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.
This incentive targets manufacturers and certain service industries that have a new payroll investment of $2.5 million or more to receive a quarterly cash payment of up to 5 percent of new taxable payroll. A lower payroll threshold is available for certain food processing and research and development projects, or as a result of locating in targeted areas. Qualifying wage requirements would be the lower of the average county wage or the state index wage. Companies that have 10 percent of their workforce as veterans qualify for a higher 6 percent net benefit rate.
The Small Employer Quality Jobs Program provides incentive payments to a qualifying small employer. The payments may reach as high as 5% of new taxable payroll and last for up to seven years. Qualifying payroll must be attributable to annual salaries that are at least 110% to 125% of the average wage of the county in which the jobs are located.
Oklahoma’s 21st Century Quality Jobs offers incentives to businesses with a highly skilled, knowledge-based workforce. For qualifying companies, this unique incentive would pay businesses cash back, up to 10 percent of payroll, for up to 10 years for the creation of 10 jobs with high average wages typically between $90,000 and $102,000 per year, depending on county.
Targeted primarily to manufacturing companies, this incentive 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.
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 to Oklahoma.
Aerospace companies hiring engineers in a variety of fields will receive tax credit equal to 5 percent of the compensation paid to an engineer until January 1, 2015, and 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 January 1, 2015. Additionally, the engineer hired receives a tax credit of $5,000 per year until January 1, 2015.
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.
This incentive is available for manufacturing, research and development, warehouse and distribution, certain computer/data processing services, wind power, refinery and aircraft repair.
This incentive is available on construction materials for certain manufacturers and aircraft maintenance repair facilities, on purchases of computers, data processing equipment, 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.
Consistently ranked as one of the nation's leading workforce training efforts, Oklahoma's Training for Industry Program (TIP), a CareerTech initiative, 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.
The New Markets Tax Credit Program encourages private sector investments for New Market businesses located in qualifying census tracts.