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


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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.

Here is a consolidated overview of the key financial and business incentives that are available to new and expanding industry in Ardmore, Oklahoma.

For a discussion of how these can apply specifically to your company or client, contact the Ardmore Development Authority and put us to work for you.
 

OPTION 1

Oklahoma Quality Jobs Program

The Quality Jobs Program pays quarterly cash refunds of up to 5% of new taxable payroll to qualifying companies for up to ten years. New legislation in 2005 allows companies in the program who expand again to receive up to 6% wage rebates. The program sets certain criteria based upon:

Large business

  • a minimum payroll of $2.5 million for most companies, less for food processing and research and development firms

  • the payroll threshold is reduced to $1.5 million if located at the Ardmore Industrial Airpark
  • a minimum of 80% employees working more than 30 hours weekly and meet minimum wage requirements
  • wage must be $29,409 or higher
  • a basic health insurance program for employees

Small business
The Small Business Quality Jobs Program provides cash refunds of up to 5% for 7 years to companies with less than 100 employees.

  • basic health insurance must be provided to employees and meet minimum wage requirements
  • minimum of 15 new jobs
  • employees must earn 110% of the County average wage (current ave is $33,119. 110%=36,431)

OPTION 2

Investment/New Jobs Tax Credit Package

As an alternative to the Oklahoma Quality Jobs Program, an eligible new manufacturing investment earns a credit of 1% each year for 5 years (total of 5% of investment or a credit of $500 per job created). The investment is doubled in Enterprise Zones, which include Westport Industrial Park, New Horizons Park, and the Ardmore Industrial Airpark.


ADDITIONAL INCENTIVES AVAILABLE WITH OPTIONS 1 & 2

 

21st Century Quality Jobs 10-Year Cash Back Incentive

  • Requires at least 10 full-time jobs at an annual average wage of the lesser of $94,418 or 300% of the county's average wage
  • Allows a net benefit rate of up to 10% of payroll for up to 10 years
  • Out-of-state sales must be at least 50%.
  • Target Industries:  knowledge-based service industries, including professional, scientific and technical services; music, film and performing arts; and specialty hospitals.

Prime Contractor Incentive

  • Allows federal prime contractors to be paid for jobs and payroll created by both the prime contractor and a qualifying subcontractor.
  • Offers a cash rebate of up to 2% of the Oklahoma workforce loaded labor cost. 
  • Cash incentives paid quarterly for up to 10 years.
  • OSU-UML, as contract verifier, certifies the qualified labor hours performed under a qualifying federal contract.

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:

  • Accelerated Federal Property Depreciation
  • Employee tax credits up to $4,000/yr per qualifying employer
  • Savings up to 40% in depreciation of equipment

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:

  • Double the investment tax credit
  • New Jobs tax credit is allowed

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

"If you are locating a new facility and want to deal with an up-front organization that is experienced, gets a first-rate job done in record time, handles everything, and provides for a smooth and easy project; the Ardmore Development Authority is the one to call."

Cal Turner,
Former Chairman of the Board, Dollar General Corporation

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580.223.6162

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