Okla. Stat. tit. 68, § 68-3604

A. Except as otherwise provided in subsection I or subsection L

of this section, an establishment which meets the qualifications

specified in the Oklahoma Quality Jobs Program Act may receive

quarterly incentive payments for a ten-year period from the Oklahoma

Tax Commission pursuant to the provisions of the Oklahoma Quality

Jobs Program Act; provided, such an establishment defined or

classified in the NAICS Manual under U.S. Industry No. 711211 (2007

version) may receive quarterly incentive payments for a thirty-year

period. The amount of such payments shall be equal to the net

benefit rate multiplied by the actual gross payroll of new direct

jobs for a calendar quarter as verified by the Oklahoma Employment

Security Commission. For an establishment defined or classified in

the NAICS Manual under U.S. Industry No. 711211 (2007 version) that

entered into a contract pursuant to the Oklahoma Quality Jobs

Program Act with the Oklahoma Department of Commerce before the

effective date of this act:

1. The contract shall be extended from fifteen (15) years to

thirty (30) years; and

2. The extension shall not include additional money awarded but

shall allow for payments to continue for the thirty-year period, or

until the net benefit for the new direct jobs for the original

contract has been fully paid out as calculated based upon the

original application.

B. In order to receive incentive payments, an establishment

shall apply to the Oklahoma Department of Commerce. The application

shall be on a form prescribed by the Department and shall contain

such information as may be required by the Department to determine

if the applicant is qualified. An establishment may apply for an

effective date for a project, which shall not be more than twenty-

four (24) months from the date the application is submitted to the

Department.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1381

C. Except as otherwise provided by subsection D or E of this

section, in order to qualify to receive such payments, the

establishment applying shall be required to:

1. Be engaged in a basic industry;

2. Have an annual gross payroll for new direct jobs projected

by the Department to equal or exceed Two Million Five Hundred

Thousand Dollars ($2,500,000.00) within three (3) years of the first

complete calendar quarter following the start date; and

3. Have a number of full-time-equivalent employees subject to

the tax imposed by Section 2355 of this title and working an annual

average of thirty (30) or more hours per week in new direct jobs

located in this state equal to or in excess of eighty percent (80%)

of the total number of new direct jobs.

D. In order to qualify to receive incentive payments as

authorized by the Oklahoma Quality Jobs Program Act, an

establishment engaged in an activity described under:

1. Industry Group Nos. 3111 through 3119 of the NAICS Manual

shall be required to:

a. have an annual gross payroll for new direct jobs

projected by the Department to equal or exceed One

Million Five Hundred Thousand Dollars ($1,500,000.00)

within three (3) years of the first complete calendar

quarter following the start date and make, or which

will make within one (1) year, 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 Section 3603 of this

title, 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,

unless the annual gross payroll equals or exceeds Two

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

in which case the requirements for purchase of output

provided by this subparagraph shall not apply, and

b. have a number of full-time-equivalent employees

working an average of thirty (30) or more hours per
ut-of-state customer or

buyer for ultimate use, or to the federal government,

unless the annual gross payroll equals or exceeds Two

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

in which case the requirements for purchase of output

provided by this subparagraph shall not apply, and

b. have a number of full-time-equivalent employees

working an average of thirty (30) or more hours per

week in new direct jobs equal to or in excess of

eighty percent (80%) of the total number of new direct

jobs; and

2. Division (4) of subparagraph a of paragraph 1 of subsection

A of Section 3603 of this title, shall be required to:

a. have an annual gross payroll for new direct jobs

projected by the Department to equal or exceed One

Million Five Hundred Thousand Dollars ($1,500,000.00)

within three (3) years of the first complete calendar

quarter following the start date, and

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1382

b. have a number of full-time-equivalent employees

working an average of thirty (30) or more hours per

week in new direct jobs equal to or in excess of

eighty percent (80%) of the total number of new direct

jobs.

E. 1. An establishment which locates its principal business

activity within a site consisting of at least ten (10) acres which:

a. is a federal Superfund removal site,

b. is listed on the National Priorities List established

under Section 9605 of Title 42 of the United States

Code,

c. has been formally deferred to the state in lieu of

listing on the National Priorities List, or

d. has been determined by the Department of Environmental

Quality to be contaminated by any substance regulated

by a federal or state statute governing environmental

conditions for real property pursuant to an order of

the Department of Environmental Quality,

shall qualify for incentive payments irrespective of its actual

gross payroll or the number of full-time-equivalent employees

engaged in new direct jobs.

