Taxes & Incentives
The State of Oklahoma has comprehensive tax and incentive opportunities for companies relocating to or expanding in Oklahoma. The City of Tahlequah and the Tahlequah Regional Development Authority consider additional local incentives on a case by case basis. Tahlequah is considered an Enterprise Zone, which will increase incentives that are available. Our team can help set up a group of people to help each business find the best package available. Below are a few of the incentives available to businesses. For detailed information regarding state incentives, click here.
Because of the state’s unique Native American heritage, two-thirds of Oklahoma locations qualify for special federal tax treatment. Businesses locating or expanding in these areas can claim accelerated federal depreciation on their buildings, resulting in tax savings of up to 40%. Additionally, businesses in qualifying areas that hire Native Americans or their spouses living in the area can claim federal tax credits of up to $4,000 per qualifying employee.
Disclaimer: Expires Dec 31, 2020, and must be renewed for investments that occur past Jan 1, 2021
Training For Industry Program (Tip)
The American dream is alive and well in Oklahoma, as companies secure their future with a talented, skilled and productive workforce. Whether a new or an expanding company in Oklahoma, the nationally acclaimed Training for Industry Program (TIP) can help a company create the trained workforce it needs in order to be productive from the start. And best of all – it’s low, or in some cases, at no cost to the company.
In existence since 1968, TIP has served thousands of companies. From manufacturing to warehouse and distribution centers, business services to aviation, biotech to food processing, CareerTech has the experience and expertise to build a skilled workforce. Totally customized and extremely flexible, TIP is delivered through Oklahoma’s CareerTech System with 29 state-of-the-art technology centers in 59 locations across the state. The application process is very simple, has no cost and is quick to complete, especially with the free assistance of the state CareerTech staff and the local technology center
Beyond start-up, CareerTech’s technology centers provide ongoing, customized training for existing employees at significant cost savings. Each year thousands of Oklahoma companies keep their employees on the leading edge by taking advantage of programs like Customized Business and Industry Training, Management and Organization Development, Career Development for Adults, and the award-winning Safety Training.
Whether using TIP or any of the programs for existing industry, there is expertise in a wide variety of disciplines, including:
- Software skills training
- Inventory management
- Customer service
- Safety training
- Industrial maintenance
- ISO certification and maintenance
- Lean
- Six Sigma
- Team building
- Front-line supervisor skills
- Blueprint reading
- SPC
Customized Industry Training Program
CareerTech’s Customized Industry Training Program is an economic development tool that helps Oklahoma companies remain at the cutting edge by helping to defray the cost for training needed for their existing workforce.
This program is designed specifically to train the employees of one or a specific group of businesses or industries. Training must be job-related and the local technology center must have material participation in the delivery of training.
Companies work with their local CareerTech to determine if they are qualified for Customized Industry Training funds to be leveraged in order to support their training goals. Training is, traditionally, company- focused and operates on a fast-track schedule.
Industrial Safety Training Program
Safety training is intended to help organizations plan and implement safety processes and procedures and ongoing training to assure safe work environments for Oklahomans. This is done by providing quality preventative safety training.
To be eligible for consideration for reimbursement, the safety training must be conducted by a technology center instructor (full-time, adjunct, contract). Company employees as instructors do not qualify for reimbursement. Online safety courses or safety courses conducted solely by video are not eligible for reimbursement.
For more information and to begin the process of leveraging our assets to grow your company, contact Elizabeth Armstrong with the Oklahoma Department of Career and Technical Education (CareerTech) at (405) 747-0186 or Elizabeth.Armstrong@careertech.ok.gov.
Additional information can also be obtained online at www.okcareertech.org or by calling CareerTech direct at (405) 377-2000.
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.
Quality Jobs + Investment Tax Credits
(Effective February 1, 2013)
This incentive is available for manufacturers who have capital investments greater than $40 million in addition to creating skilled jobs. The incentive lays the foundation for attracting “top-notch” companies to Oklahoma and demonstrates a policy of incentivizing businesses with large (greater than $40 million) capital investments that create jobs that pay higher than average wages.
