Quality Jobs Program incentives; limiting net benefit rate; modifying claims period and threshold wage. Effective date.

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STATE OF OKLAHOMA

2nd Session of the 60th Legislature (2026)

SENATE BILL 1575 By: Kirt

AS INTRODUCED

An Act relating to incentives; amending 68 O.S. 2021,
Sections 3603, as amended by Section 1, Chapter 102,
O.S.L. 2025, 3604, as last amended by Section 157,
Chapter 452, O.S.L. 2024, 3604.1, 3606, as last
amended by Section 2, Chapter 29, 1st Extraordinary
Session, O.S.L. 2023, 3903, 3905, 3913, 3914, 3915,
and 4503, as amended by Section 1, Chapter 127,
O.S.L. 2025 (68 O.S. Supp. 2025, Sections 3603, 3604,
3606, and 4503), which relate to quality jobs
incentives; modifying maximum net benefit rate;
modifying wage requirement; modifying period for
filing a claim for rebate; updating statutory
language; updating statutory references; and
providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

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SECTION 1. AMENDATORY 68 O.S. 2021, Section 3603, as
amended by Section 1, Chapter 102, O.S.L. 2025 (68 O.S. Supp. 2025,
Section 3603), is amended to read as follows:
Section 3603. A. As used in the Oklahoma Quality Jobs Program
Act:
1. a. “Basic industry” means:
(1) those manufacturing activities defined or
classified in the NAICS Manual under Industry
Sector Nos. 31, 32 and 33, Industry Group No.
5111 or Industry No. 11331,
(2) those electric power generation, transmission and
distribution activities defined or classified in
the NAICS Manual under U.S. Industry Nos. 221111
through 221122, if:
(a) an establishment engaged therein qualifies
as an exempt wholesale generator as defined
by 15 U.S.C., Section 79z-5a,
(b) the exempt wholesale generator facility
consumes from sources located within the
state at least ninety percent (90%) of the
total energy used to produce the electrical
output which qualifies for the specialized
treatment provided by the Energy Policy Act
of 1992, P.L. 102-486, 106 Stat. 2776, as

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amended, and federal regulations adopted
pursuant thereto,
(c) the exempt wholesale generator facility
sells to purchasers located outside the
state for consumption in activities located
outside the state at least ninety percent
(90%) of the total electrical energy output
which qualifies for the specialized
treatment provided by the Energy Policy Act
of 1992, P.L. 102-486, 106 Stat. 2776, as
amended, and federal regulations adopted
pursuant thereto, and
(d) the facility is constructed on or after July
1, 1996,
(3) those administrative and facilities support
service activities defined or classified in the
NAICS Manual under Industry Group Nos. 5611 and
5612, Industry Nos. 51821, 519130, 52232 and
56142 or U.S. Industry Nos. 524291 and 551114,
those other support activities for air
transportation defined or classified in the NAICS
Manual under Industry Group No. 488190, and those
support, repair, and maintenance service
activities for the wind industry defined or

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classified in the NAICS Manual under Industry
Group No. 811310,
(4) those professional, scientific and technical
service activities defined or classified in the
NAICS Manual under U.S. Industry Nos. 541710 and
541380,
(5) distribution centers for retail or wholesale
businesses defined or classified in the NAICS
Manual under Sector No. 42, if forty percent
(40%) or more of the inventory processed through
such warehouse is shipped out-of-state,
(6) those adjustment and collection service
activities defined or classified in the NAICS
Manual under U.S. Industry No. 561440, if
seventy-five percent (75%) of the loans to be
serviced were made by out-of-state debtors,
(7) (a) those air transportation activities defined
or classified in the NAICS Manual under
Industry Group No. 4811, if the following
facilities are located in this state:
(i) the corporate headquarters of an
establishment classified therein, and
(ii) a facility or facilities at which
reservations for transportation

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provided by such an establishment are
processed, whether such services are
performed by employees of the
establishment, by employees of a
subsidiary of or other entity
affiliated with the establishment or by
employees of an entity with whom the
establishment has contracted for the
performance of such services; provided,
this provision shall not disqualify an
establishment which uses an out-of-
state entity or employees for some
reservations services, or
(b) those air transportation activities defined
or classified in the NAICS Manual under
Industry Group No. 4811, if an establishment
classified therein has or will have within
one (1) year sales of at least seventy-five
percent (75%) of its total sales, as
determined by the Incentive Approval
Committee pursuant to the provisions of
subsection B of this section, to out-of-
state customers or buyers, to in-state
customers or buyers if the product or

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service is resold by the purchaser to an
out-of-state customer or buyer for ultimate
use, or to the federal government,
(8) flight training services activities defined or
classified in the NAICS Manual under U.S.
Industry Group No. 611512, which for purposes of
the Oklahoma Quality Jobs Program Act shall
include new direct jobs for which gross payroll
existed on or after January 1, 2003, as
identified in the NAICS Manual,
(9) the following, if an establishment classified
therein has or will have within one (1) year
sales of at least seventy-five percent (75%) of
its total sales, as determined by the Incentive
Approval Committee pursuant to the provisions of
subsection B of this section, to out-of-state
customers or buyers, to in-state customers or
buyers if the product or service is resold by the
purchaser to an out-of-state customer or buyer
for ultimate use, or to the federal government:
(a) those transportation and warehousing
activities defined or classified in the
NAICS Manual under Industry Subsector No.
493, if not otherwise listed in this

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paragraph, Industry Subsector Nos. 482 and
484 and Industry Group Nos. 4884 through
4889,
(b) those passenger transportation activities
defined or classified in the NAICS Manual
under Industry Nos. 561510 and 561599,
(c) those freight or cargo transportation
activities defined or classified in the
NAICS Manual under Industry No. 541614,
(d) those insurance activities defined or
classified in the NAICS Manual under
Industry Group No. 5241,
(e) those services to dwellings and other
buildings, as defined or classified in the
NAICS Manual under Industry Group No. 5617,
excluding U.S. Industry Nos. 561730, 56171,
56172, 56174 and 56179,
(f) those equipment rental and leasing
activities defined or classified in the
NAICS Manual under Industry Group No. 5324,
(g) those information technology and other
computer-related service activities defined
or classified in the NAICS Manual under

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Industry Group Nos. 5112, 5182, 5191 and
5415,
(h) those business support service activities
defined or classified in the NAICS Manual
under U.S. Industry Nos. 561410 through
561430, excluding 56143, and Industry No.
51911,
(i) those medical and diagnostic laboratory
activities defined or classified in the
NAICS Manual under Industry Group No. 6215,
(j) those professional, scientific and technical
service activities defined or classified in
the NAICS Manual under Industry Group Nos.
5412, 5414, 5415, 5416 and 5417, Industry
Nos. 54131, 54133, 54136 and 54137, and U.S.
Industry No. 541990, if not otherwise listed
in this paragraph,
(k) those communication service activities
defined or classified in the NAICS Manual
under Industry Nos. 51741 and 51791,
(l) those refuse systems activities defined or
classified in the NAICS Manual under
Industry Group No. 5622, provided that the
establishment is primarily engaged in the

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capture and distribution of methane gas
produced within a landfill,
(m) general wholesale distribution of groceries,
defined or classified in the NAICS Manual
under Industry Group Nos. 4244 and 4245,
(n) those activities relating to processing of
insurance claims, defined or classified in
the NAICS Manual under U.S. Industry Nos.
524210 and 524292; provided, activities
described in U.S. Industry Nos. 524210 and
524292 in the NAICS Manual other than
processing of insurance claims shall not be
included for purposes of this subdivision,
(o) those agricultural activities classified in
the NAICS Manual under U.S. Industry Nos.
112120 and 112310,
(p) those professional organization activities
classified in the NAICS Manual under U.S.
Industry No. 813920,
(q) alternative energy structure construction
classified in the NAICS Manual under U.S.
Industry No. 237130,

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(r) solar reflective coating application
classified in the NAICS Manual under U.S.
Industry No. 238160,
(s) solar heating equipment installation
classified in the NAICS Manual under U.S.
Industry No. 238220,
(t) those wired telecommunications carriers
classified in the NAICS Manual under U.S.
Industry No. 517110, and
(u) those securities, commodity contracts and
investment activities classified in the
NAICS Manual under Industry Subsector No.
523,
(10) those activities related to extraction or
pipeline transportation of petroleum, natural gas
or refined petroleum products, defined or
classified in the NAICS Manual under Industry
Group No. 2111, 213111, 213112 or 486, subject to
the limitations provided in paragraph 3 of this
subsection and paragraph 3 of subsection B of
this section,
(11) those activities performed by the federal
civilian workforce at a facility of the Federal
Aviation Administration located in this state if

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the Director of the Oklahoma Department of
Commerce determines or is notified that the
federal government is soliciting proposals or
otherwise inviting states to compete for
additional federal civilian employment or
expansion of federal civilian employment at such
facilities,
(12) those activities defined or classified in the
NAICS Manual under U.S. Industry No. 711211 (2007
version),
(13) those real estate or brokerage activities
classified in the NAICS Manual under U.S.
Industry No. 53120 for which at least seventy-
five percent (75%) of the establishment’s
revenues are attributed to out-of-state sales and
at least seventy-five percent (75%) of the real
estate transactions generating those revenues are
attributed to real property located outside the
State of Oklahoma, or
(14) those support activities for rail transportation
and those support activities for water
transportation defined or classified in the NAICS
Manual under U.S. Industry Nos. 4882 and 4883.

