Oklahoma offers a wide variety of financing and incentive options for locating businesses. Options range from cash-back incentives to tax credits to bond financing to accelerated depreciation. On this page we provide a brief snapshot with links to more detail.

A comprehensive overview of Oklahoma's business incentives can be found in the Oklahoma Business Incentives and Tax Guide.  Contact the Oklahoma Fast Forward Team today for a custom incentive analysis.

2010 Oklahoma Business Incentives and Tax Information Guide

Quality Jobs 10-Year Cash Incentive

• Cash payments of up to 5% of new payroll for up to 10 years
• Must average county wage or $29,409, whichever is lower
• Company must achieve $2.5M annual payroll within 3 years
• Must offer basic health insurance
• Target Industries: Manufacturing, R&D including wind power manufacturing, corporate services, and data centers.
• May be combined with Investment/New Jobs Tax Credit

 Quality Jobs program details, guidelines, application  

Investment/New Jobs Tax Credit Package

Choice of tax credit based on investment OR new employees:

• 5-year tax credit on the greater of 1% per year of investment in new depreciable property of $500 per new employee
• Credit doubles in Enterprise Zones (link)
• Credit doubles if investment exceeds $40M
• Minimum investment of $50K
• Target Industries:  Manufacturing and aircraft maintenance operations
• May be combined with Quality Jobs

 Investment/New Jobs Tax Credit program detail

21^st Century Quality Jobs 10-Year Cash Back Incentive

• Requires at least 10 full-time jobs at an annual average wage of the lesser of $94,418 or 300% of the county's average wage
• Allows a net benefit rate of up to 10% of payroll for up to 10 years
• Out-of-state sales must be at least 50%.
• Target Industries:  knowledge-based service industries, including professional, scientific and technical services; music, film and performing arts; and specialty hospitals.

 21^st Century Quality Jobs program details, guidelines, and application

PrimeWIN Prime Contractor Incentive

• Allows federal prime contractors to be paid for jobs and payroll created by both the prime contractor and a qualifying subcontractor.
• Offers a cash rebate of up to 2% of the Oklahoma workforce loaded labor cost. 
• Cash incentives paid quarterly for up to 10 years.
• OSU-UML, as contract verifier, certifies the qualified labor hours performed under a qualifying federal contract.

 PrimeWIN program details, guidelines and application

Oklahoma Opportunity Fund

• Eligible applicants are for-profit entities; non-profit entities; and state and local government entities.
• Funds will be expended for projects which provide a substantial economic benefit to the state through any of the following: Creation of new jobs that offer a basic health benefit plan, as defined in the Oklahoma Quality Jobs Program Act; maintenance of existing jobs that are at risk for termination; Investment in new real property, plant or equipment or in the improvement or retolling of existing plant or equipment; OR additional revenues in either ad valorem, income or sales and use taxes.
• Note: No new appropriations were given to the fund in the 2009 legislative session. However the program still exists for the possibility of future appropriations.
• Before completing an application for funding from the Opportunity Fund, it is suggested that the applicant contact Donald R. Hackler of the Oklahoma Department of Commerce at 405 815-5359 regarding funding availability, acceptance of applications, and for any technical questions regarding the application process.

 Oklahoma Opportunity Fund Application

 Additional Incentives for Businesses

• New Market Tax Credits - 39% federal tax credit for investors
• Former Indian Lands Tax Credit - Federal 35-40% accelerated depreciation and up to $4,000 federal tax credit per qualifying employee (pending extension by Congress)
• Sales tax refunds on construction materials for qualifying manufacturers (with Investment Tax Credit only)
• Training for Industry Program - no-cost/low-cost customized training of technical, managerial and general workforce skills through the CareerTech statewide network.
• Aerospace Industry Engineer Workforce Tax Credit -- Aerospace companies hiring engineers will receive tax credit up to 10% of the compensation paid to an engineer during the first 5 years of employment.
• Five-year ad valorem tax exemption
• Sales tax exemptions
• Freeport inventory benefits
• Industrial access road assistance
• Foreign Trade Zones

Additional Incentives Available to Communities for Locating and Expanding Businesses

• Economic Development Pooled Finance - Available to local governments in conjunction with a for-profit entity for economic development projects. Infrastructure assets must be owned by the local government.
• CDBG/EDIF -- Grants of up to $500,000 for business expansion or up to $1 million for new companies based upon new jobs and leverage. 110% of average county wage for all new jobs. At least 51% of the new jobs must be made available low-0 and moderate income persons.
• Tax Increment Financing - varies by location
• Local incentives - varies by location

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.