Year 7 - Evaluation Schedule

Estimated Incentive Cost
$9.2 million (Tax Year 2020)

Program Type
Tax Credit

Citation
68 O.S. §2357.4

Industry
Various

Sunset
None Found

Review Year
7

The tax credit is available to manufacturers, aircraft maintenance facilities, and web search portal companies who either invest in depreciable property of at least $50,000 or create new jobs in the State. The tax credit is equal to one percent of the cost of the depreciable property or $500 per new employee, which may be claimed for five years. The credit is doubled if a company makes an investment of at least $40 million or is located in an Enterprise Zone.

Estimated Incentive Cost
$181,719 (Tax Year 2020)

Program Type
Tax Exemption

Citation
74 O.S. § 5064.7

Industry
Innovation

Sunset
None Found

Review Year
7

The New Products Development Income Tax Exemption was established in 1987. The incentive offers an income tax exemption to both inventors and manufacturers of new products developed in the State. An inventor can exempt royalty payments for up to seven years, as long as the new product is manufactured in the State. The manufacturer producing the product in Oklahoma is able to exclude from state taxable income 65 percent of the cost of depreciable property purchased in order to manufacture the product, up to $500,000.

Estimated Incentive Cost
$4,500,000 (2021)

Program Type
Tax Credit

Citation
68 O.S. § 2357.403

Industry
Residential Housing

Sunset
None Found

Review Year
7

Allocates $4 million per year in state low-income housing tax credits equal to the federal low-income housing tax credits for qualified projects placed in service after July 1, 2015. Credits are distributed twice annually by the Oklahoma Housing Finance Agency. 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
$2,750,000 (2022)

Program Type
Grant/Reimbursable

Citation
74 O.S., Section 5060.2, 74 O.S., Section 5060.19, 74 O.S., Section 5060.4

Industry
Various technology

Sunset
None Found

Review Year
7

The Oklahoma Applied Research Support Program (OARS) assists in the accelerated development of technology in the State by supporting applied research activities in existing and emerging technical areas whose results have both:

• A high probability of leading to commercially successful products, processes or services within a reasonable period of time; and
• A significant potential for stimulating economic growth within the state, encouraging and sustaining partnerships among institutions of higher education, non-profit research organization, and private enterprises by encouraging collaborative projects which are designed to promote increased knowledge and technology transfer.

There are two funding categories:

• Proof of concept funding supports early stage applied research and development. Yearly awards are up to $45,000 and 1-2 years of funding are provided.
• Accelerated funding supports later stage applied research and development. Total awards are up to $300,000 over 1-3 years.

OARS awards provide a maximum of one state dollar of funding for each non-state dollar of matching funds.

Estimated Incentive Cost
$2,500,000 (2022)

Program Type
Grant/Reimbursable

Citation
74 O.S., Sections 5046 - 5055

Industry
Health

Sunset
None Found

Review Year
7

The Oklahoma Health Research Program funds basic research projects related to human health for one to three years at a maximum level of $45,000 per year.  All proposals are reviewed and ranked for funding by experienced health researchers who reside outside the state of Oklahoma. Peer reviewers evaluate applications for scientific merit based on the quality of the proposed research, qualifications of the principal investigator and appropriateness of the institutional facilities and budget. 

Estimated Incentive Cost
$6,300,000 (FY2021)

Program Type
Closing Fund

Citation
62 O.S.§48.2

Industry
Various

Sunset
None Found

Review Year
7

The Quick Action Fund is to be used for economic development and related infrastructure development when expenditure of funds is likely a determining factor in locating a high-impact business. The Department of Commerce reviews the impact of projects based on the following:

• Creation of new jobs with healthcare requirements of Quality Jobs
• Maintenance of existing jobs which are at risk for termination
• Investment in new property plant or equipment or in the improvement or retooling of existing plant or equipment
• Additional revenues in ad valorem, income or sales and use taxes

Estimated Incentive Cost
$2.8 million (2022)

Program Type
Equity Investment

Citation
74 O.S. §5060.21

Industry
Technology Start-up Companies

Sunset
None Found

Review Year
7

The Oklahoma Seed Capital Fund provides concept, seed and start-up equity investments to Oklahoma’s innovative businesses. Investments are focused on industry sectors with technologies and proprietary products, processes, and/or know-how that provide high growth opportunities in addressable markets (e.g. advanced materials, aerospace, agri-sciences, biotechnology, communications technologies, energy, software/information technology, medical devices, nanotechnology, robotics, etc.). The Fund focuses on opportunities that show promise of rapid growth in terms of revenue, increased employment and increased private investment capital.

Estimated Incentive Cost
$5,243,609 (Tax Year 2019)

Program Type
Income Tax Exemption

Citation
74 O.S. §5078, 68 O.S. §2359.E

Industry
Small Business

Sunset
None Found

Review Year
7

For a period of up to 10 years from the date of tenant's occupancy in an incubator, income earned by the tenant as a result of activities conducted as an occupant in an incubator, including income distributed to partners, shareholders of a corporation for which a Subchapter S election is in effect and to the members of a limited liability company, shall be exempt from state income tax. The exemption provided by this section shall remain in effect for such activities by such tenant after the date the tenant is no longer an occupant in an incubator, but not to exceed a total duration of 10 years for any tenant.

Estimated Incentive Cost
$1.0 million (2020 – no appropriation since 2020)

Program Type
Equity Investment

Citation
74 O.S. §5060.20a

Industry
Miscellaneous Technology

Sunset
None Found

Review Year
7

Provides Oklahoma tech start-up companies with pre-seed financing and early-stage risk capital to stimulate investments from private sources. TBFP is administered through a contract with i2E Inc. with awards ranging up to $100,000

OCAST’s guidelines require that the company is a small business (500 employees or less) with at least 50 percent of its employees and assets located in Oklahoma.  Matching capital from private sources is required to be between at least 5% and 50% of state investment, depending on the project.  

Estimated Incentive Cost
N/A

Program Type
Tax Exemption

Citation
68 O.S. § 2358 [C]

Industry
Technology, small business

Sunset
None Found

Review Year
7

Corporations may exclude up to 10 percent of the gross proceeds from transfers of technology to qualified small businesses located in Oklahoma.  The exemption is allowed for up to 10 years following the first royalty payment from the transfer. Technology transferred may be a proprietary process, formula, pattern, device or compilation of scientific or technical information which is not in the public domain.  Corporations must be the exclusive and undisputed owner of the technology at the time the transfer is made.