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b. An establishment described in subparagraph a of this
paragraph shall not be considered to be engaged in a
basic industry unless it offers, or will offer within
one hundred eighty (180) days of employment, a basic
health benefits plan to the individuals it employs in
new direct jobs in this state which is determined by
the Oklahoma Department of Commerce to consist of the
following elements or elements substantially
equivalent thereto:
(1) not more than fifty percent (50%) of the premium
shall be paid by the employee,
(2) coverage for basic hospital care,
(3) coverage for physician care,
(4) coverage for mental health care,
(5) coverage for substance abuse treatment,
(6) coverage for prescription drugs, and
(7) coverage for prenatal care;
2. “Change-in-control event” means the transfer to one or more
unrelated establishments or unrelated persons, of either:
a. beneficial ownership of more than fifty percent (50%)
in value and more than fifty percent (50%) in voting
power of the outstanding equity securities of the
transferred establishment, or

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b. more than fifty percent (50%) in value of the assets
of an establishment.
A transferor shall be treated as related to a transferee if more
than fifty percent (50%) of the voting interests of the transferor
and transferee are owned, directly or indirectly, by the other or
are owned, directly or indirectly, by the same person or persons,
unless such transferred establishment has an outstanding class of
equity securities registered under Sections 12(b) or 15(d) of the
Securities Exchange Act of 1934, as amended, in which event the
transferor and transferee will be treated as unrelated; provided, an
establishment applying for the Oklahoma Quality Jobs Program Act as
a result of a change-in-control event is required to apply within
one hundred eighty (180) days of the change-in-control event to
qualify for consideration. An establishment entering the Oklahoma
Quality Jobs Program Act as the result of a change-in-control event
shall be required to maintain a level of new direct jobs as agreed
to in its contract with the Oklahoma Department of Commerce and to
pay new direct jobs an average annualized wage which equals or
exceeds one hundred twenty-five percent (125%) of the average county
wage as that percentage is determined by the Oklahoma Department of
Commerce based upon the most recent U.S. Department of Commerce data
for the county in which the new jobs are located. For purposes of
this paragraph, healthcare premiums paid by the applicant for
individuals in new direct jobs shall not be included in the

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annualized wage. Such establishment entering the Oklahoma Quality
Jobs Program Act as the result of a change-in-control event shall be
required to retain the contracted average annualized wage and
maintain the contracted maintenance level of new direct jobs numbers
as certified by the Tax Commission. If the required average
annualized wage or the required new direct jobs numbers do not equal
or exceed such contracted level during any quarter, the quarterly
incentive payments shall not be made and shall not be resumed until
such time as such requirements are met. An establishment described
in this paragraph shall be required to repay all incentive payments
received under the Oklahoma Quality Jobs Program Act if the
establishment is determined by the Tax Commission to no longer have
business operations in the state within three (3) years from the
beginning of the calendar quarter for which the first incentive
payment claim is filed;
3. “New direct job”:
a. means full-time-equivalent employment in this state in
an establishment which has qualified to receive an
incentive payment pursuant to the provisions of the
Oklahoma Quality Jobs Program Act which employment did
not exist in this state prior to the date of approval
by the Department of the application of the
establishment pursuant to the provisions of Section
3604 of this title and with respect to an

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establishment qualifying for incentive payments
pursuant to division (12) of subparagraph a of
paragraph 1 of this subsection shall not include
compensation paid to an employee or independent
contractor for an athletic contest conducted in the
state if the compensation is paid by an entity that
does not have its principal place of business in the
state or that does not own real or personal property
having a market value of at least One Million Dollars
($1,000,000.00) located in the state, and the
employees or independent contractors of such entity
are compensated to compete against the employees or
independent contractors of an establishment that
qualifies for incentive payments pursuant to division
(12) of subparagraph a of paragraph 1 of this
subsection and which is organized under Oklahoma law
or that is lawfully registered to do business in the
state and which does have its principal place of
business located in the state and owns real or
personal property having a market value of at least
One Million Dollars ($1,000,000.00) located in the
state; provided, that if an application of an
establishment is approved by the Oklahoma Department
of Commerce after a change-in-control event and the

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Director of the Oklahoma Department of Commerce
determines that the jobs located at such establishment
are likely to leave the state, “new direct job” shall
include employment that existed in this state prior to
the date of application which is retained in this
state by the new establishment following a change in
control event, if such job otherwise qualifies as a
new direct job, and
b. shall include full-time-equivalent employment in this
state of employees who are employed by an employment
agency or similar entity other than the establishment
which has qualified to receive an incentive payment
and who are leased or otherwise provided under
contract to the qualified establishment, if such job
did not exist in this state prior to the date of
approval by the Department of the application of the
establishment or the job otherwise qualifies as a new
direct job following a change-in-control event. The
leasing of employees by the establishment or employees
provided under contract with an establishment shall
constitute an employer-employee relationship between
those employees and the establishment. A job shall be
deemed to exist in this state prior to approval of an
application if the activities and functions for which

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the particular job exists have been ongoing at any
time within six (6) months prior to such approval.
With respect to establishments defined in division
(10) of subparagraph a of paragraph 1 of this
subsection, new direct jobs shall be limited to those
jobs directly comprising the corporate headquarters of
or directly relating to manufacturing, maintenance,
administrative, financial, engineering, surveying,
geological or geophysical services performed by the
establishment. Under no circumstances shall
employment relating to field services be considered
new direct jobs;
4. “Estimated direct state benefits” means the tax revenues
projected by the Department to accrue to the state as a result of
new direct jobs;
5. “Estimated direct state costs” means the costs projected by
the Department to accrue to the state as a result of new direct
jobs. Such costs shall include, but not be limited to:
a. the costs of education of new state resident children,
b. the costs of public health, public safety and
transportation services to be provided to new state
residents,
c. the costs of other state services to be provided to
new state residents, and

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d. the costs of other state services;
6. “Estimated net direct state benefits” means the estimated
direct state benefits less the estimated direct state costs;
7. “Net benefit rate” means the estimated net direct state
benefits computed as a percentage of gross payroll; provided:
a. except as otherwise provided in this paragraph, the
net benefit rate may be variable and shall not exceed
five percent (5%) the highest rate of income tax
imposed upon the Oklahoma taxable income of
individuals pursuant to subsection D of Section 2355
of this title. Any change in the highest rate of
individual income tax imposed pursuant to the
provisions of Section 2355 of this title shall be
applicable to the computation of incentive payments to
an establishment and shall be effective for purposes
of incentive payments based on payroll paid by an
establishment on or after January 1 of any applicable
year for which the net benefit rate is modified as
required by this subparagraph, and
b. the net benefit rate shall not exceed six percent (6%)
in connection with an establishment which is owned and
operated by an entity which has been awarded a United
States Department of Defense contract for which:

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(1) bids were solicited and accepted by the United
States Department of Defense from facilities
located outside this state,
(2) the term is or is renewable for not less than
twenty (20) years, and
(3) the average annual salary, excluding benefits
which are not subject to Oklahoma income taxes,
for new direct jobs created as a direct result of
the awarding of the contract is projected by the
Oklahoma Department of Commerce to equal or
exceed Forty Thousand Dollars ($40,000.00) within
three (3) years of the date of the first
incentive payment,
c. except as otherwise provided in subparagraph d of this
paragraph, in no event shall incentive payments,
cumulatively, exceed the estimated net direct state
benefits,
d. the net benefit rate shall be five percent (5%) for an
establishment locating:
(1) in an opportunity zone located in a high-
employment county, as such terms are defined in
subsection G of Section 3604 of this title, or
(2) in a county in which:

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(a) the per capita personal income, as
determined by the Department, is eighty-five
percent (85%) or less of the statewide
average per capita personal income,
(b) the population has decreased over the
previous ten (10) years, as determined by
the Oklahoma Department of Commerce based on
the most recent U.S. Department of Commerce
data, or
(c) the unemployment rate exceeds the lesser of
five percent (5%) or two percentage points
above the state average unemployment rate as
certified by the Oklahoma Employment
Security Commission,
e. the net benefit rate shall not exceed six percent (6%)
in connection with an establishment which:
(1) is, as of the date of application, receiving
incentive payments pursuant to the Oklahoma
Quality Jobs Program Act and has been receiving
such payments for at least one (1) year prior to
the date of application, and
(2) expands its operations in this state by creating
additional new direct jobs which pay average
annualized wages which equal or exceed one

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hundred fifty percent (150%) of the average
annualized wages of new direct jobs on which
incentive payments were received during the
preceding calendar year,
f. with respect to an establishment defined or classified
in the NAICS Manual under U.S. Industry No. 711211
(2007 version) or any establishment defined or
classified in the NAICS Manual as a U.S. Industry
Number which is not included within the definition of
“basic industry” as such term is defined in this
section on April 17, 2008, the net benefit rate shall
not exceed the highest rate of income tax imposed upon
the Oklahoma taxable income of individuals pursuant to
subparagraph (g) or subparagraph (h), as applicable,
of paragraph 1 and paragraph 2 of subsection B of
Section 2355 of this title. Any change in such
highest rate of individual income tax imposed pursuant
to the provisions of Section 2355 of this title shall
be applicable to the computation of incentive payments
to an establishment as described by this subparagraph
and shall be effective for purposes of incentive
payments based on payroll paid by such establishment
on or after January 1 of any applicable year for which

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the net benefit rate is modified as required by this
subparagraph, and
g. the net benefit rate shall not exceed six percent (6%)
in connection with an establishment which employs
United States military veterans in at least ten
percent (10%) of its gross payroll. The net benefit
rate for an establishment which employs United States
military veterans in at least ten percent (10%) of its
payroll shall not be lower than five percent (5%).
Incentive payments made pursuant to the provisions of this
subparagraph shall be based upon payroll associated with such new
direct jobs. For purposes of this subparagraph, the amount of
health insurance premiums or other benefits paid by the
establishment shall not be included for purposes of computation of
the average annualized wage;
8. “Gross payroll” means wages, as defined in Section 2385.1 of
this title for new direct jobs;
9. a. “Establishment” means any business or governmental
entity, no matter what legal form, including, but not
limited to, a sole proprietorship; partnership;
limited liability company; corporation or combination
of corporations which have a central parent
corporation which makes corporate management decisions
such as those involving consolidation, acquisition,