Qualifying Requirements
- Same as present Quality Jobs Program job creation requirements but the wages must be greater than the state’s average wage. Average county wage requirements change every year at the same time as the Quality Jobs Program’s wage;
- Capital investment must be greater than $40 million within three years of start date to qualify for Investment Tax Credits – a 2% tax credit per year for 5 years;
- With the ability to take both Quality Jobs and Investment Tax Credits incentives, the number of the Quality Jobs portion is equal to the calculated number;
- There are no automatic 5% areas;
- Companies may not exceed the 5% net benefit rate;
- Quality Jobs + Investment Tax Credits may not be combined with Small Employer Quality Jobs or 21st Century Quality Jobs;
- Only the manufacturing industries that presently qualify for Investment Tax Credits may qualify for this incentive.
*Sb 1582, Which Is Effective As Of November 1, 2016, Amends 68 O.S. §2357.4 By Limiting The Amount Of Credit For Various Periods By Implementing A $25 Million Annual Cap For Tax Years Beginning On Or After January 1, 2016 And Ending On Or Before December 31, 2018).
For more information contact the Oklahoma Tax Commission at (405) 521-3133 or helpmaster@tax.ok.gov. For forms, visit www.tax.ok.gov.
Oklahoma offers sales tax refunds for qualified companies. To qualify, a company must submit an Application/Intent to Qualify to the Oklahoma Tax Commission to establish an interest-bearing account.
Upon receiving the application and documentation concerning the sales/use taxes to be paid by the applicant or their contractors, the Oklahoma Tax Commission will determine whether a company qualifies. If so, the Oklahoma Tax Commission will immediately set up an account to track sales taxes paid on sales as shown by the invoices submitted.
For purposes of the exemption at section 1359 (7) of Title 68 for qualified manufacturers, interest is determined according to the amount earned as invested by the State Treasurer’s Office. For the remaining refunds at Sections 1357(17) and 54003 of Title 68, interest accrues at the rate of a 3-month Treasury bill from the date invoiced items are approved.
Sales taxes paid on construction materials incorporated in certain new manufacturing facilities by the manufacturer or by a contractor or subcontractor on behalf of a qualified manufacturer are refundable.
Sales taxes paid for machinery and equipment by certain service businesses (computer services, R & D, and aircraft repair) are refundable. Invoices of each vendor that distinguish the state and local sales taxes paid must be submitted with claims.
Affidavits from vendors or contractors that the sales taxes were charged, paid, and have not been refunded by the vendor must be submitted with claims. Eligible applicants must file for a refund within 36 months of the date of purchase. The Oklahoma Tax Commission requires certification from the Oklahoma Employment Security Commission regarding the number of jobs.
Note: Participation In The Quality Jobs Program Or Other Incentive Payment Programs Precludes Participation In These Refunds.
Manufacturers
(68 O.S. §§ 1359, 1359.2 and 1364)
Oklahoma has a comprehensive sales tax exemption for manufacturers who obtain a Manufacturer’s Sales Tax Exemption Permit from the Oklahoma Tax Commission. The permit must be renewed every three years. This permit must be presented to the vendor, and a claim for exemption made at or before the time of purchase, to relieve the vendor of the liability for collecting sales tax. The exemptions cover purchases of machinery and equipment, energy, and tangible personal property used in design, development, and manufacturing.
Sales to a manufacturer of exempt property must be used in the manufacturing operation at a manufacturing site. The exemption is not extended to purchases for administration, sales, distribution, transportation, site construction or site maintenance.
For more information and certification, contact the Oklahoma Tax Commission at 405-521-3133 or otcmaster@tax.ok.gov.
