This cash-back job creation incentive has moved the State of Oklahoma to the forefront as a location for new manufacturing and service industry investment. The innovative Oklahoma Quality Jobs Program allows qualifying businesses creating new, quality jobs to receive a special incentive to locate or expand in Oklahoma.
No-cost Incentives Analysis
Contact an Oklahoma Quality Jobs representative to request a preliminary cost-benefit analysis before you apply. This analysis estimates the payments a project may be eligible to obtain.
Download and complete the application and worksheet in Excel.
Technical assistance regarding program concepts, eligible companies, application guidelines and other information pertaining to the Quality Jobs Program is available upon request and encouraged.
Call (405) 815-5123 (In state), 1-800-588-5959 (Domestic) or 00+1+405-815-5187 (International).
Guidelines and Documentation
Geographic information related to incentives are also available as interactive maps.
Frequently Asked Questions
- What services are provided to my company by the Oklahoma Department of Commerce during the application and approval processes free of charge?
Face-to-Face Assistance specific to manufacturers and service companies
Incentive Analysis to determine qualifying state and federal incentives
Representation during the approval process
- What amount of the quarterly rebate payments does my company get to keep?
All of it, except for a one-time Origination Fee of $1,000. By working with the Oklahoma Department of Commerce (ODOC), all services rendered during the application and approval process are free of charge. Once an application has been approved and a contract between your company and ODOC is finalized, the Origination Fee of $1,000 will be deducted from the first incentive payment.
- How often does my company need to provide information to claim the rebate payment, once my company is enrolled in the program?
Once per calendar quarter, your company will provide information to the Oklahoma Tax Commission.
- Is the quarterly claims process difficult to complete?
No. Each calendar quarter your company will need to complete a simple, one-page form indicating the number of qualifying employees your company had in Oklahoma each month of the quarter, and the amount of payroll paid to those employees each month. This information is the same information reported on your OES-3 reports to the Oklahoma Employment Securities Commission. Even if your company uses a consultant, you will still have to generate the payroll data to complete the claim form.
- If my company doesn't achieve the program requirements, does the money claimed need to be paid back to the Oklahoma Tax Commission?
Only if your company ceases operating in Oklahoma within the first three years after enrolling in the program must the money claimed be returned.
- How long does it typically take to complete the application and approval process?
The application process involves your company providing the 4-page application and supporting documentation. The length of time required is determined by how quickly this information can be provided to the Oklahoma Department of Commerce. The approval process typically takes a few weeks, following the application process.
The program provides quarterly cash payments of up to 5% of new taxable payroll directly to a qualifying company, for up to ten years.
To qualify, a company must be a central administrative office, manufacturer, researcher and developer or engaged in an industry NAICS code listed below. Service companies must prove 75% out-of-state sales to qualify. A company must achieve $2.5 million in new taxable payroll for any four consecutive quarters during the first 12 quarters in the program and have an average wage equal to or above the average county wage in which the company is locating or expanding. Presently, wage requirements do not exceed $31,297 in any county, regardless of the average county wage.
The minimum wage requirements do not apply to Opportunity Zones. See the Opportunity Zones List or explore using the interactive map on the Incentives Maps page for geographic details.
Once the company achieves the threshold, it may remain in the program for the remainder of the ten-year period. Once the threshold is achieved, a company must maintain the $2.5 million payroll, including the average wage requirement, to qualify for incentive payments during any quarter.
A lower payroll threshold requirement of $1.5 million is available for certain food processing and research and development projects, including:
- Food processors with NAICS Code Nos. 3111 through 3119.
- Firms performing Research, Development and Testing Services as described in NAICS Code Nos. 541710 and 541380.
- Auxiliary Research and Development Labs of large enterprises.
- Firms that locate on certain former military bases.
All businesses must offer basic health insurance coverage to all employees, and 80% of employees must work at least 30 hours per week.
The net benefit rate is determined through a cost-benefit analysis prepared by the Oklahoma Department of Commerce. Payments cannot exceed 5% of payroll and, for most businesses, will be in the 4% range. Companies that have participated in the program for at least 12 months, and which are expanding again, may receive a net benefit rate of up to a 6% on a new contract provided all thresholds are met and the wage level is at least 150% of current wages.
In certain counties designated as economically challenged, a 5% net benefit rate automatically applies. See the 5% County List or explore using the interactive map on the Incentives Maps page for geographic details.
Companies that receive incentive payments also may be eligible for the five-year ad valorem tax exemption (manufacturing, research and development, certain computer services and data processing, aircraft repair, free industry training program, workforce recruiting assistance, foreign trade zone, freeport inventory benefits and other technical/financial assistance programs). Firms that receive incentive payments under the Quality Jobs Program cannot utilize the new jobs or investment tax credit, sales tax exemptions for construction, and certain additional tax credits and exemptions.
Qualifying Industry Sectors
- Manufacturing: Industries classified under NAICS Code Nos. 31, 32, 33, 5111, or 11331.
- Research and Development and Testing laboratories: See NAICS Code Nos. 541710 and 541380.
- Central Administrative Offices and Research and Development and Testing divisions of other establishments or enterprises: See NAICS Code Nos. 5611, 5612, 51821, 518112, 52232, 56142, and 524291.
- Certain Warehouse/Distribution Operations (where 40% of inventory is shipped out of state).
- Transportation by Air. If corporate headquarters and some reservations activities are within the state or 75% of air transport sales are to out-of-state consumers. See NAICS Code No. 4811.
- Adjustment and Collection Services. If 75% of loans to be serviced made by out-of-state debtors. See NAICS Code No. 561440.
- Exempt Electric Wholesale Generators if 90% of energy input is consumed from in-state sources and 90% of sales are out-of-state. See NAICS Nos. 221111-221122.
- Certain jobs related to the mining of oil and gas. See NAICS Code No. 2111 and 213111.
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.