2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-4504. Incentive payments to proxy establishments.

A. A proxy establishment that facilitates the attraction of remote workers to the State of Oklahoma which meets the qualifications specified in the Oklahoma Remote Quality Jobs Incentive Act may receive quarterly incentive payments for a ten-quarter 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.
B. In order to qualify to receive incentive payments as authorized by the Oklahoma Remote Quality Jobs Incentive Act, a proxy establishment shall be required to:
1. For proxy establishments located in counties with total population less than five hundred thousand (500,000):
a.
have an annual gross payroll for new direct jobs projected by the Oklahoma Department of Commerce to equal or exceed Five Hundred Thousand Dollars ($500,000.00) within one (1) year 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 the new direct jobs equal to or in excess of eighty percent (80%) of the total number of new direct jobs; or
2. For proxy establishments in counties with total population exceeding five hundred thousand (500,000):
a.
have an annual gross payroll for new direct jobs projected by the Oklahoma Department of Commerce to equal or exceed One Million Five Hundred Thousand Dollars ($1,500,000.00) within one (1) year 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 the new direct jobs equal to or in excess of eighty percent (80%) of the total number of new direct jobs.
C. In order to receive incentive payments, a proxy establishment shall apply to the Oklahoma Department of Commerce. The application shall be on a form prescribed by the Department and shall contain remote workers, the companies that they presently work for, and other such information as may be required by the Department to determine if the applicant is qualified. A proxy 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.
D. In order to qualify to receive incentive payments as authorized by the Oklahoma Remote Quality Jobs Incentive Act, in addition to other qualifications specified herein, the proxy establishment shall be required to include remote workers whose average annualized wage equals or exceeds the average wage requirements specified in Section 3604 of Title 68 of the Oklahoma Statutes.
E. The Department shall determine if the applicant is qualified to receive incentive payments.
F. If the applicant is determined to be qualified by the Department, the Department shall conduct a cost/benefit analysis to determine the estimated net direct state benefits and the net benefit rate applicable for a ten-quarter period beginning with the first complete calendar quarter following the start date and to estimate the amount of gross payroll for a ten-quarter period beginning with the first complete calendar quarter following the start date. In conducting such 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 or exceed the cumulative payments made by a proxy establishment to remote workers.
G. 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 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 Remote Quality Jobs Incentive Act. The approved proxy establishment shall file quarterly claims with the Tax Commission and shall continue to file such quarterly claims during the ten-quarter incentive period to show its continued eligibility for incentive payments, as provided in Section 6 of this act, or until it is no longer qualified to receive incentive payments. The proxy establishment may be audited by the Tax Commission to verify such eligibility. Once the proxy establishment is approved, an agreement shall be deemed to exist between the proxy establishment and the State of Oklahoma requiring the continued incentive payment to be made as long as the proxy establishment retains its eligibility as defined in and established pursuant to this section and Sections 3 and 5 of this act and within the limitations contained in the Oklahoma Remote Quality Jobs Incentive Act, which existed at the time of such approval.
Added by Laws 2021, c. 225, § 4, eff. July 1, 2021.