Incentives & Financing

You won’t find a state in the United States that beats Oklahoma’s renowned business environment. Large-scale incentives, state-of-the-art infrastructure, and energy costs 22% lower than the national average make Oklahoma an opportunity you don’t want to pass up. Oklahoma is globally recognized for its outstanding incentive programs and pro-business environment. Ranked as having the #2 lowest business tax burden in the U.S., Oklahoma is the perfect place to invest if you are looking to reduce operating costs. 

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Contact the OADC team at 918-758-1131 to schedule your no-cost incentive analysis for federal, state and local incentives that may be applicable for your project.

Federal Incentives

  • Enterprise Zones: On March 18, 2019 the Oklahoma Department of Commerce announced that it will use Priority Enterprise Zones (PEZ) created in the Oklahoma Enterprise Zone Act to attract capital to Federal Opportunity Zones (OZ) in the state.  All four of Okmulgee County industrial parks are in Enterprise Zones.  

  • Opportunity Zones: This program was established by Congress in 2017 and offers 3 tax incentives for investing in low income communities.  

  • New Market Tax Credits: This program is designed to spur investment in low-income urbain and rural communities, with investors receiving 39% federal tax credit. All of Okmulgee and part of Okmulgee County fall into the NMTC zones.

C Federal OZ map .jpg

State Incentives

  • Quality Jobs: The Oklahoma Quality Jobs Program serves as an incentive for companies to expand or relocate jobs to Oklahoma by providing a rebate of a portion of newly created payroll in the state. The program induces the creation of well-paid jobs and promotes economic development. There are four different programs within Quality Jobs that have various qualifying criteria and incentives.  

  • Investment Incentives: The Investment/New Jobs package provides growing manufacturers a significant tax credit based upon either an investment in depreciable property or on the addition of FTE employees engaged in manufacturing, processing or aircraft maintenance. The Business Expansion Incentive Program targets business expansion projects that include job creation and significant investment in facilities, machinery and equipment.

  • Workforce Tax Credits: There are three primary programs within this category; the Aerospace Engineer Workforce Tax Credit, Automotive Engineer Workforce Tax Credit and the Software/Cybersecurity Workforce Tax Credit. These programs provide tax credit to employers hiring Oklahoma University graduates in these fields.  

  • American Indian Lands Tax Credit: Two-thirds of Oklahoma locations (Okmulgee County is part of this) qualify for special federal tax treatment. Businesses locating or expanding here can claim accelerated federal depreciation as well as those that hire Native Americans or their spouses living in the area can claim federal tax credits.  This incentive expires Dec 31, 2020 and must be renewed for any investments occurring after 1/1/21.

  • Manufacturing Sales Tax Exemptions: Available for manufacturers who qualify for and obtain a Manufacturer’s Sales Tax Exemption Permit (MSEP), covering purchases of machinery and equipment, energy and tangible personal property used in design, development and manufacturing operations at the manufacturing site.

  • Freeport Inventory: 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.

  • Five-year Ad Valorem Tax Exemption: Qualifying manufacturers can abate ad valorem taxes on new, expanded or acquired manufacturing facilities and equipment for a period of five years.

  • Customized Employee Training: Oklahoma’s nationally acclaimed Training for Industry (TIP) can help companies create the quality workforce needed, at little or no cost to your company. TIP is delivered through Oklahoma’s  Career Tech system (in Okmulgee, that is Green Country Tech Center). The Training for Growth (TIG) is a similar program but targeted to groups of businesses with the same workforce training needs.

Oklahoma Business Incentives & Tax Guide, 2020

The rules, legislation and appropriations related to taxes and incentives are very dynamic, and as changes occur, this comprehensive Tax Guide will be updated with the most current information.

Local Incentives

Qualifying projects may be eligible for low cost (including up to no cost) industrial zoned land depending on the capital investment, total employment, pay scale and benefits.  The OADC team can help negotiate City permit fees, fast-tracking construction projects and water rates for industrial volumes.  For significant office projects, historical tax credits are available on many buildings in the Historic Preservation District.  Contact the OADC team to learn more and receive a no-cost incentive analysis.

Other Development Resources

  • OKSBDC: The Oklahoma Small Business Development Center has the knowledge tools and resources to help your business start, grow and succeed.   They provide no-cost, one-on-one confidential consulting to assist you to start, sustain or expand your business.

  • i2E: With nearly $64 million of investment capital under management, i2E is focused on serving Oklahoma companies in all phases of the business life cycle, from startups looking for their first round of capital to established businesses seeking funding to expand their markets or products.

  • Oklahoma Works/OESC: The Oklahoma Employment Security Commission (OESC) and other employer (and job seeker) resources can be accessed at the Okmulgee office

  • Aerospace Commerce Economic Services (ACES): The primary goal of ACES is to establish a common state-wide strategy for the growth of the Oklahoma aerospace industry. ACES will focus the collective aerospace resources into an integrated, coordinated state-wide effort to improve the economic climate for aviation, aerospace and defense industries in Oklahoma.

  • The OADC has excellent working relationships with multiple consulting engineers, commercial and industrial Construction companies and all public utilities.