Oklahoma § 68-4204 - Quality Investment Contracts – Application – Requirements

§ 68-4204. Quality Investment Contracts – Application – Requirements

– Qualifications.

A. An establishment which meets the qualifications specified in

the Oklahoma Quality Investment Act may apply to enter into a

Quality Investment Contract to receive annual incentive payments

over a five-year period from the Oklahoma Tax Commission pursuant to

the provisions of the Oklahoma Quality Investment Act in an amount

which shall not exceed ten percent (10%) of the amount of actual

capital costs invested pursuant to a Quality Investment Contract

developed and executed pursuant to this act. The Committee shall

review economic impacts, historical contributions trends and tax

revenue projections analyses conducted by or on behalf of the

Oklahoma Department of Commerce, and shall consider whether or not

the establishment is located in an economically distressed area of

the state, the number of jobs which are at risk, and the average

salary of the jobs which are at risk for the purposes of making

recommendations for offering a Quality Investment Contract and the

percentage of investment which shall be provided as incentive

payments. Provided, incentive payments shall in no event exceed ten

percent (10%) of the capital costs actually incurred for the

Oklahoma site that is the subject of the agreement. Provided, a

county, town or municipality in which an establishment eligible to

receive annual incentive payments pursuant to this section is

located may join in the Quality Investment Contract with the state

and the establishment and set out that it intends to annually

appropriate a portion of local sales tax revenue that shall be

included in the incentive payments.

Provided further, the Quality Investment Committee may not

recommend and the state shall not enter into contracts that would

result in payments from state revenues to all establishments in the

program in an amount in excess of Ten Million Dollars

($10,000,000.00) in any fiscal year. The maximum amount of

projected investment for purposes of a contract made pursuant to

this act shall not exceed Fifty Million Dollars ($50,000,000.00).

B. In order to receive incentive payments, an establishment

shall apply to and enter into a Quality Investment Contract with the

Oklahoma Department of Commerce on behalf of the state and the local

Oklahoma Statutes - Title 68. Revenue and Taxation

community when the town, city or county resolve to join with the

agreement. The application shall be on a form prescribed by the

Committee and shall contain such information as may be required by

the Committee and the Oklahoma Department of Commerce to determine

if the applicant is qualified.

C. In order to qualify to receive such payments, the

establishment applying shall be required to:

1. Be engaged in manufacturing in activities described under

Industry Group Nos. 31 through 33 of the NAICS Manual;

2. Incur capital costs for new retooling or modernization

projected to equal or exceed One Million Dollars ($1,000,000.00)

within twenty-four (24) months of the start date; and

3. Apply to and enter into a Quality Investment Contract

specifying:

a.

the amount of capital investment the establishment

must make within twenty-four (24) months of the start

date in order to remain in the Oklahoma Quality

Investment Program,

b.

the total minimum amount of Oklahoma taxable payroll

it will maintain in this state during the course of

the agreement,

c.

the total amount in incentive payments it may receive,

d.

if applicable, the amount of local revenues a county

or municipality intends to apportion to the

establishment annually, and

e.

that it will offer “basic health insurance” as defined

in the Oklahoma Quality Jobs Program Act, within

twelve (12) months of entering into a Quality

Investment Contract.

Added by Laws 2006, c. 1, § 4, eff. July 1, 2007, following passage

of State Question No. 725 (SB 755, Laws 2005, c. 239) on Nov. 7,

2006.