About Commerce

December 2012 Quality Jobs Report

January 2, 2013

OKLAHOMA CITY - The Oklahoma Department of Commerce announced that 643 new jobs will be created by five (5) companies enrolled in the Quality Jobs Program (QJP) and the one (1) company enrolled in the Small Employer Quality Jobs Program (SEQJP). The information below includes:

  • The number of jobs each company projects it will add
  • The net benefit rate
  • The maximum amount of money the company can receive if it participates in the program for the full 10 years allowed
  • A brief background on the Quality Jobs Program
Company NameTownTown Pop.New JobsNAICS CodeBenefit RateNew or ExpandedMax. Benefits
Summit ESP, LLC Tulsa 391,906 72 333911 5.0% New $2,451,026
Empirical Loss Management, LLC Oklahoma City 591,967 82 524292 5.0% Start Up $2,204,472
Melton Truck Lines, Inc. Tulsa 396,466 105 484230 5.0% Expanded $2,347,808
Centek, Inc. Oklahoma City 591,967 104 333132 5.0% New $2,056,112
Forum US, Inc. Guthrie 10,345 218 333132 5.0% Expansion $3,568,397

About the QJP enrollees:

  • Summit ESP, LLC is a manufacturer of integrated Electric Submersible Pump systems.
  • Empirical Loss Management is an insurance claim administration service for various insurers and reinsurers.
  • Melton Truck Lines, Inc. is a leader in the flatbed industry and operates throughout all 48 contiguous states, Canada and Mexico.
  • Centek, Inc. is a manufacturer of casing centralizers and stop collars to the oil and gas industry.Â
  • Forum US, Inc is a manufacturer of oilfield equipment

The Small Employer Quality Jobs Program

Company NameTownTown Pop.New JobsNAICS CodeBenefit RateNew or ExpandedMax. Benefits
PharmcareOK of Durant, Inc. Durant 16,097 62 424210 4.35% Expanded $571,952

About the SEQJP enrollee:

  • PharmcareOK of Durant is a "closed door" pharmacy, dispensing and delivering pharmacy products and services to nursing homes and other medical facilities

What is the Quality Jobs Program?

The Oklahoma Quality Jobs Program allows qualifying establishments creating new quality jobs to receive an incentive to locate or expand in Oklahoma. Administered by Oklahoma Department

of Commerce, the program provides quarterly cash payments of up to 5 percent of new taxable payroll directly to a qualifying company for up to 10 years.

Since its inception in July 1993, the state has issued more than 650 contracts to locating, expanding and start-up businesses. To date, more than $725 million in performance-based wage rebates has been paid because of the Quality Jobs Program.

The state also benefits from new state personal income tax, sales and other consumption tax receipts as well as multiplier benefits from the added workers. Quality Jobs is a revenue neutral program and is risk-free to the state because without new payroll, companies do not receive rebates.

To qualify, a company must be a central administrative office, manufacturer, research and development, or a listed service company with 75 percent of total sales to out-of-state customers. Most companies must achieve a $2.5 million taxable payroll for any four consecutive quarters during the first 12 quarters in the program. Once the company achieves the threshold, it may remain in the program for the rest of the 10-year period. However, once the threshold is achieved, a company must maintain the $2.5 million payroll for four consecutive calendar quarters on a cumulative basis or it does not qualify for incentive payments until the four consecutive quarters payroll requirement has again been met. All businesses must offer basic health insurance coverage to all employees, and 80 percent of employees must work at least 30 hours per week.

The amount of each company's incentive is determined through a cost-benefit analysis prepared by the Oklahoma Department of Commerce. Costs to the state resulting from in-migration/other grants may decrease the amount of benefit the state receives from a company, thus lowering the incentive payment. Payments cannot exceed 5 percent of payroll and have historically averaged about 4.5 percent.

Companies that receive incentive payments also may be eligible for the five-year ad valorem tax exemption (manufacturing), free industry training program, foreign trade zone and freeport benefits, and other technical/financial assistance programs. Firms cannot utilize the jobs or investment tax credit, sales tax exemptions for construction, and a variety of additional tax credits and exemptions. For more information on business retention and expansion activities in Oklahoma, visit www.OKcommerce.gov/bre.