2010 Oklahoma Incentives and Tax Guide
Last Updated: January 13, 2010

Clients of ClearRidge Capital have received millions of dollars in federal and state investment tax credits. ClearRidge’s process is designed to secure all the incentives that your company could qualify for.

The goal is to fuel your business' growth, bring new jobs to Oklahoma and strengthen our state's economy.

There are 3 main steps to the ClearRidge process:

• Identify the business incentives and tax credits that are available for your company
  
• Develop a business plan and application documents
  
• Develop a new capital structure and dynamic financial model to demonstrate how the incentives will be used

Email ClearRidge          Meet the ClearRidge team

Take a look at three real world examples of tax credits and incentives available for two different Oklahoma Manufacturing companies and a Data Center in Oklahoma: /taxcreditexamples.htm

Download the 2010 Oklahoma Incentives and Tax Guide here. It is an 80 page PDF document, last updated on January 13, 2010.

You may also want to visit the OK Department of Commerce website: www.okcommerce.gov/incentives

Below is a list of the available tax, financial and business incentives. The numbers at the end of each line correspond to the page number in the master document.

I. Major Property Tax and Financial Incentives - 7

A. Cash Payment Programs - 7

1. The Oklahoma Quality Jobs Program - 7

2. Small Employer Quality Jobs Program – 10

3. The 21st Century Oklahoma Quality Jobs Program – 11

4. 2009 Quality Jobs Program Legislative Changes – 14

A. Prime Contractors - 14

B. 21st Century Quality Jobs Program - 14

C. Quality Jobs & Investment Tax Credit - 14

D. Wind Power Equipment Maintenance/Repair - 14

5. 2009 Quality Jobs Program Highlights – 15

A. Prime Contractor – 15

B. 21st Century Quality Jobs – 15

C. Quality Jobs & Investment Tax Credits – 16

D. OK Community Economic Development Pooled Finance - 16

6. 5% Areas for Oklahoma Quality Jobs Program - 18

B. Employee Training - 20

1. Training for Industry Program (TIP) – 20

2. Existing Industry Initiative (EITP) - 20

C. Ad Valorem Tax Exemptions - 21

1. State Decision - 21

2. Exempt Inventory - 22

3. Aircraft Manufacturers Exemption License - 22

4. Local Incentive – 22

II. Income Tax Credits and Exemptions - 23

A. For Business - 23

1. The Investment / New Jobs Income Tax Credit – 23

A. Aerospace Industry Engineer Work force Bill Tax Credits - 24

2. Tax Incentive Areas Map – Former Indian Lands - 25

3. Tax Incentives on Former Indian Reservation Lands - 26

4. Tax Credit for Provision of Childcare - 27

5. Recycling, Reuse and Source Reduction Incentive Act - 27

6. Gas Usage Tax Credit for Manufacturing - 27

7. Ethanol Facilities Credit - 27

8. Insurance Premium Tax Credit - 28

9. Small Business Administration (SBA) Guarantee Fee Tax Credit - 28

10. Alternative Energy Sources Tax Credits – 28

11. Clean Burning Fuel Vehicle Credit – 29

12. Clean Burning Fuel Vehicle Infrastructure Credit – 29

13. Biodiesel Production Facility Tax Credit – 29

14. Ethanol Fuel Retailer Tax Credit – 29

B. For Investors - 30

1. Technology Transfer Income Tax Exemption - 30

2. Incubator Site Tenant Tax Exemption - 30

3. Income Tax Credit for Investment in Oklahoma Producer-Owned Agriculture Processing - 30

4. Rural Small Business Capital Formation Tax Credit - 31

5. Small Business Capital Formation Tax Credit - 31

6. Tax Credit for Banks Participating In the Oklahoma Rural Economic Development Loan Program - 31

7. Income Tax Exemption for Interest Paid On Bonds Issued By or on Behalf of Public Agencies - 32

8. Commercial Space Industry Credit - 32

9. Historic Rehabilitation Tax Credit - 32

10. Venture Capital Tax Credit - 33

