Okla. Stat. tit. 68, § 68-3603

A. As used in the Oklahoma Quality Jobs Program Act:

1. a. “Basic industry” means:

(1) those manufacturing activities defined or

classified in the NAICS Manual under Industry

Sector Nos. 31, 32 and 33, Industry Group No.

5111 or Industry No. 11331,

(2) those electric power generation, transmission and

distribution activities defined or classified in

the NAICS Manual under U.S. Industry Nos. 221111

through 221122, if:

(a) an establishment engaged therein qualifies

as an exempt wholesale generator as defined

by 15 U.S.C., Section 79z-5a,

(b) the exempt wholesale generator facility

consumes from sources located within the

state at least ninety percent (90%) of the

total energy used to produce the electrical

output which qualifies for the specialized

treatment provided by the Energy Policy Act

of 1992, P.L. 102-486, 106 Stat. 2776, as

amended, and federal regulations adopted

pursuant thereto,

(c) the exempt wholesale generator facility

sells to purchasers located outside the

state for consumption in activities located

outside the state at least ninety percent

(90%) of the total electrical energy output

which qualifies for the specialized

treatment provided by the Energy Policy Act

of 1992, P.L. 102-486, 106 Stat. 2776, as

amended, and federal regulations adopted

pursuant thereto, and

(d) the facility is constructed on or after July

1, 1996,

(3) those administrative and facilities support

service activities defined or classified in the

NAICS Manual under Industry Group Nos. 5611 and

5612, Industry Nos. 51821, 519130, 52232 and

56142 or U.S. Industry Nos. 524291 and 551114,

those other support activities for air

transportation defined or classified in the NAICS

Manual under Industry Group No. 488190, and those

support, repair, and maintenance service

activities for the wind industry defined or

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1366

classified in the NAICS Manual under Industry

Group No. 811310,

(4) those professional, scientific and technical

service activities defined or classified in the

NAICS Manual under U.S. Industry Nos. 541710 and

541380,

(5) distribution centers for retail or wholesale

businesses defined or classified in the NAICS

Manual under Sector No. 42, if forty percent

(40%) or more of the inventory processed through

such warehouse is shipped out-of-state,

(6) those adjustment and collection service

activities defined or classified in the NAICS

Manual under U.S. Industry No. 561440, if

seventy-five percent (75%) of the loans to be

serviced were made by out-of-state debtors,

(7) (a) those air transportation activities defined

or classified in the NAICS Manual under

Industry Group No. 4811, if the following

facilities are located in this state:

(i) the corporate headquarters of an

establishment classified therein, and

(ii) a facility or facilities at which

reservations for transportation

provided by such an establishment are

processed, whether such services are

performed by employees of the

establishment, by employees of a

subsidiary of or other entity

affiliated with the establishment or by

employees of an entity with whom the

establishment has contracted for the

performance of such services; provided,

this provision shall not disqualify an

establishment which uses an out-of-

state entity or employees for some

reservations services, or
es are

performed by employees of the

establishment, by employees of a

subsidiary of or other entity

affiliated with the establishment or by

employees of an entity with whom the

establishment has contracted for the

performance of such services; provided,

this provision shall not disqualify an

establishment which uses an out-of-

state entity or employees for some

reservations services, or

(b) those air transportation activities defined

or classified in the NAICS Manual under

Industry Group No. 4811, if an establishment

classified therein has or will have within

one (1) year sales of at least seventy-five

percent (75%) of its total sales, as

determined by the Incentive Approval

Committee pursuant to the provisions of

subsection B of this section, to out-of-

state customers or buyers, to in-state

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1367

customers or buyers if the product or

service is resold by the purchaser to an

out-of-state customer or buyer for ultimate

use, or to the federal government,

(8) flight training services activities defined or

classified in the NAICS Manual under U.S.

Industry Group No. 611512, which for purposes of

the Oklahoma Quality Jobs Program Act shall

include new direct jobs for which gross payroll

existed on or after January 1, 2003, as

identified in the NAICS Manual,

(9) the following, if an establishment classified

therein has or will have within one (1) year

sales of at least seventy-five percent (75%) of

its total sales, as determined by the Incentive

Approval Committee pursuant to the provisions of

subsection B of this section, to out-of-state

customers or buyers, to in-state customers or

buyers if the product or service is resold by the

purchaser to an out-of-state customer or buyer

for ultimate use, or to the federal government:

(a) those transportation and warehousing

activities defined or classified in the

NAICS Manual under Industry Subsector No.