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merger or expansion; federal agency; political
subdivision of the State of Oklahoma; or trust
authority; provided, distinct, identifiable subunits
of such entities may be determined to be an
establishment, for all purposes of the Oklahoma
Quality Jobs Program Act, by the Department subject to
the following conditions:
(1) within three (3) years of the first complete
calendar quarter following the start date, the
entity must have a minimum payroll of Two Million
Five Hundred Thousand Dollars ($2,500,000.00) and
the subunit must also have or will have a minimum
payroll of Two Million Five Hundred Thousand
Dollars ($2,500,000.00),
(2) the subunit is engaged in an activity or service
or produces a product which is demonstratively
independent and separate from the entity’s other
activities, services or products and could be
conducted or produced in the absence of any other
activity, service or production of the entity,
(3) has an accounting system capable of tracking or
facilitating an audit of the subunit’s payroll,
expenses, revenue and production. Limited
interunit overlap of administrative and

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purchasing functions shall not disqualify a
subunit from consideration as an establishment by
the Department,
(4) the entity has not previously had a subunit
determined to be an establishment pursuant to
this section; provided, the restriction set forth
in this division shall not apply to subunits
which qualify pursuant to the provisions of
subparagraph b of paragraph 7 of this subsection,
and
(5) it is determined by the Department that the
entity will have a probable net gain in total
employment within the incentive period.
b. The Department may promulgate rules to further limit
the circumstances under which a subunit may be
considered an establishment. The Department shall
promulgate rules to determine whether a subunit of an
entity achieves a net gain in total employment. The
Department shall establish criteria for determining
the period of time within which such gain must be
demonstrated and a method for determining net gain in
total employment;
10. “NAICS Manual” means any manual, book or other publication
containing the North American Industry Classification System, United

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States, 1997, promulgated by the Office of Management and Budget of
the United States of America, or the latest revised edition;
11. “Qualified federal contract” means a contract between an
agency or instrumentality of the United States government, including
but not limited to the Department of Defense or any branch of the
United States Armed Forces, but exclusive of any contract performed
for the Federal Emergency Management Agency as a direct result of a
natural disaster declared by the Governor or the President of the
United States with respect to damage to property located in Oklahoma
or loss of life or personal injury to persons in Oklahoma, and a
lawfully recognized business entity, whether or not the business
entity is organized under the laws of the State of Oklahoma or
whether or not the principal place of business of the business
entity is located within the State of Oklahoma, for the performance
of services, including but not limited to testing, research,
development, consulting or other services in a basic industry, if
the contract involves the performance of such services performed on
or after July 1, 2009, by the employees of the business entity
within the State of Oklahoma or if the contract involves the
performance of such services performed on or after July 1, 2009, by
employees of a lawfully recognized business entity that is a
subcontractor of the business entity with which the prime contract
has been formed. A qualified federal contract described in this
paragraph shall not qualify unless both the qualified federal

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contractor and any subcontractors originally involved in the work or
added subsequently during the period of performance verify to the
qualified federal contractor verifier that it offers, or will offer
within one hundred eighty (180) days of employment of its respective
employees, a basic health benefits plan as described in subparagraph
b of paragraph 1 of this subsection to individuals who perform
qualified labor hours in this state;
12. “Qualified federal contractor verifier” means a nonprofit
entity organized under the laws of the State of Oklahoma, having an
affiliation with a comprehensive university which is part of The
Oklahoma State System of Higher Education, and having the following
characteristics:
a. established multiyear classified and unclassified
indefinite-delivery/indefinite-quantity federal
contract vehicles in excess of Fifty Million Dollars
($50,000,000.00),
b. current capability to sponsor and maintain personnel
security clearances and authorized by the federal
government to handle and perform classified work up to
the Top Secret Sensitive Compartmented Information
levels,
c. at least one on-site federally certified Sensitive
Compartmented Information Facility,

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d. on-site secure mass data storage complex with the
capability of isolating, segregating and protecting
corporate proprietary and classified information,
e. trusted agent status by maintaining no ownership of,
vested interest in, nor royalty production from any
intellectual property,
f. at least one hundred thousand (100,000) square feet of
configurable laboratory and support space,
g. the direct access to restricted air space through a
formalized memorandum of agreement with the Department
of Defense,
h. at least five thousand (5,000) acres available for
outdoor testing and training facilities, and
i. the ability to house state-of-the-art surety
facilities, including chemical, biological,
radiological, explosives, electronics, and unmanned
systems laboratories and ranges;
13. “SIC Manual” means the 1987 revision to the Standard
Industrial Classification Manual, promulgated by the Office of
Management and Budget of the United States of America;
14. “Start date” means the date on which an establishment may
begin accruing benefits for the creation of new direct jobs, which
date shall be determined by the Department;

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15. “Effective date” means the date of approval of a contract
under which incentive payments will be made pursuant to the Oklahoma
Quality Jobs Program Act, which shall be the date the signed and
accepted incentive contract is received by the Department; provided,
an approved project may have a start date which is different from
the effective date;
16. “Total qualified labor hours” means the reimbursed payment
amount for hours of work performed by the State of Oklahoma
workforce of a qualified federal contractor or the State of Oklahoma
workforce of a subcontractor of a qualified federal contractor and
which are required for the full performance of a qualified federal
contract;
17. “Qualified labor rate” means the fully reimbursed labor
rate paid through a qualified federal contract for qualified labor
hours to the qualified federal contractor or subcontractor;
18. “Qualified federal contractor” means a business entity:
a. maintaining a prime contract with the federal
government as defined in paragraph 11 of this
subsection,
b. providing notice of intent to apply to the Department
within one hundred eighty (180) days of July 1, 2010,
or one hundred eighty (180) days of the date of the
award of a qualified federal contract or award of a

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new qualified subcontract under an existing qualified
federal contract, and
c. adding substantively to the contract by performing at
least eight percent (8%) of the total labor whether
qualified and nonqualified labor as determined by the
federal contractor verifier on a direct contract or
individual task order or delivery order on an
indefinite-delivery/indefinite-quantity or other
blanket contract vehicle.
Should a prime contractor provide notice to the Department of
its intent not to apply for incentive for a qualified federal
contract or fails to qualify under the criteria above,
subcontractors in order of tier ranking as determined by the federal
contract verifier may assume the role of the prime and apply to
become a qualified federal contractor provided the entity meets the
same criteria above with the exception that notice of intent to
apply with the Department must be provided within sixty (60) days of
the prime’s disqualification or one hundred eighty (180) days of the
award of its subcontract, whichever is later; and
19. “Proxy establishment” means a public trust which:
a. is organized and existing under Section 176 of Title
60 of the Oklahoma Statutes for the benefit of a
geographic area which includes a city or county or
some combination thereof, and

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b. benefits a geographic area where new direct jobs which
meet the requirements of the Oklahoma Quality Jobs
Program Act are created by an establishment, other
than the proxy establishment, which is a branch of the
Armed Forces of the United States.
A proxy establishment may be determined to be an establishment
for all purposes of the Oklahoma Quality Jobs Program Act by the
Department and incentive payments may be made to such proxy
establishment for new direct jobs otherwise qualified pursuant to
the Oklahoma Quality Jobs Program Act. The Department may
promulgate rules to further specify the circumstances under which a
proxy establishment may be considered an establishment for the
purposes of making application for incentive payments pursuant to
the Oklahoma Quality Jobs Program Act. Provided however, that with
respect to any data on qualifying direct new jobs from a branch of
the Armed Forces of the United States, such rules shall only require
a proxy establishment to provide such data as would otherwise be
publicly releasable by the branch of the Armed Forces of the United
States.
B. The Incentive Approval Committee is hereby created and shall
consist of the Director of the Office of Management and Enterprise
Services, the Director of the Department and one member of the
Oklahoma Tax Commission appointed by the Tax Commission, or a
designee from each agency approved by such member. It shall be the

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duty of the Committee to determine the eligibility of all applicants
for the Oklahoma Quality Jobs Program Act, subject to the applicable
requirements.
C. For an establishment defined as a “basic industry” pursuant
to division (4) of subparagraph a of paragraph 1 of subsection A of
this section, the Incentive Approval Committee shall consist of the
members provided by subsection B of this section and the Executive
Director of the Oklahoma Center for the Advancement of Science and
Technology, or a designee from the Center appointed by the Executive
Director.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 3604, as
last amended by Section 157, Chapter 452, O.S.L. 2024 (68 O.S. Supp.
2025, Section 3604), is amended to read as follows:
Section 3604. A. Except as otherwise provided in subsection I
or subsection L of this section, an establishment which meets the
qualifications specified in the Oklahoma Quality Jobs Program Act
may receive quarterly incentive payments for a ten-year period from
the Oklahoma Tax Commission pursuant to the provisions of the
Oklahoma Quality Jobs Program Act; provided, such an establishment
defined or classified in the NAICS North American Industry
Classification System (NAICS) Manual under U.S. Industry No. 711211
(2007 version) may receive quarterly incentive payments for a
thirty-year period. The amount of such payments shall be equal to
the net benefit rate multiplied by the actual gross payroll of new

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direct jobs for a calendar quarter as verified by the Oklahoma
Employment Security Commission. For an establishment defined or
classified in the NAICS Manual under U.S. Industry No. 711211 (2007
version) that entered into a contract pursuant to the Oklahoma
Quality Jobs Program Act with the Oklahoma Department of Commerce
before the effective date of this act November 1, 2023:
1. The contract shall be extended from fifteen (15) years to
thirty (30) years; and
2. The extension shall not include additional money awarded but
shall allow for payments to continue for the thirty-year period, or
until the net benefit for the new direct jobs for the original
contract has been fully paid out as calculated based upon the
original application.
B. In order to receive incentive payments, an establishment
shall apply to the Oklahoma Department of Commerce. The application
shall be on a form prescribed by the Department and shall contain
such information as may be required by the Department to determine
if the applicant is qualified. An establishment may apply for an
effective date for a project, which shall not be more than twenty-
four (24) months from the date the application is submitted to the
Department.
C. Except as otherwise provided by subsection D or E of this
section, in order to qualify to receive such payments, the
establishment applying shall be required to:

