Tax Credits and Incentives
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Oklahoma offers a wide variety of financing and incentive options for locating businesses. Options range from cash-back incentives and tax credits to bond financing and accelerated depreciation. View the brief overview below and visit the Oklahoma Commerce Department website for more information. Insurance companies that locate or expand regional home offices in Oklahoma and maintain an employee level above 200 are eligible for special tax credits against the tax imposed in the Insurance Code. Annual credits range from 15% to 50% based on the numbers of full time, year-round employees. This credit is not available to participants in the Quality Jobs Program. Quality Jobs 10-Year Cash Incentive Cash payments of up to 5% of new payroll for up to 10 years. Investment/New Jobs Tax Credit Package 5-year tax credit on the greater of 1% per year of investment in new depreciable property of $500 per new employee. 21st Century Quality Jobs 10-Year Cash Back Incentive Cash payments of up to 5% of new payroll for up to 10 years. Funds will be expended for projects which provide a substantial economic benefit to the state through any of the following: Creation of new jobs that offer a basic health benefit plan; maintenance of existing jobs that are at risk for termination; investment in new real property, plant or equipment or in the improvement or retooling of existing plant or equipment; OR additional revenues in either ad valorem, income or sales and use taxes. PrimeWIN Prime Contractor Incentive Offers a cash rebate of up to 2% of the Oklahoma workforce loaded labor cost. Cash incentives paid quarterly for up to 10 years. 39% federal tax credit for investors. No-cost/low-cost customized training of technical, managerial and general workforce skills through the CareerTech statewide network. Community Development Block Grant/Economic Development Infrastructure Financing (CDBG/EDIF) Grants of up to $500,000 for business expansion or up to $1 million for new companies based upon new jobs and leverage. Economic Development Pooled Finance Available to local governments in conjunction with a for-profit entity for economic development projects. Infrastructure assets must be owned by the local government. Former Indian Lands Tax Credit Federal 35-40% accelerated depreciation and up to $4,000 federal tax credit per qualifying employee (pending extension by Congress). Varies by location. Tax Increment Financing (TIF) is a tool available to local governments in Oklahoma to assist economic development within an area known as a TIF District. |
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