ARDMORE DEVELOPMENT AUTHORITY
410 W MAIN ST • ARDMORE, OK 73401
(580) 223-6162 • Fax: (580) 223-7825
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.
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:
The Small Business Quality Jobs Program provides cash refunds of up to 5% for 7 years to companies with less than 100 employees.
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
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:
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.
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.
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.
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.
Oklahoma has an innovative sales tax exemption program, offering exemptions in the following areas:
Qualifying companies include:
- 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).
- 75% of annual gross income results from computer services / data processing or search and development activities.
- the business employs at least 10 new workers at an average salary of $35,000 for at least 3 years.
Refund of sales taxes paid on construction materials for new or expanding facilities, including:
Oklahoma offers a sales tax refund on computers, data processing equipment, related peripherals, telegraphs or telecommunications services or equipment.
Source: Oklahoma Department of Commerce