493, if not otherwise listed in this

paragraph, Industry Subsector Nos. 482 and

484 and Industry Group Nos. 4884 through

4889,

(b) those passenger transportation activities

defined or classified in the NAICS Manual

under Industry Nos. 561510 and 561599,

(c) those freight or cargo transportation

activities defined or classified in the

NAICS Manual under Industry No. 541614,

(d) those insurance activities defined or

classified in the NAICS Manual under

Industry Group No. 5241,

(e) those services to dwellings and other

buildings, as defined or classified in the

NAICS Manual under Industry Group No. 5617,

excluding U.S. Industry Nos. 561730, 56171,

56172, 56174 and 56179,

(f) those equipment rental and leasing

activities defined or classified in the

NAICS Manual under Industry Group No. 5324,

(g) those information technology and other

computer-related service activities defined

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1368

or classified in the NAICS Manual under

Industry Group Nos. 5112, 5182, 5191 and

5415,

(h) those business support service activities

defined or classified in the NAICS Manual

under U.S. Industry Nos. 561410 through

561430, excluding 56143, and Industry No.

51911,

(i) those medical and diagnostic laboratory

activities defined or classified in the

NAICS Manual under Industry Group No. 6215,

(j) those professional, scientific and technical

service activities defined or classified in

the NAICS Manual under Industry Group Nos.

5412, 5414, 5415, 5416 and 5417, Industry

Nos. 54131, 54133, 54136 and 54137, and U.S.

Industry No. 541990, if not otherwise listed

in this paragraph,

(k) those communication service activities

defined or classified in the NAICS Manual

under Industry Nos. 51741 and 51791,
ional, scientific and technical

service activities defined or classified in

the NAICS Manual under Industry Group Nos.

5412, 5414, 5415, 5416 and 5417, Industry

Nos. 54131, 54133, 54136 and 54137, and U.S.

Industry No. 541990, if not otherwise listed

in this paragraph,

(k) those communication service activities

defined or classified in the NAICS Manual

under Industry Nos. 51741 and 51791,

(l) those refuse systems activities defined or

classified in the NAICS Manual under

Industry Group No. 5622, provided that the

establishment is primarily engaged in the

capture and distribution of methane gas

produced within a landfill,

(m) general wholesale distribution of groceries,

defined or classified in the NAICS Manual

under Industry Group Nos. 4244 and 4245,

(n) those activities relating to processing of

insurance claims, defined or classified in

the NAICS Manual under U.S. Industry Nos.

524210 and 524292; provided, activities

described in U.S. Industry Nos. 524210 and

524292 in the NAICS Manual other than

processing of insurance claims shall not be

included for purposes of this subdivision,

(o) those agricultural activities classified in

the NAICS Manual under U.S. Industry Nos.

112120 and 112310,

(p) those professional organization activities

classified in the NAICS Manual under U.S.

Industry No. 813920,

(q) alternative energy structure construction

classified in the NAICS Manual under U.S.

Industry No. 237130,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1369

(r) solar reflective coating application

classified in the NAICS Manual under U.S.

Industry No. 238160,

(s) solar heating equipment installation

classified in the NAICS Manual under U.S.

Industry No. 238220,

(t) those wired telecommunications carriers

classified in the NAICS Manual under U.S.

Industry No. 517110, and

(u) those securities, commodity contracts and

investment activities classified in the

NAICS Manual under Industry Subsector No.

523,

(10) those activities related to extraction or

pipeline transportation of petroleum, natural gas

or refined petroleum products, defined or

classified in the NAICS Manual under Industry

Group No. 2111, 213111, 213112 or 486, subject to

the limitations provided in paragraph 3 of this

subsection and paragraph 3 of subsection B of

this section,

(11) those activities performed by the federal

civilian workforce at a facility of the Federal

Aviation Administration located in this state if

the Director of the Oklahoma Department of

Commerce determines or is notified that the

federal government is soliciting proposals or

otherwise inviting states to compete for

additional federal civilian employment or

expansion of federal civilian employment at such

facilities,

(12) those activities defined or classified in the

NAICS Manual under U.S. Industry No. 711211 (2007

version),

(13) those real estate or brokerage activities

classified in the NAICS Manual under U.S.

