Quality Jobs Program Application & Guidelines
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Quality Jobs Program Application & Guidelines Published January 2021 OKLAHOMA BUSINESS INCENTIVES AND TAX GUIDE FOR FISCAL YEAR 2020 Welcome to the 2020 Oklahoma Business Incentives and Tax Information Guide. The rules, legislation and appropriations related to taxes and incentives are very dynamic, and as changes occur, this Tax Guide will be updated. We encourage you to refer often to this on-line tax guide, as well as the various included hyperlinks, to get the most current information. TABLE OF CONTENTS CASH PAYMENT INCENTIVES ......................................................................................................................................5 THE OKLAHOMA QUALITY JOBS PROGRAM ...........................................................................................................5 VETERANS INCLUSION ............................................................................................................................................5 CLAW BACK PROVISION ..........................................................................................................................................5 PAYROLL THRESHOLD REQUIREMENT ....................................................................................................................5 QUALITY JOBS PROGRAM QUALIFYING INDUSTRIES ..............................................................................................6 SMALL EMPLOYER QUALITY JOBS PROGRAM ........................................................................................................7 SMALL EMPLOYER QUALITY JOBS PROGRAM QUALIFYING INDUSTRIES ...............................................................8 AUTOMATIC 5% AREAS FOR OKLAHOMA QUALITY JOBS PROGRAM.................................................................. 10 21st CENTURY QUALITY JOBS PROGRAM ............................................................................................................ 10 21ST CENTURY QUALITY JOBS PROGRAM QUALIFYING INDUSTRIES .................................................................. 11 OKLAHOMA QUALITY EVENTS PROGRAM ........................................................................................................... 12 ECONOMIC DEVELOPMENT & INFRASTRUCTURE FUNDING ................................................................................... 14 OKLAHOMA QUICK ACTION CLOSING FUND ....................................................................................................... 14 OKLAHOMA BUSINESS EXPANSION INCENTIVE PROGRAM - FORMERLY ECONOMIC DEVELOPMENT POOLED FINANCE ............................................................................................................................................................... 14 TAX EXEMPTIONS AND CREDITS .............................................................................................................................. 16 AD VALOREM EXEMPTION .................................................................................................................................. 16 AD VALOREM EXEMPTION FOR COMPUTER SERVICES AND DATA PROCESSING ............................................... 16 AD VALOREM EXEMPTION FOR WAREHOUSING AND DISTRIBUTION FACILITIES .............................................. 17 AD VALOREM EXEMPTION FOR AUTOMOTIVE FINAL ASSEMBLY MANUFACTURING FACILITIES ....................... 17 EXEMPT INVENTORY ............................................................................................................................................ 17 AGRICULTUAL COMMODITY PROCESS FACILITY EXCLUSION .............................................................................. 17 INTANGIBLE PROPERTY ....................................................................................................................................... 18 AIRCRAFT MANUFACTURERS EXEMPTION LICENSE ............................................................................................ 18 LOCAL INCENTIVE ................................................................................................................................................ 18 Oklahoma Business Incentives and Tax Guide 1 THE INVESTMENT/NEW JOBS INCOME TAX CREDIT ........................................................................................... 18 QUALITY JOBS + INVESTMENT TAX CREDITS ....................................................................................................... 19 AMERICA INDIAN LANDS TAX CREDIT ................................................................................................................. 19 ENGINEER WORKFORCE TAX CREDITS ..................................................................................................................... 20 AEROSPACE INDUSTRY ENGINEER WORKFORCE TAX CREDIT ............................................................................. 20 INDIVIDUAL TAX CREDIT ...................................................................................................................................... 20 COMPANY TAX CREDIT ........................................................................................................................................ 20 TUITION TAX CREDIT............................................................................................................................................ 20 AUTOMOTIVE INDUSTRY ENGINEER WORKFORCE TAX CREDIT .......................................................................... 20 INDIVIDUAL TAX CREDIT ...................................................................................................................................... 20 COMPANY TAX CREDIT ........................................................................................................................................ 20 TUITION TAX CREDIT............................................................................................................................................ 21 SOFTWARE/CYBERSECURITY EMPLOYEE TAX CREDIT ......................................................................................... 21 ZERO-EMISSION FACILITIES INCOME TAX CREDIT - FORMERLY ALTERNATIVE ENGERY SOURCES TAX CREDIT . 22 INSURANCE PREMIUM TAX CREDIT ..................................................................................................................... 22 CREDIT FOR PURCHASE OR CONVERSION OF CLEAN-BURNING MOTOR VEHICLE - FORMERLY CLEAN BURNING FUEL MOTOR VEHICLE CREDIT ............................................................................................................................ 22 CREDIT FOR PROPERTY DIRECTLY RELATED TO THE DELIVERY OF A QUALIFED FUEL OR FOR A PUBLIC ACCESS RECHARGING SYSTEM FOR VEHICLES PROPELLED BY ELECTRICITY - FORMERLY CLEAN BURNING FUEL VEHICLE INFRASTRUCTURE CREDIT ................................................................................................................................... 23 CREDIT FOR A NATURAL GAS REFUELING STATION IN A PRIVATE RESIDENCE ................................................... 23 ETHANOL FUEL RETAILER TAX CREDIT ................................................................................................................. 23 OKLAHOMA TOURISM DEVELOPMENT ACT ........................................................................................................ 24 OKLAHOMA FILM REBATE PROGRAM ................................................................................................................. 24 INCOME TAX CREDITS AND EXEMPTIONS FOR INVESTORS .................................................................................... 25 TECHNOLOGY TRANSFER INCOME TAX EXEMPTION........................................................................................... 25 INCOME TAX EXEMPTION FOR INTEREST PAID ON BONDS ISSUED BY OR ON BEHALF OF PUBLIC AGENCIES ... 25 HISTORIC REHABILITATION TAX CREDIT .............................................................................................................. 25 INCOME TAX CREDITS AND EXEMPTIONS FOR ENTREPRENEURS ........................................................................... 26 NEW PRODUCTS DEVELOPMENT INCOME TAX EXEMPTION .............................................................................. 26 INCUBATOR SITE TENANT TAX EXEMPTION ........................................................................................................ 26 THE WORK OPPORTUNITY TAX CREDIT PROGRAM (WOTC) ............................................................................... 27 SALES TAX EXEMPTIONS AND REFUNDS ................................................................................................................. 28 Oklahoma Business Incentives and Tax Guide 2 MANUFACTURERS SALES TAX EXEMPTION ......................................................................................................... 28 COMPUTER SERVICES AND DATA PROCESSING SALES TAX EXEMPTION ............................................................ 28 SALES AT AIRCRAFT MAINTENANCE FACILITIES SALES TAX EXEMPTION ............................................................ 28 AIRCRAFT MAINTENANCE OR MANUFACTURING FACILITY SALES TAX EXEMPTION .......................................... 29 EXCISE TAX ON AIRCRAFT SALES TAX EXEMPTION .............................................................................................. 29 TELECOMMUNICATIONS SALES TAX EXEMPTION ............................................................................................... 30 SPACEPORT SALES TAX EXEMPTION ...................................................................................................................