Year 10 - Evaluation Schedule

Estimated Incentive Cost
$98.2 million in FY2022

Program Type
Tax Credits

Citation
68 OS §3601

Industry
Job Creation

Sunset
None

Review Year
10

Oklahoma’s Quality Jobs Program, created in 1993, offers qualifying companies quarterly cash rebates equal to up to 5 percent of newly created taxable payroll for up to 10 years. Originally targeted at manufacturing firms, the program has been expanded to include a range of industries. In recent years, it has mostly been used by manufacturing and oil and gas companies. To qualify for the rebates, a company must operate in an eligible industry and meet requirements related to the amount of payroll associated with new jobs created, health insurance coverage, and wages.

Estimated Incentive Cost
$645,000 (maximum) in FY2021

Program Type
Tax Credit

Citation
68 OS §3901

Industry
Job Creation

Sunset
None

Review Year
10

Oklahoma’s Small Employer Quality Jobs program was created in 1997 under the Small Employer Quality Jobs Incentive Act. The program provides qualifying companies with 500 or fewer employees quarterly rebate payments of up to five percent of the newly created payroll, for up to seven years. To qualify for payments, participants must meet requirements related to job creation and wages.

Estimated Incentive Cost
$12.6 million in FY2021

Program Type
Tax credit

Citation
68 O.S. §3911-3920

Industry
Job Creation

Sunset
None

Review Year
10

Oklahoma’s 21st Century Quality Jobs program was created in 2009 under the 21st Century Quality Jobs Incentive Act. Its legislative intent is to “provide appropriate incentives to attract growth industries and sectors to Oklahoma in the twenty-first century through a policy of rewarding businesses with a highly skilled, knowledge-based workforce”. The program offers quarterly payments of up to 10 percent of newly created payroll for a period of 10 years. To receive quarterly payments, companies must meet certain requirements related to new jobs and payroll as well as wages.

Estimated Incentive Cost
N/A

Program Type
Excise tax exemption

Citation
O.S. §68-6003

Industry
Aviation and aerospace

Sunset
N/A

Review Year
10

Enacted in 1984, Oklahoma State Statute provides for a 3.25 percent excise tax on the purchase price of aircraft sold in the State. Revenue derived from this source primarily supports the (ODAA), specifically the ODAA’s revolving fund. There are currently 17 types of aircraft sales that are exempt from the aircraft excise tax, meant to encourage continued business activity in this industry. The exemption has no sunset date. 

Estimated Incentive Cost
N/A

Program Type
Sales tax exemption

Citation
68 O.S. §1357 [16, 17] 

Industry
Aviation and Aerospace, Aviation Maintenance, Repair and Overhaul (MRO)

Sunset
N/A

Review Year
10

Since 1991, the State of Oklahoma has offered multiple sales tax exemptions for use by qualified aircraft maintenance or manufacturing facilities (aircraft facilities). The exemptions apply to sales of: (1) computers, data processing equipment, related peripherals and telephone, telegraph, or telecommunication services and equipment; and (2) tangible personal property consumed or incorporated in construction or expansion of the aircraft maintenance facility. The exemption has no sunset date. 

Estimated Incentive Cost
N/A

Program Type
Sales tax exemption 

Citation
68 O.S. §1357 [20]

Industry
Aviation and Aerospace, Aviation Maintenance, Repair and Overhaul (MRO)

Sunset
N/A

Review Year
10

Oklahoma provides a sales tax exemption for aircraft parts sold at a qualified aircraft maintenance facility. These facilities must be operated by an air common carrier, employ at least 2,000 full-time workers, and primarily perform fabrication, repair, remodeling or maintenance of commercial aircraft or parts. The exemption covers machinery, tools, supplies, and services used in these activities. The exemption has no sunset date. 

Estimated Incentive Cost
$3,248,000 in FY2024

Program Type
Sales tax exemption 

Citation
68 O.S. §1357 [28] 

Industry
Aviation and a\Aerospace, Aviation Maintenance, Repair and Overhaul (MRO)

Sunset
N/A

Review Year
10

Beginning July 1, 2005, sales of aircraft engine repairs, modification, and replacement parts, sales of aircraft frame repairs and modification, aircraft interior modification and paint, and sales of services employed in the repair, modification, and replacement of parts of aircraft engines, aircraft frame and interior repair and modification, and paint are exempt from the Oklahoma sales and use tax. The exemption has no sunset date. 

Estimated Incentive Cost
$23.4 million in FY2024

Program Type
Tax Credits

Citation
68 OK Stat §2357.4

Industry
Manufacturing, aircraft maintenance, web search portal

Sunset
N/A

Review Year
10

Established in 1988, the Investment – New Jobs Tax Credit is intended to incentivize capital investment and job creation. The program currently has no scheduled sunset date.

Estimated Incentive Cost
$16.0 million in FY2024

Program Type
Tax Credits

Citation
68 OK Stat § 36-625.1

Industry
Insurance

Sunset
N/A

Review Year
10

Established in 1987, the Home Office Insurance Premium Tax Credit offers credits against the insurance premium tax for eligible insurers with the intent of increasing the concentration of insurance company home and regional offices in Oklahoma. The program has no sunset date.

Estimated Incentive Cost
$1.2 million in FY2024

Program Type
Tax Credits

Citation
68 OK Stat §2357.4

Industry
Cybersecurity, software

Sunset

Jan. 1, 2030

Review Year
10

Established in 2020, the Cybersecurity Employee Tax Credit provides income tax credits for qualified employees in order to encourage the creation of cybersecurity employment in the State. The program is capped at $5 million annually and is set to sunset in January 2030. 

Estimated Incentive Cost
$9.4 million in FY2024

Program Type
Tax Credits

Citation
68 OK Stat §§ 2357.302 & 2357.303

Industry
Aerospace and defense

Sunset
December 31, 2025

Review Year
10

Established in 2009, the Aerospace Engineer Employee and Employer Tax Credits aim to address the critical shortage of engineering and technical talent facing the Oklahoma aerospace industry. The employee portion of the credit provides an income tax credit to qualified employees, while the employer component provides an income tax credit based on tuition reimbursement to qualified employees. The program has a sunset date of December 31, 2025.