Skip directly to menu Skip directly to key industry menu Skip directly to subpage menu Skip directly to site content Skip directly to site footer
×
Oklahoma Department of Commerce - State of Success

Federal Opportunity Zones

Oklahoma has taken full advantage of the Tax Cuts and Jobs Act (H.R. 1) of 2017 designating 117 Census tracts as Federal Opportunity Zones (OZs). Congress created the new Opportunity Zones and Opportunity Funds to incentivize development in low income, high poverty areas of the country.

Opportunity Fund Tax Advantage

Capital gains from investments in an Opportunity Fund are deferred up to 10 years the payment of federal capital gains tax. If money in the funds is left for 5 years, capital gains taxes can be reduced. There is an additional reduction in capital gains tax at 7 years. If money is left in the fund for 10 years, then any appreciation in the asset from the time of invest through 10 years is not subject to any additional capital gains tax.

Why Invest in Oklahoma?

Often thought of as an energy state, Oklahoma has diversified its economy by rapidly growing the aerospace, manufacturing and business services sectors. Our state offers a low cost of doing business and a stable economic and regulatory environment.

State Overall Rank Corporate Tax Rank Individual Income Tax Rank Sales Tax Rank Unemployment Insurance Tax Rank Property Tax Rank
OK 1 10 20 21 19 2
TX 10 1 1 35 6 26
CA 13 32 45 24 22 7
KS 38 29 17 39 30 46
MO 6 9 32 31 26 18
AR 29 37 28 48 28 14
NM 41 23 11 50 32 4

Business Tax Climate — Ranking of 1 is most favorable. Source: Anderson Economic Group.

Oklahoma’s Investment Opportunities

Aerospace & Airports

  • 27 Oklahoma airports are located within the recently designated Federal Opportunity Zones
    • One of the largest MRO facilities in the world – the American Airlines Maintenance and Engineering Center – is already located within a Federal Opportunity Zone
  • All 27 airport Opportunity Zone tracts are within 40 miles of a US Highway or Interstate
  • Nearly all of the airports have a railroad within the census tract, and at least three of the airports (Tulsa, MidAmerica, and McCurtain County) have a dedicated rail spur

Affordable Housing

  • The Oklahoma Affordable Housing Tax Credit (AHTC), or Low Income Housing Tax Credit (LIHTC), is designed to stimulate private investment for the expansion and rehabilitation of new and existing affordable rental units for qualifying households, which includes those who make less than 50% of the Area Median Income (AMI).
  • The AHTC/LIHTC incentive can be combined with the Qualified Opportunity Zone incentive to create lucrative investment opportunities in Oklahoma.
  • Between 2016 and 2018 there were at least 36 projects developing over 2,000 housing units that are eligible for Housing Tax Credit, some of those units and other potential units are located in Federal Opportunity Zones.

Energy

  • Payne County, home to the US WTI benchmark crude oil trading hub in Cushing, has multiple census tracts designated as Federal Opportunity Zones
    • In addition to oil storage, thousands of miles of pipelines intersect in the area
  • Oklahoma has repeatedly won the designation as one of the top ten most attractive areas for oil and gas investment worldwide from the Global Petroleum Survey

Industrial Parks & Distribution Centers

  • Oklahoma features numerous industrial and research parks spread throughout the state, home to many large manufacturers, distributers, and other facilities including Boeing, Dollar General, and Google
  • Fifteen of Oklahoma’s industrial and research parks are partially or fully located in the newly designated Federal Opportunity Zone tracts

 


Disclaimer

The materials contained on this website have been prepared by the Oklahoma Department of Commerce for informational purposes only and do not constitute legal or tax advice. This information is subject to change based on judicial interpretation and legislative action. The application of the information is subject to your unique facts and circumstances. YOU SHOULD NOT ACT UPON ANY INFORMATION CONTAINED IN THESE MATERIALS WITHOUT SEEKING YOUR OWN PROFESSIONAL LEGAL AND TAX ADVICE.

×

Thank You!

We appreciate your interest and look forward to assisting you. A specialist will be in contact with you soon.

Phone: 800-879-6552

Comments

Your Name*

Email*

Phone

Industry

Company

Position

×