Altus Venture $126 million View
Scissortail $90 million View
Foxborough $300 million View
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Venture capital (also known as VC or Venture) is a type of private equity capital typically provided to early-stage, high-potential, growth companies where the rewards are years out and carry a high risk. Venture capital is a special kind of funding to create a foundation for building the businesses that will replace today's diminishing industry and jobs. Oklahoma's venture tax credit program was intended to incentivize that venture capital funding needed by rewarding investors tax credits worth 20 to 30% of their at risk investment. |
Here we illustrate questionable relationships between some state officials and those benefiting for the Tax Credit Abuse Sham.
Calvey, R-Del City, as chairman of the House Revenue and Taxation Committee, was a key player in shaping the subject tax credit legislation. [Ref A102]
Paul Doughty is president of First State Bank of Altus and president of Oklahoma Industrial Venture Management Co., a limited liability company that profits from putting tax credit deals together and managing their investments. [Ref A104]
Paul Doughty had told wealthy investors they can obtain $2 in state tax credits for every $1 invested (actually $3 for $1 since they keep the investment, and the $2 is all incentive) to help finance a new Altus aircraft manufacturer. [Ref A111][Ref A102]
Shortly before State Rep. Kevin Calvey, was starting work on a Senate bill "to fix the loophole," Mr. Calvey received $21,600 in donations from an Altus group that is heavily involved in abusing this tax credit program. The Altus group includes Paul Doughty, several business associates and businesses. Altus is not in Calveys House or congressional district. [Ref A102] [Ref A104]
Between Mr. Calvey receiving the donations and work was to start on the bill, Mr. Paul Doughty and Mr. Calvey discussed loophole and fixes. [Ref A104]
The donations at issue.
| Paul Doughty | President of First State Bank of Altus and President Oklahoma Industrial Venture Management Co. |
$14,700 | [Ref A104] |
| Jane Doughty | Wife of Paul Doughty | $10,500 | [Ref A104] |
| F. Don Anderson | Vice presidents of Altus Venture | $10,500 | [Ref A104] |
| Lee Doughty | First State Bank of Altus | $1,500 | [Ref A104] |
| Larry McLaughlin | First State Bank of Altus | $1,500 | [Ref A104] |
| Robert O. McDonald | Chief executive Capital West Securities |
$250 | [Ref A104] |
Calvey states he was relying on the Tax Commission to determine what was best for the state. [Ref A104]
and the Tax Commission is only to execute the laws.Rep. Fred Perry, R-Tulsa, coauthored one of the tax credit bills. He said he did not realize at the time that Great Plains would be allowed to sell $27 million in tax credits for nearly $23 million in cash. [A109]
The airline filed for Chapter 11 bankruptcy protection in January, citing "heavy debt" and a lengthy repair schedule for its aircraft. [A109]
"When I voted for the bill, my understanding was there wouldn't be any assistance until Great Plains made a profit," Perry said. "The whole idea of an income tax credit is when you have a profit and are in a position to pay income tax, then you get a credit for that from the state. That's what I thought I was voting for." [A109]
Lobbyist Margaret Erling, who represented Great Plains to the legislators, however, said the language in the tax bills was clear. [A109]
"The purpose of tax credits like this is for them to be resold. The state has issued tax credits for a lot of entities, including Goodyear and others, through the years," Erling said. "I do not feel there was any deception. These tax credits were overwhelming approved by the legislature in two sessions and were both signed by Gov. Keating."
Owl: The lawmaker that coauthored the bill is corrected by the lobbyist?
Rep. Darrell Gilbert, D-Tulsa, coauthored the second round of state assistance, which gave the company $9 million in tax credits. Great Plains sold the credits to Bank of Oklahoma for $7.7 million in cash. Gilbert said he was clear on how Great Plains would use the money. [A109]
| Reference Articles | |||
| Reference | Click to view | Article | |
| A102 | view |
Calvey gets big donations from venture capitalists April 20, 2006 Guthrie News Leader |
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| A104 | view |
Beneficiaries contributed to lawmaker, April 21, 2006 The Oklahoman, By Randy Ellis, Contributing Nolan Clay |
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| A109 | view |
Great expectations Plains disappointment Daily Oklahoman, June 20, 2004 By Adam Wilmoth, Business Writer |
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| A111 | view |
Tax credits may cost state millions, April 17, 2006 The Oklahoman, By Randy Ellis |
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