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 fulltime 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 jointly-agreed uses.

The University North Park TIF District’s prosperity is already generating sales tax and ad valorem tax base revenue that is exceeding projections, which 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 University North Park Corporate Centre and 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 based 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 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 and 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 $29,409 in Cleveland County
Company must achieve $2.5M annual payroll within 3 years
Must offer basic health insurance
Target Industries: Manufacturing, 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 7 years
Qualifying payroll must be attributable to annual salaries that are at least $36,290 in Cleveland County
No more than 90 employees at the time of application
Must offer basic health insurance
At least 75% of annual sales to out-of-state customers
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 the program is to promote impactful high wage jobs without competing with 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 $94,418
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 Moore Norman Technology Center  here 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.