Oklahoma incentive programs

Vetted line-by-line against the official Oklahoma Small Employer Quality Jobs 2026 Guidelines (ODOC). Worked math below is illustrative, not client actuals.

Eligibility

≤500 employees at application and averaging ≤500 over the preceding 4 calendar quarters. Must be in a qualifying basic industry (all regular Quality Jobs industries except Oil & Gas; NAICS list in S2 Attachment A — manufacturing = NAICS 31/32/33, 5131, 11331). Activity must not have existed in the prior 6 months. Must offer basic health insurance (employee pays ≤50% of premium; offered to all working ≥30 hrs/wk; 12 months to institute).

Benefit

Quarterly cash rebate of up to 5% of newly created taxable payroll; exact rate set by ODOC cost/benefit analysis and capped at 5%. Job-creation threshold is tiered by community population: <3,500 → greater of 5 jobs or 5% of FTE; 3,500–7,000 → greater of 10 or 7.5%; >7,000 → greater of 15 or 10%. Time to reach: 24 months for most (36 months for R&D, testing labs, software publishing, computer systems design, data processing/hosting, and medical & diagnostic labs). Average-wage requirement: 110% of average county wage (125% if counting employer-paid health premiums; 100% in economically-challenged counties). Tulsa Co. reference (S2 Att. B): 100% = $59,250; 110% = $65,175; 125% = $74,062.

Worked math

Unquantified

Illustrative only: new annual taxable payroll of $3,000,000 × 5% = $150,000/yr; over the full 7 years ≈ $1,050,000 (assumes thresholds met every quarter; inputs illustrative, not the client's).

Term

Quarterly claims for the first 24 months; if thresholds met, continue an additional 5 years (7 total). Miss thresholds at 24 months → dismissed; fall short later → suspended until cured.

Out-of-state sales

≥35% for the first two years, ≥60% thereafter, achieved within 24 months of start. May count sales to a buyer who resells out of state, or to the federal government. R&D companies and testing labs are excused.

Exclusivity

Quality Jobs Act program — mutually exclusive with 21CQJ (a company picks one for the same jobs). S2 "Incentives Excluded" list also bars combining with the Investment/New Jobs Tax Credit, Insurance Premium Tax Credit, Tax Credit for Employer-Provided Health Plans, Computer/Data-Processing equipment purchase credit, Recycling credits, and the Business Expansion Incentive Program.

Notes

Advisor simplifications corrected against S2 — see vetting log (job tiers 5/10/15, 24-month timing, county-indexed wage, and the unsupported Opportunity-Zone "automatic 5% increase" claim).

Vetted against the official Oklahoma 21st Century Quality Jobs 2026 Guidelines (ODOC). This is the program the board-signed model uses for the client ($11,175,000 over 10 years).

Eligibility

Minimum 10 New Direct Jobs in the qualifying activity (job not present in OK in the 6 months before application); employees work ≥30 hrs/wk. Up to 3 years to ramp to 10 jobs to keep the full 10-year term; failure to reach 10 by end of year 3 → dismissed. Basic health insurance on the same terms as SEQJ. Qualifying industry = all regular Quality Jobs industries (except Oil & Gas) plus an enhanced list (includes specialty hospitals and performing-arts companies with no OOS-sales requirement).

Benefit

Two-phase Net Benefit Rate (NBR): Initial NBR up to 7% of new taxable wages during the first 12 quarters (claimable even with fewer than 10 jobs, provided each filled job earns the required wage); Fulfillment NBR up to 10% once all 10 jobs at the required wage are in place. Both rates set by ODOC cost/benefit analysis. Average-wage gate (decision-critical): each New Direct Job must be paid the LESSER of (a) 300% of the average county wage or (b) the 21CQJ state index wage, currently $130,723. For Tulsa County: 100% = $63,561; 300% would be $190,683 but is capped at the $130,723 state index → effective wage gate = $130,723. Wage must be met quarter-by-quarter. An origination fee of $2,500–$7,500 is paid to ODOC at first payment (scaled to max contract benefit). Opportunity Zones are explicitly NOT recognized in 21CQJ.

