SPOTLIGHT PROGRAMS

Oklahoma Quality Jobs Program: Provides cash grants of up to 5% of new employee gross taxable payroll for businesses that create new jobs with wages that meet or exceed the average county wage or the State Index wage threshold, whichever is lower.  To qualify, a company must achieve at least $2.5 million in new annual payroll within 3 years. A lower payroll threshold of $1.5 million is available for certain food processing and research and development projects or to firms that are located on certain former military bases. Businesses must also provide health insurance to employees to receive tax credits. Businesses may receive cash grants for up to 10 years.

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The 21st Century Oklahoma Quality Jobs Program: To attract more high-paying jobs and expand the number of companies in advanced industries, Oklahoma offers a cash grant of up to 10% of taxable payroll or twice the net benefit rate of the quality jobs program to businesses that create at least 10 full-time jobs.  The new jobs must have an average annual wage that is the lesser of $120,071 or 300% of the average wage of the county where the project is located. Businesses may receive cash grants for up to 10 years.

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TAX CREDITS

Workforce Tax Credits: Employers in the automotive, aerospace, or software/cybersecurity industry may be eligible for a tax credit based on the number of jobs or payroll credit in qualifying occupations. In addition, employees in eligible aerospace or automotive engineering occupations can qualify for a tax credit against their individual income tases of $5,000 per year.

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Investment / New Jobs Income Tax Credit: Manufacturers that invest in new capital improvements or create jobs may receive a 5-year tax credit on the greater of 1% per year of investment in qualified new depreciable property or a credit of $500 for each new job created. The credit doubles to 2% of investment or $1,000 per new job if a business is located in an Enterprise Zone or if the amount of qualified investment exceeds $40 million.

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Insurance Premium Tax Credit: Provides a special annual tax credit (15% to 50% based on the number of full-time employees) to insurance companies that locate or expand a regional home office in Oklahoma and maintain 200+ employees.

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TAX EXEMPTIONS

Sales Tax Exemption Program: Machinery and equipment used directly in the manufacturing process and tangible personal property that becomes part of a finished product are exempt from sales tax.‍

Ad Valorem Tax Exemption: Certain new and expanding manufacturers, research and development companies, certain computer services and data processing companies with significant out-of-state sales, aircraft repair companies, oil refineries, and certain wind power generators may be eligible for ad valorem tax exemptions for up to 5 years.

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DIRECT FINANCIAL ASSISTANCE

Oklahoma Quick Action Closing Fund: The governor has the discretionary authority to award grants to support economic development projects.‍

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Oklahoma Small Employer Quality Jobs Program: This program gives business incentives of up to 5% of newly created taxable payroll for up to 7 years. An eligible company may not have more than 500 employees at the time of application. The minimum number of jobs created is based on the community’s population. The company must have an average wage above 110% of the county’s population.

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JOB TRAINING

Training for Industry Program (TIP): The state provides a no-cost/low-cost way for businesses that create jobs to develop a skilled workforce. The amount of job training funds varies depending on the project.

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Last Updated: May 2023