{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-3604.1","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-3604.1","heading":"Quarterly incentive payments for federal contractors -","body":"Application and qualifications.\n\nA. A qualified federal contractor may receive quarterly\n\nincentive payments for renewable ten-year periods from the Oklahoma\n\nTax Commission pursuant to the provisions of the Oklahoma Quality\n\nJobs Program Act and the provisions of this section.\n\nB. The amount of such payments shall be equal to a net benefit\n\nrate of not less than twenty-five hundredths of one percent (0.25%),\n\nbut not greater than two percent (2%), multiplied by the total\n\nqualified labor hours worked by employees of the federal contractor\n\nor employees of a qualified federal subcontractor, or both, pursuant\n\nto a qualified federal contract for a calendar quarter as verified\n\nby the Oklahoma Employment Security Commission and certified by a\n\nqualified federal contractor verifier. The net benefit rate for a\n\nqualified federal contractor shall be scaled to annual\n\nsubcontracting goals that account for both total qualified\n\nsubcontract labor hours and the ratio of qualified subcontract labor\n\nhours to total qualified labor hours. Unless limited by the\n\ncost/benefit analysis, the net benefit rate shall:\n\n1. Not exceed twenty-five hundredths of one percent (0.25%)\n\nwhen annual qualified subcontract labor hours are less than Two\n\nHundred Thousand Dollars ($200,000.00) or when annual qualified\n\nsubcontract labor is less than one percent (1%) of the annual total\n\nqualified labor hours claimed;\n\n2. Not be less than five-tenths of one percent (0.5%) when\n\nsubcontract goals are met with a minimum of Two Hundred Thousand\n\nDollars ($200,000.00) of annual total qualified subcontractor labor\n\nhours and these hours are a minimum of one percent (1%) of the\n\nannual total qualified hours claimed;\n\n3. Not be less than one percent (1%) when subcontract goals are\n\nmet with a minimum of One Million Dollars ($1,000,000.00) of annual\n\ntotal qualified subcontractor labor hours and when these hours\n\nrepresent a minimum of five percent (5%) of the annual total\n\nqualified hours claimed;\n\n4. Not be less than one and five-tenths percent (1.5%) when\n\nsubcontract goals are met with a minimum of Two Million Dollars\n\n($2,000,000.00) of annual total qualified subcontractor labor hours\n\nand these hours are a minimum of ten percent (10%) of the annual\n\ntotal qualified hours claimed; and\n\n5. Not be less than two percent (2.0%) when subcontract goals\n\nare met with a minimum of Four Million Dollars ($4,000,000.00) of\n\nannual total qualified subcontractor labor hours and these hours are\n\na minimum of twenty percent (20%) of the annual total qualified\n\nhours claimed.\n\nC. In order to receive incentive payments, a qualified federal\n\ncontractor shall apply to the Oklahoma Department of Commerce within\n\none hundred eighty (180) days following the date of the award of a\n\nqualified federal contract or award of a new qualified subcontract\n\nunder an existing qualified federal contract. The application shall\n\nbe on a form prescribed by the Department and shall contain such\n\ninformation as may be required by the Department to determine if the\n\napplicant is qualified. Once qualified by the Department, the\n\napplicant shall submit qualified federal contracts to the federal\n\ncontract verifier. The federal contract verifier shall establish\n\nwith the applicant an information system(s) or contract(s) as may be\n\nrequired to certify the total qualified labor hours, qualified labor\n\nrates, and reimbursement through the qualified federal contract. A\n\nqualified federal contractor may apply for an effective date for a\n\nproject, which shall not be more than twenty-four (24) months from\n\nthe date the application is submitted to the Department. No state\n\nagency shall be required to make any payment to a qualified federal\n\ncontract verifier for any information needed by the agency to\n\nperform any duty imposed upon it pursuant to the provisions of\n\nSection 3601 et seq. of this title. All costs for the federal\nfor a\n\nproject, which shall not be more than twenty-four (24) months from\n\nthe date the application is submitted to the Department. No state\n\nagency shall be required to make any payment to a qualified federal\n\ncontract verifier for any information needed by the agency to\n\nperform any duty imposed upon it pursuant to the provisions of\n\nSection 3601 et seq. of this title. All costs for the federal\n\ncontract verifier shall be reimbursed through value-added services\n\non the qualified federal contract or other mechanisms agreed to by\n\nthe federal contractor verifier and the federal contract performers.