Industry No. 53120 for which at least seventy-

five percent (75%) of the establishment’s

revenues are attributed to out-of-state sales and

at least seventy-five percent (75%) of the real

estate transactions generating those revenues are

attributed to real property located outside the

State of Oklahoma, or
) those real estate or brokerage activities

classified in the NAICS Manual under U.S.

Industry No. 53120 for which at least seventy-

five percent (75%) of the establishment’s

revenues are attributed to out-of-state sales and

at least seventy-five percent (75%) of the real

estate transactions generating those revenues are

attributed to real property located outside the

State of Oklahoma, or

(14) those support activities for rail transportation

and those support activities for water

transportation defined or classified in the NAICS

Manual under U.S. Industry Nos. 4882 and 4883.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1370

b. An establishment described in subparagraph a of this

paragraph shall not be considered to be engaged in a

basic industry unless it offers, or will offer within

one hundred eighty (180) days of employment, a basic

health benefits plan to the individuals it employs in

new direct jobs in this state which is determined by

the Oklahoma Department of Commerce to consist of the

following elements or elements substantially

equivalent thereto:

(1) not more than fifty percent (50%) of the premium

shall be paid by the employee,

(2) coverage for basic hospital care,

(3) coverage for physician care,

(4) coverage for mental health care,

(5) coverage for substance abuse treatment,

(6) coverage for prescription drugs, and

(7) coverage for prenatal care;

2. “Change-in-control event” means the transfer to one or more

unrelated establishments or unrelated persons, of either:

a. beneficial ownership of more than fifty percent (50%)

in value and more than fifty percent (50%) in voting

power of the outstanding equity securities of the

transferred establishment, or

b. more than fifty percent (50%) in value of the assets

of an establishment.

A transferor shall be treated as related to a transferee if more

than fifty percent (50%) of the voting interests of the transferor

and transferee are owned, directly or indirectly, by the other or

are owned, directly or indirectly, by the same person or persons,

unless such transferred establishment has an outstanding class of

equity securities registered under Sections 12(b) or 15(d) of the

Securities Exchange Act of 1934, as amended, in which event the

transferor and transferee will be treated as unrelated; provided, an

establishment applying for the Oklahoma Quality Jobs Program Act as

a result of a change-in-control event is required to apply within

one hundred eighty (180) days of the change-in-control event to

qualify for consideration. An establishment entering the Oklahoma

Quality Jobs Program Act as the result of a change-in-control event

shall be required to maintain a level of new direct jobs as agreed

to in its contract with the Oklahoma Department of Commerce and to

pay new direct jobs an average annualized wage which equals or

exceeds one hundred twenty-five percent (125%) of the average county

wage as that percentage is determined by the Oklahoma Department of

Commerce based upon the most recent U.S. Department of Commerce data

for the county in which the new jobs are located. For purposes of

this paragraph, healthcare premiums paid by the applicant for

individuals in new direct jobs shall not be included in the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1371

annualized wage. Such establishment entering the Oklahoma Quality

Jobs Program Act as the result of a change-in-control event shall be

required to retain the contracted average annualized wage and

maintain the contracted maintenance level of new direct jobs numbers

as certified by the Tax Commission. If the required average

annualized wage or the required new direct jobs numbers do not equal

or exceed such contracted level during any quarter, the quarterly

incentive payments shall not be made and shall not be resumed until

such time as such requirements are met. An establishment described
ntain the contracted maintenance level of new direct jobs numbers

as certified by the Tax Commission. If the required average

annualized wage or the required new direct jobs numbers do not equal

or exceed such contracted level during any quarter, the quarterly

incentive payments shall not be made and shall not be resumed until

such time as such requirements are met. An establishment described

in this paragraph shall be required to repay all incentive payments

received under the Oklahoma Quality Jobs Program Act if the

establishment is determined by the Tax Commission to no longer have

business operations in the state within three (3) years from the

beginning of the calendar quarter for which the first incentive

payment claim is filed;

