HB 2402 Summary

• Establishes the Oklahoma Advanced Manufacturing Incentive Act of 2025 to attract manufacturers of low-grade waste heat electrification technology through tax abatements and direct grants.

• Provides two-tier corporate income tax abatements: Tier 1 offers 30% abatement for 5 years for $10 million+ investments with 50+ jobs created; Tier 2 offers 50% abatement for 5 years for $20 million+ investments with 100+ jobs created; both tiers are renewable for an additional 5 years.

• Authorizes Oklahoma Department of Commerce to administer a direct grant program capped at $20 million over 5 years, prioritizing facilities in federal New Markets Tax Credit areas or existing manufacturing hubs and projects benefiting Oklahoma's energy sector.

• Requires eligible manufacturers to establish new Oklahoma operations producing low-grade waste heat electrification technology (recovering waste heat below 200°C/400°F with advanced heat exchangers) and submit applications with business plans and investment commitments.

• Mandates annual reporting by recipients on investments and jobs created, requires Department of Commerce to develop workforce training programs in collaboration with educational institutions, and sets a July 1, 2030 expiration date.