Oklahoma Small Employer
Quality Jobs Program
2024 Guidelines
Oklahoma’s Small Employer Quality Jobs Program business incentive gives qualifying enrolled companies quarterly
cash rebates, of up to five percent of newly created taxable payroll, for up to 7 years. Currently, the Small
Employer Quality Jobs Program has enrolled over 125 companies which have received over $9.2 million in wage
rebates.
The program, targeted to manufacturers and certain service companies has proven to be a valuable asset to small
businesses in Oklahoma, the state’s primary job creation sector. A fully executed contract with the Department of
Commerce must be in place before any new jobs can be included in the new taxable payroll.
THRESHOLD REQUIREMENTS
The following requirements must be met before an application will be reviewed:
BASIC INDUSTRY
All applicants must be within a qualifying basic industry to receive benefits. The list of qualifying industries
includes all those of the regular Quality Jobs program (with the exception of Oil & Gas Companies). Applicants are
required to have and maintain an out-of-state sales threshold of 35% or more for the first two years, and 60%
thereafter. See Attachment A of this document for a full qualifying list of industries.
NEW EMPLOYMENT THRESHOLD
To be eligible, an applicant company may have no more than 500 employees at the time of application, nor more
than an average of 500 during the immediate preceding four calendar quarters. The activities and functions for
which these jobs are being created must not have existed during the previous 6 months.
Companies located in a community of less than 3,500 require the company to create the greater of 5 new jobs or a
number equal to or greater than 5% of their full time employment; companies located in a community with a
population between 3,500 and 7,000 must create the greater of 10 new jobs or a number equal to or greater than
7.5% of their full time employment; companies located in a community with a population greater than 7,000 must
create the greater of 15 new jobs or a number equal to or greater than 10% of their full time employment. Most
companies have 24 months to reach these new job creation requirements; however, companies in the fields of
Research & Development, Testing Labs, Software Publishing, Computer Systems Design, Data Processing, Hosting
and Related, and Medical & Diagnostic Labs have up to 36 months to create these new jobs.
HEALTH INSURANCE COVERAGE
All businesses must offer basic health insurance coverage to employees that are part of the job creation
requirement. Employees must pay no more than 50% of the premium cost. All employees working 30 hours or
more per week must be offered this insurance.
The company has 12 months to institute a qualified basic health insurance coverage policy, and employees must
be allowed access to the coverage within 12 months of employment.
AVERAGE WAGE REQUIREMENT
The business applying for Small Employer Quality Jobs Program benefits must pay (direct, taxable wages) to the
employees included in the application an average of 110% of the average county wage where the project is
located. The reference chart for this average county wage is included in these guidelines as Attachment B. The
company may elect to include the cost of health benefits (premiums) paid on behalf of the employee if they so
choose, but if doing so, must pay an average of 125% of average county wage to employees included in the
application. Applicants in certain counties deemed to be economically challenged may qualify at an average wage
of 100% of the county average.
OUT-OF-STATE SALES REQUIREMENTS
All companies applying must have or will have within 24 months from the start date out-of-state sales of 35% or
more for the first two years, and 60% thereafter. A company may also meet this requirement by selling to a buyer
who will resell the items to out of-state buyers for ultimate use, or to the federal government. Research and
development companies and testing labs are excused from the out of state sales requirement.
APPLICATION REQUIREMENTS
APPLICATION
Applicants must provide responses to all application form questions and satisfy all documentation requirements.
An original must be signed by an officer of the company and submitted to the Department of Commerce prior to
hiring any new employees whose payroll will be claimed for benefits. Note: the application packet provides a line
by line instruction sheet to assist in preparation of the form.
Technical assistance in completing the application and other necessary documents is provided at no charge by
persons associated with the Oklahoma Department of Commerce.
NEW HIRE SUMMARY
Applications must include a breakdown of the proposed new hires by job title and average wage for both first and
third year. Only eligible new direct jobs and average taxable wages should be used in the calculation. Even though
jobs may be projected for a total of five years, only the 3
rd
year projected average wage is shown on the
application and used to base benefits on.
OES-3 REPORTS
OES-3 reports are filed with the Oklahoma Employment Security Commission each quarter. The reports list the
number of employees on the payroll of a business as of the 12
th
of each month during a calendar quarter and the
dollar amount of payroll for those employees during that time period. Along with the Application, the most recent
four quarterly reports must be provided. The average number of employees, for the three months reported on
each of the four quarterly summary reports, should be the numbers used on the Application.
