Business & Industry
 
 
Oklahoma Department of Commerce
 
Quality Jobs Program
 
This “cash-back” job creation incentive has nationally highlighted Oklahoma as a location for new manufacturing and service industry investment. The innovative Oklahoma Quality Jobs Program allows qualifying businesses that are creating new quality jobs to receive a special incentive to locate or expand in Oklahoma.  
 
 
The program provides quarterly cash payments of up to 5% of new taxable payroll directly to a qualifying company, for up to ten years.
 
 
To qualify, a company must be a central administrative office, manufacturer, researcher and developer or engaged in a qualifying industry NAICS code.   
 
A company must achieve a $2.5 million taxable payroll for any four consecutive quarters during the first 12 quarters in the program and have an average wage equal to or above the average county wage in which the company is locating or expanding.
 
Presently, wage requirements do not exceed $32,103 in any county, regardless of the average county wage. The minimum wage requirements do not apply to opportunity zones. 
 
Once the company achieves the threshold, it may remain in the program for the remainder of the ten-year period and must maintain the $2.5 million payroll, including the average wage requirement, to qualify for incentive payments during any quarter. 
 
A higher net benefit rate of up to 6% is available for companies whose newly created payroll will include 10% or more qualified military veterans.
 
Qualifying companies must offer health insurance and the employee must not pay more than 50% of the costs of the health insurance. 
 
80% of employees must work at least 30 hours per week.
 
Service companies must prove 75% out of state sales to qualify.
 
 
A lower payroll threshold requirement of $1.5 million is available in limited circumstances as follows:  
     • Food processors with 75% out-of-state sales (NAICS Code Nos. 3111 through 3119)  
     • Firms performing Research, Development and Testing Services (NAICS Code Nos. 541710 and 541380)
     • Auxiliary Research and Development Labs of large enterprises.  
     • Firms that locate on certain former military bases.  
 
 
Quality Jobs Application Process
 
Company is informed of QJ program requirements, including registration and good standing status with the Oklahoma Secretary of State’s Office, the Oklahoma Tax Commission and the Oklahoma Employment Security Commission.
 
Initial incentive information is requested of the company for sample incentive analysis.
 
QJ guidelines and application are supplied to customer.
 
  • Customer is provided checklist (see below) of documents that will be required to complete the application process.  Highlighted items must be provided by company.  Non-highlighted will be provided by Project Manager.
  • Affidavit for Out of State Sales is required for applicable applicants.  Financial documents and a Tax Waiver form are required.  Financial documents may include P&L, Balance Sheet, Income Statement, Cash Flow, and/or Business Plan or Annual Report containing financial information.
         • Representative submits the completed application form and additional documents on behalf of the Company to receive a date stamp after                    meeting personally with the company to insure all documents and information is accurate.  Company will be assisted by the Oklahoma                          Department of Commerce Project Manager if corrections are needed.
 
        • All qualified applications must go through a two-step approval process upon submission of completed application.  Time frame is                                     approximately 30-60 days.
 
Step 1
The Commerce Review Team (CRT) meeting is scheduled for the purpose of review and approval/denial.  ODOC Project Manager presents the application for CRT consideration.
 
Step 2
Upon CRT recommendation, the application process moves to the Incentive Approval Committee (IAC).
 
IAC reviews and makes the final decision on recommended applications.  Members include the Secretary of Commerce and a representative of ODOC, Oklahoma Tax Commission, and Oklahoma Management Enterprise Services.
 
  • Although this is a public meeting, the IAC committee meets in executive session to review the application and ask questions with the company.  When the executive session concludes, the committee returns to the open meeting and votes on each project.
  • A company representative must be present during the executive session to answer questions by IAC committee members.  Questions may include financial strength, past performance, business plan review, hiring projections, wages, etc.
If application is approved, a contract is created and sent to the company for execution within 10 days.
 
