Rep. Cole Says Tax Provisions Beneficial for Oklahoma
November 16, 2005
WASHINGTON, D.C. -Congressman Cole announced today that two provisions included in the tax portion of the budget reconciliation bill (HR 4297) will be especially advantageous to Oklahomans. The first provision is an extension of the Indian Employment Tax Credit from Dec. 31, 2005 until Dec. 31, 2006. The second provision is an extension of the accelerated depreciation for business property on Indian Reservations from Dec. 31, 2005 until Dec. 31, 2006.
"I am very pleased that the Ways and Means Committee included these two provisions in the tax reconciliation bill. The provisions will extend tax incentives for businesses that locate or expand on former Indian lands and provide a tax credit for businesses that hire Native Americans and their spouses," Congressman Cole said. "The extension of these two provisions will continue to encourage economic growth in our state and create new jobs for all Oklahomans."
"The accelerated depreciation tax advantage in 168(j) is especially important to Oklahoma. It provides a tax incentive for any business that moves into Indian country, whether it is owned by Native Americans or not," Congressman Cole said. Almost three-fourths of the land in Oklahoma is eligible for the accelerated depreciation advantage, making this provision worth hundreds of millions of dollars for Oklahoma businesses."
These two sections were amended in 1997 to include Oklahoma Indian country by former Congressman Wes Watkins. The Indian Employment Tax Credit in section 45(a) provides a 20 percent tax credit to employers who hire Native Americans and their spouses. The 168(j) provision allows businesses that locate on former Indian lands to depreciate their assets 40 percent faster than normal. Without an extension, both of these provisions will expire at the end of the year.
"This provision has proven to be a strong economic development incentive for our state. I was happy to work to see that this important tax provision was extended, "Congressman Sullivan said.
The tax reconciliation legislation passed in the Ways and Means Committee last night and is expected to be debated on the House floor later this week.