Does Oklahoma Pay Businesses to Create Jobs? The Quality Jobs Programs

Yes, for businesses that qualify. Oklahoma's Quality Jobs Program pays enrolled companies quarterly cash rebates of up to 5% of newly created taxable payroll for up to 10 years. To qualify, a company generally has to be in an eligible industry, reach $2.5 million in new annual payroll within three years, and meet wage and health insurance requirements. A separate Small Employer Quality Jobs Program, for companies with 500 or fewer employees, pays up to 5% for up to 7 years with a jobs-based threshold instead.

Last checked: October 24, 2026. This page is general information, not tax, legal, or financial advice.

What is the Oklahoma Quality Jobs Program?

The Quality Jobs Program (68 O.S. § 3601) is a cash incentive run by the Oklahoma Department of Commerce, with claims paid through the Oklahoma Tax Commission. It isn't a tax credit: approved companies receive quarterly payments based on new Oklahoma payroll. Commerce describes it as targeted to manufacturers and certain service companies.

How much does Quality Jobs pay?

Up to 5% of new taxable payroll per quarter, for up to 10 years. Commerce sets each company's actual rate and maximum amount through a cost/benefit analysis during approval, so 5% is a ceiling, not a promise. A few things change the rate:

• Veterans. The rebate can go up to 6% if at least 10% of new payroll is qualified military veterans.
• Automatic 5% areas. In certain economically distressed counties and in Opportunity Zones, a 5% net benefit rate applies automatically.

Payments run quarterly for the first three years. If the company hits the payroll threshold, they can continue for seven more years. If it doesn't, payments stop, but payments already received don't have to be paid back. However, a company that fails to keep a business presence in Oklahoma within three years of its start date must repay all benefits. Commerce is paid a $1,000 origination fee when the first incentive payment is made.

What is the Small Employer Quality Jobs Program?

The Small Employer Quality Jobs Program (68 O.S. § 3901) is the version built for smaller companies. Per Commerce's 2026 guidelines and tax guide:

• Size: no more than 500 employees at application, and no more than an average of 500 over the prior four quarters.
• Benefit: quarterly payments of up to 5% of new taxable payroll for up to 7 years.
• Jobs, not a payroll dollar threshold: in a community under 3,500 people, the greater of 5 new jobs or 5% of full-time employment; from 3,500 to 7,000, the greater of 10 jobs or 7.5%; over 7,000, the greater of 15 jobs or 10%. Most companies have 24 months to get there. Certain R&D, testing, software and data processing fields get 36 months.
• Wages: the new jobs must average 110% of the county average wage (125% if you count health premiums toward wages), or 100% in certain economically challenged counties.
• Industry and out-of-state sales: the qualifying industries are those of the regular program except oil and gas, and companies need out-of-state sales of at least 35% for the first two years and 60% after that (R&D companies and testing labs are excused).
• Health insurance: basic coverage must be offered, with employees paying no more than 50% of the premium.
• Benefits aren't payable until the company has reached both the minimum new jobs and the required average wage. The 2026 guidelines say a company that hasn't met the thresholds at the end of its first 24 months is dismissed from the program.

Can you combine Quality Jobs with other Oklahoma incentives?

Sometimes. Quality Jobs participants generally can't also claim certain other credits and exemptions for the same activity, including the Investment/New Jobs Tax Credit. The tax guide notes that the two can be combined in certain circumstances, such as projects with $40 million or more of investment within three years. Commerce's guidelines suggest consulting a tax advisor to pick the best mix.