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1. Be engaged in a basic industry;
2. Have an annual gross payroll for new direct jobs projected
by the Department to equal or exceed Two Million Five Hundred
Thousand Dollars ($2,500,000.00) within three (3) years of the first
complete calendar quarter following the start date; and
3. Have a number of full-time-equivalent employees subject to
the tax imposed by Section 2355 of this title and working an annual
average of thirty (30) or more hours per week in new direct jobs
located in this state equal to or in excess of eighty percent (80%)
of the total number of new direct jobs.
D. In order to qualify to receive incentive payments as
authorized by the Oklahoma Quality Jobs Program Act, an
establishment engaged in an activity described under:
1. Industry Group Nos. 3111 through 3119 of the NAICS Manual
shall be required to:
a. have an annual gross payroll for new direct jobs
projected by the Department to equal or exceed One
Million Five Hundred Thousand Dollars ($1,500,000.00)
within three (3) years of the first complete calendar
quarter following the start date and make, or which
will make within one (1) year, at least seventy-five
percent (75%) of its total sales, as determined by the
Incentive Approval Committee pursuant to the
provisions of subsection B of Section 3603 of this

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title, to out-of-state customers or buyers, to in-
state customers or buyers if the product or service is
resold by the purchaser to an out-of-state customer or
buyer for ultimate use, or to the federal government,
unless the annual gross payroll equals or exceeds Two
Million Five Hundred Thousand Dollars ($2,500,000.00)
in which case the requirements for purchase of output
provided by this subparagraph shall not apply, and
b. have a number of full-time-equivalent employees
working an average of thirty (30) or more hours per
week in new direct jobs equal to or in excess of
eighty percent (80%) of the total number of new direct
jobs; and
2. Division (4) of subparagraph a of paragraph 1 of subsection
A of Section 3603 of this title, shall be required to:
a. have an annual gross payroll for new direct jobs
projected by the Department to equal or exceed One
Million Five Hundred Thousand Dollars ($1,500,000.00)
within three (3) years of the first complete calendar
quarter following the start date, and
b. have a number of full-time-equivalent employees
working an average of thirty (30) or more hours per
week in new direct jobs equal to or in excess of

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eighty percent (80%) of the total number of new direct
jobs.
E. 1. An establishment which locates its principal business
activity within a site consisting of at least ten (10) acres which:
a. is a federal Superfund removal site,
b. is listed on the National Priorities List established
under Section 9605 of Title 42 of the United States
Code,
c. has been formally deferred to the state in lieu of
listing on the National Priorities List, or
d. has been determined by the Department of Environmental
Quality to be contaminated by any substance regulated
by a federal or state statute governing environmental
conditions for real property pursuant to an order of
the Department of Environmental Quality,
shall qualify for incentive payments irrespective of its actual
gross payroll or the number of full-time-equivalent employees
engaged in new direct jobs.
2. In order to qualify for the incentive payments pursuant to
this subsection, the establishment shall conduct the activity
resulting in at least fifty percent (50%) of its Oklahoma taxable
income or adjusted gross income, as determined under Section 2358 of
this title, whether from the sale of products or services or both
products and services, at the physical location which has been

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determined not to comply with the federal or state statutes
described in this subsection with respect to environmental
conditions for real property. The establishment shall be subject to
all other requirements of the Oklahoma Quality Jobs Program Act
other than the exemptions provided by this subsection.
3. In order to qualify for the incentive payments pursuant to
this subsection, the entity shall obtain from the Department of
Environmental Quality a letter of concurrence that:
a. the site designated by the entity does meet one or
more of the requirements listed in paragraph 1 of this
subsection, and
b. the site is being or has been remediated to a level
which is consistent with the intended use of the
property.
In making its determination, the Department of Environmental
Quality may rely on existing data and information available to it,
but may also require the applying entity to provide additional data
and information, as necessary.
4. If authorized by the Department of Environmental Quality
pursuant to paragraph 3 of this subsection, the entity may utilize a
remediated portion of the property for its intended purpose prior to
remediation of the remainder of the site, and shall qualify for
incentive payments based on employment associated with the portion
of the site.

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F. Except as otherwise provided by subsection G of this
section, for applications submitted on and after June 4, 2003, in
order to qualify to receive incentive payments as authorized by the
Oklahoma Quality Jobs Program Act, in addition to other
qualifications specified herein, an establishment shall be required
to pay new direct jobs an average annualized wage which equals or
exceeds:
1. One hundred ten percent (110%) of the average county wage as
determined by the Oklahoma Department of Commerce based on the most
recent U.S. United States Department of Commerce data for the county
in which the new direct jobs are located. For purposes of this
paragraph, health care premiums paid by the applicant for
individuals in new direct jobs shall be included in the annualized
wage; or
2. One hundred percent (100%) of the average county wage as
that percentage is determined by the Oklahoma Department of Commerce
based upon the most recent U.S. United States Department of Commerce
data for the county in which the new jobs are located. For purposes
of this paragraph, health care premiums paid by the applicant for
individuals in new direct jobs shall not be included in the
annualized wage.
Provided, for applications submitted before January 1, 2027, no
average wage requirement shall exceed Twenty-five Thousand Dollars
($25,000.00), in any county. This maximum wage threshold shall be

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indexed and modified from time to time based on the latest Consumer
Price Index year-to-date percent change release as of the date of
the annual average county wage data release from the Bureau of
Economic Analysis of the U.S. United States Department of Commerce.
G. 1. As used in this subsection, “opportunity zone” means one
or more census tracts in which, according to the most recent Federal
Decennial Census, at least thirty percent (30%) of the residents
have annual gross household incomes from all sources below the
poverty guidelines established by the U.S. United States Department
of Health and Human Services. An establishment which is otherwise
qualified to receive incentive payments and which locates its
principal business activity in an opportunity zone shall not be
subject to the requirements of subsection F of this section.
2. As used in this subsection:
a. “negative economic event” means:
(1) a man-made disaster or natural disaster as
defined in Section 683.3 of Title 63 of the
Oklahoma Statutes, resulting in the loss of a
significant number of jobs within a particular
county of this state, or
(2) an economic circumstance in which a significant
number of jobs within a particular county of this
state have been lost due to an establishment
changing its structure, consolidating with

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another establishment, closing or moving all or
part of its operations out of this state, and
b. “significant number of jobs” means Local Area
Unemployment Statistics (LAUS) data, as determined by
the United States Bureau of Labor Statistics, for a
county which are equal to or in excess of five percent
(5%) of the total amount of Local Area Unemployment
Statistics (LAUS) data for that county for the
calendar year, or most recent twelve-month period in
which employment is measured, preceding the event.
An establishment which is otherwise qualified to receive
incentive payments and which locates in a county in which a negative
economic event has occurred within the eighteen-month period
preceding the start date shall not be subject to the requirements of
subsection F of this section; provided, an establishment shall not
be eligible to receive incentive payments based upon a negative
economic event with respect to jobs that are transferred from one
county of this state to another.
H. The Oklahoma Department of Commerce shall determine if the
applicant is qualified to receive incentive payments.
I. If the applicant is determined to be qualified by the
Department and is not subject to the provisions of subparagraph d of
paragraph 7 of subsection A of Section 3603 of this title, the
Department shall conduct a cost/benefit cost-benefit analysis to

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determine the estimated net direct state benefits and the net
benefit rate applicable for a ten-year period beginning with the
first complete calendar quarter following the start date and to
estimate the amount of gross payroll for a ten-year period beginning
with the first complete calendar quarter following the start date or
for a thirty-year period for an establishment defined or classified
in the NAICS Manual under U.S. Industry No. 711211 (2007 version).
In conducting such cost/benefit cost-benefit analysis, the
Department shall consider quantitative factors, such as the
anticipated level of new tax revenues to the state along with the
added cost to the state of providing services, and such other
criteria as deemed appropriate by the Department. In no event shall
incentive payments, cumulatively, exceed the estimated net direct
state benefits, except for applicants subject to the provisions of
subparagraph d of paragraph 7 of subsection A of Section 3603 of
this title.
J. Upon approval of such an application, the Department shall
notify the Tax Commission and shall provide it with a copy of the
contract and the results of the cost/benefit cost-benefit analysis.
The Tax Commission may require the qualified establishment to submit
such additional information as may be necessary to administer the
provisions of the Oklahoma Quality Jobs Program Act. The approved
establishment shall file quarterly claims with the Tax Commission
and shall continue to file such quarterly claims during the ten-year

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incentive period to show its continued eligibility for incentive
payments, as provided in Section 3606 of this title, or until it is
no longer qualified to receive incentive payments. The
establishment may be audited by the Tax Commission to verify such
eligibility. Once the establishment is approved, an agreement shall
be deemed to exist between the establishment and the State of
Oklahoma, requiring the continued incentive payment to be made as
long as the establishment retains its eligibility as defined in and
established pursuant to this section and Sections 3603 and 3606 of
this title and within the limitations contained in the Oklahoma
Quality Jobs Program Act, which existed at the time of such
approval. An establishment described in this subsection shall be
required to repay all incentive payments received under the Oklahoma
Quality Jobs Program Act if the establishment is determined by the
Oklahoma Tax Commission to no longer have business operations in the
state within three (3) years from the beginning of the calendar
quarter for which the first incentive payment claim is filed.
K. A municipality with a population of less than one hundred
thousand (100,000) persons in which an establishment eligible to
receive quarterly incentive payments pursuant to the provisions of
this section is located may file a claim with the Tax Commission for
up to twenty-five percent (25%) of the amount of such payment. The
amount of such claim shall not exceed amounts paid by the
municipality for direct costs of municipal infrastructure

