Year 9 - Evaluation Schedule

Estimated Incentive Cost
$100 million between 2022 and 2032

Program Type
Tax Credits

Citation
68 OK Stat § 3930

Industry
Rural businesses

Sunset
No new applications for tax credits after December 1, 2032

Review Year
9

The Rural Jobs Program went into effect on November 1, 2022 and is intended to provide support to the state’s rural communities by incentivizing rural development through existing lending agencies. It is scheduled to sunset on November 1, 2032. Based on the Act, the Department of Commerce (Department) has $100 million in capital investment authority to be invested by approved rural funds over a six-year period.1

Estimated Incentive Cost
N/A

Program Type
Public investment

Citation
62 OK Stat § 2400

Industry
Capital investment

Sunset
None found

Review Year
9

The Invest in Oklahoma Program is intended to increase investment in the state by providing opportunities for public pensions to invest in Oklahoma-based funds, which are selected based on a series of criteria related to their financial performance and history of investment in the state. It went into effect on November 1, 2021.

Estimated Incentive Cost
$541,000 (2024)

Program Type
Tax incentive

Citation
62 O.S. § 840 et seq.

Industry
Tourism, Military

Sunset
Project must be completed no later than December 31, 2029

Review Year
9

Estimated Incentive Cost
Average of $2.9 million a year from 2019 to 2023

Program Type
Equity investments

Citation
§74-5060.21

Industry
Innovative Oklahoma businesses

Sunset
None found

Review Year
9

Provides concept, seed, and start-up equity investments to innovative Oklahoma businesses. It is funded through legislative appropriations to the Oklahoma Center for the Advancement of Science and Technology (OCAST). Fund investments are focused on industry sectors with technologies and proprietary products, processes, and/or know-how that provide high growth opportunities.

Estimated Incentive Cost
Information unavailable – commingled with several others on Oklahoma income tax form 511.

Program Type
Income tax exemption

Citation
74 OS §5078

Industry
Small businesses

Sunset
None found

Review Year
9

The State of Oklahoma provides a corporate income tax exemption for up to 10 years for tenants of small business incubators, from the date of occupancy. Small business incubators must be certified by the Department of Commerce. The purpose of the incentive is to promote, encourage, and advance economic prosperity and employment through the state by creating a more favorable tax climate for the tenants, particularly as they graduate from the incubators.

Estimated Incentive Cost
None – last appropriated $1 million in 2020, program is now funded on return on investments.

Program Type
Awards with royalty repayments

Citation
74 OS §5060

Industry
Technology

Sunset Review Year
9

The Oklahoma Center for the Advancement of Science and Technology (OCAST) was authorized to develop and implement a technology business financing program to provide funding and financing for and to assist qualified Oklahoma enterprises to commercialize a new product, service, technology, innovation, or process. Awards generally range from $20,000 to $50,000 and repayments are made through royalty payments.

Estimated Incentive Cost
$110.3 million (2024)

Program Type
Property tax exemption with reimbursement to local governments by the state

Citation
68 O.S. § 2902

Industry
Manufacturing

Sunset
None found

Review Year
9

The exemption was approved by voters through state question 588 in April 1985. The property tax exemption applies to all real and personal property necessary for the manufacturing of a product and facilities engaged in qualifying industries, and the Legislature has implemented it via state statute.1 The property tax exemption applies to new, acquired or expanded manufacturing facilities in qualified industries. Facilities may qualify for the property exemption for up to five consecutive years, if they continue to meet payroll and other requirements. The State reimburses local governments for the entirety of the property tax exemption.

Estimated Incentive Cost
$241,000 (2024)

Program Type
Transferable Income Tax Credit

Citation
68 O.S. § 2357.41

Industry
Rehabilitation of Commercial Properties

Sunset
None found

Review Year
9

A tax credit for the rehabilitation of certified historic hotels and newspaper plants located in a tax increment or incentive district. Effective January 1, 2006, with the passage of HB 3024, credit eligibility was broadened to include the rehabilitation of any income-producing certified historic structure; the bill also allowed projects that qualify for the 20 percent federal credit to automatically qualify for the state credit (also 20 percent) without additional paperwork. All requirements with respect to qualifying for the federal credit are applicable.

Estimated Incentive Cost
$33,486,182 (2024)

Program Type
Rebate of qualified expenses

Citation
68 OK Stat § 3632

Industry
Entertainment

Sunset
Program sunsets June 30, 2031

Review Year
9

Qualified productions may earn a rebate of 20 percent of qualified spend and uplifts that can increase the rebate to a maximum of 30 percent. There are multiple uplifts as well as limits on eligible expenses subject to the rebate.

Estimated Incentive Cost
$63,000 (2024)

Program Type
Sales tax exemption 

Citation
68 OK Stat §1357

Industry
Entertainment

Sunset
None found

Review Year
9

The state exempts sales of tangible personal property or services to a motion picture or television production company to be used or consumed in connection with an eligible production from the state and local sales and use tax. To qualify for the exemption, the motion picture or television production company must file required documentation and information with the Oklahoma Tax Commission (OTC).

Estimated Incentive Cost
$4,740,085 (2023)

Program Type
Sales tax credit

Citation
68 OK Stat §2391

Industry
Tourism attractions

Sunset
No credit shall be granted on or after January 1, 2026.

Review Year
9

The Tourism Development Act is a sales tax credit intended to create new or expand existing tourism attractions in Oklahoma. It provides a tax credit of up to 10 percent of approved costs, capped at $1 million, to companies who spend at least $500,000 on tourism attractions, such as cultural or historic sites, recreational facilities, or destination hotels. These projects must attract at least 25 percent of visitors from outside the state and produce significant revenues.

Estimated Incentive Cost
$442,787 (2023)

Program Type
Reimbursement of event-generated sales tax revenue

Citation
68 OK Stat §4301

Industry
Sports and Recreational Events

Sunset
None found

Review Year
9

The amount of the incentive is determined by the Oklahoma Tax Commission (OTC) based on incremental sales tax revenues associated with a “quality” event. These events must be a new or existing event or meeting of a nationally recognized organization; national, international, or world championship; or managed or produced by an Oklahoma-based national or international organization.