Tax breaks for Oklahoma’s coal industry will remain in place following a recent meeting of the Oklahoma Incentive Evaluation Commission.
Members voted against repealing the breaks for both the production and purchase of Oklahoma coal, despite a report that showed the credits cost the state $4.4 million.
Randall Bauer with PFM Consulting told the commission, “It’s not clear that this credit is going away is going to make the industry go away.”
But Commission member Steve Burrage, who is also chairman of the State Tax Commission defended the credits.
“Let’s not put another nail in the coffin of rural Oklahoma,” he argued. “This benefit to that part of the state is tremendous.”
The state’s coal mining is in eastern Oklahoma near Hartshorne, Stigler and Okmulgee.
“It’s not going to create any new jobs but I do think it’s a factor in maintaining some of the jobs that are there,” said Carlos Johnson, Vice Chairman of the Commission.
By a vote of 2-2, a motion to repeal the credits failed.
