Incentives
Local Incentives
State of Oklahoma Incentives
Local Incentives
Introduction
While the professional economic development staff at the Bartlesville Development Corporation will work with prospective companies to insure the maximum benefit from Oklahoma and federal incentive programs, there are a number of incentives programs available from the City of Bartlesville through the Bartlesville Development Corporation. These incentives are paid primarily from the City of Bartlesville Economic Development Fund that is funded by a ¼ cent economic development sales tax that is renewed by the citizens of Bartlesville every five years.
The Bartlesville Development Corporation has used many creative scenarios to bring new jobs and capital investment to the area including cash payments, land purchases, land development, and build-to-suit projects. Since the formation of the BDC in 1996, the incentives have been instrumental in recruiting and/or saving more than 5,000 jobs and have created more than $110 million in new capital investment in Washington County.
Process
The process for obtaining incentives is to present a prepared proposal to a member of the professional staff of the Bartlesville Development Corporation by appointment at 918.336.8708 or dwood@bartlesville.com.
The BDC staff will evaluate the proposal and may in some cases, recommend revisions in the incentives request to meet the established criteria. The BDC professional staff is there to insure that your proposed project is a success.
The BDC staff will schedule a meeting of the BDC Incentives Committee to review the application. The applicant is encouraged to attend this meeting to assist in the process of describing the proposed project to the committee members. The BDC Incentives Committee will either recommend or deny or revise the incentive request. A denial may be appealed to the BDC Board of Directors by simply asking the BDC staff to add the request to a meeting agenda.
With a recommendation from the BDC Incentives Committee, the request will be presented to the full BDC Board of Directors at a monthly meeting. Again, you are encouraged to attend this meeting and assist in the presentation of the project. The Board will usually approve or deny or suggest revisions to the request at the same meeting.
With a recommendation from the BDC Board of Directors, the BDC staff will place the request on the agenda of the Bartlesville City Council for their consideration and approval. By the time your request has reached this level, there should be sufficient information and the request should be modified to the point to insure approval, but the City Council does have the authority to approve or decline and/or request more information.
The meetings of the Bartlesville Board of Directors and the meetings of the Bartlesville City Council are Open Meetings under the authority of the Oklahoma Open Meetings Act and any and all presentations made there are subject to the scrutiny of the public including the media. These meetings will be posted in accordance with the law and any citizen will be allowed to attend and participate.
Criteria
The City of Bartlesville through the BDC has issued more than $1 million dollars in incentives in the past ten years leading to the recruitment and/or retaining of more than 5,000 jobs and the creation of more than $110 million in new capital investment.
While there is no established criteria in the ordinance that sets the economic development fund, most projects have been able to demonstrate the creation of new jobs at above average pay with benefits, the creation of new capital investment, and/or demonstration of significant economic impact.
There is also a desire on the part of the BDC Board to focus those funds on projects that fall within the target industries contained in the BDC Strategic Plan. Those targets include Logistics/Distribution, Energy Services, Tourism, Software Design/Development, and Business Services
Contract
Once the incentive has been approved, the Bartlesville City Attorney will present a contract for the incentive which will contain the criteria and the goals of the incentive. Most incentives are structured as a loan at an interest rate of Wall Street Journal Prime + 2% and the incentive amount will accrue this until maturity at the end of the term. Any unearned incentives will be required to be repaid including accrued interest.
Some incentives are structured to be paid upon the presentation of paid invoices or receipts of certain projects
You can be assured that all incentives will be with a contract and do contain strict repayment provisions for unearned portions.
Application
The application may be submitted electronically or in hard copy to Jim Fram, President of the Bartlesville Development Corporation at 201 SW Keeler, Bartlesville, Oklahoma 74003 or P. O. Box 2366, Bartlesville, Oklahoma 74005 or againes@bartlesville.com.
The application should include the following:
- Name of the applying organization or company along with the name, title, and address of the principal, partner, owner, manager, or representative.
- The address of any current locations of the company or organization.
- Copies of any pertinent financial information for the project and might include copies of federal income tax returns for the past five years if applicable.
- A description of the project or a copy of the business plan.
State Of Oklahoma Incentives
Option 1 Quality Jobs Ten-Year Cash Incentive
Oklahoma's Quality Jobs incentive targets manufacturers and certain service industries that have a new payroll investment of $2.5 million or more to receive a quarterly cash payment of up to 5% of new taxable payroll. A lower payroll threshold is available for certain food processing and research and development projects or as a result of locating in targeted areas. Qualifying average wage requirements will vary among counties but do not exceed $28,572
Small Employer Quality Jobs Seven-Year Cash Incentive
The Small Employer Quality Jobs incentive allows qualifying small businesses (90 or fewer employees) that are creating new direct jobs within one year to receive up to a 5% cash-back incentive to locate or expand in Oklahoma. The qualifying average wage requirement will vary among counties.
Option 2 Investment/New Jobs Tax Credit Package
Targeted primarily to manufacturing companies, the Investment/New Jobs Tax Credit incentive allows a five-year tax credit on the greater of 1% per year of investment in qualified new depreciable property or a credit of $500 per new job.
Additional Incentives Available with Options 1 and 2
- Five-year ad valorem tax exemption
- No-cost or low-cost customized employee training
- Sales tax exemptions
- Freeport inventory benefits
- Industrial access road assistance (limited under Option 1)
- Foreign Trade Zones
- American Indian Land tax credits
- Opportunity zones
- Opportunity fund
- State and local financing programs
For more information, visit www.okcommerce.gov/incentives
Disclaimer
The materials contained 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.