3. “New direct job”:

a. means full-time-equivalent employment in this state in

an establishment which has qualified to receive an

incentive payment pursuant to the provisions of the

Oklahoma Quality Jobs Program Act which employment did

not exist in this state prior to the date of approval

by the Department of the application of the

establishment pursuant to the provisions of Section

3604 of this title and with respect to an

establishment qualifying for incentive payments

pursuant to division (12) of subparagraph a of

paragraph 1 of this subsection shall not include

compensation paid to an employee or independent

contractor for an athletic contest conducted in the

state if the compensation is paid by an entity that

does not have its principal place of business in the

state or that does not own real or personal property

having a market value of at least One Million Dollars

($1,000,000.00) located in the state, and the

employees or independent contractors of such entity

are compensated to compete against the employees or

independent contractors of an establishment that

qualifies for incentive payments pursuant to division

(12) of subparagraph a of paragraph 1 of this

subsection and which is organized under Oklahoma law

or that is lawfully registered to do business in the

state and which does have its principal place of

business located in the state and owns real or

personal property having a market value of at least

One Million Dollars ($1,000,000.00) located in the

state; provided, that if an application of an

establishment is approved by the Oklahoma Department

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1372

of Commerce after a change-in-control event and the

Director of the Oklahoma Department of Commerce

determines that the jobs located at such establishment

are likely to leave the state, “new direct job” shall

include employment that existed in this state prior to

the date of application which is retained in this

state by the new establishment following a change in

control event, if such job otherwise qualifies as a

new direct job, and

b. shall include full-time-equivalent employment in this

state of employees who are employed by an employment

agency or similar entity other than the establishment

which has qualified to receive an incentive payment

and who are leased or otherwise provided under

contract to the qualified establishment, if such job

did not exist in this state prior to the date of

approval by the Department of the application of the

establishment or the job otherwise qualifies as a new

direct job following a change-in-control event. The

leasing of employees by the establishment or employees

provided under contract with an establishment shall

constitute an employer-employee relationship between

those employees and the establishment. A job shall be

deemed to exist in this state prior to approval of an

application if the activities and functions for which

the particular job exists have been ongoing at any

time within six (6) months prior to such approval.

With respect to establishments defined in division
th an establishment shall

constitute an employer-employee relationship between

those employees and the establishment. A job shall be

deemed to exist in this state prior to approval of an

application if the activities and functions for which

the particular job exists have been ongoing at any

time within six (6) months prior to such approval.

With respect to establishments defined in division

(10) of subparagraph a of paragraph 1 of this

subsection, new direct jobs shall be limited to those

jobs directly comprising the corporate headquarters of

or directly relating to manufacturing, maintenance,

administrative, financial, engineering, surveying,

geological or geophysical services performed by the

establishment. Under no circumstances shall

employment relating to field services be considered

new direct jobs;

4. “Estimated direct state benefits” means the tax revenues

projected by the Department to accrue to the state as a result of

new direct jobs;

5. “Estimated direct state costs” means the costs projected by

the Department to accrue to the state as a result of new direct

jobs. Such costs shall include, but not be limited to:

a. the costs of education of new state resident children,

b. the costs of public health, public safety and

transportation services to be provided to new state

residents,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1373

c. the costs of other state services to be provided to

new state residents, and

d. the costs of other state services;

6. “Estimated net direct state benefits” means the estimated

direct state benefits less the estimated direct state costs;

7. “Net benefit rate” means the estimated net direct state

benefits computed as a percentage of gross payroll; provided:

a. except as otherwise provided in this paragraph, the

net benefit rate may be variable and shall not exceed

five percent (5%),

b. the net benefit rate shall not exceed six percent (6%)

in connection with an establishment which is owned and

operated by an entity which has been awarded a United

States Department of Defense contract for which:

(1) bids were solicited and accepted by the United

States Department of Defense from facilities

located outside this state,

(2) the term is or is renewable for not less than

twenty (20) years, and

(3) the average annual salary, excluding benefits

which are not subject to Oklahoma income taxes,

for new direct jobs created as a direct result of

the awarding of the contract is projected by the

Oklahoma Department of Commerce to equal or

exceed Forty Thousand Dollars ($40,000.00) within

three (3) years of the date of the first

incentive payment,

c. except as otherwise provided in subparagraph d of this

paragraph, in no event shall incentive payments,

cumulatively, exceed the estimated net direct state

benefits,

d. the net benefit rate shall be five percent (5%) for an

establishment locating:

(1) in an opportunity zone located in a high-

employment county, as such terms are defined in

subsection G of Section 3604 of this title, or

(2) in a county in which:

