Oklahoma continues to be recognized for its outstanding business location and job growth incentives.
Oklahoma’s successful Quality Jobs incentive program promotes job growth and helps improve your company’s bottom line by injecting cash back into your business as you expand and create new jobs in Oklahoma. The Quality Jobs (QJ) program provides a cash rebate to companies that create well-paid jobs and promote economic development.
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.
Investment/New Jobs Tax Credits provide growing manufacturers a significant tax credit based on either an investment in depreciable property OR on the addition of full-time-equivalent employees engaged in manufacturing, processing, or aircraft maintenance.
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 average wages equaling $40,747. The incentives also allow a five-year tax credit of 2% per year of investment in qualified new depreciable property. The tax credits accrue and may be claimed on July 1, 2012.
This new incentive 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 first of its kind, this incentive reduces out-of-state sales requirements from 75% to 50% for industries that are required to have out-of-state sales and requires only 10 full-time jobs at an annual wage of the lesser of $102,300 or 300% of the county’s average wage. It also maximizes the eligible incentive payment by incorporating expanded state benefits by allowing a net benefit rate of up to 10% of payroll.
Knowledge-based service industries, including professional, scientific and technical services; music, film and performing arts; and specialty hospitals.
The only incentive of its kind in the nation, PrimeWIN provides a cash benefit and a certified subcontractor base for federal prime contractors. PrimeWIN is a performance-based program that requires subcontracting with an Oklahoma workforce.
PrimeWIN offers federal prime contractors a cash rebate of up to 2% of the Oklahoma workforce loaded labor cost. Cash incentives are paid quarterly for a maximum of 10 years by the Oklahoma Tax Commission.
PrimeWIN provides contractors with an easy-to-access conduit to hundreds of pre-certified subcontractors assuring productivity and quality while meeting schedule demands.
The Oklahoma Community Economic Development Pooled Finance incentive creates a financing incentive that targets job creation and infrastructure development aid; and a foundation of ensuring Oklahoma’s infrastructure is high quality for attracting and retaining jobs.
To spur private investment in low-income urban and rural communities, investors receive a 39% federal tax credit.
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.
Effective July 1, 2012, aerospace companies hiring engineers will receive tax credit up to 10% of the compensation paid to an engineer during the first five years of employment.
To encourage advanced manufacturing, research and development, warehouse and distribution, wind, solar energy, and other renewable/alternative energy companies to locate or expand manufacturing facilities within Oklahoma. A qualifying manufacturing company can abate ad valorem taxes upon new, expanded or acquired manufacturing facilities and equipment for a period of five years.
Exempts from taxation goods, wares and merchandise that come from outside the state and leave the state within nine months if such goods, wares and merchandise are held for assembly, storage, manufacturing, processing or fabricating purposes within the state.
Designed to provide assistance to local industrial development efforts by funding, within practical limitations, access facilities connecting a specific industry or industrial area directly to the state or local road system.
The benefits of operating within a designated site licensed by the Foreign Trade Zones (FTZ) Board are obvious. At the very least, a FTZ can help you defer paying duties. More often, the company pays lower costs, not only to U.S. Customs, but to its bank, insurance company, and other vendors.
Available to local governments in conjunction with a for-profit entity for economic development projects. Also available to local governments for infrastructure assets which must be owned by the local government.
Grants of up to $500,000 are available to Oklahoma companies for business expansion, or up to $1 million for new out-of-state companies who are moving their business to Oklahoma and based upon new jobs and leverage. Companies must pay at least 110% of average county wage for all new jobs. At least 51% of the new jobs must be made available to low and moderate income persons.
Tax Increment Financing and local incentives vary by location.