"That's what we are all about here: shining light on these issues and finding solutions that are fair to everyone, beginning with the individual taxpayers who ultimately foot the bill," he said.

The task force has met three times and examined two more tax credits Wednesday: an investment and new jobs tax credit, which costs the state an estimated $28.4 million annually; and the Oklahoma Quality Jobs Program, which costs the state about $61 million each year, according to a legislative analysis.

Dank and other members of the task force praised the Quality Jobs Program as an example of an incentive program with strict oversight and transparency that should be used as a template for others.

Under the program, the Department of Commerce reviews applications, conducts due diligence and approves contracts, while the Oklahoma Tax Commission is charged with processing claims and conducting audits, said program manager Richard Schwalbach.

In fiscal year 2010, 23 companies enrolled in the program with a projected labor force of 4,580 jobs, Schwalbach said.

Participants can qualify for a 5 percent cash rebate on new taxable payroll that reaches $2.5 million annually. The companies must offer their employees basic health insurance, and the qualifying jobs must average the county wage or $29,745 annually, whichever is lower.

The other tax credit analyzed by the task force, the investment and new jobs tax credit, allows an income tax credit for an investment in depreciable property used in a manufacturing facility or for a net increase in qualifying jobs.

Nearly 900 companies qualify for the credit for an annual cost of $28 million, according to a legislative analysis.

The incentive was temporarily suspended last year as lawmakers grappled with a major budget shortfall, but companies could still accrue credits and will be eligible for payment in 2012, said Oklahoma Tax Commissioner Dawn Cash.

In 2009, the most recent year for which figures are available, companies still were eligible for more than $120 million in tax credits, Cash said.

Created in 1980 as an incentive for manufacturing companies, companies initially had 20 years to claim the tax credits or they expired, but lawmakers extended that in 2000, Cash said.

"Today, there is no limit on how long you can carry forward," she said. "You can carry forward forever, and that's been the law since 2000."

The open-ended time for companies to claim the credits and the lack of strict oversight raised the concerns of several members on the task force.

"Unless we have a true accounting of what's been authorized … we have no way of knowing what the exposure is to the state of Oklahoma," said State Auditor and Inspector Gary Jones.

Dank said he's especially troubled by tax credits that have no caps and few controls.

"They're a lot like poker chips — they aren't worth anything until they are redeemed, and the state really has no way to project how many will be cashed in at any given time," Dank said. "That seems like a shaky and reckless way to maintain a budget."

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