Oklahoma Lawmakers Approve LEAD Act Incentive Aimed at Landing Major Pryor Factory

Oklahoma lawmakers have approved a rebate program that state leaders say could draw a Fortune 500 company to the state. The House passed House Bill 4455, known as the LEAD Act, on Tuesday, following Senate passage of the measure on Thursday.

Gov. Kevin Stitt welcomed the vote and plans to sign the bill into law on Monday. He thanked legislators who backed the measure on a bipartisan basis and said it positions Oklahoma to compete globally for what he described as the largest economic development project in state history. According to Stitt, the package includes safeguards to protect taxpayers and ensure a return on the investment. He also credited Secretary of Commerce Scott Mueller, Speaker McCall, Pro Tem Treat, Speaker Pro Tem Hilbert and Chairman Thompson, among others.

Stitt had urged lawmakers on Monday to pass what he called "mega legislation" before the end of the week to secure the company, which has not been publicly named. Speculation is that officials are working to attract a Panasonic factory to the MidAmerica Industrial Park in Pryor. The governor's office says the bill is not exactly what he requested but still provides the needed incentive.

The bill creates a rebate program that would cover a company's qualified capital expenditures over five years. It is one piece of the broader effort to bring the plant to Oklahoma. If the state is chosen, the electric vehicle battery factory, valued at more than $3 billion, would be built at the Pryor park.

David Stewart, who leads the MidAmerica Industrial Park, worked closely with lawmakers as they considered the bill. He said the park is unusual because it controls essentially all of its utilities and operates a cost-effective model, giving it some of the lowest utility costs in the nation. He added that its infrastructure is "unparalleled by most competitive industrial parks."

Mayes County is pursuing its own incentive in tandem with the state's. Officials there are trying to create a Tax Increment Finance district covering the land the company wants to buy. Stewart explained that such a district works as a discount on a company's ad valorem tax: the company pays the tax and receives part of it back. He said the arrangement would still add tax revenue for the county, with the county and its school system expected to gain $150 million in the first 12 years.

Stewart said the TIF district goes hand in hand with the state incentives, and noted that the industrial park has other projects under way. He pointed to the recent announcement that Canoo has moved in, calling the company community-friendly and a good complement to the park and future tenants.

The Tulsa Regional Chamber also supported the measure. In a statement, the Chamber said incentives play a significant role in the state's competitiveness for economic development projects and that the LEAD Act would put Oklahoma on a stronger footing with peer states. It said the legislation would help attract major employers, diversify industry and bring high-paying jobs. The Chamber thanked Stitt for championing the bill and the House for its strong passage of the legislation.