Worked math

Unquantified

Board-signed model (prior PRD series): gated qualifying payroll × 10% × up to 10 years → $11,175,000 modeled 10-year 21CQJ benefit for the client (Tulsa). This reflects the wage-gate correction down from the earlier, higher pre-gate figure. Combined with the separate federal WOTC channel ($2,400) → $11,177,400 reconciled total. This catalog confirms the 21CQJ side against S3; it does not re-derive the math.

Term

Up to 10 years. Quarterly claims for 3 years; if the threshold is achieved, extend up to 7 more.

Out-of-state sales

≥50% for industries that carry the requirement (most participants); some enhanced-list industries (specialty hospitals, performing arts) have none; others (heavy/civil construction, motion picture, sound recording) carry the 50% requirement.

Exclusivity

Quality Jobs Act program — mutually exclusive with SEQJ. S3 "Incentives Excluded" list bars the Investment/New Jobs Tax Credit and the same family as SEQJ, plus "Sale of Property to Qualified Manufacturer" (the one line S3 adds over S2).

Notes

Advisor's "lesser of indexed wage or 300% county" is confirmed verbatim by S3 Attachment B and reconciles with the established wage-gate finding.

Reconciled against the official ODOC Oklahoma Innovation Expansion Program Rules & Procedures and the OIEP program page. Two corrections vs. the original advisor summary: the benefit is a payroll-withholding rebate (not a grant), and the 10% spend deadline is a fixed calendar date (Sept 30), not a rolling 90-day window. Program authority is the Pooled Finance Act, 62 O.S. §891.1.

Eligibility

Project facility in Oklahoma; minimum capital expenditure $50,000; minimum new annual payroll at the facility $625,000/yr; project must be innovative — supply-chain-shortening/strengthening for a manufactured product, or designed to target new markets. The company must spend ≥10% of estimated project costs by 5:00 p.m. CT on September 30 (a fixed date in the funding-agreement year).

Benefit

Payroll-withholding rebate funded from a state pool (Pooled Finance Act, 62 O.S. §891.1), sized to the project; published awards generally range $25,000–$150,000. The award is a rebate of the new employees' state income-tax withholding, not an up-front grant.

Term

Set by the funding agreement (project-based); rebate runs against qualifying new-payroll withholding per the agreement.

Out-of-state sales

Not a stated criterion of the OIEP rules.

Exclusivity

Decision-critical: the OIEP rules bar participation while enrolled in the Oklahoma Quality Jobs Act programs (SEQJ/21CQJ) and bar taking the Investment/New Jobs (Investment Tax) Credit while in the program — excludes Programs 1, 2, and 5.

Notes

Confirmed against the OIEP Program Rules. Corrected vs. advisor summary: rebate (not grant); fixed Sept-30 spend deadline (not rolling 90 days); authority is 62 O.S. §891.1.

Reconciled against 68 O.S. §2902 (the five-year manufacturing exemption) and OTC Form 900-XM. The 5-year term, the new/expanded/acquired-facility test, and the eligible categories are confirmed. The out-of-state-sales requirement is the statutory two-tier 50%/80% test (not a vague "significant"). "Oil refineries" is NOT a category named in §2902 and is left flagged, not asserted.

Eligibility

Qualifying manufacturer — a new, expanded, or acquired manufacturing facility. §2902 also reaches R&D facilities, certain computer-services / data-processing operations, and aircraft-repair facilities (NAICS-specific). Note: "oil refineries" appear in the advisor summary but are NOT named as a category in §2902 — treated as unverified and not asserted here.

Benefit

Exemption from ad valorem (property) taxes on the qualifying facility for the exemption period.

Term

5 years (the statutory Five-Year Ad Valorem Tax Exemption; Form 900-XM).

Out-of-state sales

Statutory two-tier test for the NAICS categories that carry it: at least 50% of goods/services sold out of state (rising to 80% for the higher tier). Sales to the U.S. federal government count as out-of-state sales under §2902.

Exclusivity

§2902 does not itself bar the Quality Jobs programs, and the Quality Jobs "Incentives Excluded" lists do not name the ad valorem manufacturing exemption — but neither text affirmatively confirms stacking, so combined use should still be confirmed with a tax advisor before relying on it.

Notes

Also modeled in the calculator under prior board-signed PRD sourcing; this catalog entry confirms the §2902 facts and adds no new calculator figures.

