{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-3604","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-3604","heading":"Incentive payments","body":"A. Except as otherwise provided in subsection I or subsection L\n\nof this section, an establishment which meets the qualifications\n\nspecified in the Oklahoma Quality Jobs Program Act may receive\n\nquarterly incentive payments for a ten-year period from the Oklahoma\n\nTax Commission pursuant to the provisions of the Oklahoma Quality\n\nJobs Program Act; provided, such an establishment defined or\n\nclassified in the NAICS Manual under U.S. Industry No. 711211 (2007\n\nversion) may receive quarterly incentive payments for a thirty-year\n\nperiod. The amount of such payments shall be equal to the net\n\nbenefit rate multiplied by the actual gross payroll of new direct\n\njobs for a calendar quarter as verified by the Oklahoma Employment\n\nSecurity Commission. For an establishment defined or classified in\n\nthe NAICS Manual under U.S. Industry No. 711211 (2007 version) that\n\nentered into a contract pursuant to the Oklahoma Quality Jobs\n\nProgram Act with the Oklahoma Department of Commerce before the\n\neffective date of this act:\n\n1. The contract shall be extended from fifteen (15) years to\n\nthirty (30) years; and\n\n2. The extension shall not include additional money awarded but\n\nshall allow for payments to continue for the thirty-year period, or\n\nuntil the net benefit for the new direct jobs for the original\n\ncontract has been fully paid out as calculated based upon the\n\noriginal application.\n\nB. In order to receive incentive payments, an establishment\n\nshall apply to the Oklahoma Department of Commerce. The application\n\nshall be on a form prescribed by the Department and shall contain\n\nsuch information as may be required by the Department to determine\n\nif the applicant is qualified. An establishment may apply for an\n\neffective date for a project, which shall not be more than twenty-\n\nfour (24) months from the date the application is submitted to the\n\nDepartment.\n\nC. Except as otherwise provided by subsection D or E of this\n\nsection, in order to qualify to receive such payments, the\n\nestablishment applying shall be required to:\n\n1. Be engaged in a basic industry;\n\n2. Have an annual gross payroll for new direct jobs projected\n\nby the Department to equal or exceed Two Million Five Hundred\n\nThousand Dollars ($2,500,000.00) within three (3) years of the first\n\ncomplete calendar quarter following the start date; and\n\n3. Have a number of full-time-equivalent employees subject to\n\nthe tax imposed by Section 2355 of this title and working an annual\n\naverage of thirty (30) or more hours per week in new direct jobs\n\nlocated in this state equal to or in excess of eighty percent (80%)\n\nof the total number of new direct jobs.\n\nD. In order to qualify to receive incentive payments as\n\nauthorized by the Oklahoma Quality Jobs Program Act, an\n\nestablishment engaged in an activity described under:\n\n1. Industry Group Nos. 3111 through 3119 of the NAICS Manual\n\nshall be required to:\n\na. have an annual gross payroll for new direct jobs\n\nprojected by the Department to equal or exceed One\n\nMillion Five Hundred Thousand Dollars ($1,500,000.00)\n\nwithin three (3) years of the first complete calendar\n\nquarter following the start date and make, or which\n\nwill make within one (1) year, at least seventy-five\n\npercent (75%) of its total sales, as determined by the\n\nIncentive Approval Committee pursuant to the\n\nprovisions of subsection B of Section 3603 of this\n\ntitle, to out-of-state customers or buyers, to in-\n\nstate customers or buyers if the product or service is\n\nresold by the purchaser to an out-of-state customer or\n\nbuyer for ultimate use, or to the federal government,\n\nunless the annual gross payroll equals or exceeds Two\n\nMillion Five Hundred Thousand Dollars ($2,500,000.00)\n\nin which case the requirements for purchase of output\n\nprovided by this subparagraph shall not apply, and\n\nb. have a number of full-time-equivalent employees\n\nworking an average of thirty (30) or more hours per\nut-of-state customer or\n\nbuyer for ultimate use, or to the federal government,\n\nunless the annual gross payroll equals or exceeds Two\n\nMillion Five Hundred Thousand Dollars ($2,500,000.00)\n\nin which case the requirements for purchase of