This tax credit provides growing manufacturers with a substantial 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.
- Choice of tax credit based on investment or new employees.
- Five-year state tax credit on the greater of 1% per year of investment in new depreciable property, or $500 per new job.
- Credit doubles to 2% per year based on investment or $1,000 per employee when the business is located in an Enterprise Zone. It also doubles when investments are greater than $40 million.
- Minimum investment of $50,000.
- Investment in Priority Enterprise Zones (PEZs) may take advantage of Federal Opportunity Zone Funds. PEZs have the same benefits as regular Enterprise Zones, and are designed to match the boundaries and duration of Federal Opportunity Zones.
Call us today at 800-588-5959 and we’ll get started on a cost/benefit analysis for your business. After your preliminary assessment, we can assist you with the application process.
The Investment/New Jobs Tax Credit Package doubles in Enterprise Zones. Locate Enterprise Zones and search for specific addresses on our interactive map.
Participation in this benefit prohibits a manufacturer from participating in the Quality Jobs Program unless the manufacturer makes a qualifying capital investment in excess of $40 million.
Manufacturers that invest in qualified new depreciable property and also hire new employees may compute the five-year tax credit either:
- By calculating 1% of the qualifying investment;
- or by multiplying $500 per new employee, and then choosing whichever credit is larger.
Investment in depreciable property must equal at least $50,000, and the number of employees must not decrease as a result of the investment. Qualified property includes all machinery, fixtures, and buildings, including warehousing or substantial improvements to buildings used in a manufacturing operation on a manufacturing site. Eligibility is initially determined each year by the taxpayer on its income tax return.
The credit is computed on a year-by-year basis. Therefore, a company that had qualified in one year for the credit based on new employees hired, but experiences a reduction in employment the next year, would still qualify for a partial credit, unless employment fell below the employment level for the year prior to the first year the credit was allowable. If in later years additional qualifying employees were added, a new base employment level would be calculated, and the new series of credits could be taken for the number of employees above that base level of employment.
The number of jobs may fluctuate if the credit is based on investment. However, a loss in the number of jobs must not be attributable to the new investment.
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.
Your Site Selection Experts
Contact us today for a confidential, no-cost incentives analysis for your project. Call the Oklahoma Team at 800-588-5959.