Computer Services And Data Processing
(68 O.S. § 1357 [21])
Oklahoma recognizes the importance of companies engaged in computer services or data processing activities by offering exemptions from sales tax on:
Sales of machinery and equipment purchased and used by persons and establishments primarily engaged in computer services and data processing:
- As defined under Industrial Group Numbers 7372 and 7373 of the Standard Industrial Classification (SIC) Manual, latest version, which derive at least fifty percent (50%) of their annual gross revenues from the sale of a product or service to an out-of-state buyer or consumer; and
- As defined under Industrial Group Number 7374 of the SIC Manual, latest version, which derive at least eighty percent (80%) of their annual gross revenues from the sale of a product or service to an out-of-state buyer or consumer.
Eligibility for the exemption set out in this paragraph shall be established, subject to review by the Tax Commission, by annually filing an affidavit with the Tax Commission stating that the facility so qualifies and such information as required by the Tax Commission. For purposes of determining whether annual gross revenues are derived from sales to out-of-state buyers or consumers, all sales to the federal government shall be considered to be to an out-of-state buyer or consumer.
For more information about filing the required affidavit and certification, contact the Oklahoma Tax Commission at (405) 521-3133 or otcmaster@tax.ok.gov. For forms, visit www.oktax.state.ok.us.
Sales At Aircraft Maintenance Facilities
(68 O.S. § 1357 [20])
Sales of aircraft and aircraft parts are tax exempt; provided such sales occur at a qualified aircraft maintenance facility. As used in this paragraph, “qualified aircraft maintenance facility” means a facility operated by an air common carrier at which there were employed at least two thousand (2,000) full-time- equivalent employees in the preceding year as certified by the Oklahoma Employment Security Commission, and which is primarily related to the fabrication, repair, alteration, modification,
refurbishing, maintenance, building or rebuilding of commercial aircraft or aircraft parts used in air common carriage. For purposes of this paragraph, “air common carrier” shall also include members of an affiliated group as defined by Section 1504 of the Internal Revenue Code, 26 U.S.C.
For more information and certification, contact the Oklahoma Tax Commission at (405) 521-3133 or otcmaster@tax.ok.gov. For forms, visit www.oktax.state.ok.us.
Aircraft Repairs And Modifications
(68 O.S. § 1357 [28])
Beginning July 1, 2005, sales of aircraft engine repairs, modification, and replacement parts, sales of aircraft frame repairs and modification, aircraft interior modification, and paint, and sales of services employed in the repair, modification and replacement of parts of aircraft engines, aircraft frame and interior repair and modification, and paint are also exempt from sales tax.
Aircraft Maintenance Or Manufacturing Facility
(68 O.S. § 1357 [16])
Oklahoma provides a sales tax exemption for sales of computers, data processing equipment, related peripherals and telephone, telegraph or telecommunications service and equipment for use in a qualified aircraft maintenance or manufacturing facility. A “qualified aircraft maintenance or manufacturing facility” means:
- A new or expanding facility primarily engaged in aircraft repair, building or rebuilding whether or not on a factory basis.
- A facility whose total cost of construction exceeds the sum of Five Million Dollars ($5,000,000.00) and which employs at least two hundred fifty (250) new full-time- equivalent employees, as certified by the Oklahoma Employment Security Commission, upon completion of the facility.
In order to qualify for the exemption, the cost of the items purchased by the qualified aircraft maintenance or manufacturing facility shall equal or exceed the sum of Two Million Dollars ($2,000,000.00).
For more information about filing, the required affidavit and certification, contact the Oklahoma Tax Commission at (405) 521-3133 or otcmaster@tax.ok.gov. For forms, visit www.oktax.state.ok.us.
Excise Tax On Aircraft Sales
(68 O.S. § 6001)
HB 2253-Effective May 10, 2018
Oklahoma House Bill 2253 HB 2253 modifies the aircraft excise tax exemption afforded aircraft purchased or used by commercial airlines, specifically charter aircraft (aircraft operating under Part 135 of Title 14 of the Code of Federal Regulations). In order to qualify for this exemption, the aircraft owner cannot operate under Part 91 of Title 14 of the C.F.R. for more than fifty percent (50%) of its annual operations. If the operations of such aircraft are not at least fifty percent (50%) Part 135 charter operations annually, the aircraft excise tax levied shall be due and payable.