(a) the per capita personal income, as

determined by the Department, is eighty-five

percent (85%) or less of the statewide

average per capita personal income,

(b) the population has decreased over the

previous ten (10) years, as determined by

the Oklahoma Department of Commerce based on

the most recent U.S. Department of Commerce

data, or

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1374
r capita personal income, as

determined by the Department, is eighty-five

percent (85%) or less of the statewide

average per capita personal income,

(b) the population has decreased over the

previous ten (10) years, as determined by

the Oklahoma Department of Commerce based on

the most recent U.S. Department of Commerce

data, or

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1374

(c) the unemployment rate exceeds the lesser of

five percent (5%) or two percentage points

above the state average unemployment rate as

certified by the Oklahoma Employment

Security Commission,

e. the net benefit rate shall not exceed six percent (6%)

in connection with an establishment which:

(1) is, as of the date of application, receiving

incentive payments pursuant to the Oklahoma

Quality Jobs Program Act and has been receiving

such payments for at least one (1) year prior to

the date of application, and

(2) expands its operations in this state by creating

additional new direct jobs which pay average

annualized wages which equal or exceed one

hundred fifty percent (150%) of the average

annualized wages of new direct jobs on which

incentive payments were received during the

preceding calendar year,

f. with respect to an establishment defined or classified

in the NAICS Manual under U.S. Industry No. 711211

(2007 version) or any establishment defined or

classified in the NAICS Manual as a U.S. Industry

Number which is not included within the definition of

“basic industry” as such term is defined in this

section on April 17, 2008, the net benefit rate shall

not exceed the highest rate of income tax imposed upon

the Oklahoma taxable income of individuals pursuant to

subparagraph (g) or subparagraph (h), as applicable,

of paragraph 1 and paragraph 2 of subsection B of

Section 2355 of this title. Any change in such

highest rate of individual income tax imposed pursuant

to the provisions of Section 2355 of this title shall

be applicable to the computation of incentive payments

to an establishment as described by this subparagraph

and shall be effective for purposes of incentive

payments based on payroll paid by such establishment

on or after January 1 of any applicable year for which

the net benefit rate is modified as required by this

subparagraph, and

g. the net benefit rate shall not exceed six percent (6%)

in connection with an establishment which employs

United States military veterans in at least ten

percent (10%) of its gross payroll. The net benefit

rate for an establishment which employs United States

military veterans in at least ten percent (10%) of its

payroll shall not be lower than five percent (5%).

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1375

Incentive payments made pursuant to the provisions of this

subparagraph shall be based upon payroll associated with such new

direct jobs. For purposes of this subparagraph, the amount of

health insurance premiums or other benefits paid by the

establishment shall not be included for purposes of computation of

the average annualized wage;

8. “Gross payroll” means wages, as defined in Section 2385.1 of

this title for new direct jobs;

9. a. “Establishment” means any business or governmental

entity, no matter what legal form, including, but not

limited to, a sole proprietorship; partnership;

limited liability company; corporation or combination

of corporations which have a central parent

corporation which makes corporate management decisions

such as those involving consolidation, acquisition,

merger or expansion; federal agency; political

subdivision of the State of Oklahoma; or trust

authority; provided, distinct, identifiable subunits

of such entities may be determined to be an

establishment, for all purposes of the Oklahoma

Quality Jobs Program Act, by the Department subject to

the following conditions:
management decisions

such as those involving consolidation, acquisition,

merger or expansion; federal agency; political

subdivision of the State of Oklahoma; or trust

authority; provided, distinct, identifiable subunits

of such entities may be determined to be an

establishment, for all purposes of the Oklahoma

Quality Jobs Program Act, by the Department subject to

the following conditions:

(1) within three (3) years of the first complete

calendar quarter following the start date, the

entity must have a minimum payroll of Two Million

Five Hundred Thousand Dollars ($2,500,000.00) and

the subunit must also have or will have a minimum

payroll of Two Million Five Hundred Thousand

Dollars ($2,500,000.00),

(2) the subunit is engaged in an activity or service

or produces a product which is demonstratively

independent and separate from the entity’s other

activities, services or products and could be

conducted or produced in the absence of any other

activity, service or production of the entity,

(3) has an accounting system capable of tracking or

facilitating an audit of the subunit’s payroll,

expenses, revenue and production. Limited

interunit overlap of administrative and

purchasing functions shall not disqualify a

subunit from consideration as an establishment by

the Department,

(4) the entity has not previously had a subunit

determined to be an establishment pursuant to

this section; provided, the restriction set forth

in this division shall not apply to subunits

which qualify pursuant to the provisions of

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1376

subparagraph b of paragraph 7 of this subsection,

and

(5) it is determined by the Department that the

entity will have a probable net gain in total

employment within the incentive period.

