During the 2019 Legislative Session, several incentives programs were enacted or updated. All changes are now in effect.
- Governor’s Quick Action Closing Fund: increased to $19,000,000
- Automotive Engineer Workforce Tax Credit:
- Tax credit for vehicle manufacturing companies and their employees is now expanded to qualifying automotive parts companies and their employees. Further expands eligibility for the credit by including companies engaged in manufacturing buses or truck tractors.
- Software/Cybersecurity Workforce Tax Credit:
- Provides a tax credit up to $2,200 annually for qualifying employees who receive a degree from an accredited institution, or $1,800 annually for qualifying employees who are awarded a certificate from a technology center. Employees must meet strict educational requirements and obtain employment in a qualified industry for a qualified employer. Cannot be claimed for more than 7 years and cannot be claimed simultaneously by an individual claiming the tax credit for aerospace engineers.
- Electricity Generated by Zero-Emission Facility:
- Allows claimants of a tax credit for electricity generated by a zero-emission facility to make an irrevocable election to not receive a direct refund for a given tax year for credits generated for the first time on or after July 1, 2019. Any credits not directly refunded may be carried forward as a credit against subsequent income tax liability for up to 10 years. After the 10th year of carry forward, any credits remaining will be refunded at 85 percent of the value.
- Small Employer Quality Jobs:
- Lowers the threshold for out-of-state customers or buyers from 75% within 24 months to 35% for the first two years and 60% thereafter.
- Sales Tax Exemption for Rolling Stock:
- Extends a sales tax exemption created in 2008 for rolling stock (locomotives, autocars and railroad cars) sold or leased by the manufacturer.
For more information about Oklahoma’s incentives programs, visit okcommerce.gov/incentives.