output\n\nprovided by this subparagraph shall not apply, and\n\nb. have a number of full-time-equivalent employees\n\nworking an average of thirty (30) or more hours per\n\nweek in new direct jobs equal to or in excess of\n\neighty percent (80%) of the total number of new direct\n\njobs; and\n\n2. Division (4) of subparagraph a of paragraph 1 of subsection\n\nA of Section 3603 of this title, shall be required to:\n\na. have an annual gross payroll for new direct jobs\n\nprojected by the Department to equal or exceed One\n\nMillion Five Hundred Thousand Dollars ($1,500,000.00)\n\nwithin three (3) years of the first complete calendar\n\nquarter following the start date, and\n\nb. have a number of full-time-equivalent employees\n\nworking an average of thirty (30) or more hours per\n\nweek in new direct jobs equal to or in excess of\n\neighty percent (80%) of the total number of new direct\n\njobs.\n\nE. 1. An establishment which locates its principal business\n\nactivity within a site consisting of at least ten (10) acres which:\n\na. is a federal Superfund removal site,\n\nb. is listed on the National Priorities List established\n\nunder Section 9605 of Title 42 of the United States\n\nCode,\n\nc. has been formally deferred to the state in lieu of\n\nlisting on the National Priorities List, or\n\nd. has been determined by the Department of Environmental\n\nQuality to be contaminated by any substance regulated\n\nby a federal or state statute governing environmental\n\nconditions for real property pursuant to an order of\n\nthe Department of Environmental Quality,\n\nshall qualify for incentive payments irrespective of its actual\n\ngross payroll or the number of full-time-equivalent employees\n\nengaged in new direct jobs.\n\n2. In order to qualify for the incentive payments pursuant to\n\nthis subsection, the establishment shall conduct the activity\n\nresulting in at least fifty percent (50%) of its Oklahoma taxable\n\nincome or adjusted gross income, as determined under Section 2358 of\n\nthis title, whether from the sale of products or services or both\n\nproducts and services, at the physical location which has been\n\ndetermined not to comply with the federal or state statutes\n\ndescribed in this subsection with respect to environmental\n\nconditions for real property. The establishment shall be subject to\n\nall other requirements of the Oklahoma Quality Jobs Program Act\n\nother than the exemptions provided by this subsection.\n\n3. In order to qualify for the incentive payments pursuant to\n\nthis subsection, the entity shall obtain from the Department of\n\nEnvironmental Quality a letter of concurrence that:\n\na. the site designated by the entity does meet one or\n\nmore of the requirements listed in paragraph 1 of this\n\nsubsection, and\n\nb. the site is being or has been remediated to a level\n\nwhich is consistent with the intended use of the\n\nproperty.\n\nIn making its determination, the Department of Environmental\n\nQuality may rely on existing data and information available to it,\n\nbut may also require the applying entity to provide additional data\n\nand information, as necessary.\n\n4. If authorized by the Department of Environmental Quality\n\npursuant to paragraph 3 of this subsection, the entity may utilize a\n\nremediated portion of the property for its intended purpose prior to\n\nremediation of the remainder of the site, and shall qualify for\n\nincentive payments based on employment associated with the portion\n\nof the site.\n\nF. Except as otherwise provided by subsection G of this\n\nsection, for applications submitted on and after June 4, 2003, in\n\norder to qualify to receive incentive payments as authorized by the\ned portion of the property for its intended purpose prior to\n\nremediation of the remainder of the site, and shall qualify for\n\nincentive payments based on employment associated with the portion\n\nof the site.