/>iSports fans rejoice! Multiple states have passed tax incentives to help their local sports teams. If you are a sports fan in Oklahoma or Maine, you should check out these new tax incentives.
Under Oklahoma H.B. 3959, also known as the Oklahoma Five Major Sports Leagues Rebate Program Act, Oklahoma will provide tax incentives to qualifying professional sports teams for certain payroll costs. Effective November 1, 2024, the newly signed law allows NFL, NBA, NHL, MLB and MLS teams located in Oklahoma, which currently includes only the Oklahoma City Thunder of the NBA, to receive quarterly rebate payments for up to 5% of actual gross payroll for league-related jobs. This law is intended to bring more professional sports teams to Oklahoma and to support the Thunder.
Qualifying professional sports teams must apply for payroll rebates with the Oklahoma Department of Commerce and must invest at least $10 million in new payroll within a year. These payroll rebates are capped at $10 million per year per team and can be clawed back if a team relocates outside of Oklahoma.
Maine enacted a similar refundable income tax credit to keep the Portland Sea Dogs minor league baseball team inside the state in response to the MLB’s 2025 deadline for minor league stadium upgrades. Some teams around the country have already announced relocation plans in response to the deadline and absence of public funding for stadium upgrades. Maine L.D. 2258 provides a refundable income tax credit equal to 1.33% of a certified minor league baseball team’s qualified investment in a stadium for 14 consecutive years, with a maximum credit of $133,000 annually. The Portland Sea Dogs are the only minor league baseball team located in Maine.
The Maine credits are payable once the team has spent $1 million towards qualifying stadium renovations and applied for a Certificate of Completion from the state. The Portland Sea Dogs will be required to file annual reports to the state indicating certain investment, job creation and wage information. These credits can also be clawed back if the stadium is not used for at least 5 years following the issuance of the investment.
