bill would also give tornado victims an income tax credit for tax years after Dec. 31, 2009 and a credit for registration fees and the excise tax for any vehicle purchased to replace a vehicle destroyed by the Feb. 10 tornado.

Larger residential properties stand to gain the most from energy efficiency, Nelson said.

“Large buildings consume the most energy and therefore it is common sense to include them as eligible for this tax incentive,” Nelson said. “My legislation would save builders a total of $2.4 million, allowing them to focus on lowering the energy costs for Oklahomans who purchase their homes.”

Nelson said tornado victims were in need of tax relief and that he was glad they would be supported by his measure also.

“The February 10 tornado was devastating to some Oklahoma families and individuals and I am proud to include tax relief for them in my bill,” Nelson said.

An amendment to the bill also added an income tax exemption for the spouses of fallen servicemen and women.

“These brave men and women have made the ultimate sacrifice for their country,” Nelson said. “Their spouses, who have suffered a great loss, deserve our consideration. My hope is that the legislation will help honor their memories.”

Senate Bill 481 now proceeds to the full House for debate and a vote.