MAJOR MEDICAL EMPLOYEE HEALTH PLAN
Along with the Application, a current copy of the company’s health benefits plan must be included. A statement,
indicating the percentage paid for the employee’s portion of the plan, the waiting period before the plan is
offered, and the number of hours worked per week to be eligible for coverage should be attached. Additionally,
applicants are required to indicate that some coverage for basic hospital care, physician care, mental health care,
substance abuse treatment, maternity and prescription drugs is provided.
COMPANY BACKGROUND FORM
At a minimum, company background information must consist of product/service descriptions, a projected growth
explanation, a listing of other locations, a corporate family organizational chart, annual sales figures and
investment projections (see Attachment C). The information, used as an indication of a company’s preparedness to
create the new jobs projected, is confidential. If the company is privately owned, full name and date of birth for all
owners are required.
FINANCIALS
Financials including Balance Sheet, Income Statement, Cash Flow and Auditor Statement are required for the
previous three years.
OUT-OF-STATE SALES VERIFICATION
Companies required to provide proof of out-of-state sales may do so by submitting a breakdown of annual sales by
state, delineating the Oklahoma percentage of total sales. Sales to the federal government and to in-state
customers who resell to an out-of-state consumer may be included. The applicant will be required to sign an
affidavit asserting that the out-of-state sales requirement will be achieved and maintained throughout the life of
the contract. Only sales associated with Oklahoma operations are applicable.
TECHNICAL ASSISTANCE
Technical assistance regarding program concepts, eligible companies, application guidelines and other information
pertaining to the Small Employer Quality Jobs Program is available upon request and encouraged. Questions may
be directed to representatives within the Department of Commerce’s National Recruiting and Business Customer
Services Teams at (405) 815-5227. The Oklahoma Department of Commerce offers a free service to assist
companies in completing the Small Employer Quality Jobs Program application.
APPLICATION SUBMISSION
Applications are submitted via a Department of Commerce Quality Jobs representative. This person will assist you
with the application process. To contact a representative to assist you please call the Quality Jobs Program office at
405-815-5227, or toll free at 800-879-6552, x5227. The Department of Commerce accepts Quality Jobs Program
Applications throughout the year since there are no specific deadlines. Applications are evaluated and acted upon
as expediently as possible, depending upon their satisfactory completion.
APPROVAL PROCESS
Once an application is returned to the Department of Commerce with the required documentation, program
administrators will verify eligibility and prepare a final cost/benefit analysis to determine the percentage of new
Oklahoma payroll that will be rebated and a maximum amount for the applicant’s project. The information is then
presented to an internal review team that makes a recommendation, for approval or denial, to forward the
application to the next level of review. If the applicant passes the first internal review, a representative from the
company will be required to attend an external hearing of the Incentive Approval Committee, consisting of
representatives from the Tax Commission, Office of Management and Enterprise Services and Department of
Commerce. The committee will make a recommendation, for approval or denial, to the Executive Director of the
Oklahoma Department of Commerce.
Once approved, an incentive offer, in contractual form, is issued to the company for acceptance. A corporate
official, who is authorized to bind the company contractually, must sign the contract. At this point, only the
company’s name, municipality location, number of projected new jobs, NAICS No., benefit rate and maximum
benefit amount become public information. All approved companies must be registered to do business in
Oklahoma and in good standing with the Secretary of State’s Office, Tax Commission, and Employment Security
Commission.
CLAIMS FOR PAYMENT
The Oklahoma Tax Commission is the primary contact for submitting benefit claims under the contract. Once a
contract is returned to the Department of Commerce it is forwarded to the Tax Commission to set up a
reimbursement account in order to monitor jobs, payroll and pay qualifying claims. The company will be
proactively contacted regarding reporting arrangements.
Claims are made quarterly for the first 24 months. If qualification thresholds are met, the company may continue
filing and receive annual payments for an additional 5 years (total of 7) so long as all criteria are met each quarter.
If threshold requirements are not met at the end of the first 24 months, the company is dismissed from the
program. Should the company fall short of requirements during the subsequent 5 years, they are suspended from
the program until all requirements are again met.