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improvements to provide water and sewer service to the
establishment. Such claim shall not be approved by the Tax
Commission unless the municipality and the establishment have
entered into a written agreement for such claims to be filed by the
municipality prior to submission of the application of the
establishment pursuant to the provisions of this section. If such
claim is approved, the amount of the payment to the establishment
made pursuant to the provisions of Section 3606 of this title shall
be reduced by the amount of the approved claim by the municipality
and the Tax Commission shall issue a warrant to the municipality in
the amount of the approved claim in the same manner as warrants are
issued to qualifying establishments.
L. For any contract executed by an establishment on or after
August 2, 2018, five percent (5%) of the quarterly incentive payment
amount shall be transferred by the Oklahoma Tax Commission to the
Oklahoma Quick Action Closing Fund.
SECTION 3. AMENDATORY 68 O.S. 2021, Section 3604.1, is
amended to read as follows:
Section 3604.1. A. A qualified federal contractor may receive
quarterly incentive payments for renewable ten-year periods from the
Oklahoma Tax Commission pursuant to the provisions of the Oklahoma
Quality Jobs Program Act and the provisions of this section.
B. The amount of such payments shall be equal to a net benefit
rate of not less than twenty-five hundredths one-hundredths of one

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percent (0.25%), but not greater than two percent (2%), multiplied
by the total qualified labor hours worked by employees of the
federal contractor or employees of a qualified federal
subcontractor, or both, pursuant to a qualified federal contract for
a calendar quarter as verified by the Oklahoma Employment Security
Commission and certified by a qualified federal contractor verifier.
The net benefit rate for a qualified federal contractor shall be
scaled to annual subcontracting goals that account for both total
qualified subcontract labor hours and the ratio of qualified
subcontract labor hours to total qualified labor hours. Unless
limited by the cost/benefit cost-benefit analysis, the net benefit
rate shall:
1. Not exceed twenty-five hundredths one-hundredths of one
percent (0.25%) when annual qualified subcontract labor hours are
less than Two Hundred Thousand Dollars ($200,000.00) or when annual
qualified subcontract labor is less than one percent (1%) of the
annual total qualified labor hours claimed;
2. Not be less than five-tenths of one percent (0.5%) when
subcontract goals are met with a minimum of Two Hundred Thousand
Dollars ($200,000.00) of annual total qualified subcontractor labor
hours and these hours are a minimum of one percent (1%) of the
annual total qualified hours claimed;
3. Not be less than one percent (1%) when subcontract goals are
met with a minimum of One Million Dollars ($1,000,000.00) of annual

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total qualified subcontractor labor hours and when these hours
represent a minimum of five percent (5%) of the annual total
qualified hours claimed;
4. Not be less than one and five-tenths percent (1.5%) when
subcontract goals are met with a minimum of Two Million Dollars
($2,000,000.00) of annual total qualified subcontractor labor hours
and these hours are a minimum of ten percent (10%) of the annual
total qualified hours claimed; and
5. Not be less than two percent (2.0%) when subcontract goals
are met with a minimum of Four Million Dollars ($4,000,000.00) of
annual total qualified subcontractor labor hours and these hours are
a minimum of twenty percent (20%) of the annual total qualified
hours claimed.
C. In order to receive incentive payments, a qualified federal
contractor shall apply to the Oklahoma Department of Commerce within
one hundred eighty (180) days following the date of the award of a
qualified federal contract or award of a new qualified subcontract
under an existing qualified federal contract. The application shall
be on a form prescribed by the Department and shall contain such
information as may be required by the Department to determine if the
applicant is qualified. Once qualified by the Department, the
applicant shall submit qualified federal contracts to the federal
contract verifier. The federal contract verifier shall establish
with the applicant an information system(s) or contract(s) as may be

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required to certify the total qualified labor hours, qualified labor
rates, and reimbursement through the qualified federal contract. A
qualified federal contractor may apply for an effective date for a
project, which shall not be more than twenty-four (24) months from
the date the application is submitted to the Department. No state
agency shall be required to make any payment to a qualified federal
contract verifier for any information needed by the agency to
perform any duty imposed upon it pursuant to the provisions of
Section 3601 et seq. of this title. All costs for the federal
contract verifier shall be reimbursed through value-added services
on the qualified federal contract or other mechanisms agreed to by
the federal contractor verifier and the federal contract performers.
D. In order to qualify to receive incentive payments as
authorized by the Oklahoma Quality Jobs Program Act, in addition to
other qualifications specified herein, a qualified federal
contractor shall be required to pay direct jobs an average
annualized wage which equals or exceeds:
1. One hundred ten percent (110%) of the average county wage as
determined by the Oklahoma Department of Commerce based on the most
recent U.S. United States Department of Commerce data for the county
in which the new direct jobs are located. For purposes of this
paragraph, health care premiums paid by the applicant for
individuals in new direct jobs shall be included in the annualized
wage; or

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2. One hundred percent (100%) of the average county wage as
that percentage is determined by the Oklahoma Department of Commerce
based upon the most recent U.S. United States Department of Commerce
data for the county in which the new jobs are located. For purposes
of this paragraph, health care premiums paid by the applicant for
individuals in new direct jobs shall not be included in the
annualized wage.
Provided, for applications submitted before January 1, 2027, no
average wage requirement shall exceed Twenty-nine Thousand Four
Hundred Nine Dollars ($29,409.00), in any county. This maximum wage
threshold shall be indexed and modified from time to time based on
the latest Consumer Price Index year-to-date percent change release
as of the date of the annual average county wage data release from
the Bureau of Economic Analysis of the U.S. United States Department
of Commerce.
3. For qualified subcontractor work, the qualified federal
contractor shall have a minimum average qualified labor rate
requirement paid to the subcontractor of Thirty-one Dollars ($31.00)
per hour, in any county. This maximum wage threshold shall be
indexed and modified from time to time based on the latest Consumer
Price Index year-to-date percent change release as of the date of
the annual average county wage data release from the Bureau of
Economic Analysis of the U.S. United States Department of Commerce.

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E. The Oklahoma Department of Commerce shall determine if the
applicant is qualified to receive incentive payments using
information supplied to the Department by the qualified federal
contractor verifier. The NAICS North American Industry
Classification System (NAICS) code or codes under which the federal
government awarded the qualified federal contract shall be used to
determine the basic industry for a qualified federal contractor.
For federal contracts awarded under NAICS codes not within the
definition of basic industry pursuant to paragraph 1 of subsection A
of Section 3603 of this title, the Oklahoma Department of Commerce,
with the federal contract verifier, may evaluate and utilize
individual statement of work items that would qualify within a basic
industry definition.
F. If the applicant is determined to be qualified by the
Department, the Department shall conduct a cost/benefit cost-benefit
analysis to determine the estimated net direct state benefits and
the net benefit rate, as provided by subsection B of this section,
applicable for a ten-year period beginning with the first complete
calendar quarter following the start date and to estimate the amount
of gross payroll and total qualified labor hours for a ten-year
period beginning with the first complete calendar quarter following
the start date. In conducting such cost/benefit cost-benefit
analysis, the Department shall consider quantitative factors, such
as the anticipated level of new tax revenues to the state along with

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the added cost to the state of providing services, and such other
criteria as deemed appropriate by the Department. In no event shall
incentive payments, cumulatively, exceed the estimated net direct
state benefits. Using this net cost/benefit cost-benefit analysis
model, the Department may establish the renewable ten-year contract
with a qualified federal contractor at the entity level to encompass
any current or future qualified federal contracts that meet the
cost/benefit cost-benefit analysis metrics as determined by the
federal contractor verifier and confirmed by the Department.
G. Upon approval of such an application, the Department shall
notify the Tax Commission and shall provide it with a copy of the
contract that has been cosigned by the federal contractor verifier
and the results of the cost/benefit cost-benefit analysis. The Tax
Commission may require the qualified federal contractor, federal
contract verifier, and qualified subcontractors to submit such
additional information as may be necessary to administer the
provisions of the Oklahoma Quality Jobs Program Act. The approved
qualified federal contractor shall file quarterly claims with the
Tax Commission and shall continue to file such quarterly claims
during the ten-year incentive period to show its continued
eligibility for incentive payments, as provided in Section 3606 of
this title, or until it is no longer qualified to receive incentive
payments. The qualified federal contractor may be audited by the
Tax Commission to verify such eligibility. Once the qualified

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federal contractor is approved, an agreement shall be deemed to
exist between the qualified federal contractor and the State of
Oklahoma this state, requiring the continued incentive payment to be
made as long as the qualified federal contractor retains its
eligibility as defined in and established pursuant to this section
and Sections 3603 and 3606 of this title and within the limitations
contained in the Oklahoma Quality Jobs Program Act, which existed at
the time of such approval.
H. For qualified federal contracts with periods of performance
exceeding two (2) years, if the actual annual verified gross
qualified labor hours for four (4) consecutive calendar quarters
does do not equal or exceed Two Million Five Hundred Thousand
Dollars ($2,500,000.00) within three (3) years of the start date, or
does do not equal or exceed actual annual gross qualified labor
hours of Two Million Five Hundred Thousand Dollars ($2,500,000.00)
at any other time during the ten-year period after the start date,
the incentive payments shall not be made and shall not be resumed
until such time as the actual annual qualified labor hours exceed
Two Million Five Hundred Thousand Dollars ($2,500,000.00).
I. If the average annualized wage or minimum average qualified
labor rate required by subsection H of this section is not met
during any calendar quarter, the incentive payments shall not be
made and shall not be resumed until such time as such requirements
are met.

