Commerce Executive Director Brent Kisling and Jon Chiappe, Research Director, recently highlighted 5 important statewide incentive programs, available now, to help spur the growth existing Oklahoma companies and communities. They include:
Business Expansion Incentive Program (for private sector companies planning large capital investment)
Innovation Expansion Program ($15 million available for new capital investment)
Oklahoma’s P3 (Public-Private Partnership) Program (infrastructure)
Oklahoma Rural Jobs Program (Rural Jobs Act) (Tax credits for rural investment)
Strategic Industrial Development Enhancement (SIDE) Program (Tax credits for Infrastructure - Rural Industrial Parks, rail)
Director Kisling recently said: “Even though Commerce gets a lot of attention for the new companies looking to come to the state, 70% of our time is spent working on projects with our Oklahoma legacy companies. There is no better example of that than the Oklahoma Innovation Expansion Program that we administer. Every year, we partner with the Oklahoma Finance Authority and the Oklahoma Manufacturing Alliance to support innovative new revenue streams in our Oklahoma businesses. This program provides awards of up to $150,000 to participating companies that are adding new capital investments and revenue streams that will cause them to hire more of our citizens. It is the best “Taking Care of Our Own” program in the nation, and the application window is coming up from April 4-15. To learn more, please go to: www.okcommerce.gov/oiep or just reply to this email and I’ll connect you to someone who can tell you more.
Another exciting announcement …is that $100 million in capital is now available to Oklahoma businesses through the Rural Jobs Act. This program was authored by Rep Kevin Wallace and Sen Brent Howard and incentivized investment funds from around the nation to invest in our state. All five Rural Funds listed on our website have submitted documentation that they have been fully funded by the March 16, 2023 deadline and they have been cleared to invest in qualifying rural businesses in Oklahoma. If any of you have qualifying businesses that may benefit from access to equity or debt financing, contact information for the rural funds is on our website at www.okcommerce.gov/doing-business/business-relocation-expansion/incentives/rural-jobs-act/.
We are expecting to begin accepting applications for the Strategic Industrial Development Enhancement Program beginning July 1, 2023. This new program is intended to enhance the competitiveness of rural industrial parks by improving connections between railroads and industrial park developments and to promote development of assets in an industrial park. Qualifying projects must be located in either (1) An industrial park, an economic development zone, or a port located within an Oklahoma county with a population less than 100,000; OR (2) Any location adjacent to a terminal, switching, or class II or III railroad as defined by the Federal Surface Transportation Board. More information will follow on our website in May, but we wanted to go ahead and put it on your radar.
The Business Expansion Incentive Program assists Oklahoma companies making major capital investments in depreciable items like machinery, equipment and buildings.
This incentive makes annual cash payment awards to help companies grow and boost business expansion investments in Oklahoma.
A typical incentive award is to a manufacturing company with an existing employee base making an investment of $5 million or more to expand their Oklahoma operation.
To qualify for the incentive, companies typically need to meet or exceed these requirements:
$2 million or greater in capital investment
$2 million or greater in total annual existing payroll