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Incentives and Financing

Incentives

Incentives

It pays to put down roots in Okmulgee, Oklahoma. One of the reasons Oklahoma earned the #10 spot on Top States for Doing Business in 2012, according to Area Developers Online, is the state’s excellent incentives options. Here is a consolidated overview of the key financial and business incentives that are available to new and expanding industry in the greater Okmulgee, Oklahoma.  For a discussion of how these can apply specifically to your company or client, contact us and put us to work for you.

Enterprise Zones

The Okmulgee Business Complex, the South Industrial Park and the West Industrial Park, are in Enterprise Zones, designated by the state of Oklahoma.  These zones provide major inducements for business:
  • Double the investment tax credit
  • New Jobs tax credit is allowed
  • Ad valorem exemptions from local taxing entities can be exempted for up to six years, rather than five.

Oklahoma Quality Jobs Program

Quality Jobs Program with a Cash-Back Guarantee, providing direct quarterly cash payments of up to 5% of new taxable payroll for up to 10 years, with advantageous options for small as well as large employers.
New Jobs/Investment Tax Credits and Sales and Use Tax Refunds, providing a tax credit of $500 for each new job or 1% of the cost of depreciable property, whichever is higher. Because some sites in Okmulgee are located in an Enterprise Zone, that credit is doubled to $1,000 per employee, with an investment tax credit of 2%.

 21st Century Quality Jobs 10-Year Cash Back Incentive

  • Requires at least 10 full-time jobs at an annual average wage of the lesser of $94,418 or 300% of the county's average wage
  • Allows a net benefit rate of up to 10% of payroll for up to 10 years
  • Out-of-state sales must be at least 50%.
  • Target Industries:  knowledge-based service industries, including professional, scientific and technical services; music, film and performing arts; and specialty hospitals.

Prime Contractor Incentive

  • Allows federal prime contractors to be paid for jobs and payroll created by both the prime contractor and a qualifying subcontractor.
  • Offers a cash rebate of up to 2% of the Oklahoma workforce loaded labor cost. 
  • Cash incentives paid quarterly for up to 10 years.
  • OSU-UML, as contract verifier, certifies the qualified labor hours performed under a qualifying federal contract.

Five-Year Property Tax Abatement

A five-year ad valorem tax exemption is available for new, expanded or acquired (unoccupied for one year period prior to acquisition) manufacturing facilities, research/development, some computer services, data processing services and some distribution services. Real estate, machinery and equipment used directly in the manufacturing processes are also eligible. The exemption requires a minimum capital investment of $250,000 for all facilities and an additional $250,000 in annual payroll.

Freeport – Inventory Tax Exemption

Goods, wares, and merchandise that come from outside the State and leave the State within nine months if such goods, wares and merchandise are held for assembly, storage, manufacturing, processing or fabricating purposes are not subject to ad valorem taxation within the State.

Sales Tax Exemptions

Oklahoma has an innovative sales tax exemption program, offering exemptions in the following areas:
  • Machinery and equipment used directly in the manufacturing process, including replacement parts
  • Tangible personal property which becomes part of the finished product
  • 1-800, WATTS and private line business telecommunications systems
  • Containers which are sold to persons regularly engaged in reselling empty or filled one-way containers, or when the containers are purchased to package raw materials
  • Primary and secondary packaging materials used to pack, ship, or deliver tangible personal property may be purchased sales tax exempt by a manufacturer or producer (doesn’t apply to returnable containers or reusable packaging)
  • Machinery, equipment, fuels and chemicals used directly or in treating controlled industrial waste (approval is required by the State Department of Environmental Quality)
  • Sales tax refund on computers, data processing equipment, related peripherals, telegraphs or telecommunications services or equipment.
Qualifying companies include:
  • New and expanded aircraft maintenance and manufacturing facilities that create 250 or more jobs, with construction investment of $5 million and purchases of at least $2 million worth of computers and other listed items.
  • Research and development or computer services companies (SIC 7373-7375, 8731-8734), when:
    • at least 50% of the annual gross revenue of the business is generated by sales of product or service to an out-of-state buyer or consumer (includes the federal government).
    • 75% of annual gross income results from computer services / data processing or search and development activities.
    • the business employs at least 10 new workers at an average salary of $35,000 for at least 3 years.

