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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
SENATE BILL 1830 By: Jett
AS INTRODUCED
An Act relating to incentives; amending 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),
which relates to the Oklahoma Quality Jobs Program
Act; prohibiting employment of certain individuals to
qualify for certain payments; updating statutory
language; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. 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
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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
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-
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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:
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; and
4. Provide no employment to an individual that meets the
definition of an H-1B nonimmigrant, as provided in 8 U.S.C., Section
1182(n)(4)(C).
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:
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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
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:
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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
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,
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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
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.
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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.
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
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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, no average wage requirement shall exceed Twenty-five
Thousand Dollars ($25,000.00), in any county. This maximum wage
threshold shall be indexed and modified from time to time based on
the latest Consumer Price Index 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:
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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
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
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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
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
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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
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
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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
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
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amount shall be transferred by the Oklahoma Tax Commission to the
Oklahoma Quick Action Closing Fund.
SECTION 2. This act shall become effective November 1, 2026.
60-2-2517 QD 1/14/2026 11:05:06 PM