Taxes and Incentives

Small Employer Quality Jobs Program

(68 O.S. § 3901)

The Small Employer Quality Jobs Program Allows qualifying small businesses (500 employees or less) to receive up to a 5% cash-back incentive for up to 7 years to locate or expand in Oklahoma. Qualifying payroll must be attributable to annual salaries that are 110% to 125% of the average wage of the county in which the jobs are located. Benefits are not payable until the participant has attained both the minimum number of new jobs and the required average wage.

Key elements of the program include:

  • Cash payments of up to 5% of new payroll for up to 7 years.
  • Must have 500 employees or less at the time of application.
  • Must have an average of 500 employees or less over the past four (4) quarters at the time of application.
  • Must create as few as 5 and as many as 15 new jobs minimum, based on the size of the company and the population of the community where the company is located.
  • Must pay the newly created jobs at 110% of the average county wage.
  • Must have 75% out-of-state sales within one year of start date.
  • Must offer basic health insurance within 180 days of employment. Employee must not pay any more than 50% of the premium.

Minimum New Jobs by County

Community Population New Jobs Required
Less than 3,500 The greater of 5 jobs or 5% of the company’s full-time employment at the date of application
3,500 – 6,999 The greater of 10 jobs or 7.5% of the company’s full-time employment at the date of application
7,000 or more The greater of 15 jobs or 10% of the company’s full-time employment at the date of application

Small Employer 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 Warehouse/Distribution Operations

See NAICS manual No. 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.

Other Support Activities for Air Transportation

See NAICS Manual No. 488190.

Wind Power Electric Generation Equipment Repair & Maintenance

See NAICS Manual No. 811310

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 RelatedServices

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 Small Employer Quality Jobs Program may be found on the Oklahoma Department of Commerce website at Small Employer 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.

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