INCENTIVES EXCLUDED
Companies enrolled in the Quality Jobs Program may not be eligible to receive certain credits or exemptions in
conjunction with the same activity. They include the following:
• Sales of Electronics to Qualified Aircraft Maintenance Facilities
• Sales to Radio and TV Entities
• Investment/New Jobs Tax Credit
• Investment in Qualified Venture Capital Companies
• Recycle, Reuse, Source Reduction Tax Credits
• Investment in Clean Burning Motor Vehicle
• Tax Credit for Employer Provided Health Plans
• Purchase of Equipment when primary activity is Computer/Data Processing
• Income Tax Credit for net Increase in Computer and R&D jobs
• Insurance Premium Tax Credit
• Tax Credit for Recycling Facility
• Business Expansion Incentive Program
All applicants should consult with a tax advisor to determine the most appropriate incentive plan based on value
and financial goals. Additionally, a comparative estimate is available from Department of Commerce
representatives.
DISCLAIMER
The materials contained in this document have been prepared by the Oklahoma Department of Commerce 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.
Attachment A
SMALL EMPLOYER QUALITY JOBS PROGRAM
QUALIFYING INDUSTRIES
BASIC INDUSTRIES
Manufacturing
Industries classified under NAICS Manual Nos. 31, 32, 33, 5131 or 11331.
Research and Development and Testing Laboratories
See NAICS Manual Nos. 54171 and 541380.
Central Administrative Offices, Corporate Offices and Technical Services
See NAICS Manual Nos. 5611, 5612, 51821, 519290, 52232, 56142, 524291, 551114.
Certain Warehouse/Distribution Operations
See NAICS manual No. 42-Where 40% of inventory is shipped out of state.
Transportation by Air
See NAICS Manual No. 4811 if corporate headquarters and some reservation activities are within the state or 75%
of air transport sales are to out-of-state consumers.
Flight Training Services
See NAICS No. 611512.
Other Support Activities for Air Transportation
See NAICS Manual No. 488190.
Wind Power Electric Generation Equipment Repair & Maintenance
See NAICS Manual No. 811310.
Attachment A
SERVICE INDUSTRIES
The program also covers the following service companies, provided 35% out of state sales for the first two years
and 60% thereafter:
Rail Transportation
See NAICS Nos. 482
Motor Freight Transportation and Warehousing
See NAICS Nos. 493, 484, 4884-4889
Arrangement of Passenger Transportation
See NAICS Nos. 561510, 561599
Transportation of Freight or Cargo
See NAICS No. 541614
Certain Communications Services
See NAICS Nos. 517111, 51741 and 517121
Certain Refuse Systems that distribute methane gas
See NAICS No. 5622
Grocery Wholesale Distributing
See NAICS Nos. 4244 and 4245
Securities, Commodities, Investments
See NAICS No. 523
Insurance Carriers
See NAICS No. 5241
Insurance Claims Processors Only
Included in NAICS Nos. 524210 and 524292
Adjustment and Collection Services
See NAICS No. 561440 (75% of loans to out-of-state
debtors)
Miscellaneous Equipment Rental
See NAICS Nos. 5324
Computer Programming, Data Processing and Other
Computer Related Services
See NAICS Nos. 513210, 5182, 519290, 513120, and
5415
Miscellaneous Business Services
See NAICS Nos. 561410, 56142, and 516210
Offices of Real Estate Agents & Brokers
See NAICS No. 531210 (and 75% of transactions
are out of state)
Medical and Diagnostic Laboratories
See NAICS No. 6215
Engineering, Management and Related Services
See NAICS Nos. 5412, 5414-5417, 54131, 54133,
54136, 54137, and 541990
Agricultural Production
See NAICS Nos. 112120
Professional Organizations
See NAICS No. 813920
Alternative Energy Structure Construction
See NAICS No. 237130
Alternative Energy Equipment Installation
See NAICS Nos. 238160, 238220
Electric Service Companies
The program also applies to electric services
companies within NAICS Nos. 221111-221122 -
Exempt Electric Wholesale Generators, if 90% of
energy input is consumed from in-state sources and
90% of sales are out-of-state.
