{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-3904","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-3904","heading":"Incentive payments","body":"A. An establishment which meets the qualifications specified in\n\nthe Small Employer Quality Jobs Incentive Act may receive quarterly\n\nincentive payments for a seven-year period from the Oklahoma Tax\n\nCommission pursuant to the provisions of the Small Employer Quality\n\nJobs Incentive Act in an amount equal to the net benefit rate\n\nmultiplied by the actual gross taxable payroll of new direct jobs as\n\nverified by the Tax Commission.\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. The establishment may apply for an\n\neffective date for a project, which shall not be more than twelve\n\n(12) months from the date the application is submitted to the\n\nDepartment.\n\nC. Before approving an application for incentive payments, the\n\nDepartment must first determine that the applicant meets the\n\nfollowing requirements:\n\n1. Be engaged in a basic industry;\n\n2. Has no more than five hundred full-time employees in this\n\nstate on the date of application nor an average of more than five\n\nhundred full-time employees in this state during the four calendar\n\nquarters immediately preceding the date of application;\n\n3. Has a projected minimum employment, as determined by the\n\nDepartment, of new direct jobs within twelve (12) months of the date\n\nof application, or after July 1, 2011, within twenty-four (24)\n\nmonths of the date of application, as follows:\n\na. if the establishment is located in a municipality with\n\na population less than three thousand five hundred\n\n(3,500) persons, as determined by the Department of\n\nCommerce based on the most recent U.S. Department of\n\nCommerce data, or if the establishment is located in\n\nan unincorporated area and the largest municipality\n\nwithin twenty (20) miles of the establishment is such\n\na municipality, new direct jobs equal to the greater\n\nof five (5) jobs or five percent (5%) of the company's\n\nfull-time employment at the date of application,\n\nb. if the establishment is located in a municipality with\n\na population of three thousand five hundred (3,500)\n\npersons or more but less than seven thousand (7,000)\n\npersons, as determined by the Department of Commerce\n\nbased on the most recent U.S. Department of Commerce\n\ndata, or if the establishment is located in an\n\nunincorporated area and the largest municipality\n\nwithin twenty (20) miles of the establishment is such\n\na municipality, new direct jobs equal to the greater\n\nof ten (10) jobs or seven and one-half percent (7.5%)\n\nof the company's full-time employment at the date of\n\nthe application, and\n\nc. if the establishment is located in a municipality with\n\na population of seven thousand (7,000) persons or\n\nmore, as determined by the Department of Commerce\n\nbased on the most recent U.S. Department of Commerce\n\ndata, or if the establishment is located in an\n\nunincorporated area and the largest municipality\n\nwithin twenty (20) miles of the establishment is such\n\na municipality, new direct jobs equal to the greater\n\nof fifteen (15) jobs or ten percent (10%) of the\n\ncompany's full-time employment at the date of\n\napplication.\n\nProvided, for an establishment engaged in software publishing as\n\ndefined or classified in the NAICS Manual under Industry Group No.\n\n5112, data processing, hosting and related services as defined or\n\nclassified in the NAICS Manual under Industry Group No. 5182,\n\ncomputer systems design and related services as defined or\n\nclassified in the NAICS Manual under Industry Group No. 5415,\n\nscientific research and development services as defined or\n\nclassified in the NAICS Manual under Industry Group No. 5417,\n\nmedical and diagnostic laboratories as defined or classified in the\nservices as defined or\n\nclassified in the NAICS Manual under Industry Group No. 5182,\n\ncomputer systems design and related services as defined or\n\nclassified in the NAICS Manual under Industry Group No. 5415,\n\nscientific research and development services as defined or\n\nclassified in the NAICS Manual under Industry Group No. 5417,\n\nmedical and diagnostic laboratories as defined or classified in the\n\nNAICS Manual under Industry Group No. 6215 or testing laboratories\n\nas defined or classified in the NAICS Manual under U.S. Industry No.\n\n541380, the projected minimum employment requirements of this\n\nparagraph must be achieved within thirty-six (36) months of the date\n\nof application;\n\n4. Has or will have within twelve (12) months of the date of\n\napplication, or after July 1, 2011, within twenty-four (24) months\n\nof the date of application, as determined by the Department, sales\n\nof at least thirty-five percent (35%) for the first two (2) years\n\nand subsequently sixty percent (60%) of its total sales to out-of-\n\nstate customers or buyers, to in-state customers or buyers if the\n\nproduct or service is resold by the purchaser to an out-of-state\n\ncustomer or buyer for ultimate use, or to the federal government,\n\nexcept that:\n\na. those establishments in the NAICS Manual under the\n\nU.S. Industry No. 541710 or 