\n\nF. Except as otherwise provided by subsection G of this\n\nsection, for applications submitted on and after June 4, 2003, in\n\norder to qualify to receive incentive payments as authorized by the\n\nOklahoma Quality Jobs Program Act, in addition to other\n\nqualifications specified herein, an establishment shall be required\n\nto pay new direct jobs an average annualized wage which equals or\n\nexceeds:\n\n1. One hundred ten percent (110%) of the average county wage as\n\ndetermined by the Department of Commerce based on the most recent\n\nU.S. Department of Commerce data for the county in which the new\n\ndirect jobs are located. For purposes of this paragraph, health\n\ncare premiums paid by the applicant for individuals in new direct\n\njobs shall be included in the annualized wage; or\n\n2. One hundred percent (100%) of the average county wage as\n\nthat percentage is determined by the Department of Commerce based\n\nupon the most recent U.S. Department of Commerce data for the county\n\nin which the new jobs are located. For purposes of this paragraph,\n\nhealth care premiums paid by the applicant for individuals in new\n\ndirect jobs shall not be included in the annualized wage.\n\nProvided, no average wage requirement shall exceed Twenty-five\n\nThousand Dollars ($25,000.00), in any county. This maximum wage\n\nthreshold shall be indexed and modified from time to time based on\n\nthe latest Consumer Price Index year-to-date percent change release\n\nas of the date of the annual average county wage data release from\n\nthe Bureau of Economic Analysis of the U.S. Department of Commerce.\n\nG. 1. As used in this subsection, “opportunity zone” means one\n\nor more census tracts in which, according to the most recent Federal\n\nDecennial Census, at least thirty percent (30%) of the residents\n\nhave annual gross household incomes from all sources below the\n\npoverty guidelines established by the U.S. Department of Health and\n\nHuman Services. An establishment which is otherwise qualified to\n\nreceive incentive payments and which locates its principal business\n\nactivity in an opportunity zone shall not be subject to the\n\nrequirements of subsection F of this section.\n\n2. As used in this subsection:\n\na. “negative economic event” means:\n\n(1) a man-made disaster or natural disaster as\n\ndefined in Section 683.3 of Title 63 of the\n\nOklahoma Statutes, resulting in the loss of a\n\nsignificant number of jobs within a particular\n\ncounty of this state, or\n\n(2) an economic circumstance in which a significant\n\nnumber of jobs within a particular county of this\n\nstate have been lost due to an establishment\n\nchanging its structure, consolidating with\n\nanother establishment, closing or moving all or\n\npart of its operations out of this state, and\n\nb. “significant number of jobs” means Local Area\n\nUnemployment Statistics (LAUS) data, as determined by\n\nthe Bureau of Labor Statistics, for a county which are\n\nequal to or in excess of five percent (5%) of the\n\ntotal amount of Local Area Unemployment Statistics\n\n(LAUS) data for that county for the calendar year, or\n\nmost recent twelve-month period in which employment is\n\nmeasured, preceding the event.\n\nAn establishment which is otherwise qualified to receive\n\nincentive payments and which locates in a county in which a negative\n\neconomic event has occurred within the eighteen-month period\n\npreceding the start date shall not be subject to the requirements of\n\nsubsection F of this section; provided, an establishment shall not\n\nbe eligible to receive incentive payments based upon a negative\n\neconomic event with respect to jobs that are transferred from one\n\ncounty of this state to another.\n\nH. The Department shall determine if the applicant is qualified\n\nto receive incentive payments.\npreceding the start date shall not be subject to the requirements of\n\nsubsection F of this section; provided, an establishment shall not\n\nbe eligible to receive incentive payments based upon a negative\n\neconomic event with respect to jobs that are transferred from one\n\ncounty of this state to another.\n\nH. The Department shall determine if the applicant is qualified\n\nto receive incentive payments.\n\nI. If the applicant is determined to be qualified by the\n\nDepartment and is not subject to the provisions of subparagraph d of\n\nparagraph 7 of subsection A of Section 3603 of this title, the\n\nDepartment shall conduct a cost/benefit analysis to determine the\n\nestimated net direct state benefits and the net benefit rate\n\napplicable for a ten-year period beginning with the first complete\n\ncalendar quarter following the start date and to estimate the amount\n\nof gross payroll for a ten-year period beginning with the first\n\ncomplete calendar quarter following the start date or for a thirty-\n\nyear period for an establishment defined or classified in the NAICS\n\nManual under U.S. Industry No. 711211 (2007 version). In conducting\n\nsuch cost/benefit analysis, the Department shall consider\n\nquantitative factors, such as the anticipated level of new tax\n\nrevenues to the state along with the added cost to the state of\n\nproviding services, and such other criteria as deemed appropriate by\n\nthe Department. In no event shall incentive payments, cumulatively,\n\nexceed the estimated net direct state benefits, except for\n\napplicants subject to the provisions of subparagraph d of paragraph\n\n7 of subsection A of Section 3603 of this title.