The Oklahoma Department of Commerce sends the executed contract to the Oklahoma Tax Commission and a Quality Jobs account is created and    claim forms provided to the company.
 
The Oklahoma Tax Commission will contact the company directly with a schedule of claims training.  The training is not mandatory however highly      recommended and is offered quarterly.
 
Each quarter, the company completes and submits the QJ claim form to the Oklahoma Tax Commission to receive benefit payments.
 
Each year, the company must submit an affidavit stating that they are in compliance with the Health Insurance and Out of State Sales terms of the       contract.
 
Companies that receive incentive payments also may be eligible for other state incentive.  Firms that receive incentive payments under the Quality Jobs Program cannot utilize the New Jobs or Investment Tax Credit, sales tax exemptions for construction, and certain additional tax credits and exemptions.  
 
Quality Jobs Program Qualifying Basic Industries include the following:
 
 
Manufacturing – Industries classified under NAICS Manual Nos. 31, 32, 33, 5111 or 11331.
 
 
Research and Development and Testing Laboratories – See NAICS Manual Nos. 541711, 541712 and 541380. 
 
Central Administrative Offices, Corporate Offices and Technical Services - See NAICS Manual Nos. 5611, 5612, 51821, 519130, 52232, 56142, 524291 and 551114. 
 
Certain jobs related to the mining of oil and gas 
See NAICS No. 2111, 213111, 213112 and 486. 
 
Certain Warehouse/Distribution Operations – Where 40% of inventory is shipped out of state. 
 
Transportation by Air – See NAICS Manual No. 4811 if corporate headquarters and some reservation activities are within the state or 75% of air transport sales are to out-of-state consumers. 
 
Flight Training Services 
See NAICS No. 611512. 
 
Federal Civilian Workforce of the Federal Aviation Administration 
Where jobs are migrating to Oklahoma from other Federal sites or expanding here. 
 
Other Support Activities for Air Transportation 
See NAICS Manual No. 488190. 
 
Wind Power Electric Generation Equipment Repair & Maintenance 
See NAICS Manual No. 811310. 
 
Support Activities for Rail and Water Transport 
See NAICS Manual Nos. 4882 and 4883. 
 
Sports Teams & Clubs 
See NAICS Manual No. 711211. 
 
Services – This program also covers the following service companies if 75% of sales are out-of-state. 
 
Motor Freight Transportation and Warehousing 
See NAICS Nos. 493, 484, 4884-4889
 
Arrangement of Passenger Transportation 
See NAICS Nos. 561510 and 561599. 
 
Transportation of Freight or Cargo 
See NAICS No. 541614. 
 
Certain Communications Services 
See NAICS Nos. 51741 and 51791. 
 
Certain Refuse Systems that distribute methane gas 
See NAICS No. 5622. 
 
Grocery Wholesale Distributing 
See NAICS Nos. 4244 and 4245. 
 
Insurance Carriers 
See NAICS No. 5241. 
 
Insurance Claims Processors Only 
Included in NAICS Nos. 524210 and 524292. 
 
Adjustment and Collection Services 
See NAICS No. 561440 (75% of loans to out-of-state debtors). 
 
Miscellaneous Equipment Rental 
See NAICS. 
 
Computer Programming, Data Processing and Other Computer-Related Services 
See NAICS Nos. 5112, 5182, 5191, 519130 and 5415. 
 
Miscellaneous Business Services 
See NAICS Nos. 561410, 56142 and 51911. 
 
Offices of Real Estate Agents & Brokers 
See NAICS No. 53120 (and 75% of transactions are out of state). 
 
Medical and Diagnostic Laboratories 
See NAICS No. 6215. 
 
Engineering, Management and Related Services 
See NAICS Nos. 5412, 5414-5417, 54131, 54133, 54136, 54137 and 541990 
 
PO Box 873 Chickasha, OK 73023
P: 405-574-3477
USAO Canning Hall Chickasha, OK 73023 (Physical)