Oklahoma Credits and Incentives

As we’ve mentioned before, our Georgia clients frequently ask us to investigate potential credits and incentives in other states where they have operations, potential acquisitions or strong relationships with customers or vendors. In addition, private equity groups ask us about potential $$ for their portfolio companies.

We were recently asked about credits and incentives in Oklahoma. I was able to speak with some Oklahoma economic development professionals and learned some of their details (Oklahoma Dept. of Commerce site click here).

Oklahoma’s main tax credits and incentives are meant to encourage new jobs and investment within the state.  Incentives and credits are available to a wide range of industries that include manufacturing, distribution, logistics, information technology, and others.

Oklahoma’s credits and incentives range in complexity and are typically on par with other states.

Oklahoma’s incentives cover a wide range of income, sales, property, and energy taxes as well as grants and awards.

Quality Jobs Program – provides qualifying businesses creating quality jobs a special cash-back incentive to locate or expand in Oklahoma.

Investment/New Jobs Tax Credit Package – primarily for manufacturers, provides a five-year tax credit for investments or new jobs.

Quality Jobs + Investment Tax Credits – for large manufacturing projects

21st Century Quality Jobs – targets high-wage jobs in knowledge-based service industries.  Good thing we’re in the 21st century!

Small Employer Quality Jobs – provides quarterly incentive payments to a qualifying small employer (90 employees or less) up to 5% of new taxable payroll for up to 7 years. Qualifying companies must also attain 75% out of state sales and pay 110% of average county wages.

Training for Industry Program (TIP) – no-cost/low-cost training for new or growing companies that create jobs.  Similar to other states.

Five-Year Ad Valorem Tax Exemption – for manufacturing, research and development, warehouse and distribution, certain computer/data processing services, wind power, refineries, and aircraft repair.

Other incentives include sales tax exemptions for manufacturers, freeport inventory benefits, industrial access road assistance, foreign trade zones, and a variety of state and local financing programs

Compared to Georgia, Oklahoma has:

  • A similar range of incentive and credits.
  • A narrower range of companies eligible for credits.
  • More limited qualifying activities and $$ incentive amounts.
  • Most incentives must be pre-approved and carefully planned.

To summarize, Oklahoma is competitive with surrounding states.

Do any of your clients have Oklahoma connections?  If so, check out Oklahoma’s opportunities, and everything will be OK!

DaleSig