2. In order to qualify for the incentive payments pursuant to

this subsection, the establishment shall conduct the activity

resulting in at least fifty percent (50%) of its Oklahoma taxable

income or adjusted gross income, as determined under Section 2358 of

this title, whether from the sale of products or services or both

products and services, at the physical location which has been

determined not to comply with the federal or state statutes

described in this subsection with respect to environmental

conditions for real property. The establishment shall be subject to

all other requirements of the Oklahoma Quality Jobs Program Act

other than the exemptions provided by this subsection.

3. In order to qualify for the incentive payments pursuant to

this subsection, the entity shall obtain from the Department of

Environmental Quality a letter of concurrence that:

a. the site designated by the entity does meet one or

more of the requirements listed in paragraph 1 of this

subsection, and

b. the site is being or has been remediated to a level

which is consistent with the intended use of the

property.

In making its determination, the Department of Environmental

Quality may rely on existing data and information available to it,

but may also require the applying entity to provide additional data

and information, as necessary.

4. If authorized by the Department of Environmental Quality

pursuant to paragraph 3 of this subsection, the entity may utilize a

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1383

remediated portion of the property for its intended purpose prior to

remediation of the remainder of the site, and shall qualify for

incentive payments based on employment associated with the portion

of the site.

F. Except as otherwise provided by subsection G of this

section, for applications submitted on and after June 4, 2003, in

order to qualify to receive incentive payments as authorized by the
ed portion of the property for its intended purpose prior to

remediation of the remainder of the site, and shall qualify for

incentive payments based on employment associated with the portion

of the site.

F. Except as otherwise provided by subsection G of this

section, for applications submitted on and after June 4, 2003, in

order to qualify to receive incentive payments as authorized by the

Oklahoma Quality Jobs Program Act, in addition to other

qualifications specified herein, an establishment shall be required

to pay new direct jobs an average annualized wage which equals or

exceeds:

1. One hundred ten percent (110%) of the average county wage as

determined by the Department of Commerce based on the most recent

U.S. Department of Commerce data for the county in which the new

direct jobs are located. For purposes of this paragraph, health

care premiums paid by the applicant for individuals in new direct

jobs shall be included in the annualized wage; or

2. One hundred percent (100%) of the average county wage as

that percentage is determined by the 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,

health care premiums paid by the applicant for individuals in new

direct jobs shall not be included in the annualized wage.

Provided, no average wage requirement shall exceed Twenty-five

Thousand Dollars ($25,000.00), in any county. This maximum wage

threshold shall be indexed and modified from time to time based on

the latest Consumer Price Index year-to-date percent change release

as of the date of the annual average county wage data release from

the Bureau of Economic Analysis of the U.S. Department of Commerce.

G. 1. As used in this subsection, “opportunity zone” means one

or more census tracts in which, according to the most recent Federal

Decennial Census, at least thirty percent (30%) of the residents

have annual gross household incomes from all sources below the

poverty guidelines established by the U.S. Department of Health and

Human Services. An establishment which is otherwise qualified to

receive incentive payments and which locates its principal business

activity in an opportunity zone shall not be subject to the

requirements of subsection F of this section.

2. As used in this subsection:

a. “negative economic event” means:

(1) a man-made disaster or natural disaster as

defined in Section 683.3 of Title 63 of the

Oklahoma Statutes, resulting in the loss of a

significant number of jobs within a particular

county of this state, or

(2) an economic circumstance in which a significant

number of jobs within a particular county of this

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state have been lost due to an establishment

changing its structure, consolidating with

another establishment, closing or moving all or

part of its operations out of this state, and

b. “significant number of jobs” means Local Area

Unemployment Statistics (LAUS) data, as determined by

the Bureau of Labor Statistics, for a county which are

equal to or in excess of five percent (5%) of the

total amount of Local Area Unemployment Statistics

(LAUS) data for that county for the calendar year, or

most recent twelve-month period in which employment is

measured, preceding the event.

