Year 11 - Evaluation Schedule

Estimated Incentive Cost
Not Available

Program Type
Sales Tax Refund

Citation
68 OS §54004

Industry
Computer Services and Data Processes

Sunset
None

Review Year
11

Last Evaluated
2023

The Oklahoma Computer Services and Data Processing Tax Exemption exempts the purchase of machinery and equipment by persons and establishments primarily engaged in computer services and data processing from state sales and use taxes. These entities must derive at least 50 percent of their annual gross revenue from the sale of a product or service to an out-of-state buyer or consumer if they are defined under Industrial Group Numbers 7372 and 7373 of the Standard Industrial Classification Manual, or, if they are defined by Industrial Group Number 7374 and derive at least 80 percent of their annual gross revenues of a product or service to an out-of-state buyer or consumer. These are classification codes largely covering computer and technology services industries, including data centers. 

Estimated Incentive Cost
$0 (2025)1

Program TypeSales Tax Refund

Citation
68 OS §1359.1

Industry
Manufacturing

Sunset
None

Review Year
11

Last Evaluated
2023

The Construction Materials Tax Exemption offers a full exemption from sales tax on purchases of tangible personal property by a qualified manufacturer that is used in the expansion or construction of a new manufacturing facility meeting new jobs and investment requirements.

Estimated Incentive Cost
$9.8 million (Tax Year 2023)

Program Type
Tax credit

Citation
68 O.S. §2357.22

Industry
Renewal Engery

Sunset
01/01/2028

Review Year
11

Last Evaluated
2021

Oklahoma offers a one-time, non-refundable tax credit for investments in qualified clean-burning fuel and electric vehicle property; the credit can be carried forward for five years. Eligible purchases include certain vehicles, commercial fueling property and residential fueling property (as described in this report). 

Estimated Incentive Cost
$0.9 million in Tax Year 2025

Program Type
|Motor Fuel Tax Credit

Citation
O.S. §500.10-1

IndustryBiofuel

Sunset
None

Review Year
11

Last Evaluated
2021

Oklahoma retailers that sell fuel blends of gasoline containing up to 15 percent ethanol by volume (E15) are eligible for a motor fuel tax credit of $0.016 per gallon of ethanol blended into gasoline and sold in Oklahoma, as long as the retailer provides a price reduction to the purchaser of the ethanol fuel in the same amount. 

Estimated Incentive Cost
$9.0 Million (2025)

Program Type
Tax Credit

Citation
68 O.S. §2357.105

Industry
Varies

Sunset
01/01/2031

Review Year
11

Last Evaluated
New

The Strategic Industrial Development Enhancement (SIDE) Act (SIDE Act or Act) was created by HB3081 during the 2022 legislative session and was effective on January 1, 2023. It enhances the competitiveness of rural industrial parks by improving connections between railroads and industrial park developments by allocating corporate or individual income tax credits.

Estimated Incentive Cost
$36.0 million (2025)

Program Type
Tax Credit 

Citation
68 O.S. §2357.403

Industry
Residential Housing

Sunset
None

Review Year
11

Last Evaluated
2022

Administered by the Oklahoma Housing Finance Agency, the Oklahoma Affordable Housing Act allocates up to $4.0 million per year in state low-income housing tax credits. State credits under the program are used to (1) raise private equity to finance affordable housing for families and seniors; and (2) provide affordable rent for low-to-moderate income Oklahomans (typically those earning 60 percent or less of the area median income). Credits are claimed annually over a 10-year period (beginning when the building is placed in service), are nonrefundable, and can be carried forward for two years. The state tax credit program generally mirrors the federal low-income housing tax credit program. 

Estimated Incentive Cost
Not Available

Program Type
Tax Deduction 

Citation
68 O.S. §2358.110

Industry
Varies

Sunset
12/31/2031

Review Year
11

Last Evaluated
New

The incentive provides a deduction from Oklahoma taxable income or adjusted gross income for qualified equity investments made by accredited investors in eligible Oklahoma venture capital companies. An accredited investor may deduct up to $25 million per taxable year. The deduction may not reduce Oklahoma taxable income below zero, and no carryover is allowed. The venture capital company accumulates funds to invest in for-profit business entities, and the Oklahoma Center for the Advancement of Science and Technology (OCAST) determines whether a business qualifies as an eligible Oklahoma business venture for receipt of that investment. The Oklahoma Tax Commission administers the deduction. 

Estimated Incentive Cost
$123.3 million (Tax Year 2023, individual returns only)

Program Type
Deduction

Citation
68 O.S. §2358

Industry
Varies

Sunset
None

Review Year
11

Last Evaluated
2022

The incentive provides a 100 percent deduction from taxable corporate or personal income for gains from the sale of qualified Oklahoma-based property. Qualified gains include the sale of real and tangible personal property based in Oklahoma and stock or ownership interest in a business entity with a primary headquarters in Oklahoma.

Estimated Incentive Cost
$52.9 million in FY2025

Program Type
Tax Credits

Citation
68 O.S. §891.1

Industry
Various

Sunset
None

Review Year
11

Last Evaluated
2023

The Economic Development Pooled Finance Program was established in 2009 by the Oklahoma Community Economic Development Pooled Finance Act. The Program supports economic development and public infrastructure projects to attract private investment, create and sustain jobs, and develop essential infrastructure.  

The program operates via a $250 million pool of financing made available to for-profit entities for local infrastructure or economic development projects.^[1] Cash payment awards for approved projects are determined by the Oklahoma Department of Commerce (Commerce) and disbursed by the Oklahoma Development Finance Authority (ODFA). The Program operates as a revolving fund, and funding is replenished through payroll tax rebates generated by the for-profit entities receiving funding, or through a new tax or tax increase levied by local government funding recipients.

The program contains three distinct financing tools, each targeting a different segment of economic development activity:

• The Business Expansion Incentive Program (BEIP) provides loans to for-profit businesses undertaking local infrastructure or economic development projects. Repayment is made by diverting payroll taxes generated by the qualifying company’s workforce. Eligible businesses must meet or exceed $2 million in both capital investment and total annual payroll.
• The Oklahoma Innovation Expansion Program (OIEP) is similarly structured but focuses on smaller, high-impact capital investments that will lead to either new product development or increased capacity at a company. The maximum award amount is $150,000.
• The Public-Private Partnership Pooled Finance Program (P3) provides financing for infrastructure and economic development projects where there is a benefit to both a local government and for-profit entity. Repayment is provided through locally levied taxes or other dedicated revenue. 

[1] Total funding increased from $200 million to $250 million, effective July 1, 2026. The evaluation period predates this funding increase.

Estimated Incentive Cost
$7.5 million(2025)

Program Type
Performance-based award

Citation
68 O.S. §48.2

Industry
Varies

Sunset
None

Review Year
11

Last Evaluated
2022

The Quick Action Closing Fund was established in 2011 to attract high-impact businesses to Oklahoma when award funds are likely to be the deciding factor in a business’s location decision. Administered by the Oklahoma Department of Commerce and subject to final approval by the governor, the Fund operates on a fully discretionary, case-by-case basis, with no fixed statutory minimum for job creation or capital investment. Instead, the Department of Commerce evaluates each project’s anticipated new and retained jobs, wages, capital investment, and likelihood of generating related business activity before an award is recommended.