In April 2021, Governor Kevin Stitt announced the launch of the Oklahoma Innovation Expansion Program (OIEP), making $10 million in funding available to qualifying manufacturers across the state. Based on the success of the Oklahoma Bounce Back Assistance Program in 2020, OIEP was developed to support high-impact new capital investment across a broad range of industries to help diversify the state’s economy, lead to new product development or increase capacity at Oklahoma’s existing companies. In addition to encouraging new capital investment, these awards support existing jobs and the creation of new jobs. The program is administered by the Oklahoma Department of Commerce (Commerce) and the Oklahoma Development Finance Authority (ODFA).
Financial Incentive for Your Diversification, Expansion or Development
This incentive makes monthly cash payment awards in the form of payroll tax rebates to help companies grow and offset the cost of capital expenditures incurred through business expansion investments in Oklahoma.
- Lower the cost of a capital project
- Improve return on investment
- Increase the scope of a planned expansion
- Enhance ability to finance a project
For a business to be eligible for consideration into the program they must meet all of the following requirements:
- Must be a “for-profit” business entity;
- The Project facility must be located in Oklahoma and the project requires a minimum capital expenditure of at least $50,000;
- Must currently have a minimum payroll at the project facility of at least $625,000 per year;
- Funds cannot have been spent toward the new project prior to the Company having received an award letter recommending approval of the new project from the Oklahoma Department of Commerce;
- The new project must either be an innovative project, a project that shortens or strengthens the supply chain for the product being manufactured, or it must be a project designed to target new markets;
- The business must not be participating in any of the Oklahoma Quality Jobs Act Programs and cannot take Investment Tax Credits while in the program;
- The Project must meet all other eligibility requirements for participation in the Oklahoma Economic Development Pooled Finance Act set forth in 68O.S. §891.1 et. seq.;
- Businesses selected for participation in the program must spend at least 10% of the estimated project costs within ninety (90) days of executing a funding agreement with the Oklahoma Development Finance Authority
- Only projects where the net benefit rate of the project is sufficient to sustain a $25,000 award or greater shall be eligible for participation in the program.
- Business must meet all eligibility requirements and follow all program rules as set forth in the Oklahoma Innovation Expansion Program Rules document and as set forth in the Oklahoma Economic Development Pooled Finance Act
The maximum award amount for OIEP is $150,000 and will vary depending on the potential positive impact on Oklahoma’s economy.
Participating businesses will be required to:
- Provide quarterly reports verifying employment levels and expenditures.
- Submit verification of purchase and installation of machinery and equipment.
Read the complete rules for program participation prior to applying.
Agreement for Potential Participation
Companies must download and sign the Agreement for Potential Participation and then upload a copy when applying.
Frequently asked questions about the program will be posted here as they are developed.
Generally, companies participating in the OIEP must have an existing or projected payroll of $625,000 in order to participate, in addition to other requirements. Refer to the program rules for complete details.
A qualifying capital expenditure, as the term is used in the program, refers to money spent on the purchase of depreciable assets such as equipment, fixtures, machinery or improvements to property made by the business entity toward the new project. They do not include additional employee costs related to the new project, such as increased salary, wages or fringe benefits.
In filling out the Application, an applicant will want to be prepared to discuss or provide the following:
- Company FEI number
- Company NAICS code
- If company remits withholding taxes through a third party, such as a PEO, and the identity of the third party
- Most current fiscal year sales figures
- Total Budget for new project
- How much of the budget the company will contribute to the new project
- A narrative description of the project
- Number of persons currently employed by the company within Oklahoma
- Average annual wage of current jobs in Oklahoma
- Total current yearly payroll for the company in Oklahoma
- Number of jobs to be created by the new project in Oklahoma
- Average annual wage of the new jobs created by the project
- Timeline for new job creation
- Whether or not the company will create a qualifying health plan for new or existing jobs
- Timeline for the new project
- Whether or not the award would lead to diversification, new capabilities or expanded capabilities
- A description as to how the award would lead to diversification, new capabilities or expanded capabilities
- A completed copy of the Agreement for Potential Participation
Yes, as long as it meets the program requirements for participation.
No. Due to the inherent mobility of vehicles, a project based on the acquisition of vehicles does not create a sufficient benefit to the state for an award under the program.