An establishment which is otherwise qualified to receive

incentive payments and which locates in a county in which a negative

economic event has occurred within the eighteen-month period

preceding the start date shall not be subject to the requirements of

subsection F of this section; provided, an establishment shall not

be eligible to receive incentive payments based upon a negative

economic event with respect to jobs that are transferred from one

county of this state to another.

H. The Department shall determine if the applicant is qualified

to receive incentive payments.
preceding the start date shall not be subject to the requirements of

subsection F of this section; provided, an establishment shall not

be eligible to receive incentive payments based upon a negative

economic event with respect to jobs that are transferred from one

county of this state to another.

H. The Department shall determine if the applicant is qualified

to receive incentive payments.

I. If the applicant is determined to be qualified by the

Department and is not subject to the provisions of subparagraph d of

paragraph 7 of subsection A of Section 3603 of this title, the

Department shall conduct a cost/benefit analysis to determine the

estimated net direct state benefits and the net benefit rate

applicable for a ten-year period beginning with the first complete

calendar quarter following the start date and to estimate the amount

of gross payroll for a ten-year period beginning with the first

complete calendar quarter following the start date or for a thirty-

year period for an establishment defined or classified in the NAICS

Manual under U.S. Industry No. 711211 (2007 version). In conducting

such cost/benefit analysis, the Department shall consider

quantitative factors, such as the anticipated level of new tax

revenues to the state along with the added cost to the state of

providing services, and such other criteria as deemed appropriate by

the Department. In no event shall incentive payments, cumulatively,

exceed the estimated net direct state benefits, except for

applicants subject to the provisions of subparagraph d of paragraph

7 of subsection A of Section 3603 of this title.

J. Upon approval of such an application, the Department shall

notify the Tax Commission and shall provide it with a copy of the

contract and the results of the cost/benefit analysis. The Tax

Commission may require the qualified establishment to submit such

additional information as may be necessary to administer the

provisions of the Oklahoma Quality Jobs Program Act. The approved

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establishment shall file quarterly claims with the Tax Commission

and shall continue to file such quarterly claims during the ten-year

incentive period to show its continued eligibility for incentive

payments, as provided in Section 3606 of this title, or until it is

no longer qualified to receive incentive payments. The

establishment may be audited by the Tax Commission to verify such

eligibility. Once the establishment is approved, an agreement shall

be deemed to exist between the establishment and the State of

Oklahoma, requiring the continued incentive payment to be made as

long as the establishment retains its eligibility as defined in and

established pursuant to this section and Sections 3603 and 3606 of

this title and within the limitations contained in the Oklahoma

Quality Jobs Program Act, which existed at the time of such

approval. An establishment described in this subsection shall be

required to repay all incentive payments received under the Oklahoma

Quality Jobs Program Act if the establishment is determined by the

Oklahoma 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.

K. A municipality with a population of less than one hundred

thousand (100,000) persons in which an establishment eligible to

receive quarterly incentive payments pursuant to the provisions of

this section is located may file a claim with the Tax Commission for

up to twenty-five percent (25%) of the amount of such payment. The

amount of such claim shall not exceed amounts paid by the

municipality for direct costs of municipal infrastructure

improvements to provide water and sewer service to the

establishment. Such claim shall not be approved by the Tax

Commission unless the municipality and the establishment have
a claim with the Tax Commission for

up to twenty-five percent (25%) of the amount of such payment. The

amount of such claim shall not exceed amounts paid by the

municipality for direct costs of municipal infrastructure

improvements to provide water and sewer service to the

establishment. Such claim shall not be approved by the Tax

Commission unless the municipality and the establishment have

entered into a written agreement for such claims to be filed by the

municipality prior to submission of the application of the

establishment pursuant to the provisions of this section. If such

claim is approved, the amount of the payment to the establishment

made pursuant to the provisions of Section 3606 of this title shall

be reduced by the amount of the approved claim by the municipality

and the Tax Commission shall issue a warrant to the municipality in

the amount of the approved claim in the same manner as warrants are

issued to qualifying establishments.

L. For any contract executed by an establishment on or after

August 2, 2018, five percent (5%) of the quarterly incentive payment

amount shall be transferred by the Oklahoma Tax Commission to the

Oklahoma Quick Action Closing Fund.