Oklahoma § 68-4104 - Quality investment agreements – Duration – Investment –

§ 68-4104. Quality investment agreements – Duration – Investment –

Terms.

A. A qualified establishment shall be eligible to enter into a

quality investment agreement with the Oklahoma Department of

Commerce for a period not to exceed five (5) years.

B. Under such an agreement, the establishment shall agree to

abide by the terms of the agreement in accordance with the

provisions of this act, including investing capital costs in this

state in a projected amount each year during the term of the

agreement. Actual investment amounts may vary from those amounts

Oklahoma Statutes - Title 68. Revenue and Taxation

specified in the agreement, but in no event shall the quality

investment payments made exceed an amount that is based on the

estimated amount in the agreement or the actual investment amount

listed in the claim and verified by the Oklahoma Tax Commission.

The total amount of capital costs eligible for investment payments

to a qualified establishment shall not exceed Fifty Million Dollars

($50,000,000.00). In exchange, the state shall agree to make an

annual payment in an amount equal to ten percent (10%) of the amount

of capital costs invested by the qualified establishment in this

state during the preceding fiscal year.

C. No investment payment authorized by this act shall be made

to a qualified establishment until July 1, 2005, or thereafter. The

amount of investment payment shall not exceed a total of One Million

Dollars ($1,000,000.00) for any fiscal year during which a quality

investment agreement is in effect.

D. If a qualified establishment makes a capital investment

during any period of time in excess of Ten Million Dollars

($10,000,000.00) and the amount of the investment payment to which

the establishment is otherwise entitled by this act would exceed the

limit prescribed by subsection C of this section, the establishment

may carry over the excess investment payment amount to any

subsequent fiscal year and may be paid such amount in a subsequent

year if the combined amount of the carryover and investment payment

based on actual capital investment for the preceding period does not

exceed One Million Dollars ($1,000,000.00). Not more than Five

Million Dollars ($5,000,000.00) in total investment payments shall

be payable or paid to a qualified establishment.

E. Any carryover amount may be carried over for a period of

time necessary in order for the qualified establishment to be paid

the full amount of investment payments authorized by this act based

upon actual capital investment made in the state during the term of

the quality investment agreement.

F. A qualified establishment may enter into a quality

investment agreement with the Department according to the following

procedures:

1. The establishment shall make an initial application to the

Department on a form prescribed by the Department containing such

information as may be required by the Department;

2. The Department shall determine if the establishment meets

the following requirements:

a.

the establishment is engaged in manufacturing

described by Industry Number 3011, Industry Group

Number 301, Major Group 30 of the Standard Industrial

Classification Manual, latest revision, at a specified

site in this state,

b.

the establishment has been located and doing business

in this state for a continuous period of time of not

Oklahoma Statutes - Title 68. Revenue and Taxation

less than ten (10) years prior to the date of the

application,

c.

the establishment offers, or will offer within twelve

(12) months of entering into a quality investment

agreement, a basic health benefits plan as described

in subparagraph b of paragraph 1 of subsection A of

Section 3603 of Title 68 of the Oklahoma Statutes to

its employees in this state,

d.

the establishment will incur, with respect to the

manufacturing site which is the subject of the

agreement, capital costs projected to equal or exceed

Ten Million Dollars ($10,000,000.00) within the period

of the quality investment agreement, and capital costs

projected to equal or exceed One Million Dollars

($1,000,000.00) during the first year of the

agreement,

e.

the establishment will maintain Oklahoma taxable

payroll during the period of the quality investment

agreement and for at least two (2) years following

expiration of the agreement in an amount not less than

sixty percent (60%) of the establishment’s Oklahoma

taxable payroll as of the start date, and

f.

the establishment will pay its employees in this state

an average annualized wage which equals or exceeds

Forty Thousand Dollars ($40,000.00) exclusive of

health care benefits paid for by the establishment;

and

3. The determination shall be made upon application of the

establishment and annually thereafter as a condition of receiving an

investment payment pursuant to the provisions of this act.

Upon approval of an establishment, the Department shall enter

into a quality investment agreement with the establishment for a

period not to exceed five (5) years. The agreement shall specify

the start date and the duration of the agreement. The agreement

shall provide that:

a.

the establishment shall receive an investment payment

in an amount determined by the provisions of this

section,

b.

the establishment shall continue to meet the

requirements of paragraph 2 of this subsection and all

other provisions of this act for the duration of the

agreement, and

c.

the establishment shall agree to make an investment in

capital costs in this state in a projected amount for

each year of the agreement.

Added by Laws 2004, c. 391, § 4, eff. July 1, 2004.

Oklahoma Statutes - Title 68. Revenue and Taxation