Incentives

Norman Economic Development Coalition

Incentives

Norman and the State of Oklahoma promote job creation by offering various business incentives that benefit both employers and employees in the community. These incentives include tax abatements, general project support from full-time staff, the Quality Jobs Program which provides quarterly cash payments of up to 5% of newly created gross taxable payroll to a qualifying company, specialized employee training for newly created jobs funded by the Oklahoma Department of Career Technology Education, and more.

Aggressive business incentives are essential to fostering a healthy business environment and the Norman business community utilizes every resource at its disposal to minimize costs and maximize benefits.


Local Incentives

Tax Increment Financing: TIF creates funding for projects that may otherwise be unaffordable to localities and developers by borrowing against future property tax revenues. With city council approval, incentives are available to companies creating quality jobs in the University North Park TIF District in Norman. Funds from this public financing option may be used for employee training, temporary facilities during construction, or any other mutually-agreed-upon uses.

The University North Park TIF District’s prosperity is already generating sales tax and ad valorem tax based revenue that is exceeding projections. This will have a positive, long-lasting impact on the Norman community in terms of business revenue, employment, and education funding.

Job Creation Incentive Program:  Sites in the University North Park Corporate Centre and the Advanced Manufacturing Centre are located in the TIF District and offer job creation incentives through the TIF to eligible companies.  TIF incentives have an average annual salary requirement of at least $35,000.  This site is also located in an Enterprise Zone that offers increased tax credits and an automatic 5% in the State’s Quality Jobs Program.  These programs are incremental in capitalizing on Norman’s talented resource base and improving quality of life for Norman residents.


State Incentives

The state of Oklahoma promotes the creation of quality jobs for its residents.  Employers who meet certain criteria may be rewarded for contributing to this goal in order to capitalize on the trained workforce and improve the quality of life for Oklahoma residents by increasing median wages.  Major business incentives applicable across the state of Oklahoma include the following:

The Oklahoma Quality Jobs Program
This incentive program provides quarterly cash payments of up to 5% of newly created gross taxable payroll to a qualifying company.  Payments are made quarterly for three years. If thresholds are achieved, they may extend for an additional seven years.

Incentive Criteria, Thresholds, and Requirements:

  • Cash payments of up to 5% of new payroll for up to 10 years
  • Must average annual salaries of $39,506 in Cleveland County
  • Must achieve $2.5M annual payroll within 3 years
  • Rebate opportunity available if 10% of new payroll includes qualified veterans
  • Must offer basic health insurance
  • Target Industries: Manufacturing and R&D including wind power manufacturing, corporate services, and data centers

Small Employer Quality Jobs Incentive Act
This cash program provides incentive payments to a qualifying small employer. The incentive payments may reach as high as 5% of new taxable payroll and last for up to seven years.

Incentive Criteria, Thresholds, and Requirements:

  • Cash payments of up to 5% of new payroll for up to seven years
  • Qualifying payroll must be attributable to annual salaries that are at least $43,457 in Cleveland County
  • No more than 500 employees at the time of application
  • Must offer basic health insurance
  • Some out-of-state sales requirements apply, check the full Incentives and Tax Guide below for more details
  • Target Industries: Manufacturing, research and development, corporate services, communication services, medical testing laboratories, and data processing services

21st Century Quality Jobs
The intended purpose of this program is to promote impactful, high-wage jobs without competing against existing incentives. To help accomplish this, an enhanced list of qualifying industries beyond just those eligible for the Quality Jobs Program has been added.  Qualifying companies may be eligible for up to twice the net benefit rate of the Quality Jobs program or 10% of the taxable payroll of these new jobs to be paid in cash on a quarterly basis. The program lasts for up to 10 years.

Incentive Criteria, Thresholds, and Requirements:

  • Allows a net benefit rate of up to 10% of payroll for up to 10 years
  • Requires at least 10 full-time jobs at an annual average wage of $101,650
  • Out-of-state sales must be at least 50%
  • Target Industries:  Knowledge-based service industries including professional, scientific, and technical services; music, film and performing arts; and specialty hospitals

Ad Valorem Tax Exemptions
New and expanding qualifying manufacturers, research and development companies, certain computer services and data processing companies with significant out-of-state sales, and aircraft repair and distribution companies may be eligible for ad valorem exemptions for up to five years.

Exempt Inventory
Oklahoma’s Freeport Law exempts goods, wares, and merchandise from taxation which come from outside the state and leave the state within nine months where such goods, wares, and merchandise are held for assembly, storage, manufacturing, processing, or fabricating purposes within the state.

Employee Training for Industry
The Oklahoma Department of Career and Technology Education (Career Tech) assists qualifying businesses by paying for training for employees in newly created jobs. Training can be done at one of 56 Technology Centers including the Moore Norman Technology Center in Norman or at the company’s facility. Training agreements include instructor costs. Program services are determined by the number of new jobs created in targeted industries, wage rates, and benefits provided.

Click here to see our State Incentive Guide.