America’s Most Comprehensive Incentive Program

Oklahoma is globally recognized for its outstanding incentive program and pro-business environment. Businesses can choose between a cash incentive or a tax credit package, and in some cases, qualifying businesses can take advantage of both programs.

Quality Jobs Program

This cash-back job creation incentive has moved the State of Oklahoma to the forefront as a location for new manufacturing and service industry investment. The innovative Oklahoma Quality Jobs Program allows qualifying businesses creating quality jobs to receive a special incentive to locate or expand in Oklahoma.

Investment/New Jobs Tax Credit Package

This incentive, primarily targeted at manufacturing companies, allows a five-year tax credit on the greater of 1 percent per year of investment in qualified new depreciable property, or a credit of $500 per new job. These incentives double to 2 percent of new investment, or $1,000 per new job, if investment is greater than $40 million or in an enterprise zone.

Quality Jobs + Investment Tax Credits

These incentives target manufacturing industries that have a large capital investment of at least $40 million in addition to creating new jobs that pay more than the state’s average wage. The incentives also allow a five-year tax credit on the greater of 2 percent per year of investment in qualified new depreciable property, or a credit of $1,000 per year per new job.

21st Century Quality Jobs

The 21st Century Quality Jobs Program is an incentive that targets and promotes indisputably high-wage jobs and enables Oklahoma to diversify its economy by developing clusters around knowledge-based service industries.

Small Employer Quality Jobs

The Small Employer Quality Jobs Program provides quarterly incentive payments to a qualifying small employer (90 employees or less). Quarterly payments may be as much as 5% of new taxable payroll for up to 7 years. Qualifying payroll must be attributable to annual salaries that are at least 110% of the average wage of the county in which the jobs are located. Qualifying companies must also attain 75% out of state sales.

Economic Development Pooled Financing

An incentive that targets job creation and infrastructure development by creating a financing mechanism for companies and communities. This financing tool uses withholding taxes and other revenue to satisfy debt service, create jobs and investment, and remain revenue-positive for Oklahoma.

Sales Tax Refunds

This incentive is available on construction materials for certain manufacturers and aircraft maintenance repair facilities, on purchases of computers, data-processing equipment and telecommunication equipment for certain aircraft facilities, and for purchases of computer services and data-processing equipment for qualified computer services or research and development companies.

Customized Employee Training

Oklahoma’s Training for Industry Program (TIP), a CareerTech initiative consistently ranked as one of the nation’s leading workforce training efforts, is a no-cost/low-cost way for new or growing companies that create jobs to get a skilled, focused and motivated workforce. Customized to meet your needs for training, assessment, supplies, instructional materials and more.

Five-Year Ad Valorem Tax Exemption

This incentive is available for manufacturing, research and development, warehouse and distribution, certain computer/data processing services, wind power, refineries, and aircraft repair.

Aerospace Industry Engineer Workforce Tax Credit

Aerospace companies hiring engineers in a variety of fields will receive a tax credit equal to 5 percent of the compensation paid to an engineer until December 31, 2016, or 10 percent if the engineer graduated from an Oklahoma college or university (up to $12,500 per employee per year), plus another credit of up to 50 percent of the tuition reimbursed to an employee until December 31, 2016. Additionally, the engineer hired receives a tax credit of $5,000 per year until December 31, 2016.

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For more information on incentives offered by the Oklahoma Department of Commerce, visit: http://new.okcommerce.gov/smart-move/incentives/

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