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J. Before approving a quarterly incentive payment for a
qualified federal contract, the federal contract verifier must first
determine through the Department that neither the qualified federal
contractor nor the subcontractor are receiving incentive payments
under the Oklahoma Quality Jobs Program Act, the Saving Quality Jobs
Act, the 21st Century Quality Jobs Incentive Act or the Former
Military Facility Development Act for the performance of the same
such services under the qualified federal contract and is not
qualified for approval of an application for incentive payments
under the Oklahoma Quality Jobs Program Act, the Saving Quality Jobs
Act, the 21st Century Quality Jobs Incentive Act or the Former
Military Facility Development Act for the performance of the same
such services under the qualified federal contract. If the
qualified federal contractor or the subcontractor are is receiving
or have has an approved application for incentive payments under the
Oklahoma Quality Jobs Program Act, the Saving Quality Jobs Act, the
21st Century Quality Jobs Incentive Act or the Former Military
Facility Development Act for the performance of the same such
services under the qualified federal contract, each may choose to
defer in part or in entirety the other incentives for the qualified
federal contractor to receive the incentives pursuant to subsection
B of this section. The federal contract verifier shall confirm any
deferrals and ensure the total for all quality jobs incentive
payments on any individual does not exceed the total net benefit to

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the state. Should neither the federal contractor nor the
subcontractor defer in part or in entirety their incentive payments
such that the total for all Quality Jobs quality jobs incentive
payments exceeds the total net benefit to the state, the priority
for incentive payments shall go to the entity with the earliest
recognized start date indentified identified within the current
Oklahoma Department of Commerce Quality Jobs quality jobs contract.
SECTION 4. AMENDATORY 68 O.S. 2021, Section 3606, as
last amended by Section 2, Chapter 29, 1st Extraordinary Session,
O.S.L. 2023 (68 O.S. Supp. 2025, Section 3606), is amended to read
as follows:
Section 3606. A. As soon as practicable Within one (1) year
after the end of the first complete calendar quarter following the
start date, the establishment shall file a claim for the payment
with the Oklahoma Tax Commission and shall specify the actual number
and gross payroll of new direct jobs for the establishment for the
calendar quarter. The Tax Commission shall verify the actual gross
payroll for new direct jobs for the establishment for such calendar
quarter. If the Tax Commission is not able to provide such
verification utilizing all available resources, the Tax Commission
may request such additional information from the establishment as
may be necessary or may request the establishment to revise its
claim. An establishment may file for an extension of the initial
filing date with the Oklahoma Department of Commerce. Any such

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extension shall be based solely upon an extraordinary adverse
business circumstance which prevented the establishment from hiring
the new direct jobs as projected. If an establishment fails to file
claims as required by this section, it shall forfeit the right to
receive any incentive payments after three (3) years from the start
date. If an establishment has filed at least one claim pursuant to
this section but fails to file another claim within two (2) years of
the most recent claim, the Tax Commission, after consulting with the
Oklahoma Department of Commerce, may dismiss the establishment from
the program, forfeiting the establishment’s right to receive
incentive payments based on that contract.
B. 1. Except as otherwise provided in paragraph 2 of this
subsection, if the actual verified gross payroll for four (4)
consecutive calendar quarters does not equal or exceed the
applicable total required by Section 3604 of this title within three
(3) years of the start date, or does not equal or exceed the
applicable total required by Section 3604 of this title at any other
time during the ten-year period after the start date or during the
thirty-year period after the start date for establishments defined
or classified in the NAICS North American Industry Classification
System (NAICS) Manual under U.S. Industry No. 711211 (2007 version),
the incentive payments shall not be made and shall not be resumed
until such time as the actual verified gross payroll equals or
exceeds the amounts specified in Section 3604 of this title. If an

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establishment fails to achieve the required gross payroll within
three (3) years of the start date, the establishment shall not make
a new or renewal application for incentive payments authorized
pursuant to the Oklahoma Quality Jobs Program Act for a period of
twelve (12) months from the last day of the last month of the three-
year period during which the required gross payroll amount was not
achieved.
2. Any establishment which does not meet the quarterly payroll
requirements provided pursuant to paragraph 1 of this subsection
during the time period which begins on April 1, 2020, and ends on
June 30, 2021, shall continue to receive incentive payments and
shall be exempt from the prescribed limitations.
C. If the average annualized wage required for an establishment
does not equal or exceed the amount specified in paragraph 1 or 2 of
subsection F of Section 3604 of this title during any calendar
quarter, the incentive payments shall not be made and shall not be
resumed until such time as such requirements are met.
D. In no event shall incentive payments, cumulatively, exceed
the estimated net direct state benefits, except for establishments
subject to the provisions of subparagraph d of paragraph 7 of
subsection A of Section 3603 of this title.
E. An establishment that has qualified pursuant to Section 3604
of this title may receive payments only in accordance with the
provisions of the law under which it initially applied and was

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approved. If an establishment that is receiving incentive payments
expands, it may apply for additional incentive payments based on the
gross payroll anticipated from the expansion only, pursuant to
Section 3604 of this title. Provided, an establishment which has
suffered an extraordinary adverse business circumstance, as
certified by the Incentive Approval Committee, may be allowed to
voluntarily withdraw from the Oklahoma Quality Jobs Program, repay
to the Tax Commission the total amount of incentive payments
received pursuant to the provisions of this section, plus interest
at the rate specified in Section 727.1 of Title 12 of the Oklahoma
Statutes, and reapply to the Department for a new incentive contract
if the establishment qualifies pursuant to the provisions of the
Oklahoma Quality Jobs Program Act. Any funds received by the Tax
Commission pursuant to the provisions of this subsection shall be
apportioned in the manner that income tax revenues are apportioned.
F. An establishment that is receiving incentive payments may
not apply for additional incentive payments for any new projects
until twelve (12) quarters after receipt of the first incentive
payment, or until the establishment’s actual verified gross payroll
for new direct jobs equals or exceeds Two Million Five Hundred
Thousand Dollars ($2,500,000.00) during any four consecutive-
calendar-quarter period, whichever comes first. After meeting the
requirements of this subsection, an establishment may apply for

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additional incentive payments based upon the gross payroll
anticipated from an expansion only.
G. As soon as practicable after verification of the actual
gross payroll as required by this section and except as otherwise
provided by subsection K of Section 3604 of this title, the Tax
Commission shall issue a warrant to the establishment in the amount
of the net benefit rate multiplied by the actual gross payroll as
determined pursuant to subsection A of this section for the calendar
quarter.
SECTION 5. AMENDATORY 68 O.S. 2021, Section 3903, is
amended to read as follows:
Section 3903. As used in the Small Employer Quality Jobs
Incentive Act:
1. “Basic industry” means a basic industry as defined under the
Oklahoma Quality Jobs Program Act in divisions (1) through (9) of
subparagraph a of paragraph 1 of subsection A of Section 3603 of
this title, excluding those activities described in division (10) of
subparagraph a of paragraph 1 of subsection A of Section 3603 of
this title. Provided, for the purposes of the Small Employer
Quality Jobs Incentive Act, the determination required by
subdivision (b) of division (7) or division (8) of subparagraph a of
paragraph 1 of subsection A of Section 3603 of this title shall be
made by the Oklahoma Department of Commerce and not the Incentive
Approval Committee;

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2. “Establishment” means any business, no matter what legal
form, including, but not limited to, a sole proprietorship,
partnership, corporation, or limited liability corporation;
3. “Estimated direct state benefits” means the tax revenues
projected by the Oklahoma Department of Commerce to accrue to the
state as a result of new direct jobs;
4. “Estimated direct state costs” means the costs projected by
the Department to accrue to the state as a result of new direct
jobs. Such costs shall include, but not be limited to:
a. the costs of education of new state resident children,
b. the costs of public health, public safety and
transportation services to be provided to new state
residents,
c. the costs of other state services to be provided to
new state residents, and
d. the costs of other state services;
5. “Estimated net direct state benefits” means the estimated
direct state benefits less the estimated direct state costs;
6. “Full-time employment” means employment of persons residing
in this state and working for thirty (30) hours per week or more in
this state, which has a minimum six-month duration during any
twelve-month period;
7. “Gross taxable payroll” means wages, as defined in Section
2385.1 of this title, for new direct jobs;

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8. “Net benefit rate” means the estimated net direct state
benefits computed as a percentage of gross payroll; provided:
a. the net benefit rate may be variable and shall not
exceed five percent (5%) the highest rate of income
tax imposed upon the Oklahoma taxable income of
individuals pursuant to subsection D of Section 2355
of this title. Any change in the highest rate of
individual income tax imposed pursuant to the
provisions of Section 2355 of this title shall be
applicable to the computation of incentive payments to
an establishment and shall be effective for purposes
of incentive payments based on payroll paid by an
establishment on or after January 1 of any applicable
year for which the net benefit rate is modified as
required by this subparagraph, and
b. in no event shall incentive payments, cumulatively,
exceed the estimated net direct state benefits; and
9. “New direct job” means full-time employment which did not
exist in this state prior to the date of approval, by the Oklahoma
Department of Commerce, of an application made pursuant to the Small
Employer Quality Jobs Incentive Act. A job shall be deemed to exist
in this state prior to approval of an application if the activities
and functions for which the particular job exists have been ongoing
at any time within six (6) months prior to such approval.