An aircraft owner must provide a report to the Oklahoma Tax Commission on an annual basis detailing the operations of the aircraft and any supporting flight, maintenance or charter log books required by the Commission. For the purpose of satisfying this requirement, such operations may not include those chartered by the aircraft owner as an individual or as a business entity in which the aircraft owner owns a majority interest.
For more information contact the Oklahoma Tax Commission at (405)521-3133 otcmaster@tax.ok.gov. For forms, visit www.oktax.state.ok.us or Oklahoma Aeronautics Commission at (405) 604-6900.
Telecommunications
(68 O.S. §§ 1354 and 1357 [18] [26])
Sales tax exemptions apply to Interstate 1-800, WATS, and interstate private-line business telecommunication services, and to cell phones sold to a vendor who transfers the equipment as part of an inducement to a consumer to contract for wireless telecommunications.
For more information contact the Oklahoma Tax Commission at (405)521-3133 otcmaster@tax.ok.gov. For forms, visit www.oktax.state.ok.us.
Spaceport
(68 O.S. § 1356) [32 – 37]
Sales of any tangible property to a spaceport user as determined by the Oklahoma Space Industry Development Authority are exempt from sales tax. Launch vehicles, satellites and such related attached or used property may also be purchased free from sales and use tax.
For more information and certification, contact the Oklahoma Tax Commission at (405)521-3133 otcmaster@tax.ok.gov. For forms, visit www.oktax.state.ok.us.
Sales Tax Refunds
Oklahoma offers sales tax refunds for qualified companies. To qualify, a company must submit an Application/Intent to Qualify to the Oklahoma Tax Commission to establish an interest-bearing account. Upon receiving the application and documentation concerning the sales/use taxes to be paid by the applicant or their contractors, the Oklahoma Tax Commission will determine whether a company qualifies. If so, the Oklahoma Tax Commission will immediately set up an account to track sales taxes paid on sales as shown by the invoices submitted.
For purposes of the exemption at section 1359 (7) of Title 68 for qualified manufacturers, interest is determined according to the amount earned as invested by the State Treasurer’s Office. For the remaining refunds at Sections 1357(17) and 54003 of Title 68, interest accrues at the rate of a 3-month Treasury bill from the date invoiced items are approved.
Sales taxes paid on construction materials incorporated in certain new manufacturing facilities by the manufacturer or by a contractor or subcontractor on behalf of a qualified manufacturer are refundable.
Sales taxes paid for machinery and equipment by certain service businesses (computer services, R & D, and aircraft repair) are refundable. Invoices of each vendor that distinguish the state and local sales taxes paid must be submitted with claims.
Affidavits from vendors or contractors that the sales taxes were charged, paid, and have not been refunded by the vendor must be submitted with claims. Eligible applicants must file for a refund within 36 months of the date of purchase. The Oklahoma Tax Commission requires certification from the Oklahoma Employment Security Commission regarding the number of jobs.
Note: Participation In The Quality Jobs Program Or Other Incentive Payment Programs Precludes Participation In These Refunds.
Computer Services / Data Processing / Telecommunications Equipment
(68 O.S. § 54003)
Oklahoma offers a sales tax refund on the purchase of computers, data processing equipment, related peripherals, telegraph or telecommunications services, and equipment.
- Applies to NAICS Nos. 51121, 336411, 541512, 518210 and 518111 (Computer services and data processing) and 541712, 541720, 541712 and 541380 (Research and Development).
- New or expanding businesses.
- Addition of 10 new full-time employees that have an average salary of $35,000.
- These new employees must be employed for at least 36 months.
- 50% of annual gross revenues must result from sales to out-of-state buyers but may include the federal government.
