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410 W MAIN ST • ARDMORE, OK 73401 • (580) 223-6162 • Fax: (580) 223-7825

Tax & Financial Incentives



The state of Oklahoma makes a number of tax and financial incentives available to new and expanding companies within the state. Contact the Ardmore Development Authority to see how these incentives can apply to your company or client in the Ardmore area.


Federal Tax Incentives (Native American lands)

Two-thirds of Oklahoma, because of its unique Native American heritage, qualifies for special federal tax treatment. Businesses locating or expanding in these areas benefit by accelerated depreciation of investment and by employment tax credits when employing tribal members or their spouses.

Federal legislation clarifies the location of special American Indian lands in Oklahoma that qualify for related tax credits benefiting new and established businesses in Oklahoma. The Working Families Tax Relief Act 2004 (H.R. 1308) includes extension through Dec. 31, 2009 of the tax incentive for businesses locating on former Indian lands. All land in Carter County qualifies. Benefits include:

Enterprise Zones

The state of Oklahoma has designated Enterprise Zones, which can be depressed counties or inner cities. These zones provide 3 major inducements for business:

The Ardmore Industrial Airpark, New Horizons Industrial Airpark, and Westport Industrial Park, are in Enterprise Zones.

Foreign Trade Zone #227

Ardmore has two Foreign Trade Zones: Ardmore Airpark and Westport Industrial Park. These zones permit businesses engaged in international trade to benefit from special customs procedures while engaged in warehousing, manufacturing or assembling goods within the designated areas. Businesses may bring foreign products into FTZs without the usual customs procedures, including the collection of duties. Sub-zones may be established within a company’s facility in Ardmore.

Five-Year Property Tax Abatement

A five-year ad valorem tax exemption is available for new, expanded or acquired (unoccupied for one year period prior to acquisition) manufacturing facilities, research/development, some computer services, data processing services and some distribution services. Real estate, machinery and equipment used directly in the manufacturing processes are also eligible. The exemption requires a minimum capital investment of $250,000 for all facilities and an additional $250,000 in annual payroll.

Freeport – Inventory Tax Exemption

Goods, wares, and merchandise that come from outside the State and leave the State within nine months if such goods, wares and merchandise are held for assembly, storage, manufacturing, processing or fabricating purposes are not subject to ad valorem taxation within the State.

Sales Tax Exemptions

Oklahoma has an innovative sales tax exemption program, offering exemptions in the following areas:

  1. Machinery and equipment used directly in the manufacturing process, including replacement parts
  2. Tangible personal property which becomes part of the finished product
  3. 1-800, WATTS and private line business telecommunications systems
  4. Containers which are sold to persons regularly engaged in reselling empty or filled one-way containers, or when the containers are purchased to package raw materials
  5. Primary and secondary packaging materials used to pack, ship, or deliver tangible personal property may be purchased sales tax exempt by a manufacturer or producer (doesn’t apply to returnable containers or reusable packaging)
  6. Machinery, equipment, fuels and chemicals used directly or in treating controlled industrial waste (approval is required by the State Department of Environmental Quality) Oklahoma offers a sales tax refund on computers, data processing equipment, related peripherals, telegraphs or telecommunications services or equipment.

Qualifying companies include:

  1. New and expanded aircraft maintenance and manufacturing facilities that create 250 or more jobs, with construction investment of $5 million and purchases of at least $2 million worth of computers and other listed items.
  2. Research and development or computer services companies (SIC 7373-7375, 8731-8734), when:
  1. at least 50% of the annual gross revenue of the business is generated by sales of product or service to an out-of-state buyer or consumer (includes the federal government).
  2. 75% of annual gross income results from computer services / data processing or search and development activities.
  3. the business employs at least 10 new workers at an average salary of $35,000 for at least 3 years.

Sales Tax Refunds / Construction materials

Refund of sales taxes paid on construction materials for new or expanding facilities, including:

  1. Manufacturing facilities with construction costs exceeding $5 million that create 100 new jobs maintained for a minimum of 36 months
  2. Facilities with construction costs exceeding $10 million, and the combined total of material, construction and machinery exceeding $50 million, that add 75 employees
  3. Qualified new or expanding aircraft maintenance and manufacturing facilities that create 250 or more jobs, with and investment totaling at least $50 million
  4. Any structure or land used for packing, repackaging, labeling or assembling for distribution, products that are at least 70% made in Oklahoma, but at an off-site, in-state manufacturing facility or facilities.

Sales Tax Refunds / Computers and data processing equipment

Oklahoma offers a sales tax refund on computers, data processing equipment, related peripherals, telegraphs or telecommunications services or equipment.

Source: Oklahoma Department of Commerce