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SECTION 6. AMENDATORY 68 O.S. 2021, Section 3905, is
amended to read as follows:
Section 3905. A. 1. Beginning with the first complete
calendar quarter after the application of the establishment is
approved by the Oklahoma Department of Commerce, the establishment
shall begin filing quarterly reports with the Oklahoma Tax
Commission that specify the actual number and individual gross
taxable payroll of new direct jobs for the establishment and such
other information as required by the Tax Commission. In no event
shall the first claim for incentive payments be filed later than
three (3) years one (1) year from the start date designated by the
Department. The Tax Commission shall verify the actual individual
gross taxable payroll for new direct jobs. If the Tax Commission is
not able to provide such verification utilizing all available
resources, the Tax Commission may request additional information
from the establishment as may be necessary or may request the
establishment to revise its reports.
The establishment shall continue filing such reports during the
seven-year incentive period or until it is no longer qualified to
receive incentive payments. Such reports shall constitute a claim
for quarterly incentive payments by the establishment.
2. Upon receipt of a report for the initial calendar quarter of
the incentive period and for each subsequent calendar quarter

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thereafter, the Tax Commission shall determine if the establishment
has met the following requirements:
a. created and or maintained the minimum number of new
direct jobs as specified in paragraph 3 of subsection
C of Section 3904 of this title, and
b. paid the individuals it employed in new direct jobs an
annualized wage which equaled or exceeded the
applicable percentage of the average county wage as
that percentage was determined by the Oklahoma
Department of Commerce upon approval of the
application.
3. Upon determining that an establishment has met the
requirements of paragraph 2 of this subsection for the initial
calendar quarter of the incentive period, the Tax Commission shall
issue a warrant to the establishment in an amount which shall be
equal to the net benefit rate multiplied by the amount of gross
taxable payroll of new direct jobs actually paid by the
establishment.
B. Except as provided in subsection C of this section, the
quarterly incentive payment provided for in subsection A of this
section shall be allowed in each of the twenty-seven subsequent
calendar quarters.
C. 1. An establishment which does not meet the requirements of
paragraph 2 of subsection A of this section within twelve (12)

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months of the date of its application, or after July 1, 2011, within
twenty-four (24) months of the date of its application, shall be
ineligible to receive any incentive payments pursuant to its
application and approval.
2. An establishment which at any time during the twenty-seven
subsequent calendar quarters does not meet the requirements of
paragraph 2 of subsection A of this section shall be ineligible to
receive an incentive payment during the calendar quarter in which
such requirements are not met.
SECTION 7. AMENDATORY 68 O.S. 2021, Section 3913, is
amended to read as follows:
Section 3913. As used in the 21st Century Quality Jobs
Incentive Act:
1. “Basic industry” means:
a. a basic industry as defined under the Oklahoma Quality
Jobs Program Act in divisions (1) through (9) of
subparagraph a of paragraph 1 of subsection A of
Section 3603 of Title 68 of the Oklahoma Statutes,
excluding those activities described in division (10)
of subparagraph a of paragraph 1 of subsection A of
Section 3603 of Title 68 of the Oklahoma Statutes.
For the purposes of this act, if a determination is
required by subdivision (b) of division (7) or by
division (9) of subparagraph a of paragraph 1 of

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subsection A of Section 3603 of Title 68 of the
Oklahoma Statutes, such determination shall be:
(1) made by the Oklahoma Department of Commerce and
not by the Incentive Approval Committee, and
(2) based on a requirement that those industries that
are required to have at least seventy-five
percent (75%) of total sales to out-of-state
customers or buyers for purposes of the Quality
Jobs Program Act shall only be required to have
fifty percent (50%) of total sales, as determined
by the Department of Commerce, to out-of-state
customers or buyers, to in-state customers or
buyers if the product or service is resold by the
purchaser to an out-of-state customer or buyer
for ultimate use, or to the federal government,
for the purposes of this act,
b. (1) those specialty hospitals (except psychiatric and
substance abuse hospitals) defined or classified
in the NAICS Manual under U.S. Industry Group No.
62231, and
(2) those performing arts companies defined or
classified in the NAICS Manual under U.S.
Industry Group No.7111, and

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c. an establishment classified in this subparagraph which
has or will have within one (1) year sales of at least
fifty percent (50%) of its total sales, as determined
by the Department of Commerce, to out-of-state
customers or buyers, to in-state customers or buyers
if the product or service is resold by the purchaser
to an out-of-state customer or buyer for ultimate use,
or to the federal government:
(1) those electric utility activities defined or
classified in the NAICS Manual under U.S.
Industry Group No. 2211 which meet the
requirements of subdivisions a, b and d of
division 2 of subparagraph a of paragraph 1 of
Section 3603 of Title 68 of the Oklahoma
Statutes,
(2) those heavy and civil engineering construction
activities defined or classified in the NAICS
Manual under U.S. Industry Group No. 237,
(3) those motion picture and video industries defined
or classified in the NAICS Manual under U.S.
Industry Group No. 5121,
(4) those sound recording industries defined or
classified in the NAICS Manual under U.S.
Industry Group No. 5122,

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(5) those securities, commodity contracts and other
financial investment activities defined or
classified in the NAICS Manual under U.S.
Industry Group No. 523,
(6) those insurance carriers and related activities
defined or classified in the NAICS Manual under
U.S. Industry Group No. 524,
(7) those funds, trusts and other financial vehicles
defined or classified in the NAICS Manual under
U.S. Industry Group No. 525,
(8) those professional, scientific and technical
services defined or classified in the NAICS
Manual under U.S. Industry Group Nos. 5411, 5412,
5413, 5414, 5418 and 5419, and
(9) those electronic and precision equipment repair
and maintenance activities defined or classified
in the NAICS Manual under U.S. Industry Group No.
8112;
2. “Establishment” means any business, no matter what legal
form, including, but not limited to, a sole proprietorship,
partnership, corporation, or limited liability corporation;
3. “Estimated direct state benefits” means the tax revenues
projected by the Oklahoma Department of Commerce to accrue to the
state as a result of new direct jobs;

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4. “Estimated indirect state benefits” means the indirect new
tax revenues projected by the Oklahoma Department of Commerce to
accrue to the state, including, but not limited to, revenue
generated from ancillary support jobs directly related to the
establishment;
5. “Estimated direct state costs” means the costs projected by
the Department to accrue to the state as a result of new direct
jobs. Such costs shall include, but not be limited to:
a. the costs of education of new state resident children,
b. the costs of public health, public safety and
transportation services to be provided to new state
residents,
c. the costs of other state services to be provided to
new state residents, and
d. the costs of other state services;
6. “Estimated indirect state costs” means the costs projected
by the Department to accrue to the state as a result of new indirect
jobs. Such costs shall include, but not be limited to, costs
enumerated in subparagraphs a, b, c and d of paragraph 5 of this
subsection;
7. “Estimated net direct state benefits” means the estimated
direct state benefits less the estimated direct state costs;

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8. “Estimated net direct and indirect state benefits” means the
estimated direct and indirect state benefits less the estimated
direct and indirect state costs;
9. “Full-time employment” means employment of persons residing
in this state and working for thirty (30) hours per week or more in
this state, which has a minimum six-month duration during any
twelve-month period;
10. “Gross taxable payroll” means wages, as defined in Section
2385.1 of Title 68 of the Oklahoma Statutes, for new direct jobs;
11. “Initial net benefit rate” means the estimated net direct
state benefits computed as a percentage of gross payroll; provided:
a. the initial net benefit rate may be variable and shall
not exceed seven percent (7%) the highest rate of
income tax imposed upon the Oklahoma taxable income of
individuals pursuant to subsection D of Section 2355
of this title. Any change in the highest rate of
individual income tax imposed pursuant to the
provisions of Section 2355 of this title shall be
applicable to the computation of incentive payments to
an establishment and shall be effective for purposes
of incentive payments based on payroll paid by an
establishment on or after January 1 of any applicable
year for which the net benefit rate is modified as
required by this subparagraph, and

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b. in no event shall incentive payments, cumulatively,
exceed the estimated net direct state benefits; and
12. “Fulfillment net benefit rate” means the estimated net
direct and indirect state benefits computed as a percentage of gross
payroll after the completion of the first twelve (12) quarters or
until the establishment reaches ten new direct jobs, whichever
occurs first, provided:
a. the fulfillment net benefit rate may be variable and
shall not exceed ten percent (10%) the highest rate of
income tax imposed upon the Oklahoma taxable income of
individuals pursuant to subsection D of Section 2355
of this title. Any change in the highest rate of
individual income tax imposed pursuant to the
provisions of Section 2355 of this title shall be
applicable to the computation of incentive payments to
an establishment and shall be effective for purposes
of incentive payments based on payroll paid by an
establishment on or after January 1 of any applicable
year for which the previous net benefit rate is
modified as required by this subparagraph, and
b. in no event shall incentive payments, cumulatively,
exceed the estimated net direct and indirect state
benefits; and

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13. “New direct job” means full-time employment which did not
exist in this state prior to the date of approval, by the Oklahoma
Department of Commerce, of an application made pursuant to this act.
A job shall be deemed to exist in this state prior to approval of an
application if the activities and functions for which the particular
job exists have been ongoing at anytime within six (6) months prior
to such approval.
SECTION 8. AMENDATORY 68 O.S. 2021, Section 3914, is
amended to read as follows:
Section 3914. A. Except for the payment amount required by
subsection E of this section, an establishment which meets the
qualifications specified in the 21st Century Quality Jobs Incentive
Act may receive quarterly incentive payments for a ten-year period
from the Oklahoma Tax Commission pursuant to the provisions of this
act the 21st Century Quality Jobs Incentive Act, as verified by the
Tax Commission, in an amount equal to:
1. The gross payroll multiplied by the initial net benefit rate
until such time as the establishment creates ten new direct jobs; or
2. The gross payroll multiplied by the fulfillment net benefit
rate after such time as the establishment created and maintains ten
new direct jobs.
B. In order to receive incentive payments, an establishment
shall apply to the Oklahoma Department of Commerce. The application
shall be on a form prescribed by the Department and shall contain