Sales Tax Refunds / Construction materials

Refund of sales taxes paid on construction materials for new or expanding facilities, including:
  • Manufacturing facilities with construction costs exceeding $5 million that create 100 new jobs maintained for a minimum of 36 months
  • Facilities with construction costs exceeding $10 million, and the combined total of material, construction and machinery exceeding $50 million, that add 75 employees
  • Qualified new or expanding aircraft maintenance and manufacturing facilities that create 250 or more jobs, with and investment totaling at least $50 million
  • Any structure or land used for packing, repackaging, labeling or assembling for distribution, products that are at least 70% made in Oklahoma, but at an off-site, in-state manufacturing facility or facilities.

Sales Tax Refunds / Computers and data processing equipment

Oklahoma offers a sales tax refund on computers, data processing equipment, related peripherals, telegraphs or telecommunications services or equipment.
Source for all Incentives: Oklahoma Department of Commerce http://okcommerce.gov/assets/files/incentives

Workforce Training

The state of Oklahoma has no peer when it comes to training workers for industry-specific applications. Working with the state's award-winning CareerTech system and OSU Institute of Technology, the Okmulgee Area Development Corporation can help deliver the workforce you want, with the skills you need.

Customized Training for Industry Program

The most important corporate resource over the next two or three decades will be talent. That's where Oklahoma's Training for Industry program (TIP) can help you find and train your workforce talent, whether you're a new or expanding company in the greater Okmulgee area. And here is the best part: The training is either free or very low cost. Once you decide to locate or expand your company in Okmulgee, the CareerTech TIP team will work one-on-one with you to design and deliver the best start-up training program available anywhere in the United States.

Existing Industry Training Grants

The Existing Industry Training Program provides customized training and services at little or no cost to the company. The program can be used for upgrade training for your existing workforce when you install new equipment, processes, technology, computerized manufacturing applications and/or training new product lines. It can also be used for supervisory training.
Sources: Oklahoma Department of Commerce and the Okmulgee Area Development Corporation

Financing Programs

New and expanding companies can utilize various financing programs through the state of Oklahoma, for projects in the greater Okmulgee area.

Oklahoma Industrial Finance Authority

The Oklahoma Industrial Finance Authority can loan up to 66% of the cost of land, buildings and fixed equipment – up to a maximum of $2 million for manufacturers. Loans are made to the Okmulgee Area Development Corporation who can re-loan the funds to the company. The Credit Enhancement Reserve fund bolsters the credit of revenue bonds issued by the Oklahoma Development Finance Authority to bolster the credit of revenue bonds issued for loans to Oklahoma businesses. Bonds are state tax exempt and may also be federal tax exempt.

Industrial Development Bonds

Tax exempt loans for land, buildings and other equipment. Loans are only available to small businesses and can only be used for manufacturing projects.

Public Trust Financing

Through its venture capital program, the Oklahoma Capital Investment Board (OCIB) facilitates investment in venture capital funds that focus on investing in quality companies.

Economic Development Infrastructure Financing Program (EDIF)

Community Development Block Grants are available for infrastructure improvements necessary for new and expanding industries. Up to $100,000 is available for grants and up to $400,000 for low interest loans.

Tax Increment Financing (TIF)

Incremental tax dollars from a new investment can be used to construct infrastructure and other public improvements that benefit the new company.

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.
Source:  Oklahoma Department of Commerce

Business Assistance

Beyond the incentives and financing programs, the Okmulgee Area Development Corporation and Oklahoma can provide various types of business assistance to make your move or expansion smoother. Here are a few:

Alliance for Manufacturing Excellence

The Alliance assists manufacturers with technology, marketing, human resource management, financing, and business relationships. The services are delivered through a statewide network of broker/agents who work with firms to bring the latest in manufacturing technology directly to the local manufacturer.

International Trade and Marketing

The Oklahoma Department of Commerce maintains international trade and marketing representatives in Europe, the Far East, Southeast Asia, and Mexico to assist companies with exporting and joint ventures.

Oklahoma Center for the Advancement of Science and Technology

OCAST supports basic and applied research and technology programs.

Greater Okmulgee Area Business Programs

The Okmulgee Area Development Corporation coordinates a quarterly Business Roundtable program for multiple employers in the area.  The Corporation also facilitates a meeting with the leadership of the Muscogee (Creek) Nation on a quarterly basis as well as special networking functions in the area.
Source:  Oklahoma Department of Commerce / Okmulgee Area Development Corporation.

Build-to-Suit Program

For companies that need a new industrial or commercial building in the greater Okmulgee Area, the Okmulgee Area Development Corporation will work with the company to explore the possibilities of a Build-to-Suit project. 
Source:  Okmulgee Area Development Corporation.

Further Information

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