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. |
The most compelling evidence the loopholes (and loopholes is the operative phrase) were not closed is found in reading the law and amendments. But, the law was disguised in a way to make that task difficult and time consuming. Although changes to the law did occur, those changes in fact widened the loopholes. More money has been lost to abuses since the so called "closing of the loophole, than was lost before the governor and state lawmakers acted "to fail to close" the loophole. Two cases in point are:
1. Tax credit letter causes public outcry $300 million more in abuses.
2. Oklahoma Tax Commission defies the law $330 million more in abuses.
The second case reveals what was allowed to occur in the name of the "grandfather clause" provided to allow funds that were in receipt of "determination letters" before the amendment was passed to complete those investment. What occurred was a rush to get new funds in under the old law and/or to expand the fund plans. This resulted in the tax commission essentially issuing 20 plus pre-signed blank opened end checks.