PORT OF MUSKOGEE BUSINESS DEVELOPMENT | 216 West Okmulgee, Muskogee, OK | 918.683.2816 | Fax: 918.683.2110 | brien@muskogeeport.com
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Incentives

Muskogee Incentives

The Muskogee City-County Port Authority's Business and Economic Development Office serves as a single point of contact for foreign and domestic industrial investment opportunities, considering a location in the Muskogee area. Our staff partners with clients, to ensure that they identify the right location and receive the maximum benefit from local, state and federal incentive programs.

The following state and federal incentives have been identified as applicable to companies seeking to locate or expand in Muskogee, OK. As more information about the specific project is provided, a more complete package can be developed, maximizing the benefit to you or your client.

Quick Reference

Local Incentives
State Incentives
Federal Incentives

Local Incentives                                                                       [back to top]

STRATEGIC INVESTMENT PROGRAM (SIP) INCENTIVE
Qualifying companies may benefit from this local, performance-based cash incentive, dependent upon new job creation and/or new investment.

STANDARD SIP INCENTIVE
Jobs Program
  • Must add a minimum of 15 new jobs within 36 months
  • Combined average wage of jobs must pay at least 100% of Muskogee County average wage (currently $37,853)
  • Must offer basic health insurance
  • Company will receive $2,500-$4,500/job; based upon wages
  • Limited to $500,000
Investment Program
  • Must invest a minimum of $250,000 in new or expanding facilities within 36 months
  • Limited to the lessor of $500,000 or 1% of new qualified investment
HIGH IMPACT SIP INCENTIVE
High Impact Program

  • Must add a minimum of 200 new jobs and invest a minimum of $200,000,000 in new or expanding facilities within an agreed upon timeframe
  • Combined average wage of jobs must pay at least 100% of Muskogee County average wage (currently $37,853)
  • Must offer basic health insurance
  • Company will receive $2,500-$4,500/job; based upon wages + 1% of new qualified investment; no cap limitations
ACCOUNTABILITY
  • Companies may utilize SIP in conjunction with state and federal programs
  • Economic impact analysis will be used to calculate ROI
  • Project must provide a net positive benefit to the City of Muskogee
  • Awards will be given on pay-as-you perform basis
  • Must execute written Performance Agreement with the Port of Muskogee
  • All awards will be considered by the Port of Muskogee Board of Directors
State Incentives                                                                       [back to top]

The State of Oklahoma offers the following incentives for new and expanding businesses located within the state. The Oklahoma Department of Commerce publishes a complete list of business incentives on line at http://okcommerce.gov/assets/files/incentives/Oklahoma_Business_Incentives
_and_Tax_Guide.pdf.

  • Cash payments of up to 5% of new payroll for up to 10 years
  • Average annual salaries must total the state’s threshold wage of $32,264
  • Company must achieve $2.5M annual payroll within 3 years
  • Must offer basic health insurance
  • Target Industries: Manufacturing, R&D including wind power manufacturing, corporate services, and data centers
  • May be combined with Investment/New Jobs Tax Credit
Small Employer Quality Jobs 7-Year Cash Incentive
  • Quarterly cash payments of up to 5% of new payroll for up to 7 years
  • Company must create a minimum of 15 new jobs within 24 months (combined average wage of jobs must pay at least $33,796)
  • Does not include health benefits
  • Must offer basic health insurance within 180 days of employment
  • If the payroll threshold is not achieved, payments cease (payments received to date, however, do not have to be paid back to the State)
  • Must achieve 75% of out -of-state sales within one year of start date
Investment/New Jobs Tax Credit Package
  • Choice of tax credit based on investment OR new employees:
  • 5-year tax credit on the greater of 1% per year of investment in new depreciable property or $500 per new employee
  • Credit doubles to 2% or $1,000 per new employee in Enterprise Zones
  • Credit doubles if investment exceeds $40M
  • Minimum investment of $50K
  • Requires at least 10 full-time jobs at an annual average wage of $95,721; 300% of Muskogee County's average wage
  • Allows a net benefit rate of up to 10% of payroll for up to 10 years
  • Out-of-state sales must be at least 50% for certain industries
  • Target Industries: knowledge-based service industries, including professional, scientific and technical services; music, film and performing arts; and specialty hospitals
Additional State Incentives for Businesses                                [back to top]

Five-Year Ad Valorem Tax Exemption - Certain new and expanding manufacturers and aircraft repair companies who meet certain threshold requirements are eligible for ad valorem tax exemptions for up to five years.

Sales Tax Exemptions/Refunds - Oklahoma has a comprehensive sales tax exemption for manufacturers who obtain a Manufacturer’s Sales Tax Exemption Permit from the Oklahoma Tax Commission. Refunds are available for sales taxes paid on construction materials for qualified new or expanding aircraft maintenance and overhaul facilities that create 250 or more jobs, with construction costs totaling at least $5 million. Refunds are also available for the sales tax on computers, data processing equipment, related peripherals, telegraphs or telecommunications services or equipment.

Inventory Exemption - Oklahoma's Freeport Law exempts from taxation goods, wares, and merchandise that come from outside the state and leave the state within nine months if such goods, wares, and merchandise are held for assembly, storage, manufacturing, processing, or fabricating purposes within the state.

Job Matching and Job Search Assistance - The Oklahoma Employment Security Commission (OESC) provides computerized and customized assistance to serve the needs of employers and job seekers. There is no cost to businesses for screening and referrals of qualified job applicants by job service specialists. Muskogee’s local Workforce Center can provide assistance in hiring new people, tax credit programs, assessment, training and education, unemployment insurance, etc. For more information, contact the Oklahoma Employment Security Commission Office at (918) 682-3364.

