Incentives

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

Oklahoma’s successful Quality Jobs incentive program promotes job growth and helps improve your company’s bottom line by injecting cash back into your business as you expand and create new jobs in Oklahoma. The Quality Jobs program provides a cash rebate to companies that create well-paying jobs and promote economic development.

Investment/New Jobs Tax Credit Package

This package provides growing manufacturers a significant tax credit based on either an investment in depreciable property or on the addition of full-time-equivalent employees engaged in manufacturing, processing, or aircraft maintenance.

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.

Business Expansion Incentive Program

This incentive targets business expansion projects which include job creation and significant investment in facilities, machinery, and equipment.

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.

Aerospace Industry Engineer Workforce Tax Credit

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

American Indian Lands Tax Credit

Two-thirds of Oklahoma, because of its unique Native American heritage, qualifies for special federal tax treatment. Businesses locating or expanding in these areas benefit by accelerated depreciation of investment and by employment tax credits when employing tribal members or their spouses.

Manufacturing Sales Tax Exemptions

Oklahoma has a comprehensive sales tax exemption for manufacturers who qualify for and obtain a Manufacturer’s Sales Tax Exemption Permit (MSEP).

The exemptions cover purchases of machinery and equipment, energy and tangible personal property used in design, development and the manufacturing operation at the manufacturing site.

Five-Year Ad Valorem Tax Exemption

A qualifying manufacturing company can abate ad valorem taxes upon new, expanded or acquired manufacturing facilities and equipment for a period of five years. This incentive is available for manufacturing, research and development, warehouse and distribution, certain computer/data processing services, refinery and aircraft repair.

Freeport Inventory Benefits

Exempts from taxation goods, wares and merchandise that come from outside the state and leave the state within nine months if such goods, wares and merchandise are held for assembly, storage, manufacturing, processing or fabricating purposes within the state.

 

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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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