About Commerce

May 2013 Quality Jobs Report

June 4, 2013

OKLAHOMA CITY - The Oklahoma Department of Commerce announced that 1,817 new jobs will be created by two (2) companies enrolled in the Quality Jobs Program (QJP), and one company enrolled in the 21st Century Quality Jobs Program (21st Century). 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

Quality Jobs Program

Company Name Town Town Pop. New Jobs NAICS Code Benefit Rate New or Expanded Max. Benefits
The Boeing CompanyOklahoma City591,9673693364115.0%Expanded$11,016,750
Devon Energy Production Company, LPOklahoma City591,9679892111115.0%Expanded$66,850,483

About the QJP enrollees:

  • Boeing is the world's largest aerospace company; this expansion includes engineering work and jobs relocating from Wichita, KS to Oklahoma City. 
  • Devon is among the nation's leading U.S. based independent gas and oil producers and independent processors of natural gas and natural gas liquids in North America.

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 685 contracts to locating, expanding and start-up businesses. To date, more than $820 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.

Company Name Town Town Pop. New Jobs NAICS Code Benefit Rate New or Expanded Max. Benefits
The Boeing CompanyOklahoma City591,96745933641110.0%Expanded$43,848,190

About the 21st Century enrollee:

  • Boeing is the world's largest aerospace company; this expansion includes engineering work and jobs relocating from Wichita, KS to Oklahoma City. 

What is 21st Century Quality Jobs?

The 21st Century Quality Jobs Program was created in 2009 to attract growth industries and sectors to Oklahoma in the 21st Century through a policy of rewarding businesses with a highly skilled, knowledge-based workforce. The intended purpose of the 21st Century Oklahoma Quality Jobs Program is to promote indisputably impactful high wage jobs without competing with existing incentives. The framework of this program is based on the successful Quality Jobs Program developed in 1993.

The program works to rebate a portion of the newly created Oklahoma payroll to the participant. Qualifying companies in this program that create at least 10 new jobs, which are paid at the rate of 300% of the average county wage where the project is located (or 300% of the average of all Oklahoma county wages, which currently equals $102,300) whichever is lower may qualify for up to 10% of the wages of these new jobs rebated in cash on a quarterly basis. The company has 3 years to create the required 10 new jobs.

During this time, the company may qualify for payments even if it is below the required 10 new jobs, but the net benefit rate may only be up to 7% during that time. The participating company must achieve the required average wage on a quarter-by-quarter basis for the jobs it has created to that point to receive a benefit payment.

For more information on business retention and expansion activities in Oklahoma, visit www.OKcommerce.gov/bre