Taxes and Incentives

Oklahoma Quality Jobs Program

The Oklahoma Quality Jobs Program serves as an incentive for companies to expand or relocate jobs to Oklahoma by providing a rebate of a portion of newly created payroll in the state. The program induces the creation of well-paid jobs and promotes economic development. Companies may receive benefits during the first three years of participation while working to achieve the required payroll threshold for full qualification.

Benefits

  • Cash payments of up to 5% of new taxable payroll for up to 10 years.

Requirements

  • Company must be in a qualifying industry as noted by NAICS description.
  • Must pay newly created jobs equal to the average county wage or the statethreshold wage, whichever is lower.
  • Company must achieve $2.5M new annual taxable payroll within 3 years.
  • Must offer basic health insurance to employees within 180 days of employment. Employee must not pay any more than 50% of the premium.
  • May be combined with Investment/New Jobs Tax Credit under certain circumstances ($40 million or more in investment within 3 years).
  • Up to 6% rebate if at least 10% of new payroll is comprised of qualified military veterans.

Veterans Inclusion

Many industries, particularly in aerospace and defense, which are part of Oklahoma’s economic engine, pay higher than average wages and employ a high percentage of veterans. An incentive that rewards companies for investing in a veteran labor force would increase the competitiveness of the state to attract expansion and location of new jobs. By effect, this would increase the number of jobs available for and supportive of veterans. This also provides for a higher benefit payout if payroll of new jobs is comprised of a minimum of 10% veterans’ payroll.

Claw Back Provision

A company that participates in the Quality Jobs Program but fails to maintain a business presence in the state within 3 years of start date must repay all program benefits that they received and may not reapply for the program for one year following dismissal.

Payroll Threshold Requirement

A lower annualized payroll threshold of $1.5 million may apply to the following applicants:

  • Food processors with 75% out-of-state sales – See NAICS Nos. 3111 through 3119.
  • Firms performing Research, Development, and Testing Services – See NAICS Nos. 541710 and 541380.
  • Auxiliary Research and Development Labs of large enterprises.
  • Relocations on select former military bases.

In addition, a no payroll threshold applies to companies locating on a site consisting of at least 10 acres that is also a Superfund renewal site or listed on the National Priorities List. Sites may still qualify if not Oklahoma Business Incentives and Tax Guide 6 on the list if they have been formally deferred to the State, or if they are being remediated pursuant to a clean-up plan approved by the Department of Environmental Quality. The Department of Environmental Quality notifies the Oklahoma Department of Commerce of the qualifying areas and companies.

Quality Jobs Program Qualifying Industries

Basic Industries

Manufacturing
Industries classified under NAICS Manual Nos. 31, 32, 33, 5111 or 11331.

Research and Development and Testing Laboratories
See NAICS Manual Nos. 541711, 541712 and 541380.

Central Administrative Offices, Corporate Offices and Technical Services
See NAICS Manual Nos. 5611, 5612, 51821, 519130, 52232, 56142, 524291, 551114.

Certain jobs related to the mining of oil and gas
See NAICS No. 2111, 213111 and 213112; 486

Certain Warehouse/Distribution Operations
See NAICS manual 42 where 40% of inventory is shipped out of state.

Transportation by Air
See NAICS Manual No. 4811 if corporate headquarters and some reservation activities are within the state or 75% of air transport sales are to out-of-state consumers.

Flight Training Services
See NAICS No. 611512

Federal Civilian Workforce of the Federal Aviation Administration
Where jobs are migrating to Oklahoma from other Federal sites, or expansion here

Other Support Activities for Air Transportation
See NAICS Manual No. 488190

Wind Power Electric Generation Equipment Repair & Maintenance
See NAICS Manual No. 811310

Support Activities for Rail and Water Transport
See NAICS Manual Nos. 4882, 4883

Sports Teams & Clubs
See NAICS Manual No. 711211

Service Industries

The program also covers the following service companies, if 75% of sales are out-of-state:

Rail Transportation
See NAICS Nos. 482

Motor Freight Transportation and Warehousing
See NAICS Nos. 493, 484, 4884-4889

Arrangement of Passenger Transportation
See NAICS Nos. 561510, 561599

Transportation of Freight or Cargo
See NAICS No. 541614

Certain Communications Services
See NAICS Nos. 517110, 51741 and 51791

Certain Refuse Systems that distribute methane gas
See NAICS No. 5622

Grocery Wholesale Distributing
See NAICS Nos. 4244 and 4245

Securities, Commodities, Investments
See NAICS No. 523

Insurance Carriers
See NAICS No. 5241

Insurance Claims Processors
Only Included in NAICS Nos. 524210 and 524292

Adjustment and Collection Services
See NAICS No. 561440 (75% of loans to out-ofstate debtors)

Miscellaneous Equipment Rental
See NAICS Nos. 5324

Computer Programming, Data Processing and Other Computer Related Services
See NAICS Nos. 5112, 5182, 5191, 519130, and 5415

Miscellaneous Business Services
See NAICS Nos. 561410, 56142, and 51911

Offices of Real Estate Agents & Brokers
See NAICS No. 53120 (and 75% of transactions are out of state)

Medical and Diagnostic Laboratories
See NAICS No. 6215

Engineering, Management and Related Services
See NAICS Nos. 5412, 5414-5417, 54131, 54133, 54136, 54137, and 541990

Agricultural Production
See NAICS Nos. 112120

Professional Organizations
See NAICS No. 813920

Alternative Energy Structure Construction
See NAICS No. 237130

Alternative Energy Equipment Installation
See NAICS Nos. 238160, 238220

Electric Service Companies
The program also applies to electric services companies within NAICS Nos. 221111-221122 - Exempt Electric Wholesale Generators, if 90% of energy input is consumed from in-state sources and 90% of sales are out-of-state.

For more information, contact the Oklahoma Department of Commerce at (800) 879-6552 or info@okcommerce.gov. Program Guidelines for the Quality Jobs Program may be found on the Oklahoma Department of Commerce website at Quality Jobs Guidelines. These Guidelines contain the formal application and required supporting documents necessary to apply. Technical assistance in completing the forms may be found there, as well.

Contacts

Oklahoma Department of Commerce

Phone: (800) 879-6552

info@okcommerce.gov

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