541380 are excused from\n\nthe out-of-state sales requirement,\n\nb. warehouses that serve as distribution centers for\n\nretail or wholesale businesses shall be required to\n\ndistribute forty percent (40%) of inventory to out-of-\n\nstate locations, and\n\nc. adjustment and collection services activities defined\n\nor classified in the NAICS Manual under U.S. Industry\n\nNo. 561440 shall be required to have seventy-five\n\npercent (75%) of loans to be serviced made by out-of-\n\nstate debtors;\n\n5. Will pay the individuals it employs in new direct jobs an\n\naverage annualized wage which equals or exceeds:\n\na. one hundred twenty-five percent (125%) of the average\n\ncounty wage of small employers located in that county\n\nas that percentage is determined by the Department of\n\nCommerce based on the most recent wage and employment\n\ndata from the Oklahoma Employment Security Commission\n\nfor the county in which the new direct jobs are\n\nlocated. For purposes of this subparagraph, health\n\ncare premiums paid by the applicant for individuals in\n\nnew direct jobs shall be included in the annualized\n\nwage, or\n\nb. one hundred ten percent (110%) of the average county\n\nwage of small employers located in that county as that\n\npercentage is determined by the Department of Commerce\n\nbased upon the most recent wage and employment data\n\nfrom the Oklahoma Employment Security Commission for\n\nthe county in which the new direct jobs are located.\n\nFor purposes of this subparagraph, health care\n\npremiums paid by the applicant for individuals in new\n\ndirect jobs shall not be included in the annualized\n\nwage, or\n\nc. one hundred percent (100%) of the average county wage,\n\nexcluding health care premiums paid by the applicant\n\nfor individuals in new direct jobs if the county in\n\nwhich the new jobs are located has:\n\n(1) according to the most recent annual determination\n\nby the Oklahoma Employment Security Commission, a\n\ncounty unemployment rate more than ten percent\n\n(10%) higher than the state unemployment rate,\n\nand\nundred percent (100%) of the average county wage,\n\nexcluding health care premiums paid by the applicant\n\nfor individuals in new direct jobs if the county in\n\nwhich the new jobs are located has:\n\n(1) according to the most recent annual determination\n\nby the Oklahoma Employment Security Commission, a\n\ncounty unemployment rate more than ten percent\n\n(10%) higher than the state unemployment rate,\n\nand\n\n(2) according to the most recent United States Census\n\nBureau Data, a county personal poverty rate above\n\nfifteen percent (15%);\n\n6. Has a basic health benefit plan which, as determined by the\n\nDepartment, meets the elements established under divisions (1)\n\nthrough (7) of subparagraph b of paragraph 1 of subsection A of\n\nSection 3603 of this title and which will be offered to individuals\n\nwithin twelve (12) months of employment in a new direct job;\n\n7. Has not received incentive payments under the Oklahoma\n\nQuality Jobs Program Act, the Saving Quality Jobs Act, or the Former\n\nMilitary Facility Development Act; and\n\n8. Is not qualified for approval of an application for\n\nincentive payments under the Oklahoma Quality Jobs Program Act, the\n\nSaving Quality Jobs Act, or the Former Military Facility Development\n\nAct.\n\nD. The Oklahoma Department of Commerce shall determine if an\n\napplicant is qualified to receive the incentive payment. Upon\n\nqualifying the applicant, the Department shall notify the Tax\n\nCommission and shall provide it with a copy of the application, and\n\napproval which shall provide the number of persons employed by the\n\napplicant upon the date of approval and the maximum total incentives\n\nwhich may be paid to the applicant during the seven-year period.\n\nThe Tax Commission may require the qualified establishment to submit\n\nadditional information as may be necessary to administer the\n\nprovisions of the Small Employer Quality Jobs Incentive Act. The\n\napproved establishment shall report to the Tax Commission quarterly\n\nto show its continued eligibility for incentive payments, as\n\nprovided in Section 3905 of this title. Establishments may be\n\naudited by the Tax Commission to verify such eligibility. Once the\n\nestablishment is approved, an agreement shall be deemed to exist\n\nbetween the establishment and the State of Oklahoma, requiring\n\nincentive payments to be made for a seven-year period as long as the\n\nestablishment retains its eligibility and within the limitations of\n\nthe Small Employer Quality Jobs Incentive Act which existed at the\n\ntime of such approval. Any establishment which has been approved\n\nfor incentive payments prior to July 1, 2002, shall continue to\n\nreceive such payments pursuant to the laws as they existed prior to\n\nJuly 1, 2002, for any period of time of the original five-year\n\nperiod for such payments remaining after July 1, 2002.\n\nE. 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":"f220a68d3ddb47ee39ee3f0078a7689f9372fa835591a11f724ca7c8fd2db7c5","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-3903","next":"us-ok/okla.-stat.-tit.-68-68-3905"},"notice":"GroundRules: Original legal text. Not legal advice."}