Oklahoma treasurer makes another run at using investment to influence public companies

In a move that could reshape Oklahoma’s business climate, state Treasurer James “Jim” Halliday unveiled a fresh proposal to overhaul the state’s corporate policy framework on Thursday. The new initiative, a bill that would give corporations more flexibility in how they allocate charitable contributions and revise certain tax‑credit provisions, is the Treasurer’s third attempt in the last two years to push for reforms he argues are essential for boosting economic growth and attracting out‑of‑state investment.

The Core of the Proposal

At the center of Halliday’s latest effort is a push to expand the “Corporate Charitable Match” credit—currently capped at 5% of a company’s net income—by raising the ceiling to 10% and permitting corporations to use non‑cash donations (such as equipment or volunteer hours) as a qualifying expense. The bill would also eliminate a mandatory “tax‑on‑tax” surcharge that has been criticized for disproportionately affecting multinational firms headquartered in Oklahoma.

According to Halliday’s press release, “the policy changes we are proposing will lower the cost of doing business, incentivize community engagement, and streamline the state’s tax code to make Oklahoma a more attractive destination for corporations that want to invest and grow.” Halliday added that the changes would be funded through a modest increase in the state’s corporate franchise tax, which he argued would offset any revenue loss from the expanded credits.

Background and Previous Attempts

Halliday first introduced a similar measure in the Oklahoma House of Representatives in 2023 under House Bill 212, but the proposal stalled in the Taxation Committee after a last‑minute amendment increased the tax‑on‑tax surcharge by 2 percentage points. The amendment was opposed by the Oklahoma Association of Manufacturers (OAM) and the Oklahoma Chamber of Commerce (OCC), both of which released statements citing concerns about “unnecessary fiscal burdens on businesses.”

The Treasurer’s most recent initiative was announced in an op‑ed published in the Oklahoma City News last month, in which Halliday outlined a “balanced approach” that would both reduce corporate tax rates and increase the state's philanthropic incentives. The op‑ed drew a mixed response from local business leaders, with some praising the move as “forward‑thinking” and others warning that the changes could lead to a “race to the bottom” in corporate tax policy.

Legislative Process and Stakeholder Reactions

Halliday’s new bill—currently designated House Bill 451—was filed with the Oklahoma Legislative Information System on August 20, where it has been assigned to the House Commerce & Labor Committee for initial review. According to the bill’s summary on the legislature’s website, the proposal includes a “revenue-neutral” provision that caps the total tax credit payout at the additional franchise tax revenue generated.

While the House Commerce & Labor Committee has expressed openness to reviewing the bill, the Senate Finance Committee, which is slated to weigh the proposal in the coming weeks, is expected to bring a more skeptical perspective. “We will need to see a comprehensive cost‑benefit analysis that demonstrates the net benefit to the state’s economy,” a senior finance committee member told the Tulsa World in an interview. “The business community’s voice is critical, and we have to make sure that any policy change does not inadvertently harm our economic competitiveness.”

The Oklahoma Chamber of Commerce has been vocally opposed to the new proposal. In a letter to the House Speaker, the OCC’s CEO, Maria Hernandez, wrote, “Expanding corporate tax credits at the expense of a stable and predictable tax base could erode investor confidence. We urge the legislature to explore alternative incentives that do not compromise fiscal sustainability.”

In contrast, the Oklahoma Association of Non‑Profit Organizations (OANO) has lauded Halliday’s emphasis on charitable contributions. “The proposed changes would empower businesses to make a greater impact on local communities,” said OANO President David K. Li. “We welcome the Treasurer’s efforts to align corporate responsibility with fiscal policy.”

Broader Political Context

Halliday’s initiative comes amid a broader national conversation about the role of corporate tax policy in stimulating economic growth. In neighboring Texas, a similar bill that lowered corporate tax rates by 2 percentage points was enacted last year, resulting in a 5% uptick in new business registrations. Halliday has cited the Texas example as a “case study” for Oklahoma, arguing that a more business‑friendly environment could help attract high‑tech firms and manufacturing ventures that have been relocating to the state.

The Treasurer’s push also carries political undertones, as Halliday, a Republican with a long tenure on the state’s board of trustees, is reportedly eyeing a statewide office in the 2026 election cycle. “This is not just about fiscal policy; it’s about setting a vision for Oklahoma’s future,” Halliday told reporters at the press conference. “We need to position Oklahoma as a leader in responsible corporate citizenship while maintaining a robust, competitive economy.”

Looking Ahead

House Bill 451 remains in the early stages of the legislative process. The House Commerce & Labor Committee is scheduled to hold a hearing on September 12, where Halliday will present a detailed economic impact study prepared by the Oklahoma Tax Research Center. The Senate Finance Committee will likely hold its own hearing on the bill in late September, before the legislature’s regular session concludes on October 5.

Stakeholders across the political spectrum will be watching closely. If passed, the new corporate policy could alter the landscape for Oklahoma’s business community, shifting the balance between tax incentives, charitable engagement, and economic growth. Whether Halliday’s latest attempt will succeed—given the mixed reactions and the highly contested nature of tax policy—remains to be seen. For now, the Treasurer’s bid adds another chapter to an ongoing debate that will shape the state’s economic future for years to come.

Read the Full The Oklahoman Article at:
[ https://www.oklahoman.com/story/news/politics/2025/08/24/oklahoma-treasurer-makes-another-attempt-to-change-corporate-policies/85777367007/ ]

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Oklahoma treasurer makes another run at using investment to influence public companies

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