Oklahoma Tourism Development Act

Who is eligible?

Developers and qualifying entities operating a tourism attraction project. For projects that meet requirements, the eligible companies may receive sales tax credits or a sales tax incentive payment annually for up to 10 years up to the amount that is revenue-neutral to the state or 25% of the approved development costs, whichever is lower.

• The developer (owner) of the tourism attraction asset must complete an application and submit it to the Oklahoma Department of Commerce (Commerce) along with a business plan, marketing plan and development costs of the project.
• Commerce reviews the application materials and may grant a preliminary approval to the project at which time the developer must pay for a consultant report.
• After the consultant report is provided, Commerce determines the project’s revenue neutrality and maximum incentive.
• If approved, state sales taxes associated with the tourism attraction asset may be captured over a 10-year period.
• The recipient gets a payment every year for up to 10 years based on actual performance, not projections (Commerce works with the Oklahoma Tax Commission on the administration of the sales tax credit).
• To qualify, 25% of the visitors attracted must be from out of state.
• A maximum of $30 million can be credited back annually for all qualifying projects.

Benefits:  

If the eligible company is approved, it would receive inducements of up to 25% of development costs or the revenue-neutral incentive as determined by the Oklahoma Department of Commerce, whichever is lower. It is a performance-based incentive from captured state sales taxes associated with the development over the approved time period, which is up to 10 years. 

Commerce may negotiate with applicant to include promotion and state benefit.

Examples of Projects Facilitated by the Tourism Development Act: 

Fordson Hotel, Tulsa Club, First National Building, The OAK – an entertainment district being developed in Oklahoma City