Don’t even get us started on the county and city incentives! In this article, we provide a comprehensive list of many of the most common tax incentives and credits for the great state of Oklahoma! Please note, this list does not include all the different elements or requirements of the programs as that would make this article over 50 pages long!
Last updated for the 2022 Tax Season!
Offers cash incentives and tax credits to businesses that create new jobs in certain industries. To be eligible, businesses must create at least ten new jobs (or five for certain industries) that pay above the average wage for the county in which they are located. The program provides benefits for up to ten years, including cash payments of up to 5% of new payroll and tax credits of up to 10% of payroll.
Provides cash incentives and tax credits to businesses that create high-wage, knowledge-based jobs in certain industries. To be eligible, businesses must create at least ten new jobs that pay at least 200% of the average wage for the state or the local area, whichever is lower. The program provides benefits for up to ten years, including cash payments of up to 5% of new payroll and tax credits of up to 10% of payroll.
Provides cash incentives and tax credits to small businesses that create new jobs in certain industries. To be eligible, businesses must create at least one new job that pays at least 110% of the average wage for the county in which they are located. The program provides benefits for up to five years, including cash payments of up to 5% of new payroll and tax credits of up to 5% of payroll.
Provides tax credits for businesses that make substantial investments or create new jobs in Oklahoma. The credit is calculated as a percentage of either the investment or the annual wage paid to new employees, and can be applied against the business’s Oklahoma income tax liability. Eligibility criteria vary depending on the industry and the size of the investment or job creation.
Provides a tax credit for businesses that employ engineers in the aerospace industry. To be eligible, businesses must employ at least five engineers and must meet certain wage and benefit requirements. The credit is equal to 10% of the wages and benefits paid to eligible engineers, up to a maximum of $12,500 per engineer per year.
Exempts certain new and expanding businesses from ad valorem taxes for up to five years. To be eligible, businesses must make a qualifying investment in real or personal property, and must be approved by the local governing body.
Exempts certain manufacturing equipment from ad valorem taxes. To be eligible, businesses must use the equipment for manufacturing purposes, and must be approved by the local governing body.
Exempts certain personal property, such as machinery and equipment, from property taxes. To be eligible, the property must be used in manufacturing, processing, or research and development activities.
Allows local governments to offer property tax abatements to businesses that make qualifying investments. Eligibility criteria vary by locality.
Provides various exemptions from sales taxes for certain businesses, including those involved in manufacturing, energy production, and agriculture. Eligibility criteria vary depending on the type of exemption.
Offers a tax credit for businesses that invest in research and development activities in Oklahoma. The credit is equal to 10% of eligible expenses, up to a maximum of $2 million per year.
Provides a tax credit to businesses that clean up contaminated sites under the state’s Superfund program. The credit is equal to 50% of eligible expenses, up to a maximum of $200,000 per year, and can be carried forward for up to five years.
Offers tax credits and other incentives to businesses involved in agricultural processing, such as meat processing or biofuels production. The credit is equal to 10% of eligible expenses, up to a maximum of $50,000 per year.
Provides cash incentives to businesses that create new jobs or make major investments in Oklahoma. The program offers flexible funding options to help businesses with site development, workforce training, and other expenses.
Offers financing for economic development projects through a partnership between the state and local governments. The program provides low-interest loans and tax-exempt bonds for eligible projects.
Provides grants and loans to businesses located in rural areas of Oklahoma. The program offers funding for a range of activities, including infrastructure improvements, workforce training, and marketing.
Provides loan guarantees to small businesses that have difficulty obtaining traditional financing. The program allows lenders to offer loans to businesses that might not otherwise qualify, with the state guaranteeing a portion of the loan.
Offers loans to micro-enterprises, defined as businesses with five or fewer employees. The program provides funding for a range of purposes, including startup costs, equipment purchases, and working capital.
Offers loan guarantees to small businesses that have difficulty obtaining financing. The program allows lenders to offer loans to businesses that might not otherwise qualify, with the state guaranteeing a portion of the loan.
Provides tax credits to investors who make qualified investments in Oklahoma businesses. The credit is equal to 20% of the investment, and can be used to offset Oklahoma income tax liability.
Offers grants and loans to rural small businesses that need financing for capital improvements. The program provides funding for activities such as building renovations, equipment purchases, and inventory expansion.
Provides cash incentives and tax credits to small businesses that create new jobs in certain industries, with expanded eligibility criteria compared to the original program. The program provides benefits for up to five years, including cash payments of up to 2.5% of new payroll and tax credits of up to 2.5% of payroll.
If you are looking to learn more about the specifics of any of the listed tax incentives, credits, or exemptions for Oklahoma, check out the official OK Commerce website or give us a call and set up a time to discuss how we can help you keep the most money in your pocket this next tax season.
