Economic Development

 

The Oklahoma Quality Jobs Program was expanded by HB 1230 and SB 467. Created in 1993, the program has provided incentive payments to firms that create jobs in Oklahoma.

  • Under HB 1230, the definition of "new direct job" for purposes of qualifying for payments may include employees leased or otherwise provided to a qualified establishment, provided the job did not exist in Oklahoma prior to the establishment's application.

  • SB 467 adds grocery wholesale distribution facilities and insurance claims processors to the list of basic industries eligible for the program.

HB 1254 is designed to promote the availability of Small Business Administration (SBA) loans to new and expanding businesses. The bill gives financial institutions a tax credit equal to the amount they pay for Small Business Administration guaranty fees.

HB 1230 provides a three-year extension of income tax credits for the use of Oklahoma coal. The credit's expiration date was delayed from December 31, 1999, to December 31, 2002.

SB 467 expands an ad valorem tax exemption program for distribution facilities. The bill changes from October 1, 1993, to December 31, 1999 the date by which construction must start for distribution facilities to qualify for the five-year manufacturer's ad valorem tax exemption.

HB 1770 changes the qualifications for the five-year manufacturing ad valorem exemption. Previously, companies were required to create 15 jobs in order to qualify. Under new requirements, companies must:

  • create a net increase of $200,000 or more in payroll, or

  • create $500,000 or more in capital improvements while maintaining or increasing payroll.

SB 573 provides sales and use tax exemptions for leases of rail transportation cars to haul coal to coal-fired electric generating plants.

Several bills passed by the Legislature are intended to boost Oklahoma's aviation industry:

  • SB 398 changes the tax structure for aircraft worth $5 million or more. The existing excise tax exemption is replaced with a new excise tax credit. The annual credit will be tied to expenditures the owner makes for the benefit of airports located in this state.

  • HB 1294 exempts sales of certain aircraft repairs and replacements from sales tax if the work is performed at a new or expanded aircraft repair facility.

  • SB 523 provides an income tax or insurance premium tax credit for investors in certain airlines headquartered in Oklahoma that have secured commitments to provide nonstop air transportation from Oklahoma to the east coast or west coast.

HB 1468 provides a documentary stamp tax exemption for transfers between persons and certain revocable trusts and family-owned corporations, partnerships or other entities.

Through the Oklahoma Department of Commerce, funds were appropriated for the following: (SB 121)

  • Oklahoma Home-based Business Association;

  • Senior citizen centers and nutrition sites;

  • Public transportation in rural areas; and

  • Business development assistance.
 

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