Location or Expansion

Incentives

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.

"Our company will save $1 million per year in taxes by putting our plant in Oklahoma instead of Texas. The property tax rate is significantly higher in Texas, and the company was given a range of tax incentives to come to Oklahoma."
- Roger O'Shaughnessy
President & CEO, Cardinal Glass

Quality Jobs Program

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.

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Small Employer Quality Jobs Program

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.

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21st Century Quality Jobs

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 ten years for the creation of 10 jobs with high average wage of $94,000 annually or higher, depending on county.

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Investment/New Jobs Tax Credit Package

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.

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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 to Oklahoma.

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Aerospace Engineer Workforce Tax Credit

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.

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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.

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Incentives Maps

View and explore interactive maps related to Oklahoma's incentive programs.

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For a customized incentive analysis based on your specific business plan, contact us today!
Call (405) 815-5123 (In state), 1-800-588-5959 (Domestic) or 00+1+405-815-5187 (International).

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 higher 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.

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  • Job creation requirements similar to present QJ program except that the wages must be greater than the state's average wage – presently $41,663 - which changes every year at the same time that average county wages change in the Quality Jobs program.
  • Capital investment greater than $40 million, which is similar to present ITC requirements and qualifies the investment for a 2% tax credit per year for 5 years or a credit of $1000 per year per new job.
  • With the ability to take both QJ and ITC incentives, the NBR of the QJ portion is equal to the calculated NBR. There are no automatic 5% areas.
  • Companies could not exceed the 5% NBR if they pay wages greater than the normal 5% NBR wage.
  • QJ+ITC may not be combined with Small Quality Jobs or 21st Century QJ.
  • Industries that may qualify for the incentive are only those industries that presently qualify for ITC (that is manufacturing industries).

Five-Year Ad Valorem Tax Exemption

This incentive is available for manufacturing, research and development, warehouse and distribution, certain computer/data processing services, wind power, refinery and aircraft repair.

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, 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

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.

New Market Tax Credit Program

The New Markets Tax Credit Program encourages private sector investments for New Market businesses located in qualifying census tracts.


Disclaimer
The materials contained on this website have been prepared by the Oklahoma Department of Commerce for informational purposes only and do not constitute legal or tax advice. This information is subject to change based on judicial interpretation and legislative action. The application of the information is subject to your unique facts and circumstances. YOU SHOULD NOT ACT UPON ANY INFORMATION CONTAINED IN THESE MATERIALS WITHOUT SEEKING YOUR OWN PROFESSIONAL LEGAL AND TAX ADVICE.