Greater Oklahoma City

QUALITY JOBS PROGRAM• New jobs to the state

• Must average county wage or $28,878 whichever is lower

• Company must achieve $2.5 million annual payroll within 3 years

• Offer Basic Health Insurance

• Cash payments of up to 5% new payroll for up to 10 years

• Targeted Industries: Manufacturing, R&D including Wind Power Manufacturing, Corporate Services, Data Centers

INVESTMENT/NEW JOBS TAX CREDIT

Choice of Tax Credit based on…

Investment or New EmployeesInvestment or New Employees• Five year tax credit on the greater of

1% per year of investment in new depreciable property or $500 per new employee

• Credit doubles in Enterprise Zones

• Credit doubles if investment exceeds

$40 million

• Minimum investment of $50,000

• Qualifying manufacturers or Aircraft

Maintenance

QUALITY JOBS + INVESTMENT TAX CREDITS

An incentive that targets industries that have large capital investments in addition to creating skilled jobs.

Qualifying Requirements:• Wages must be equal to or greater than the state’s average wage – presently

$35,131.• Capital investment greater than $40 million qualifies the investment for a 2% tax

credit per year for 5 years.• QJP+ITC may not be combined with Small Quality Jobs or 21st Century QJP.• Industries that may qualify for the incentive are only those industries that presently

qualify for ITC (that is manufacturing industries).• Requires a letter of determination from the the Department of Commerce that the

project is net benefit positive for the state.

• Becomes effective January 1, 2010.

AD VALOREMProperty Tax LiabilityApproximately 1% of the qualifying investment. Company pays the local taxing jurisdiction which varies by location.

Example: $100 million investment is app. $1 million tax liability.

Property Tax ExemptionsCompany may file for a 5-year tax exemption on qualifying assets.

Application made each year by March 15 to county assessor.

Local taxing jurisdictions are reimbursed by the State of Oklahoma.

PRIME CONTRACTOR• An incentive that rewards prime contractors for performing federal contracting work

in Oklahoma and awarding subcontracting work to Oklahoma businesses.

• An incentive for allowing companies that are awarded federal contracts (prime contractors) to be paid for jobs and payroll created at both the prime contractor and a qualifying subcontractor.

• FEMA emergency grants are not qualifying federal contracts.

• The net benefit rate ranges from .25% to 2% and is tied to the amount of subcontracting work performed by qualified Oklahoma companies and the total amount of contract work performed by the prime contractor in Oklahoma.

• A federal contract verifier ensures the prime contractor is awarded a qualifying federal contract.

• Currently, the University Multispectral Lab at OSU qualifies as a federal contract verifier.

• Effective July 1, 2009.

Additional Incentives

• Sales Tax Exemption on machinery and consumables used in the mfg. process, including energy

• Freeport Exemption on goods, wares, and merchandise which come into Oklahoma from outside the State and leave the State within 9 months

• 21st Century Quality Jobs provides up to 10% cash back on 10 or more jobs which pay wages of 300% of the state average or higher

Oklahoma City (SIP)Oklahoma City (SIP)

Potential local Incentive• 250 Jobs• Average Salary of $70,000• $40,000,000 investment

Your company could qualify for up to $1,875,000 million in local incentives. ($7,500/job)