Oklahoma Senate Bill SB1787

Oklahoma 2022 Regular Session

• Introduced: 2/7/22
• Refer: 2/8/22

Caption

Oklahoma Quality Jobs Program; adding wage threshold requirement after five years of incentives. Effective date.

Impact

The introduction of wage requirements after the initial five years of incentives could significantly impact business operations in Oklahoma. By mandating that businesses pay above-average county wages, the state aims to cultivate job creation that benefits local labor markets. However, this may lead to challenges for smaller businesses that could struggle to meet these wage standards, leading to a potential reduction in new job creation if such businesses decide against seeking these incentives due to the increased overhead costs.

Summary

Senate Bill 1787 amends provisions in the Oklahoma Quality Jobs Program, specifically regarding incentives for establishments meeting certain employment and wage requirements. The bill stipulates that to receive quarterly incentive payments from the Oklahoma Tax Commission, an establishment must maintain specific wage thresholds throughout the agreement period. This is in addition to meeting pre-existing requirements regarding gross payroll and the percentage of new direct jobs created within the state. The aim of these provisions is to ensure that quality jobs provided by incentivized businesses support local economies adequately.

Contention

Some contentious points may arise from the wage requirements and their implications for businesses, particularly those operating in lower-income areas. Supporters of the bill assert that these wage thresholds are necessary to ensure that the jobs created are of high quality and provide a living wage, while critics argue that the stringent requirements could discourage companies from applying for incentives, potentially harming economic growth in the state. Furthermore, the implications of these requirements could disproportionately affect new or smaller businesses that are already navigating financial constraints.