b. The Department may promulgate rules to further limit

the circumstances under which a subunit may be

considered an establishment. The Department shall

promulgate rules to determine whether a subunit of an

entity achieves a net gain in total employment. The

Department shall establish criteria for determining

the period of time within which such gain must be

demonstrated and a method for determining net gain in

total employment;

10. “NAICS Manual” means any manual, book or other publication

containing the North American Industry Classification System, United

States, 1997, promulgated by the Office of Management and Budget of

the United States of America, or the latest revised edition;

11. “Qualified federal contract” means a contract between an

agency or instrumentality of the United States government, including

but not limited to the Department of Defense or any branch of the

United States Armed Forces, but exclusive of any contract performed

for the Federal Emergency Management Agency as a direct result of a

natural disaster declared by the Governor or the President of the

United States with respect to damage to property located in Oklahoma

or loss of life or personal injury to persons in Oklahoma, and a

lawfully recognized business entity, whether or not the business

entity is organized under the laws of the State of Oklahoma or

whether or not the principal place of business of the business

entity is located within the State of Oklahoma, for the performance

of services, including but not limited to testing, research,

development, consulting or other services in a basic industry, if

the contract involves the performance of such services performed on

or after July 1, 2009, by the employees of the business entity

within the State of Oklahoma or if the contract involves the

performance of such services performed on or after July 1, 2009, by

employees of a lawfully recognized business entity that is a

subcontractor of the business entity with which the prime contract

has been formed. A qualified federal contract described in this

paragraph shall not qualify unless both the qualified federal
ness entity

within the State of Oklahoma or if the contract involves the

performance of such services performed on or after July 1, 2009, by

employees of a lawfully recognized business entity that is a

subcontractor of the business entity with which the prime contract

has been formed. A qualified federal contract described in this

paragraph shall not qualify unless both the qualified federal

contractor and any subcontractors originally involved in the work or

added subsequently during the period of performance verify to the

qualified federal contractor verifier that it offers, or will offer

within one hundred eighty (180) days of employment of its respective

employees, a basic health benefits plan as described in subparagraph

b of paragraph 1 of this subsection to individuals who perform

qualified labor hours in this state;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1377

12. “Qualified federal contractor verifier” means a nonprofit

entity organized under the laws of the State of Oklahoma, having an

affiliation with a comprehensive university which is part of The

Oklahoma State System of Higher Education, and having the following

characteristics:

a. established multiyear classified and unclassified

indefinite-delivery/indefinite-quantity federal

contract vehicles in excess of Fifty Million Dollars

($50,000,000.00),

b. current capability to sponsor and maintain personnel

security clearances and authorized by the federal

government to handle and perform classified work up to

the Top Secret Sensitive Compartmented Information

levels,

c. at least one on-site federally certified Sensitive

Compartmented Information Facility,

d. on-site secure mass data storage complex with the

capability of isolating, segregating and protecting

corporate proprietary and classified information,

e. trusted agent status by maintaining no ownership of,

vested interest in, nor royalty production from any

intellectual property,

f. at least one hundred thousand (100,000) square feet of

configurable laboratory and support space,

g. the direct access to restricted air space through a

formalized memorandum of agreement with the Department

of Defense,

h. at least five thousand (5,000) acres available for

outdoor testing and training facilities, and

i. the ability to house state-of-the-art surety

facilities, including chemical, biological,

radiological, explosives, electronics, and unmanned

systems laboratories and ranges;

13. “SIC Manual” means the 1987 revision to the Standard

Industrial Classification Manual, promulgated by the Office of

Management and Budget of the United States of America;

14. “Start date” means the date on which an establishment may

begin accruing benefits for the creation of new direct jobs, which

date shall be determined by the Department;

