For a list of Oklahoma economic development agencies that can help with the site selection process, visit our Online Site Seekers’ Guide.
Oklahoma has some of the lowest tax rates and some of the best tax incentives in the nation. The state offers companies a low cost of doing business, a low cost of living for employees and tax rebates that reduce tax burdens even further.
The Oklahoma Team will help you identify all state and local incentives applicable to your project. Call the Oklahoma Team at (800) 588-5959 today for your no-cost incentives analysis.
To get comprehensive, up-to-date information on Oklahoma’s business incentives and taxes visit: https://stateofsuccess.com/wp-content/uploads/sites/2/2018/11/Oklahoma-Business-Incentives-and-Tax-Guide.pdf
Quality Jobs Program: 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 program provides a cash rebate to companies that create well-paying jobs and promote economic development, and is a net benefit neutral to the state. 10-Year Cash Incentive: The Quality Jobs Program makes quarterly cash payment of up to 5% of new taxable payroll to qualifying manufacturers and certain service industries that have a new payroll investment of $2.5 million or more. Other qualifying criteria apply.
21st Century Quality Jobs: This Quality Jobs program is specially tuned for businesses with a highly skilled, knowledge-based workforce. This unique incentive may pay qualifying businesses cash back, up to 10% of new taxable payroll, for up to 10 years for the creation of at least 10 jobs with an average wage of $101,650 annually or higher, depending on county.
Small Employer Quality Jobs Program: The Small Employer Quality Jobs Program provides quarterly incentive payments to a qualifying small employer (500 employees or less). Quarterly payments may be as much as 5% of new taxable payroll for up to seven years.
Business Expansion Incentive Program: This incentive is available for business expansion projects which include job creation and significant investment in facilities, machinery and equipment, and is a net benefit neutral to the state. With a $200 million program capacity, this competitive cash incentive requires a detailed application and upon approval, provides an annual payment to the applicant which is generated from company employment withholding taxes.
CDBG-EDIF Community Grants: Grants of up to $500,000 are available to Oklahoma communities to assist companies in business expansion, or up to $1 million for communities to assist new out-of-state companies who are moving their business to Oklahoma. Companies must pay at least 110% of the average county wage for all new jobs. At least 51% of the new jobs must be made available to low and moderate income persons.
Foreign Trade Zones (FTZ): The benefits of operating within a designated site licensed by the Foreign Trade Zones Board are many. At the very least, an FTZ can help you defer paying duties. More often, the company pays lower costs, not only to U.S. Customs, but also to its bank, insurance company and other vendors.
Industrial Access Road Assistance: 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.
Quality Jobs + Investment Tax Credits: These tax credits 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 average wages. The credits also allow a five-year tax credit on the greater of 2% per year of investment in qualified new depreciable property or credit of $1,000 per year per new job.
Investment / New Jobs Package: This package provides 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.
Aerospace Engineer Workforce Tax Credit: Aerospace companies hiring engineers in a variety of fields will receive tax credit equal to 5% of the compensation paid to an engineer and 10% if the engineer graduated from an Oklahoma college or university, plus another credit of up to 50% of the tuition reimbursed to an employee. Additionally, the engineer hired receives a tax credit of $5,000 per year.
Cybersecurity and Software Engineer Workforce Tax Credit: Software engineers who have received a degree from an accredited institution can receive a tax credit up to $2,200 annually, or $1,800 annually for qualifying employees who are awarded a certificate from a technology center. These employees must meet strict educational requirements and obtain employment in a qualified industry for a qualified employer. The credit could be claimed no more than seven years and could not be claimed simultaneously by an individual claiming the tax credit for aerospace engineers.
Automotive Engineer Tax Credit Workforce Tax Credit: Vehicle manufacturing companies that manufacture or assemble motor vehicles hiring engineers that are newly employed in the vehicle manufacturing sector will receive a tax credit equal to 5% of the compensation paid to an engineer, and 10% 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% of the tuition reimbursed to an employee. Additionally, the engineer hired receives a tax credit of $5,000 per year for 5 years.
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.
Manufacturing Sales Tax Exemptions: Oklahoma has a comprehensive sales tax exemption for manufacturers who qualify for and obtain a Manufacturer’s Sales Tax Exemption Permit (MSEP).
The exemptions cover purchases of machinery and equipment, energy and tangible personal property used in design, development and the manufacturing operation at the manufacturing site.
Five-Year Ad Valorem Tax Exemption: A qualifying manufacturing company can abate ad valorem taxes upon new, expanded or acquired manufacturing facilities and equipment for a period of five years. This incentive is available for manufacturing, research and development, warehouse and distribution, certain computer/data processing services, refinery and aircraft repair.
New Market Tax Credits: To spur private investment in low-income urban and rural communities, investors receive a 39% federal tax credit.
Freeport Inventory Benefits: 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.
Customized Employee Training: Every business is different. That’s why we have flexible programs to meet your needs. Whether you’re a new or expanding company in our state, our nationally acclaimed Training for Industry Program (TIP) can help you create the quality workforce you need to be successful, all at little or no cost to you. TIP is delivered through Oklahoma’s system of 59 technology center campuses across the state. Some of the services we provide under TIP include job analysis, training needs assessment, pre-employment training, pre-production training, post-production training, instructional materials and development, and more.
Get comprehensive, up-to-date information on Oklahoma’s business incentives and taxes. Visit: https://stateofsuccess.com/wp-content/uploads/sites/2/2018/11/Oklahoma-Business-Incentives-and-Tax-Guide.pdf