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such information as may be required by the Department to determine
if the applicant is qualified. The establishment may apply for an
effective date for a project, which shall not be more than twelve
(12) months from the date the application is submitted to the
Department.
C. Before approving an application for incentive payments, the
Department must first determine that the applicant meets the
following requirements:
1. Be engaged in a basic industry as defined in the 21st
Century Quality Jobs Incentive Act;
2. Will hire at least ten full-time employees in this state
within twelve (12) quarters of the date of application;
3. Will pay the individuals it employs in new direct jobs an
average annualized wage which equals or exceeds three hundred
percent (300%) of the average county wage for the county in which
the applicant is located as that percentage is determined by the
Oklahoma Department of Commerce based on the most recent U.S. United
States Department of Commerce data. For purposes of this paragraph,
health care premiums paid by the applicant for individuals in new
direct jobs shall not be included in the annualized wage. Provided,
for applications submitted before January 1, 2027, no average wage
requirement shall exceed Ninety-four Thousand Dollars ($94,000.00)
in any county. This maximum wage threshold shall be indexed and
modified from time to time based on the latest Consumer Price Index

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year-to-date percent change release as of the date of the annual
average county wage data release from the Bureau of Economic
Analysis of the U.S. United States Department of Commerce;
4. Has a basic health benefit plan which, as determined by the
Department, meets the elements established under divisions (1)
through (7) of subparagraph b of paragraph 1 of subsection A of
Section 3603 of this title and which will be offered to individuals
within twelve (12) months of employment in a new direct job;
5. Has not received incentive payments under the Small Employer
Quality Jobs Program Incentive Act, the Saving Quality Jobs Act or
the Former Military Facility Development Act; and
6. Is not qualified for approval of an application for
incentive payments under the Small Employer Quality Jobs Program
Incentive Act, the Saving Quality Jobs Act or the Former Military
Facility Development Act.
D. The Oklahoma Department of Commerce shall determine if an
applicant is qualified to receive the incentive payment. Upon
qualifying the applicant, the Department shall notify the Tax
Commission and shall provide it with a copy of the contract and
approval which shall provide the number of persons employed by the
applicant upon the date of approval and the maximum total incentives
which may be paid to the applicant during the ten-year period. The
Tax Commission may require the qualified establishment to submit
additional information as may be necessary to administer the

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provisions of this act the 21st Century Quality Jobs Incentive Act.
The approved establishment shall report to the Tax Commission
quarterly to show its continued eligibility for incentive payments,
as provided in Section 3905 of this title. Establishments may be
audited by the Tax Commission to verify such eligibility. Once the
establishment is approved, an agreement shall be deemed to exist
between the establishment and the State of Oklahoma, requiring
incentive payments to be made for a ten-year period as long as the
establishment retains its eligibility and within the limitations of
this act the 21st Century Quality Jobs Incentive Act as it existed
at the time of such approval.
E. For any contract executed by an establishment on or after
the effective date of this act August 2, 2018, five percent (5%) of
the quarterly incentive payment amount shall be transferred by the
Oklahoma Tax Commission to the Oklahoma Quick Action Closing Fund.
SECTION 9. AMENDATORY 68 O.S. 2021, Section 3915, is
amended to read as follows:
Section 3915. A. 1. Beginning with the first complete
calendar quarter after the application of the establishment is
approved by the Oklahoma Department of Commerce, the establishment
shall begin filing quarterly reports with the Oklahoma Tax
Commission that specify the actual number and individual gross
taxable payroll of new direct jobs for the establishment and such
other information as required by the Tax Commission. In no event

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shall the first claim for incentive payments be filed later than
three (3) years one (1) year from the start date designated by the
Department. The Tax Commission shall verify the actual individual
gross taxable payroll for new direct jobs. If the Tax Commission is
not able to provide such verification utilizing all available
resources, the Tax Commission may request additional information
from the establishment as may be necessary or may request the
establishment to revise its reports.
The establishment shall continue filing such reports during the
ten-year incentive period or until it is no longer qualified to
receive incentive payments. Such reports shall constitute a claim
for quarterly incentive payments by the establishment.
2. Upon receipt of a report for the initial calendar quarter of
the incentive period and for each subsequent calendar quarter
thereafter, the Tax Commission shall determine if the establishment
has met the following requirements:
a. during the initial twelve (12) quarters of the
contract or until the establishment creates ten new
direct jobs, paid the individuals it employed in new
direct jobs an average annualized wage that exceeded
the requirements of paragraph 3 of subsection C of
Section 3914 of this title, or
b. after the establishment created ten new direct jobs:

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(1) paid the individuals it employed in new direct
jobs an average annualized wage which equaled or
exceeded the requirements of paragraph 3 of
subsection C of Section 3914 of this title, and
(2) created and/or or maintained the minimum number
of new direct jobs as specified in the 21st
Century Quality Jobs Incentive Act.
3. Upon determining that an establishment has met the
requirements of paragraph 2 of this subsection for the initial
calendar quarter of the incentive period, the Tax Commission shall
issue a warrant to the establishment in an amount which shall be
equal to either:
a. the initial net benefit rate multiplied by the amount
of gross taxable payroll of new direct jobs actually
paid by the establishment during the initial twelve
(12) quarters of the contract or until the
establishment reaches ten new direct jobs, whichever
comes first, or
b. the fulfillment net benefit rate multiplied by the
amount of gross taxable payroll of new direct jobs
actually paid by the establishment after it creates or
maintains ten new direct jobs.
B. Except as provided in subsection C of this section, the
quarterly incentive payment provided for in subsection A of this

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section shall be allowed in each of the thirty-nine (39) subsequent
calendar quarters.
C. 1. An establishment which does not meet the requirements of
paragraph 2 of subsection A of this section within twelve (12)
quarters of the date of its application shall be ineligible to
receive any incentive payments pursuant to its application and
approval.
2. An establishment which at any time during the thirty-nine
(39) subsequent calendar quarters does not meet the requirements of
paragraph 2 of subsection A of this section shall be ineligible to
receive an incentive payment during the calendar quarter in which
such requirements are not met.
3. An establishment which has met the requirements of paragraph
2 of subsection A of this section within twelve (12) quarters of the
date of its application, but which at any time during the subsequent
twenty-eight (28) quarters fails to meet the requirements of
paragraph 2 of subsection A of this section in four (4) consecutive
quarters, shall be ineligible to receive any further incentive
payments pursuant to its application and approval.
SECTION 10. AMENDATORY 68 O.S. 2021, Section 4503, as
amended by Section 1, Chapter 127, O.S.L. 2025 (68 O.S. Supp. 2025,
Section 4503), is amended to read as follows:
Section 4503. A. As used in the Oklahoma Remote Quality Jobs
Incentive Act:

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1. “Basic industry” means an establishment that attracts remote
workers to the state whose purpose is to increase the state’s
population and who may receive rebates on the remote workers;
provided, that the remote workers meet the wage and health insurance
requirements in the state and provide evidence of such to the proxy
establishment;
2. “New direct job” shall include full-time-equivalent
employment in this state of remote workers who are employed by an
establishment other than the proxy establishment which has qualified
to receive incentive payments for attracting remote workers to the
state. Such jobs held by remote workers did not exist in this state
prior to the date of approval by the Oklahoma Department of Commerce
of the application of the proxy establishment. A job shall be
deemed to exist in this state prior to approval of an application if
the activities and functions for which the particular job exists
have been ongoing at any time within six (6) months prior to such
approval;
3. “Proxy establishment” means:
a. a public trust which:
(1) is organized and existing under Section 176 of
Title 60 of the Oklahoma Statutes for the benefit
of a geographic area which includes a city or
county or some combination thereof, and

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(2) benefits a geographic area where new direct jobs
which meet the requirements of the Oklahoma
Remote Quality Jobs Incentive Act are created by
an establishment, other than the proxy
establishment, or
b. an establishment which facilitates the attraction of
remote workers to the State of Oklahoma;
4. “Remote worker” refers to a work flexibility arrangement
under which an employee performs the duties and responsibilities of
such employee’s position, and other authorized activities, from an
approved work site other than the location from which the employee
would otherwise work, which shall not be located within the physical
boundaries of the State of Oklahoma. The remote worker should not
have lived in the State of Oklahoma in the previous twelve (12)
months;
5. “Estimated direct state benefits” means the tax revenues
projected by the Department to accrue to the state as a result of
new direct jobs;
6. “Estimated direct state costs” means the costs projected by
the Department to accrue to the state as a result of new direct
jobs. Such costs shall include, but not be limited to:
a. the costs of education of new state resident children,

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b. the costs of public health, public safety and
transportation services to be provided to new state
residents,
c. the costs of other state services to be provided to
new state residents, and
d. the costs of other state services;
7. “Estimated net direct state benefits” means the estimated
direct state benefits less the estimated direct state costs; and
8. “Net benefit rate” means the estimated net direct state
benefits computed as a percentage of gross payroll, and shall not
exceed five percent (5%) the highest rate of income tax imposed upon
the Oklahoma taxable income of individuals pursuant to subsection D
of Section 2355 of this title. Any change in the highest rate of
individual income tax imposed pursuant to the provisions of Section
2355 of this title shall be applicable to the computation of
incentive payments to an establishment and shall be effective for
purposes of incentive payments based on payroll paid by an
establishment on or after January 1 of any applicable year for which
the net benefit rate is modified as required by this paragraph.
B. A proxy establishment shall be required to obtain from
remote workers proof of basic health benefits plans for the
individuals it includes in an application. The proxy establishment
shall submit the information to the Oklahoma Department of Commerce
and shall ensure that the basic health benefits plans provide

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coverage where not more than fifty percent (50%) of the premium
shall be paid by the employee; however, services provided by an
Employee Assistance Plan (EAP) are not sufficient to meet this
definition.
SECTION 11. This act shall become effective November 1, 2026.

60-2-3277 QD 1/12/2026 10:26:54 PM