C. For Entrepreneurs - 33

1. New Products Development Income Tax Exemption - 33

2. Incubator Site Tenant Tax Exemption - 33

D. Worker Related - 34

1. The Work Opportunity Tax Credit Program (WOTC) - 34

2. Federal Empowerment Zone Incentives – 34

III. Sales Tax Exemptions and Refunds - 36

A. Exemptions - 36

1. Manufacturers - 36

2. Computer Services and Data Processing - 36

3. Sales at Aircraft Manufacturing Facility - 36

4. Aircraft Repairs and Modifications - 37

5. Aerospace Industry Credit - 37

6. Aircraft Maintenance or Manufacturing Facility - 37

7. Aerospace Industry Engineer Workforce Credit - 37

8. Excise Tax on Aircraft Sales - 37

9. Telecommunications - 37

10. Spaceport – 37

11. Oklahoma Research and Development Incentives Act - 37

B. Refunds - 39

1. Computer Services / Data Processing / Telecommunications Equipment - 39

2. Construction Materials – 40

IV. Transportation and Distribution Benefits - 41

A. Industrial Access Roads - 41

B. Foreign-Trade Zones - 41

C. Truck Registration Benefits - 42

1. Other Truck Registration Benefits - 43

2. Benefits under IFTA - 43

D. International Trade Processing Center – 44

V. Tourism and Film Incentives - 45

A. Oklahoma Film Act - 45

B. Sales/Income Tax Credit for Tourism Attraction Projects - 45

C. Income Tax Credit for Investment in an Oklahoma Film or Music Project - 45

D. Income Tax Credit for Construction of Oklahoma Film/Music Facilities – 45

VI. Major Finance and Assistance Programs - 47

A. Financing Assistance - 47

1. Oklahoma Finance Authorities - 47

2. Public Trust Financing: Industrial Revenue Bonds - 47

3. General Obligation Limited Tax Bonds (GOLTBs) - 47

4. Tax Increment Financing (TIF) – 48

5. The Oklahoma Local Development and Enterprise Zone Incentive Leverage Act - 48

6. Sales Tax Financing – 49

7. Private Activity Bond Allocation - 49

8. Small Business Linked Deposit Program - 49

9. Oklahoma Capital Access Program - 50

10. Oklahoma Export Finance Program - 50

11. Small Business Loan Guarantees - 50

B. Technology Assistance - 50

1. Technology Partnerships - 50

2. i2E - Turning Innovation into Enterprise - 51

3. Basic and Applied Research and Technology Programs - 51

4. Oklahoma Institute of Technology - 52

C. Venture Capital - 52

1. Oklahoma Capital Investment Board - 52

A. Closed Venture Investment Program commitments as of 6/30/09 include: - 52

1. Portfolio III - 52

2. Portfolio II - 53

3. Portfolio I – 53

2. Oklahoma Capital Access Program – 53

D. Quality Jobs Investment Program - 54

E. Infrastructure - 54

1. Community Development Block Grants (CDBG) - 54

F. Workforce Assistance - 54

1. Advanced Degree Programs - 54

2. Local Area Labor Force Studies - 54

3. Job Matching and Job Search Assistance - 55

4. Workforce Investment Act Programs - 55

5. Governor’s Council for Workforce and Economic Development - 55

6. Partial Unemployment Benefits Program – 56

G. Economic Development – 56

1. The EDGE Fund- 56

2. History of EDGE – 56

VII. Organizational Costs and Taxes - 58

A. Oklahoma Business Organizational Costs - 58

1. Domestic Corporations - 58

2. Foreign Corporations - 58

3. Limited Liability Companies (LLCs) - 58

4. Foreign Limited Liability Companies - 59

5. Limited Liability Partnerships (LLPs) - 59

6. Business Licenses - 59

B. Major Business Taxes and Premiums - 59

1. Individual State Income Tax – 59

2. Corporate State Income Tax - 60

3. General Property (Ad Valorem) Tax - 60

4. Unemployment Compensation Tax - 62

5. Annual Corporate Franchise Tax - 63

6. Workers’ Compensation Insurance - 63

7. Retail Sales and Use Tax – 63

Download the 2010 Oklahoma Incentives and Tax Guide here. It is an 80 page PDF document, last updated on January 13, 2010.

Back to Top