15. “Effective date” means the date of approval of a contract

under which incentive payments will be made pursuant to the Oklahoma

Quality Jobs Program Act, which shall be the date the signed and

accepted incentive contract is received by the Department; provided,

an approved project may have a start date which is different from

the effective date;

16. “Total qualified labor hours” means the reimbursed payment

amount for hours of work performed by the State of Oklahoma

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1378

workforce of a qualified federal contractor or the State of Oklahoma

workforce of a subcontractor of a qualified federal contractor and

which are required for the full performance of a qualified federal

contract;

17. “Qualified labor rate” means the fully reimbursed labor

rate paid through a qualified federal contract for qualified labor

hours to the qualified federal contractor or subcontractor;

18. “Qualified federal contractor” means a business entity:

a. maintaining a prime contract with the federal

government as defined in paragraph 11 of this

subsection,
mance of a qualified federal

contract;

17. “Qualified labor rate” means the fully reimbursed labor

rate paid through a qualified federal contract for qualified labor

hours to the qualified federal contractor or subcontractor;

18. “Qualified federal contractor” means a business entity:

a. maintaining a prime contract with the federal

government as defined in paragraph 11 of this

subsection,

b. providing notice of intent to apply to the Department

within one hundred eighty (180) days of July 1, 2010,

or one hundred eighty (180) days of the date of the

award of a qualified federal contract or award of a

new qualified subcontract under an existing qualified

federal contract, and

c. adding substantively to the contract by performing at

least eight percent (8%) of the total labor whether

qualified and nonqualified labor as determined by the

federal contractor verifier on a direct contract or

individual task order or delivery order on an

indefinite-delivery/indefinite-quantity or other

blanket contract vehicle.

Should a prime contractor provide notice to the Department of

its intent not to apply for incentive for a qualified federal

contract or fails to qualify under the criteria above,

subcontractors in order of tier ranking as determined by the federal

contract verifier may assume the role of the prime and apply to

become a qualified federal contractor provided the entity meets the

same criteria above with the exception that notice of intent to

apply with the Department must be provided within sixty (60) days of

the prime’s disqualification or one hundred eighty (180) days of the

award of its subcontract, whichever is later; and

19. “Proxy establishment” means a public trust which:

a. is organized and existing under Section 176 of Title

60 of the Oklahoma Statutes for the benefit of a

geographic area which includes a city or county or

some combination thereof, and

b. benefits a geographic area where new direct jobs which

meet the requirements of the Oklahoma Quality Jobs

Program Act are created by an establishment, other

than the proxy establishment, which is a branch of the

Armed Forces of the United States.

A proxy establishment may be determined to be an establishment

for all purposes of the Oklahoma Quality Jobs Program Act by the

Department and incentive payments may be made to such proxy

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1379

establishment for new direct jobs otherwise qualified pursuant to

the Oklahoma Quality Jobs Program Act. The Department may

promulgate rules to further specify the circumstances under which a

proxy establishment may be considered an establishment for the

purposes of making application for incentive payments pursuant to

the Oklahoma Quality Jobs Program Act. Provided however, that with

respect to any data on qualifying direct new jobs from a branch of

the Armed Forces of the United States, such rules shall only require

a proxy establishment to provide such data as would otherwise be

publicly releasable by the branch of the Armed Forces of the United

States.

B. The Incentive Approval Committee is hereby created and shall

consist of the Director of the Office of Management and Enterprise

Services, the Director of the Department and one member of the

Oklahoma Tax Commission appointed by the Tax Commission, or a

designee from each agency approved by such member. It shall be the

duty of the Committee to determine the eligibility of all applicants

for the Oklahoma Quality Jobs Program Act, subject to the applicable

requirements.

C. For an establishment defined as a “basic industry” pursuant

to division (4) of subparagraph a of paragraph 1 of subsection A of

this section, the Incentive Approval Committee shall consist of the

members provided by subsection B of this section and the Executive

Director of the Oklahoma Center for the Advancement of Science and
ity Jobs Program Act, subject to the applicable

requirements.

C. For an establishment defined as a “basic industry” pursuant

to division (4) of subparagraph a of paragraph 1 of subsection A of

this section, the Incentive Approval Committee shall consist of the

members provided by subsection B of this section and the Executive

Director of the Oklahoma Center for the Advancement of Science and

Technology, or a designee from the Center appointed by the Executive

Director.