Oklahoma has some of the lowest tax rates and some of the best tax incentives in the nation. The state offers companies a low cost of doing business, a low cost of living for employees, and tax rebates that reduce tax burdens even further.
The Oklahoma Team will help you identify all state and local incentives applicable to your project. Call the Oklahoma Team at 800-588-5959 today for your no-cost incentives analysis.
The State of Motivation
Oklahoma is globally recognized for its outstanding incentive programs and pro-business environment. Businesses can choose between a cash incentive or a tax credit package, and in some cases, qualifying businesses can take advantage of both programs.
“The tax credit is an invaluable tool in the attraction and retention of employees with skills critical to the success of our customers, and to the health and viability of the industry as a whole.”
— Steve Hendrickson, Director of Government Operations, Boeing
Quality Jobs Program
Oklahoma’s successful Quality Jobs incentive program promotes job growth and helps improve your company’s bottom line by injecting cash back into your business as you expand and create new jobs in Oklahoma. The Quality Jobs program provides a cash rebate to companies that create well-paying jobs and promote economic development.
10-Year Cash Incentive
The Quality Jobs Program makes quarterly cash payment of up to 5 percent of new taxable payroll to qualifying manufacturers and certain service industries that have a new payroll investment of $2.5 million or more.
Small Employer Quality Jobs Program
The Small Employer Quality Jobs Program provides quarterly incentive payments to a qualifying small employer (500 employees or less). Quarterly payments may be as much as 5% of new taxable payroll for up to 7 years.
21st Century Quality Jobs
This Quality Jobs program is specially tuned for businesses with a highly skilled, knowledge-based workforce. This unique incentive may pay qualifying businesses cash back, up to 10 percent of payroll, for up to ten years for the creation of 10 jobs with an average wage of $94,000 annually or higher, depending on county.
Quality Jobs + Investment Tax Credits
These tax credits target manufacturing industries that have a large capital investment of at least $40 million in addition to creating new jobs that pay higher than the state average wages. The credits also allow a five-year tax credit on the greater of 2 percent per year of investment in qualified new depreciable property or credit of $1,000 per year per new job.
Call us today at 800-588-5959 to request your preliminary incentives analysis. Our team will provide an estimate of the payments your business may be eligible to obtain.
Investment / New Jobs Package
This package provides growing manufacturers a significant 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.
Business Expansion Incentive Program
This incentive targets business expansion projects which include job creation and significant investment in facilities, machinery, and equipment.
Aerospace Engineer Workforce Tax Credit
Aerospace companies hiring engineers in a variety of fields will receive tax credit equal to 5% of the compensation paid to an engineer and 10% if the engineer graduated from an Oklahoma college or university, plus another credit of up to 50% of the tuition reimbursed to an employee. Additionally, the engineer hired receives a tax credit of $5,000 per year.
American Indian Lands Tax Credit
Two-thirds of Oklahoma, because of its unique Native American heritage, qualifies for special federal tax treatment. Businesses locating or expanding in these areas benefit by accelerated depreciation of investment and by employment tax credits when employing tribal members or their spouses.
Pro-business, pro-success, pro-you.
Manufacturing Sales Tax Exemptions
Oklahoma has a comprehensive sales tax exemption for manufacturers who qualify for and obtain a Manufacturer’s Sales Tax Exemption Permit (MSEP).
The exemptions cover purchases of machinery and equipment, energy and tangible personal property used in design, development and the manufacturing operation at the manufacturing site.
Five-Year Ad Valorem Tax Exemption
A qualifying manufacturing company can abate ad valorem taxes upon new, expanded or acquired manufacturing facilities and equipment for a period of five years. This incentive is available for manufacturing, research and development, warehouse and distribution, certain computer/data processing services, refinery and aircraft repair.
Freeport Inventory Benefits
Exempts from taxation goods, wares and merchandise that come from outside the state and leave the state within nine months if such goods, wares and merchandise are held for assembly, storage, manufacturing, processing or fabricating purposes within the state.
Customized Employee Training
Every business is different. That’s why we have flexible programs to meet your needs. Whether you’re a new or expanding company in our state, our nationally acclaimed Training for Industry Program (TIP) can help you create the quality workforce you need to be successful, all at little or no cost to you. TIP is delivered through Oklahoma’s system of 59 technology center campuses across the state. Some of the services we provide under TIP include job analysis, training needs assessment, pre-employment training, pre-production training, post-production training, instructional materials and development, and more.
Credits and programs to boost your bottom line.
Grant Opportunities for Locating and Expanding Businesses
Grants of up to $1,000,000 are available for infrastructure financing to Oklahoma communities to assist new business locations or expansions. Companies must pay at least 110% of the average county wage for all new jobs. At least 51% of the new jobs must be made available to low and moderate income persons.
New Market Tax Credits
To spur private investment in low-income urban and rural communities, investors receive a 39 percent federal tax credit.
Foreign Trade Zones (FTZ)
The benefits of operating within a designated site licensed by the Foreign Trade Zones Board are many. At the very least, a FTZ can help you defer paying duties. More often, the company pays lower costs, not only to U.S. Customs, but to its bank, insurance company and other vendors.
Industrial Access Road Assistance
Designed to provide assistance to local industrial development efforts by funding, within practical limitations, access facilities connecting a specific industry or industrial area directly to the state or local road system.
Get in Touch
Contact us today for a confidential, no-cost incentives analysis for your project. Call the Oklahoma Team at 800-588-5959.