\n\nD. In order to qualify to receive incentive payments as\n\nauthorized by the Oklahoma Quality Jobs Program Act, in addition to\n\nother qualifications specified herein, a qualified federal\n\ncontractor shall be required to pay direct jobs an average\n\nannualized wage which equals or exceeds:\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-nine\n\nThousand Four Hundred Nine Dollars ($29,409.00), in any county.\n\nThis maximum wage threshold shall be indexed and modified from time\n\nto time based on the latest Consumer Price Index year-to-date\n\npercent change release as of the date of the annual average county\n\nwage data release from the Bureau of Economic Analysis of the U.S.\n\nDepartment of Commerce.\n\n3. For qualified subcontractor work, the qualified federal\n\ncontractor shall have a minimum average qualified labor rate\n\nrequirement paid to the subcontractor of Thirty-one Dollars ($31.00)\n\nper hour, in any county. This maximum wage threshold shall be\n\nindexed and modified from time to time based on the latest Consumer\n\nPrice Index year-to-date percent change release as of the date of\n\nthe annual average county wage data release from the Bureau of\n\nEconomic Analysis of the U.S. Department of Commerce.\n\nE. The Department shall determine if the applicant is qualified\n\nto receive incentive payments using information supplied to the\n\nDepartment by the qualified federal contractor verifier. The NAICS\n\ncode or codes under which the federal government awarded the\n\nqualified federal contract shall be used to determine the basic\n\nindustry for a qualified federal contractor. For federal contracts\n\nawarded under NAICS codes not within the definition of basic\n\nindustry pursuant to paragraph 1 of subsection A of Section 3603 of\n\nthis title, the Department of Commerce, with the federal contract\n\nverifier, may evaluate and utilize individual statement of work\n\nitems that would qualify within a basic industry definition.\n\nF. If the applicant is determined to be qualified by the\n\nDepartment, the Department shall conduct a cost/benefit analysis to\n\ndetermine the estimated net direct state benefits and the net\n\nbenefit rate, as provided by subsection B of this section,\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 and total qualified labor hours for a ten-year\n\nperiod beginning with the first complete calendar quarter following\n\nthe start date. In conducting such cost/benefit analysis, the\ne net\n\nbenefit rate, as provided by subsection B of this section,\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 and total qualified labor hours for a ten-year\n\nperiod beginning with the first complete calendar quarter following\n\nthe start date. In conducting such cost/benefit analysis, the\n\nDepartment shall consider quantitative factors, such as the\n\nanticipated level of new tax revenues to the state along with the\n\nadded cost to the state of providing services, and such other\n\ncriteria as deemed appropriate by the Department. In no event shall\n\nincentive payments, cumulatively, exceed the estimated net direct\n\nstate benefits. Using this net cost/benefit analysis model, the\n\nDepartment may establish the renewable ten-year contract with a\n\nqualified federal contractor at the entity level to encompass any\n\ncurrent or future qualified federal contracts that meet the\n\ncost/benefit analysis metrics as determined by the federal\n\ncontractor verifier and confirmed by the Department.\n\nG. 