INCENTIVES

The state of Oklahoma promotes the creation of quality jobs for its residents. Employers who meet specific criteria may be rewarded for contributing to this goal to capitalize on the trained workforce and improve the quality of life for Oklahoma residents by increasing median wages. Significant business incentives applicable across the state of Oklahoma include the following:

The Oklahoma Quality Jobs Program
This incentive program provides quarterly cash payments of up to 5% of newly created gross taxable payroll to a qualifying company. Payments are made quarterly for three years. If thresholds are achieved, they may extend for an additional seven years.

Incentive Criteria, Thresholds, and Requirements:

• Cash payments of up to 5% of new payroll for up to 10 years Must Average County Wage of $44,173 in Pottawatomie County Must achieve a $2.5M annual payroll within three years Rebate opportunity available if 10% of new payroll includes qualified veterans
• Must offer basic health insurance
• Target Industries: Manufacturing and R&D, including wind power manufacturing, corporate services, and data centers

Small Employer Quality Jobs Incentive Act
This cash program provides incentive payments to a qualifying small employer. The incentive payments may reach 5% of the new taxable payroll and last up to seven years.

Incentive Criteria, Thresholds, and Requirements:

• Cash payments of up to 5% of new payroll for up to seven years
• Qualifying payroll must be attributable to average county wages that are at least $48,590 in Pottawatomie County
• No more than 500 employees at the time of application
• Must offer basic health insurance
• Some out-of-state sales requirements apply; check the total incentives and Tax Guide below for more details
• Target Industries: Manufacturing, research and development, corporate services, communication services, medical testing laboratories, and data processing services

21st Century Quality Jobs Incentive Act

The intended purpose of this program is to promote impactful, high-wage jobs without competing against existing incentives. To help accomplish this, an enhanced list of qualifying industries has been added beyond those eligible for the Quality Jobs Program. Qualifying companies may be eligible for up to twice the net benefit rate of the Quality Jobs program or 10% of the taxable payroll of these new jobs to be paid in cash quarterly. The program lasts for up to 10 years.

Incentive Criteria, Thresholds, and Requirements:

• Allows a net benefit rate of up to 10% of payroll for up to 10 years
• Requires at least ten full-time jobs at an average county wages of $136,095.
• Out-of-state sales must be at least 50%
• Target Industries: Knowledge-based service industries, including professional, scientific, and technical services; music, film, and performing arts; and specialty hospitals

Ad Valorem Tax Exemptions:

New and expanding qualifying manufacturers, research and development companies, certain computer services and data processing companies with significant out-of-state sales, and aircraft repair and distribution companies may be eligible for ad valorem exemptions for up to five years.

Exempt Inventory:

Oklahoma’s Freeport Law exempts goods, wares, and merchandise from taxation outside the state. It leaves within nine months, where such goods, wares, and inventory are held within the state for assembly, storage, manufacturing, processing, or fabricating purposes.

Employee Training for Industry:

The Oklahoma Department of Career and Technology Education (Career Tech) assists qualifying businesses by paying for training for employees in newly created jobs. Training can be done at one of 29 Technology Centers on 60 campuses, including the Gordon Cooper Technology Center in Shawnee or the company’s facility. Training agreements include instructor costs. Program services are determined by the number of new jobs created in targeted industries, wage rates, and benefits provided.