Incentives

Oklahoma is globally recognized for its outstanding incentive programs and pro-business environment. Through the Oklahoma Department of Commerce, businesses can choose between a cash incentive or a tax credit package, and in some cases, qualifying businesses can take advantage of both programs.

Quality Jobs Program

 

This program provides quarterly cash payments up to 5% of new payrolls for up to 10 years. Companies must achieve an average wage threshold and $2.5 million in new annual payrolls within three years to qualify. Companies must offer basic health insurance to employees. In some cases, qualifying companies must also attain 75% out-of-state sales.

Small Employer Quality Jobs Program

 

Quarterly cash payments of up to 5 percent of new taxable payroll

Qualifying small employer = 90 employees or fewer

Annual salaries that are at least 110 percent of average county wage 

21st Century Quality Jobs

 

This program is designed to attract growth industries and sectors to Oklahoma in the 21st century through a policy of rewarding businesses with a highly skilled, knowledge-based workforce. This incentive reduces out-of-state sales requirements from 75% to 50% for industries that are required to have out-of-state sales, and requires only 10 full-time jobs at an annual wage typically 300% of the county average wage. It also maximizes the eligible incentive by allowing a net benefit rate of up to 10% of payroll.

Incentive/New Jobs Tax Credit Package

 

Choice of tax credit based on investment or new employees.

Five-year state tax credit on the greater of 1% per year of investment in new depreciable property, or $500 per new job.

Credit doubles to 2% or $1,000 per employee in Enterprise Zones and Priority Enterprise Zones, or for investments of $40 million.

Minimum investment of $50,000.

May be combined with Quality Jobs under certain circumstances.

Investment in Priority Enterprise Zones (PEZs) may take advantage of Federal Opportunity Zone Funds. PEZs have the same benefits as regular Enterprise Zones, and are designed to match the boundaries and duration of Federal Opportunity Zones.

Aerospace Engineer Workforce Tax Credit

 

Aerospace companies hiring engineers in a variety of fields will receive a tax credit equal to five (5) percent of the compensation paid to an engineer until January 1, 2026, or ten (10) percent if the engineer graduated from an Oklahoma college or university (up to $12,500 per employee per year), plus another credit of up to fifty (50) percent of the tuition reimbursed to an employee until January 1, 2026. Additionally, the engineer hired receives a tax credit of $5,000 per year until January 1, 2026.

Download the Oklahoma Business and Incentive Tax Guide