\n\nJ. Upon approval of such an application, the Department shall\n\nnotify the Tax Commission and shall provide it with a copy of the\n\ncontract and the results of the cost/benefit analysis. The Tax\n\nCommission may require the qualified establishment to submit such\n\nadditional information as may be necessary to administer the\n\nprovisions of the Oklahoma Quality Jobs Program Act. The approved\n\nestablishment shall file quarterly claims with the Tax Commission\n\nand shall continue to file such quarterly claims during the ten-year\n\nincentive period to show its continued eligibility for incentive\n\npayments, as provided in Section 3606 of this title, or until it is\n\nno longer qualified to receive incentive payments. The\n\nestablishment may be audited by the Tax Commission to verify such\n\neligibility. Once the establishment is approved, an agreement shall\n\nbe deemed to exist between the establishment and the State of\n\nOklahoma, requiring the continued incentive payment to be made as\n\nlong as the establishment retains its eligibility as defined in and\n\nestablished pursuant to this section and Sections 3603 and 3606 of\n\nthis title and within the limitations contained in the Oklahoma\n\nQuality Jobs Program Act, which existed at the time of such\n\napproval. An establishment described in this subsection shall be\n\nrequired to repay all incentive payments received under the Oklahoma\n\nQuality Jobs Program Act if the establishment is determined by the\n\nOklahoma Tax Commission to no longer have business operations in the\n\nstate within three (3) years from the beginning of the calendar\n\nquarter for which the first incentive payment claim is filed.\n\nK. A municipality with a population of less than one hundred\n\nthousand (100,000) persons in which an establishment eligible to\n\nreceive quarterly incentive payments pursuant to the provisions of\n\nthis section is located may file a claim with the Tax Commission for\n\nup to twenty-five percent (25%) of the amount of such payment. The\n\namount of such claim shall not exceed amounts paid by the\n\nmunicipality for direct costs of municipal infrastructure\n\nimprovements to provide water and sewer service to the\n\nestablishment. Such claim shall not be approved by the Tax\n\nCommission unless the municipality and the establishment have\na claim with the Tax Commission for\n\nup to twenty-five percent (25%) of the amount of such payment. The\n\namount of such claim shall not exceed amounts paid by the\n\nmunicipality for direct costs of municipal infrastructure\n\nimprovements to provide water and sewer service to the\n\nestablishment. Such claim shall not be approved by the Tax\n\nCommission unless the municipality and the establishment have\n\nentered into a written agreement for such claims to be filed by the\n\nmunicipality prior to submission of the application of the\n\nestablishment pursuant to the provisions of this section. If such\n\nclaim is approved, the amount of the payment to the establishment\n\nmade pursuant to the provisions of Section 3606 of this title shall\n\nbe reduced by the amount of the approved claim by the municipality\n\nand the Tax Commission shall issue a warrant to the municipality in\n\nthe amount of the approved claim in the same manner as warrants are\n\nissued to qualifying establishments.\n\nL. For any contract executed by an establishment on or after\n\nAugust 2, 2018, five percent (5%) of the quarterly incentive payment\n\namount shall be transferred by the Oklahoma Tax Commission to the\n\nOklahoma Quick Action Closing Fund.","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"37a9129e45116f47a7fd066ba4ef0d3cd6d83a5aaab3bab7b7cae0cd8c0de2bc","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-3603","next":"us-ok/okla.-stat.-tit.-68-68-3604.1"},"notice":"GroundRules: Original legal text. Not legal advice."}