Workforce Investment Act Programs - The workforce investment act provides training and supportive services to individuals, as well as specific services, to business such as customized training, on the job training, and in some cases incumbent worker training. For more information, contact the Oklahoma Employment Security Commission Office at (918) 682-3364.

Employee Training - Through the Oklahoma Department of Career and Technology Education, and local service provider, Indian Capital Technology Center (“ICTC”), your client may qualify for the Training for Industries Program (“TIP”) or the Training for Existing Industries Program ("TEI"). The TIP and TEI contracts will train employees to your client’s specifications at no or low cost to new and existing employers. In order to determine if your company qualifies, a meeting with Career Tech and ICTC will be arranged.

Aerospace Industry Engineer Workforce Tax Credit - Aerospace companies hiring engineers will receive tax credit up to 10% of the compensation paid to an engineer during the first 5 years of employment.

Additional State Incentives Available through the Port of Muskogee and City of Muskogee                                                                     [back to top]

Economic Development Pooled Finance - Available to local governments in conjunction with a for-profit entity for economic development projects. Infrastructure assets must be owned by the local government.

CDBG/EDIF - Grants of up to $500,000 for business expansion or up to $1 million for new companies for publicly owned and maintained infrastructure based upon new jobs and leverage is available to companies meeting the following requirements: (1) 110% of average county wage for all new jobs; and (2) At least 51% of the new jobs must be made available to low and moderate income persons. These grant applications may be made through the City of Muskogee or The Port of Muskogee, who each have successfully applied for and administered these funds for construction of water and sewer, railroad and roads for numerous industrial relocations.

Industrial Access Road Assistance - The Industrial Access Road Program assists local development efforts by funding, within limits, facilities connecting a specific industry or industrial area directly to state or local road systems. Application is through the Port of Muskogee or the City of Muskogee and administered through the Oklahoma Department of Transportation.

Oklahoma Industrial Finance Authority - The Oklahoma Industrial Finance Authority can loan up to 66% of the cost of land, buildings and fixed equipment – up to a maximum of $2 million for manufacturers. Loans may be made to Muskogee County Industrial Authority or Muskogee City-County Port Authority, who can re-loan the funds to the company.

Enterprise Zone - Eligible manufacturing projects may take advantage of the Oklahoma Local Development and Enterprise Zone Incentive Leverage Act, which provides funding for local units of government to supplant local tax revenue dedicated to support a project located within an enterprise zone. Muskogee offers several available properties classified within an enterprise zone.

Oklahoma Opportunity Fund - Eligible applicants are for-profit entities; non-profit entities; and state and local government entities. Funds will be expended for projects which provide a substantial economic benefit to the state through any of the following: (1) Creation of new jobs that offer a basic health benefit plan, as defined in the Oklahoma Quality Jobs Program Act; (2) maintenance of existing jobs that are at risk for termination; (3) Investment in new real property, plant or equipment or in the improvement or retooling of existing plant or equipment; OR (4) additional revenues in either ad valorem, income or sales and use taxes. No new appropriations were given to the fund in the 2009 legislative session. However the program still exists for the possibility of future appropriations.

Oklahoma Quick Action Closing Fund - The Oklahoma Quick Action Closing Fund can be expended by the Governor for economic development and related infrastructure development to locate a high-impact business project or facility in Oklahoma or to retain such a facility in the State. The application will be made available once funds are appropriated by the Oklahoma Legislature.

Federal Incentives                                                                    [back to top]

Tax Incentive on Former Indian Reservations in Oklahoma - All of Muskogee County falls within the classification of “Former Indian Reservation Lands”. The incentive allows for accelerated depreciation of property or tax employment credits for employing tribal members or their spouses. For most depreciable property, the recovery period is accelerated by approximately 40% for property placed in service from 1994 through 2011. Businesses are eligible for a tax credit on the increase in qualifying annual wages paid to enrolled Indian tribal members or their spouses from 1994-2011, as compared to the year 2003. The credit equals 20% of the increased wages, including health insurance costs, up to $20,000 annually of a qualified employee who earns less than $45,000. The maximum credit per employee per year is $4,000. This incentive may be computed and claimed by filing IRS Form 8845 with the IRS. The form can be found at http://www.irs.gov/pub/irs-pdf/f8845.pdf.

HUBZone - All of Muskogee County, Oklahoma, falls within the classification of the “Historically Underutilized Business Zone”. HubZone certified small businesses receive federal contracting assistance through the U.S. Small Business Administration HUBZone Program. Benefits for companies include competitive and sole source contracting, a 10 (ten) percent price evaluation preference in full and open contract competitions, as well as subcontract opportunities. For more information, please refer to: ww.sba.gov/hubzone

Foreign Trade Zones - The Port of Muskogee is the Grantee for Foreign Trade Zone No. 164. A Foreign Trade Zone (FTZ) is an area that is physically located within the U.S. but considered to be outside of U.S. Customs territory. Included among the many benefits derived from using FTZ(s) are: 1) Reduction or elimination of import duties, taxes and other charges, 2) Improved logistics for receiving imports or for obtaining export status, and 3) Security protection afforded/required for FTZ merchandise.

New Market Tax Credits - allows eligible investors to qualify for tax credits of 39% on an investment over a period of seven years.


Disclaimer
The materials contained on this website have been prepared by the Muskogee Business and Economic Development Office for informational purposes only and do not constitute legal or tax advice. This information is subject to change based on judicial interpretation and legislative action. The application of the information is subject to your unique facts and circumstances. YOU SHOULD NOT ACT UPON ANY INFORMATION CONTAINED IN THESE MATERIALS WITHOUT SEEKING YOUR OWN PROFESSIONAL LEGAL AND TAX ADVICE.
 
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The Muskogee Business Development office is located at 216 West Okmulgee in downtown Muskogee, Oklahoma.

918.682.7887
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