- Economic Development
- Doing Business Here
Doing Business Here
Welcome to Business-Friendly Oklahoma
Local incentives include tax incremental financing, development bonds, infrastructure improvements, free or low-cost land, and utility rate incentives.
Oklahoma's low taxes, right-to-work status and low business costs consistently place it in the top 10 of the best states to do business.
2.58% Average Income Tax: Ranked 42nd nationally for low tax rates
6% Corporate Income Tax: Ranked low tax state by tax-rates.org
Oklahoma is a Right-To-Work state
Oklahoma Ranks in the Top 20 for the following state rankings:
- 1st for Unemployment Insurance Tax (Tax Foundation 2018)
- 7th for Business Costs (Forbes 2018)
- 9th for Corporate Tax (Tax Foundation 2018)
- 15th for Regulatory Environment (Forbes 2018)
- 17th for Quality of Life (US News 2018)
- 19th for Property Tax (Tax Foundation 2018)
The State of Oklahoma welcomes business with a suite of 58 economic development incentive programs. Here is a sample of some of the most popular:
- Quality Jobs Program: The Quality Jobs Program makes quarterly cash payments of up to 5% of new taxable payroll to qualifying manufacturers and certain service industries that have a new payroll investment of $2.5 million or more.
- Small Employer Quality Jobs Program: The Small Employer Quality Jobs Program provides quarterly incentive payments to a qualifying small employer (500 employees or less). Quarterly payments may be as much as 5% of new taxable payroll for up to 7 years.
- 21st Century Quality Jobs: This Quality Jobs program is specially tuned for businesses with a highly skilled, knowledge-based workforce. This unique incentive may pay qualifying businesses cash back, up to 10% of payroll, for up to 10 years for the creation of 10 jobs with an average wage of $94,000 annually or higher, depending on county.
- Investment/New Jobs Tax Credit Package: This package provides growing manufacturers a significant tax credit based on either an investment in depreciable property or on the addition of full-time-equivalent employees engaged in manufacturing, processing, or aircraft maintenance.
- Customized Employee Training: Oklahoma's Training for Industry Program (TIP) is a no-cost/low-cost way for new or growing companies that create jobs to get a skilled, focused and motivated workforce.
- Business Expansion Incentive Program: The Business Expansion Incentive Program assists Oklahoma companies making major capital investments in depreciable items like machinery, equipment, and buildings.
- Aerospace Engineer Workforce Tax Credit: Aerospace companies hiring engineers in a variety of fields will receive tax credit equal to 5% of the compensation paid to an engineer and 10% if the engineer graduated from an Oklahoma college or university, plus another credit of up to 50% of the tuition reimbursed to an employee. Additionally, the engineer hired receives a tax credit of $5,000 per year.
- American Indian Lands Tax Credit: 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.