CONTENTS Thinking of locating your business in Oklahoma? OKLAHOMA OFFERS: The Best Incentives Package in the Nation OKLAHOMA DEPT. OF COMMERCE DOMESTIC: 800-588-5959 • INTL: 001+405-815-5187 • OKcommerce.gov OKLAHOMA IS: Ideal for Business Highly skilled, highly competitive workforce. Centrally located in North America with streamlined connections by rail, water, air and road. Easily accessible to more than 81 million people in a 500-mile radius. A national leader in research and technology resources. Education is a priority with an unparalleled reserve of intelligent, superbly trained workers. The cost of doing business in Oklahoma is among the most competitive in the U.S. Oklahoma’s quality of life ranks among the highest. The Oklahoma Department of Commerce Fast Forward Site Selection Team provides customized location and expansion services guaranteed to meet your needs. OKLAHOMA OFFERS: The Best Incentives Package in the Nation Do business in Oklahoma and do better with your bottom line. Oklahoma continues to be recognized globally for its outstanding business location and job growth incentives. Businesses can choose between two incentive options for new companies, or in some cases, qualifying businesses can receive both incentives. OKLAHOMA THE BEST INCENTIVES PACKAGE IN THE NATION QUALITY JOBS 10-Year Cash Incentive Oklahoma’s successful Quality Jobs incentive program promotes job growth and helps improve your company’s bottom line by injecting cash back into your business as you expand and create new jobs in Oklahoma. The Quality Jobs (QJ) program provides a cash rebate to companies that create well-paid jobs and promote economic development. Cash payments of up to 5% of new payroll for up to 10 years Must meet average county wage or $29,745, whichever is lower Company must achieve $2.5M annual payroll within 3 years Must offer basic health insurance May be combined with Investment/New Jobs Tax Credit under certain circumstances Target Industries: Manufacturing, including wind power manufacturing, R&D corporate services, aerospace and data centers. OKLAHOMA DEPT. OF COMMERCE DOMESTIC: 800-588-5959 • INTL: 001+405-815-5187 • OKcommerce.gov INVESTMENT / NEW JOBS Tax Credit Package Investment/New Jobs Tax Credits provide growing manufacturers a significant tax credit based on either an investment in depreciable property OR on the addition of full-time-equivalent employees engaged in manufacturing, processing, or aircraft maintenance. Choice of tax credit based on investment OR new employees Five-year state 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 May be combined with Quality Jobs under certain circumstances These tax credits accrue and may be claimed on July 1, 2012 21st CENTURY QUALITY JOBS 10-Year Cash Incentive This new incentive was created in 2009 to attract growth industries and sectors to Oklahoma in the 21st Century through a policy of rewarding businesses with a highly skilled, knowledge-based workforce. The first of its kind, this incentive reduces out-of-state sales requirements from 75% to 50% for industries that are required to have out-of-state sales and requires only 10 full-time jobs at an annual wage of the lesser of $93,601 or 300% of the county’s average wage. It also maximizes the eligible incentive payment by incorporating expanded state benefits by allowing a net benefit rate of up to 10% of payroll. Requires at least 10 full-time jobs at an annual average wage of the lesser of $93,601 or 300% of the county’s average wage Allows a net benefit rate of up to 10% of payroll for up to 10 years Out-of-state sales must be at least 50% Target Industries: Knowledge-based service industries, including professional, scientific and technical services; music, film and performing arts; and specialty hospitals. OKLAHOMA THE BEST INCENTIVES PACKAGE IN THE NATION PRIMEWIN Prime Contractor Incentive The only incentive of its kind in the nation, PrimeWIN provides a cash benefit and a certified subcontractor base for federal prime contractors. PrimeWIN is a performance-based program that requires subcontracting with an Oklahoma workforce. PrimeWIN offers federal prime contractors a cash rebate of up to 2% of the Oklahoma workforce loaded labor cost. Cash incentives are paid quarterly for a maximum of 10 years by the Oklahoma Tax Commission. PrimeWIN provides contractors with an easy-to-access conduit to hundreds of pre-certified subcontractors assuring productivity and quality while meeting schedule demands. QUALITY JOBS + INVESTMENT TAX CREDITS These incentives target manufacturing industries that have a large capital investment of at least $40 million in addition to creating new jobs that pay higher than