In a shocking move while burning the midnight oil prior to sine die adjournment, the Oklahoma House of Representatives suspended the rules late Thursday night and introduced an untimely filed amendment to Senate Bill 1577 which aims to cap the at-risk oil and gas well tax credit at $12.5 million annually for calendar years 2015-2020.
The bill’s co-author, House Speaker Jeff Hickman, found himself in the midst of a heated bipartisan debate earlier in the morning as legislators struggled with the issue of eliminating the gross production tax exemption while balancing the state’s budgetary considerations.
SB 1577 was filed on May 2 in order to address a tax rebate program that was originally created in 2005 which assisted operators of distressed oil and gas wells during times of economic distress. As the oil and gas industry experienced a significant bust, the rebate payments soared over $130 million annually.
On Thursday morning, Rep. Pat Ownbey filed an amendment to SB 1577 seeking to cap the tax credit at $25 million annually. After Ownbey’s amendment successfully passed by a vote of 62-31, Speaker Hickman abruptly announced that the bill would be laid over for the rest of the year; however, as the day faded and the Capitol halls emptied, legislators quietly continued to hammer out a compromise.
Speaker Hickman’s amendment was filed Thursday night after 9:30 p.m. The legislators immediately passed the new amendment by a vote of 93-2.
The bill must return to the Senate for consideration since it was amended in the House.