2024SmallQualityJobsAverageCountyWage
TobeusedFebruary1,2024toJanuary31,2025
County
100%
Wage
110%
Wage
125%
Wage
County
100%
Wage
110%
Wage
125%
Wage
Adair $39,446 $43,391 $49,308 LeFlore $41,731 $45,904 $52,163
Alfalfa $49,056 $53,962 $61,320 Lincoln $48,795 $53,674 $60,994
Atoka $38,455 $42,301 $48,069 Logan $43,087 $47,396 $53,859
Beaver $48,993 $53,892 $61,241 Love $49,125 $54,037 $61,406
Beckham $49,993 $54,992 $62,491 McClain $46,495 $51,145 $58,119
Blaine $47,486 $52,235 $59,358 McCurtain $43,860 $48,246 $54,825
Bryan $50,103 $55,113 $62,628 McIntosh $35,788 $39,367 $44,735
Caddo $46,618 $51,280 $58,272 Major $44,858 $49,343 $56,072
Canadian $48,816 $53,697 $61,020 Marshall $47,592 $52,351 $59,490
Carter $50,445 $55,489 $63,056 Mayes $52,810 $58,091 $66,013
Cherokee $45,575 $50,132 $56,968 Murray $43,873 $48,261 $54,842
Choctaw $40,727 $44,800 $50,909 Muskogee $49,726 $54,699 $62,158
Cimarron $38,801 $42,682 $48,502 Noble $51,894 $57,083 $64,868
Cleveland $48,810 $53,691 $61,013 Nowata $49,006 $53,906 $61,257
Coal $40,712 $44,783 $50,890 Okfuskee $38,801 $42,681 $48,502
Comanche $47,741 $52,516 $59,677 Oklahoma $62,022 $68,224 $77,527
Cotton $43,458 $47,804 $54,323 Okmulgee $44,269 $48,696 $55,336
Craig $41,776 $45,954 $52,220 Osage $46,676 $51,343 $58,344
Creek $52,934 $58,228 $66,168 Ottawa $42,715 $46,986 $53,393
Custer $49,089 $53,998 $61,361 Pawnee $43,631 $47,994 $54,539
Delaware $40,623 $44,686 $50,779 Payne $48,886 $53,775 $61,108
Dewey $66,233 $72,856 $82,791 Pittsburg $49,426 $54,368 $61,782
Ellis $45,607 $50,168 $57,009 Pontotoc $54,904 $60,395 $68,630
Garfield $49,060 $53,966 $61,325 Pottawatomie $44,173 $48,590 $55,216
Garvin $54,252 $59,677 $67,814 Pushmataha $40,140 $44,154 $50,175
Grady $47,181 $51,900 $58,977 RogerMills $46,422 $51,064 $58,027
Grant $56,048 $61,652 $70,059 Rogers $55,249 $60,774 $69,062
Greer $38,350 $42,185 $47,937 Seminole $43,962 $48,358 $54,952
Harmon $41,285 $45,414 $51,607 Sequoyah $35,969 $39,566 $44,961
Harper $44,990 $49,489 $56,237 Stephens $51,451 $56,596 $64,313
Haskell $39,894 $43,883 $49,867 Texas $50,308 $55,339 $62,885
Hughes $38,631 $42,494 $48,289 Tillman $40,439 $44,483 $50,549
Jackson $50,778 $55,856 $63,473 Tulsa $59,911 $65,902 $74,889
Jefferson $37,397 $41,137 $46,746 Wagoner $51,048 $56,153 $63,810
Johnston $45,126 $49,638 $56,407 Washington $59,526 $65,479 $74,408
Kay $48,190 $53,009 $60,238 Washita $43,745 $48,120 $54,681
Kingfisher $55,393 $60,932 $69,241 Woods $48,279 $53,107 $60,349
Kiowa $40,295 $44,325 $50,369 Woodward $53,521 $58,873 $66,901
Latimer $49,953 $54,948 $62,441
Source:OklahomaEmploymentSecurityCommission,QCEWAggregatedata.
BeginningJanuary1,2011,theSmallEmployerQJProgramusesawagecalculationfromsmallemployersinthecounty.
Attachment C
COMPANY BACKGROUND
Please provide detailed information related to the Quality Jobs Program applicant.
1. Describe the company’s line(s) of business.
2. Outline the reason for expansion or new lines of business and projected growth.
3. List other locations within and outside Oklahoma.
4. Provide most current fiscal year sales and anticipated growth.
5. Furnish new investment projections applicable to current project.
6. If the company is privately owned, please provide owner(s) full name (first, middle initial, last) and date of
birth(s).
7. Please furnish a CORPORATE organizational chart showing any sister companies, subsidiaries, parent company,
etc. DO NOT provide individual names or job titles, only the parent-subsidiary structure if the entity has common
ownership.
