Stitt vetoes bill to cut housing tax credit
Gov. Kevin St it ton Monday vetoed legislation that would cut in half an affordable housing tax credit offered to developers.
Stitt vetoed House Bill 2760, which sought to reduce f rom $ 4 million to $2 million the amount of Oklahoma Affordable Housing Tax Credits offered annually by the state.
In his veto message, Stitt said his office has received numerous calls and emails from Oklahomans who were concerned about the bill's effect. Because the effective date of the legislation is retro active, it could negatively affect projects currently under contract for this year, he wrote.
Some local developers told The Oklahoman the legislation could jeopardize projects already in the works because it would apply when the Oklahoma Housing Finance Agency begins to consider its first round of projects for this year at a meeting later this month.
“I support and advocate for comprehensive tax policy reform in our State,” Stitt wrote. “We must have a larger conversation about overhauling Oklahoma' s tax policy toward diversification and long- term sustainability. However, during an economic downturn, we should not single out winners and lose rs, but tackle broad and meaningful reform.”
Proponents of the legislation pointed to a 2018 Incentive Evaluation Commission report that warned the tax credits, when fully realized, would have a negative state impact of $106.1 million over 10 years.
The state has offered the tax credit for eligible projects beginning in 2015. By 2024, the state is expected to forego $40 million in annual revenue due to the tax credit, according to the report from the Incentive Evaluation Commission.
Legislators indicated they may return to the state Capitol on Friday to try to override some of the governor's vetoes. HB 2760 came down to close votes in both chambers, which could make it harder for legislators to undo Stitt's veto.