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Incentives

Oklahoma has some of the lowest tax rates and some of the best tax incentives in the nation. The state offers companies a low cost of doing business, a low cost of living for employees, and tax rebates that reduce tax burdens even further.

The Choctaw Nation Team will help you identify all state and local incentives applicable to your project. Call the Choctaw Nation Team at (877) 256-2298 today for your no-cost incentives analysis.

Oklahoma Incentives and Tax Guide

Get comprehensive, up-to-date information on Oklahoma’s business incentives and taxes.

View Oklahoma’s Business Incentives and Tax Guide.

THE STATE OF MOTIVATION

Oklahoma is globally recognized for its outstanding incentive programs and pro-business environment. Businesses can choose between a cash incentive or a tax credit package, and in some cases, qualifying businesses can take advantage of both programs.

The Oklahoma Team stands ready to quickly develop an individualized plan of action to help you make the most of the state’s aggressive incentive programs and competitive cost of doing business.

We have world-renowned incentives packages for businesses in various industries. Find out more about how these incentives could benefit your business in our state of success.

QUALITY JOBS PROGRAM

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 program provides a cash rebate to companies that create well-paying jobs and promote economic development.

10-YEAR CASH INCENTIVE

The Quality Jobs Program makes a quarterly cash payment of up to 5 percent of new taxable payroll to qualifying manufacturers and certain service industries that have a new payroll investment of $2.5 million or more.

21ST CENTURY QUALITY JOBS

This Quality Jobs program is specially tuned for businesses with a highly skilled, knowledge-based workforce. This unique incentive may pay qualifying businesses cash back, up to 10 percent of payroll, for up to ten years for the creation of 10 jobs with an average wage of $94,000 annually or higher, depending on the county.

SMALL EMPLOYER QUALITY JOBS PROGRAM

The Small Employer Quality Jobs Program provides quarterly incentive payments to a qualifying small employer (90 employees or less). Quarterly payments may be as much as 5% of new taxable payroll for up to 7 years.

QUALITY JOBS + INVESTMENT TAX CREDITS

These tax credits target manufacturing industries that have a large capital investment of at least $40 million in addition to creating new jobs that pay higher than the state average wages. The credits also allow a five-year tax credit on the greater of 2 percent per year of investment in qualified new depreciable property or credit of $1,000 per year per new job.

INVESTMENT / NEW JOBS PACKAGE

This package provides 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.

BUSINESS EXPANSION INCENTIVE PROGRAM

This incentive targets business expansion projects which include job creation and significant investment in facilities, machinery, and equipment.

AEROSPACE ENGINEER WORKFORCE TAX CREDIT

Aerospace companies hiring engineers in a variety of fields will receive a tax credit equal to 5% of the compensation paid to an engineer and 10% if the engineer graduated from an Oklahoma college or university, plus another credit of up to 50% of the tuition reimbursed to an employee. Additionally, the engineer hired receives a tax credit of $5,000 per year.

AMERICAN INDIAN LANDS TAX CREDIT

Two-thirds of Oklahoma, because of its unique Native American heritage, qualify for special federal tax treatment. Businesses locating or expanding in these areas benefit by accelerated depreciation of investment and by employment tax credits when employing tribal members or their spouses.

MANUFACTURING SALES TAX EXEMPTIONS

Oklahoma has a comprehensive sales tax exemption for manufacturers who qualify for and obtain a Manufacturer’s Sales Tax Exemption Permit (MSEP). The exemptions cover purchases of machinery and equipment, energy and tangible personal property used in design, development and the manufacturing operation at the manufacturing site.

FIVE-YEAR AD VALOREM TAX EXEMPTION

A qualifying manufacturing company can abate ad valorem taxes upon new, expanded or acquired manufacturing facilities and equipment for a period of five years. This incentive is available for manufacturing, research and development, warehouse and distribution, certain computer/data processing services, refinery and aircraft repair.

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.

CUSTOMIZED EMPLOYEE TRAINING

Every business is different. That’s why we have flexible programs to meet your needs. Whether you’re a new or expanding company in our state, our nationally acclaimed Training for IndustryProgram (TIP) can help you create the quality workforce you need to be successful, all at little or no cost to you. TIP is delivered through Oklahoma’s system of 59 technology center campuses across the state. Some of the services we provide under TIP include job analysis, training needs assessment, pre-employment training, pre-production training, post-production training, instructional materials and development, and more.

ADDITIONAL INCENTIVES

TRIBAL AND COMMUNITY INCENTIVE FOR LOCATING AND EXPANDING BUSINESSES

The Choctaw Nation partners with our communities to incentive business attraction and expansion. The Choctaw Nation team will work with community leaders to leverage tribal and local dollars for federal and state grant programs. The cash incentives are job creation based.

NEW MARKET TAX CREDITS

To spur private investment in low-income urban and rural communities, investors receive a 39 percent federal tax credit.

FOREIGN TRADE ZONES (FTZ)

The benefits of operating within a designated site licensed by the Foreign Trade Zones Board are many. At the very least, an 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.

OPPORTUNITY ZONES (OZ)

The Choctaw Nation received 13 Opportunity Zone designations which is a larger number than any other Native American tribe. The OZ program is an investment incentive by deferring capital gains for up to 10 years.

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.