Reconciled verbatim against 68 O.S. §2357.4 and OAC 710:50-15-74. The greater-of computation, $50,000 threshold, qualified property, and no-decrease rule are confirmed. Correction: the 2×/$1,000 doubling is gated to the $40M-investment-in-3-years tier — §2357.4 contains no enterprise-zone language (any EZ doubling lives in a separate Enterprise-Zone act, not this statute).

Eligibility

Growing manufacturers investing in depreciable property or adding FTE engaged in manufacturing, processing, or aircraft maintenance. Investment in depreciable property ≥ $50,000; employee count must not decrease as a result. Qualified property = machinery, fixtures, buildings (incl. warehousing / substantial improvements) used in a manufacturing operation on a manufacturing site.

Benefit

A 5-year income-tax credit, computed each year as the greater of: 1% of the qualifying investment, OR $500 × number of new employees. Computed year-by-year. (Doubled to 2% / $1,000 only at the $40-million-investment-in-three-years tier — see notes.)

Worked math

Unquantified

Illustrative only: $5,000,000 qualifying investment → 1% = $50,000/yr; vs. 40 new employees × $500 = $20,000/yr → take the larger, $50,000/yr × 5 years = $250,000 (inputs illustrative, not the client's).

Term

5 years.

Out-of-state sales

None stated in §2357.4.

Exclusivity

Decision-critical: participation excludes the Quality Jobs Program (SEQJ/21CQJ) — mutual with the S2/S3 "Incentives Excluded" lists. Also excluded while in Innovation Expansion (Program 3).

Notes

§2357.4 doubles the credit to 2% of investment / $1,000-per-new-employee only when the investment reaches $40 million within three years — it is NOT an enterprise-zone enhancement (the statute has no EZ language; a separate Enterprise-Zone act governs any EZ doubling). Also modeled in the calculator under prior board-signed PRD sourcing.

Reconciled verbatim against 74 O.S. §5064.7. The 7-year royalty exemption and the 65% / $500,000 depreciable-property exclusion are confirmed exactly; the statute also allows a 4-year carryforward of any excess exclusion.

Eligibility

Patented or patent-pending product invented in Oklahoma and manufactured in Oklahoma; the manufacturer must remain in-state.

Benefit

(a) Royalty earned by the inventor from such a product is exempt from state income tax for 7 years from Jan 1 of the first royalty year; (b) the in-state manufacturer may exclude 65% of the cost of depreciable property used directly to manufacture the product, capped at $500,000 of exclusion, with any excess exclusion carried forward for up to 4 years.

Term

7 years (royalty exemption); the manufacturer's depreciable-property exclusion carries forward up to 4 years if it exceeds income.

Out-of-state sales

None stated in §5064.7.

Exclusivity

§5064.7 does not name a mutual-exclusivity bar; stacking is not addressed by the statute and should be confirmed with a tax advisor.

Notes

Confirmed against 74 O.S. §5064.7 — 7-yr royalty exemption + 65%/$500k exclusion verbatim, plus the statute's 4-year carryforward of excess exclusion.

Reconciled against OAC 710:65-13-150.1 (manufacturing exemption; taxable & exempt transactions) and 68 O.S. §1359/§1359.2 (Manufacturer's Exemption Permit). The equipment exemption and its ongoing-while-eligible nature are confirmed; the MEP itself is a renewable three-year permit.

Eligibility

Approved manufacturer holding a Manufacturer's Exemption Permit (MEP) under 68 O.S. §1359/§1359.2.

Benefit

Purchases of qualifying machinery and equipment used directly in manufacturing are exempt from Oklahoma sales/use tax once the MEP is approved (OAC 710:65-13-150.1).

Term

Ongoing while the manufacturer remains MEP-eligible; the permit itself is a renewable three-year term (§1359.2).

Out-of-state sales

None stated.

Exclusivity

Neither §1359 nor the QJ "Incentives Excluded" lists name the manufacturer's sales-tax exemption as a bar, so it is commonly treated as compatible with the Quality Jobs programs — but the texts do not affirmatively confirm stacking, so verify with a tax advisor before relying on it.

Notes

Confirmed against OAC 710:65-13-150.1 + 68 O.S. §1359/§1359.2 (corrects the earlier endnote-12 citation to the construction-materials rule). Also modeled in the calculator under prior board-signed PRD sourcing.