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Oklahoma Department of Commerce

August 2014 Quality Jobs Report



OKLAHOMA CITY — The Oklahoma Department of Commerce announced that 783 new jobs will be created by the five (5) companies enrolled in the Quality Jobs Program (QJP). 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
New Source Energy GP, LLC OKC 599,199 45 211111 5.0% Expanded $2,454,044
Eagle Exploration Operating, LLC Tulsa 393,987 40 211111 5.0% Start Up $1,443,491
United States Cellular Corporation Tulsa 393,987 61 56142 5.0% Expanded $1,263,419
American Energy Management Services, LLC OKC 599,199 525 211111 5.0% Expanded $26,779,101
RKI Exploration & Production, LLC OKC 599,199 112 2111 5.0% Expanded $4,927,979

About the QJP enrollees:

  • New Source Energy GP, LLC is an exploration and production energy company.
  • Eagle Energy Exploration is an independent energy company engaged in the acquisition, exploration, development, and production of natural gas and crude oil.
  • United States Cellular Corporation provides telecommunications services including wireless phone services and associated customer services with technical systems support.
  • American Energy Management Services, LLC is a full service administration management consulting firm that provides clients with expertise in the area of exploration and production for both oil and gas plays throughout the United States.
  • RKI Exploration & Production, LLC is an independent, privately held exploration and production company engaged in the acquisition, exploration, development, and production of oil and natural gas properties located onshore in the continental United States.

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 705 contracts to locating, expanding and start-up businesses. To date, more than $871 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 OKcommerce.gov/bre


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