average wages equaling $37,775. The incentives also allow a five-year tax credit on the greater of 2% per year of investment in qualified new depreciable property or credit of $1,000 per year per new job. The tax credits accrue and may be claimed on July 1, 2012. ECONOMIC DEVELOPMENT POOLED FINANCE The Oklahoma Community Economic Development Pooled Finance incentive creates a financing incentive that targets job creation and infrastructure development aid; and a foundation of ensuring Oklahoma’s infrastructure is high quality for attracting and retaining jobs. Key Points: A $100 million infrastructure Pool is created for bonding local governments for: County/municipal roads & bridges Water treatment facilities Solid waste management facilities Railway and utility systems Other infrastructure assets owned by local government Bonds issued by the infrastructure pool are financed or repaid from sales taxes voted by local community. A $100 million Economic Development Pool is created for financing to local governments in conjunction with a for-profit entity economic development projects in the state. Debt issued through the Economic Development Pool may use withholding taxes generated by the for-profit entity to repay the debt. Requires a letter of determination from the Oklahoma Department of Commerce that the project is net benefit positive for the state. 65% of the net proceeds from both the Infrastructure Pool and the Economic Development Pool must be used by municipalities that do not exceed 300,000 people. The remaining 35% may be used for any eligible local government, including Tulsa and Oklahoma City. Effective July 1, 2009 Issuing capacity by Oklahoma Development Finance Authority (ODFA) is renewable. OKLAHOMA DEPT. OF COMMERCE DOMESTIC: 800-588-5959 • INTL: 001+405-815-5187 • OKcommerce.gov FORMER INDIAN LANDS Incentive and Tax Credit Because of its unique Native American heritage, two-thirds of Oklahoma qualifies for special federal tax treatment. Businesses locating or expanding in these areas benefit up to 40% federal accelerated depreciation and up to $4,000 federal tax credit per qualifying employee. Tax Incentives Areas Map Included Areas Former Indian Lands Excluded Areas OKLAHOMAOKLAHOMA THE BEST INCENTIVES PACKAGE IN THE NATION SAVE MORE, KEEP MORE: Additional Incentives for Businesses New Market Tax Credits To spur private investment in low-income urban and rural communities, investors receive a 39% federal tax credit. Sales Tax Refunds on Construction Materials For Qualifying Manufacturers (with Investment Tax Credit only) Training for Industry Program Consistently ranked as one of the nation’s leading workforce training efforts, Oklahoma’s Training for Industry Program (TIP), a CareerTech initiative, is a no-cost/low-cost way for new or growing companies that create jobs to get a skilled, focused, and motivated workforce. Aerospace Industry Engineer Workforce Tax Credit Effective July 1, 2012, aerospace companies hiring engineers will receive tax credit up to 10% of the compensation paid to an engineer during the first five years of employment. Five-Year Ad Valorem Tax Exemption To encourage advanced manufacturing, research and development, warehouse and distribution, wind, solar energy, and other renewable/alternative energy companies to locate or expand manufacturing facilities within Oklahoma. A qualifying manufacturing company can abate ad valorem taxes upon new, expanded or acquired manufacturing facilities and equipment for a period of five years. Freeport Inventory Benefits Exempts from taxation goods, wares and merchandise that come from outside the state and leave the state within nine months if such goods, wares and merchandise are held for assembly, storage, manufacturing, processing or fabricating purposes within the state. Industrial Access Road Assistance Designed to provide assistance to local industrial development efforts by funding, within practical limitations, access facilities connecting a specific industry or industrial area directly to the state or local road system. Foreign Trade Zones The benefits of operating within a designated site licensed by the Foreign Trade Zones (FTZ) Board are obvious. At the very least, a FTZ can help you defer paying duties. More often, the company pays lower costs, not only to U.S. Customs, but to its bank, insurance company, and other vendors. OKLAHOMA DEPT. OF COMMERCE DOMESTIC: 800-588-5959 • INTL: 001+405-815-5187 • OKcommerce.gov ADDITIONAL INCENTIVES AVAILABLE TO COMMUNITIES for Locating and Expanding Businesses Economic Development Pooled Finance Available to local governments in conjunction with a for-profit entity for economic development projects. Also