2010 Oklahoma Incentives and Tax Guide
Last Updated: January 13, 2010
Below are three examples of tax credits and incentives available for two different Oklahoma Manufacturing companies and a Data Center in Oklahoma.
Example A – Small Manufacturer
(NAICS 332)
$50 million investment creating 200 jobs
Salary $35K / year
| |
Expected $ tax credit |
Length |
| |
|
|
| 1a Quality Jobs |
$3,500,000 (in 5% area) |
10 years |
| |
$3,078,147 (not in 5% area) |
10 years |
| |
|
|
| 1b Alternative to Quality Jobs |
|
|
| Investment/Jobs Tax Credit |
$4,750,000 |
5 years |
| Sales Tax Reimbursements on Construction Materials |
$1,314,800 |
One-Time |
| |
|
|
| 2 Five-Year Property Tax Exemption |
$2,281,149 |
5 years |
| |
|
|
| 3 Freeport Tax Exemption |
$59,693 |
Annual |
| |
|
|
| 4 Sales Tax Exemption on Machinery and Equipment |
$821,750 |
One-Time |
| |
|
|
| 5 Sales Tax Exemption on Goods Consumed in Mfg. Process |
$1,666,569 |
Annual |
| |
|
|
| 6 Sales Tax Exemption on Energy Use in Mfg. Process |
$59,740 |
Annual |
| |
|
|
|
Estimated Total Value of Incentives
over 10 Years
|
$25M -$27M |
|
| *With 1a, Quality Jobs Cash Incentive |
$24,462,918 |
(assuming 5% area) |
| *With 1b, Investment Tax Credit Package |
$27,027,718 |
|
| |
|
|
Example B - Data Center
(NAICS 518210)
$100 million investment creating 100 jobs
Salary $60k/year
| |
Expected $ tax credit |
Length |
| |
|
|
| 1a Quality Jobs |
$3,000,000 (assuming 5% area) |
10 years |
| |
|
|
| 1b Alternative to Quality Jobs |
|
|
| Investment/Jobs Tax Credit |
Not Eligible |
|
| Sales Tax Reimbursements on Construction Materials |
Not Eligible |
|
| |
|
|
| 2 Five-Year Property Tax Exemption |
$4,569,540 |
5 Years |
| |
|
|
| 3 Freeport Tax Exemption |
Not Eligible |
Annual |
| |
|
|
| 4 Sales Tax Exemption on Machinery and Equipment |
4,108,750 |
|
| |
|
|
| 5 Sales Tax Exemption on Goods Consumed in Mfg. Process |
Not Eligible |
Annual |
| |
|
|
| 6 Sales Tax Exemption on Energy Use in Mfg. Process |
Not Eligible |
Annual |
| |
|
|
Estimated Total Value of Incentives
over 10 Years |
$11,678,290 |
(assuming 5% area) |
Example C - Large Manufacturer
(NAICS 332)
100 million investment 1,000 jobs
Salary $35k/year
| |
Expected $ tax credit |
Length |
| |
|
|
| 1a Quality Jobs |
$17,500,000 (in 5% area) |
10 years |
| |
$15,390,733 (not in 5% area) |
10 years |
| |
|
|
| 1b Alternative to Quality Jobs |
|
|
| Investment/Jobs Tax Credit |
$9,500,000 |
5 years |
| Sales Tax Reimbursements on Construction Materials |
$657,400 |
One-Time |
| |
|
|
| 2 Five-Year Property Tax Exemption |
$4,333,552 |
5 years |
| |
|
|
| 3 Freeport Tax Exemption |
$298,463 |
Annual |
| |
|
|
| 4 Sales Tax Exemption on Machinery and Equipment |
$6,574,000 |
One-Time |
| |
|
|
| 5 Sales Tax Exemption on Goods Consumed in Mfg. Process |
$8,332,845 |
Annual |
| |
|
|
| 6 Sales Tax Exemption on Energy Use in Mfg. Process |
$298,702 |
Annual |
| |
|
|
Estimated Total Value of Incentives
over 10 Years |
$110M - $117M |
|
| *With 1a, Quality Jobs Cash Incentive |
$117,707,646 |
(assuming 5% area) |
| *With 1b, Investment Tax Credit Package |
$110,365,046 |
|
Local Oklahoma Economic Development Participation
- Financed equipment purchase through industrial authority.
- Provided a reduced rate on building lease.
- City provided free water/sewer hookups.
- Assisted with the coordination of Training for Industry program, tax exemption processes, etc.
Take a look at the guide to tax credits and business incentives available for Oklahoma companies: taxcreditsoklahoma.htm |