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 that has been cosigned by the federal contractor verifier\n\nand the results of the cost/benefit analysis. The Tax Commission\n\nmay require the qualified federal contractor, federal contract\n\nverifier, and qualified subcontractors to submit such additional\n\ninformation as may be necessary to administer the provisions of the\n\nOklahoma Quality Jobs Program Act. The approved qualified federal\n\ncontractor shall file quarterly claims with the Tax Commission and\n\nshall 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 qualified\n\nfederal contractor may be audited by the Tax Commission to verify\n\nsuch eligibility. Once the qualified federal contractor is\n\napproved, an agreement shall be deemed to exist between the\n\nqualified federal contractor and the State of Oklahoma, requiring\n\nthe continued incentive payment to be made as long as the qualified\n\nfederal contractor 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.\n\nH. For qualified federal contracts with periods of performance\n\nexceeding two (2) years, if the actual annual verified gross\n\nqualified labor hours for four (4) consecutive calendar quarters\n\ndoes not equal or exceed Two Million Five Hundred Thousand Dollars\n\n($2,500,000.00) within three (3) years of the start date, or does\n\nnot equal or exceed actual annual gross qualified labor hours of Two\n\nMillion Five Hundred Thousand Dollars ($2,500,000.00) at any other\n\ntime during the ten-year period after the start date, the incentive\n\npayments shall not be made and shall not be resumed until such time\n\nas the actual annual qualified labor hours exceed Two Million Five\n\nHundred Thousand Dollars ($2,500,000.00).\n\nI. If the average annualized wage or minimum average qualified\n\nlabor rate required by subsection H of this section is not met\n\nduring any calendar quarter, the incentive payments shall not be\n\nmade and shall not be resumed until such time as such requirements\n\nare met.\n\nJ. Before approving a quarterly incentive payment for a\n\nqualified federal contract, the federal contract verifier must first\n\ndetermine through the Department that neither the qualified federal\n\ncontractor nor the subcontractor are receiving incentive payments\n\nunder the Oklahoma Quality Jobs Program Act, the Saving Quality Jobs\nmet.\n\nJ. Before approving a quarterly incentive payment for a\n\nqualified federal contract, the federal contract verifier must first\n\ndetermine through the Department that neither the qualified federal\n\ncontractor nor the subcontractor are receiving incentive payments\n\nunder the Oklahoma Quality Jobs Program Act, the Saving Quality Jobs\n\nAct, the 21st Century Quality Jobs Incentive Act or the Former\n\nMilitary Facility Development Act for the performance of the same\n\nsuch services under the qualified federal contract and is not\n\nqualified for approval of an application for incentive payments\n\nunder the Oklahoma Quality Jobs Program Act, the Saving Quality Jobs\n\nAct, the 21st Century Quality Jobs Incentive Act or the Former\n\nMilitary Facility Development Act for the performance of the same\n\nsuch services under the qualified federal contract. If the\n\nqualified federal contractor or the subcontractor are receiving or\n\nhave an approved application for incentive payments under the\n\nOklahoma Quality Jobs Program Act, the Saving Quality Jobs Act, the\n\n21st Century Quality Jobs Incentive Act or the Former Military\n\nFacility Development Act for the performance of the same such\n\nservices under the qualified federal contract, each may choose to\n\ndefer in part or in entirety the other incentives for the qualified\n\nfederal contractor to receive the incentives pursuant to subsection\n\nB of this section. The federal contract verifier shall confirm any\n\ndeferrals and ensure the total for all quality jobs incentive\n\npayments on any individual does not exceed the total net benefit to\n\nthe state. Should neither the federal contractor nor the\n\nsubcontractor defer in part or in entirety their incentive payments\n\nsuch that the total for all Quality Jobs incentive payments exceeds\n\nthe total net benefit to the state, the priority for incentive\n\npayments shall go to the entity with the earliest recognized start\n\ndate indentified within the current Department of Commerce Quality\n\nJobs contract.","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":"d279e7165fa80143c806923dbcdaec39c2cd7dfab986a6393c2c3881a837dbf7","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-3604","next":"us-ok/okla.-stat.-tit.-68-68-3605"},"notice":"GroundRules: Original legal text. Not legal advice."}