Oklahoma Quality Jobs Program
Purpose
State funded economic development program that pays a quarterly cash incentive to qualifying companies in manufacturing and certain service industries based on the creation of new jobs. Companies receive cash payments up to 5% of newly created gross taxable payroll for up to 10 years.
Eligibility Criteria If your business in expanding and you anticipate hiring for new positions, then you may be eligible for either the Oklahoma Quality Jobs Program or the Small Employer Quality Jobs Program . Most qualifying businesses receive between four and five percent return of new payroll with certain designated, depressed areas receiving an automatic five percent.
Prior to submitting an application, an incentive analysis must be performed to determine eligibility for a company interested in participating in either of the programs. If the company meets the basic qualifying criteria, then an application can be submitted for participation. Newly created positions filled before the initial application is received and date-stamped by the Oklahoma Commerce Department will not be eligible for the cash incentive.
Basic qualifications for the Oklahoma Quality Jobs Program include:
- Achievement of $2.5 million in new annualized payroll for the new full-time employees for any four consecutive quarters during the first 13 quarter of participation in the program. If this amount is not achieved, then payments will cease. If the threshold is met, then payments may be extended for an additional seven years. Lower or no payroll thresholds may apply to the following type of applicants:
• Food processors with 75% out of state sales.
• Firms performing Research, Development and Testing services.
• Auxiliary Research and Development labs of large enterprises.
• Companies locating on former select military bases.
• Companies locating on a 10 acre or more superfund renewal site or site listed on the National Priorities List.
- Company must offer basic health insurance coverage to all employees and pay at least 50% of the cost.
- 80% of the new hires must work at least 25 hours per week.
- New positions must be paid wages equal to or greater than the average county wage, not to exceed $25,965 for any county. Wage requirements do not apply to businesses located in designated Opportunity Zones.
Basic qualifications for the Small Employer Quality Jobs Program include:
- Annual salaries for the new positions must be at least 110% of county average or 125% of county average if employer paid health benefits is included.
- Company may have no more than 90 employees at the time of application.
- Depending on the population of the city where the project is located, the company must create between five and 15 jobs minimum.
- Companies located in a county where the population exceeds 200,000 are generally not eligible for this program unless they are located in a designated Opportunity Zone. Research and Development companies and Testing Laboratories may locate anywhere in the state and qualify.
- Companies have up to 12 months to reach the job creation requirements except for the following industries, which have 36 months:
• Research & Development, Testing Labs, Software Publishing, Computer Systems Design, Data Processing, Hosting and Related, and Medical & Diagnostic Labs
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Company must offer basic health insurance coverage to all employees and pay at least 50% of the cost.
- Company must have 75% of sales out of state. A company may also meet this requirement by selling to a buyer who will resell the items to out-of-state buyers for ultimate use or to the Federal government.
- If a company achieves all payment and hiring thresholds during the allotted time (12 or 36 months), then payments under the program may continue for an additional six years.
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