- 75% of annual gross income results from computer services, data processing activities, or research and development activities.
- If the company is in 518210, it must also purchase $100,000 worth of exempt items.
Note: This Refund Is Not As Favorable To Computer Services And Data Processing Companies As The Sales Tax Exemption Found At 68 0.S. § 1357 (21).
For more information contact the Oklahoma Tax Commission at (405)521-3133 otcmaster@tax.ok.gov. For forms, visit www.oktax.state.ok.us.
Construction Materials
(68 O.S. § 1359 [7])
Oklahoma refunds sales taxes paid on construction materials for certain new or expanding manufacturing facilities including:
- Facilities with construction costs exceeding $5 million which create 100 new manufacturing jobs and are maintained for a minimum of 36 months. Construction costs include building and construction costs, and engineering and architectural fees, but not legal fees.
- Facilities with construction costs exceeding $10 million, and with combined total costs of material, construction, and machinery exceeding $50 million, which add 75 new employees who are retained for 36 months.
- Facilities with construction costs exceeding Three Hundred Million Dollars ($300,000,000) which maintain an employment level of a least 1,750 full time equivalent employees.
- Qualified new or expanding aircraft maintenance and overhaul facilities that create 250 or more jobs, with construction costs totaling at least $5 million. [68 O.S. 1357(17)].
These construction exemptions are unique not only because they are refunds, but also because they allow contractors or subcontractors that have previously entered into a written contractual relationship with the manufacturer, or a qualified aircraft maintenance facility operator, to make refundable purchases on behalf of manufacturers. The manufacturer may use invoices made out in the contractors’ names for proof when applying for sales tax refunds. Generally, refundable purchases do not include machinery and equipment. Warehousing/Distribution for manufacturers, structures, or land used for packaging, re-packaging, labeling, or assembly for distributing products that are at least 70% made in Oklahoma, but at an off-site, in-state manufacturing facility or facilities are also deemed manufacturing facilities for purposes of these sales tax refunds.
For more information contact the Oklahoma Tax Commission at (405)521-3133 otcmaster@tax.ok.gov. For forms, visit www.oktax.state.ok.us.
(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.
Cybersecurity or software employees who have received a degree from an accredited institution can receive a tax credit up to $2,200 annually or $1,800 annually for qualifying employees who are awarded a certificate from a technology center.
(68 O.S. § 2357.4)*
Investment/New Jobs Tax Credits provide 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. Participation in this benefit prohibits a manufacturer from participating in the Quality Jobs Program unless the manufacturer makes a qualifying capital investment in excess of $40 million.
Manufacturers that invest in qualified new depreciable property and also hire new employees may compute the five-year tax credit either:
- By calculating 1% of the qualifying investment; or
- By multiplying $500 per new employee, and then choosing whichever credit is larger.
Investment in depreciable property must equal at least $50,000, and the number of employees must not decrease as a result of the investment. Qualified property includes all machinery, fixtures and buildings, including warehousing or substantial improvements to buildings used in a manufacturing operation on a manufacturing site. Eligibility is initially determined each year by the taxpayer on its income tax return.
The credit is computed on a year-by-year basis. Therefore, a company that had qualified in one year for the credit based on new employees hired, but experiences a reduction in employment the next year, would still qualify for a partial credit, unless employment fell below the employment level for the year prior to the first year the credit was allowable. If, in later years, additional qualifying employees were added, a new base employment level would be calculated, and the new series of credits could be taken for the number of employees above that base level of employment.
The number of jobs may fluctuate if the credit is based on investment. However, a loss in number of jobs must not be attributable to the new investment.
Learn more about incentives at https://www.okcommerce.gov/doing-business/business-relocation-expansion/incentives/
For more information on incentive programs in the Tahlequah area, please visit the Oklahoma State Department of Economic Development website at https://okcommerce.gov/community/economic-development/
Get comprehensive, up-to-date information on Oklahoma’s business incentives and taxes here.