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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 385 By: Kirt
AS INTRODUCED
An Act relating to incentive payments; amending 68
O.S. 2021, Sections 3603, 3604, and 3 604.1, which
relate to the Oklahoma Quality Jobs Pr ogram;
modifying wage requirement for establishments
entering the Oklahoma Quality Jobs Program Act as the
result of a change-in-control event for certain
period; modifying wage requirement for certain
applicants; limiting maximum wage requirement to
certain period; clarifying statutory language; and
providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Se ction 3603, is
amended to read as follows:
Section 3603. A. As used in the Oklahoma Quality Jobs Program
Act:
1. a. “Basic industry” means:
(1) those manufacturing activities defined or
classified in the NAICS Manua l under Industry
Sector Nos. 31, 32 an d 33, Industry Group No.
5111 or Industry No. 11331,
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(2) those electric power generation, transmission ,
and distribution activities defined or classified
in the NAICS Manual under U.S. Industry Nos.
221111 through 221122, if:
(a) an establishment engaged t herein qualifies
as an exempt wholesale generator as defined
by 15 U.S.C., Section 79z -5a,
(b) the exempt wholesale generator facility
consumes from sources located within the
state at least ninety percent (90%) of the
total energy used to produce the elec trical
output which qualifies for the specialized
treatment provided by the Energy Policy Act
of 1992, P.L. 102-486, 106 Stat. 2776, as
amended, and federal regulations adopted
pursuant thereto,
(c) the exempt wholesale generator facility
sells to purchasers located outside the
state for consumption in activities located
outside the state at least ninety percent
(90%) of the total electrical energy output
which qualifies for the specialized
treatment provided by the Ene rgy Policy Act
of 1992, P.L. 102-486, 106 Stat. 2776, as
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amended, and federal regulations adopted
pursuant thereto, and
(d) the facility is constructed on or after July
1, 1996,
(3) those administrative and facilities support
service activities defined or classified in the
NAICS Manual under I ndustry Group Nos. 5611 and
5612, Industry Nos. 51821, 519130, 52232, and
56142 or U.S. Industry Nos. 524291 and 551114,
those other support activities for air
transportation defined or classified in the NAICS
Manual under Industry Group No. 488190, and th ose
support, repair, and maintenanc e service
activities for the wind industry defined or
classified in the NAICS Manual under Industry
Group No. 811310,
(4) those professional, scientific , and technical
service activities defined or classified in the
NAICS Manual under U.S. Industry Nos. 541 710 and
541380,
(5) distribution centers for retail or wholesale
businesses defined or classified in the NAICS
Manual under Sector No. 42, if forty percent
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(40%) or more of the inven tory processed through
such warehouse is shipped out-of-state,
(6) those adjustment and collection service
activities defined or classified in the NAICS
Manual under U.S. Industry No. 561440, if
seventy-five percent (75%) of the loans to be
serviced were made by out-of-state debtors,
(7) (a) those air transportation activities d efined
or classified in the NAICS Manual under
Industry Group No. 4811, if the following
facilities are located in this state:
(i) the corporate headquarters of an
establishment classified therein, and
(ii) a facility or facilities at which
reservations for transportation
provided by such an establishment are
processed, whether such services are
performed by employees of the
establishment, by employees of a
subsidiary of or other enti ty
affiliated with the establishment o r by
employees of an entity with who m the
establishment has contracted for the
performance of such services; provided,
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this provision shall not disqualify an
establishment which uses an out -of-
state entity or employees for some
reservations services, or
(b) those air transportation activitie s defined
or classified in the NAICS Manual under
Industry Group No. 4811, if an establishment
classified therein has or will have within
one (1) year sales of at least seventy -five
percent (75%) of its total sales, as
determined by the Incentive Approval
Committee pursuant to the provisions of
subsection B of this section, to out -of-
state customers or buyers, to in -state
customers or buyers if the product or
service is resold by the purchaser to an
out-of-state customer or buyer for ultimate
use, or to the federal government,
(8) flight training services activities defined or
classified in the NAICS Manual under U.S.
Industry Group No. 611512, which for purposes of
the Oklahoma Quality Jobs Program Act shall
include new direct jobs for which gross payroll
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existed on or after January 1, 2003, as
identified in the NAICS Manual,
(9) the following, if an establishment classified
therein has or will have within one (1) year
sales of at least seventy-five percent (75%) of
its total sales, as determined by the Ince ntive
Approval Committee pursuant to the provisions of
subsection B of this section, to out -of-state
customers or buyers, to in -state customers or
buyers if the product or service is resold by the
purchaser to an out-of-state customer or buyer
for ultimate use, or to the federal government:
(a) those transportation and warehousing
activities defined or classified in the
NAICS Manual under Industry Subsector No.
493, if not otherwise l isted in this
paragraph, Industry Subs ector Nos. 482 and
484 and Industry Group Nos. 4884 through
4889,
(b) those passenger transportation activities
defined or classified in the NAICS Manual
under Industry Nos. 561510 and 561599,
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(c) those freight or carg o transportation
activities defined or classified in the
NAICS Manual under Industry No. 541614,
(d) those insurance activities defined or
classified in the NAICS Manual under
Industry Group No. 5241,
(e) those services to dwellings and other
buildings, as defined or classified in the
NAICS Manual under Industry Group No. 5617,
excluding U.S. Industry Nos. 561730, 56171,
56172, 56174, and 56179,
(f) those equipment rental and leasing
activities defined or classified in the
NAICS Manual under Industry Group No. 5324,
(g) those information techno logy and other
computer-related service activities defined
or classified in the NAICS Manual under
Industry Group Nos. 5112, 5182, 5191 , and
5415,
(h) those business support service activities
defined or classified in the NAICS Manual
under U.S. Industry N os. 561410 through
561430, excluding 56143, and Industry No.
51911,
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(i) those medical and diagnostic laboratory
activities defined or classified in the
NAICS Manual under Industry Group No. 6215,
(j) those professional, scientific, and
technical service ac tivities defined or
classified in the NAICS Manual under
Industry Group Nos. 5412, 5414, 5415, 5416
and 5417, Industry Nos. 54131, 54133, 54136 ,
and 54137, and U.S. Industry No. 541990, if
not otherwise listed in this paragraph,
(k) those communication ser vice activities
defined or classified in the NAICS Manual
under Industry Nos. 51741 and 51791,
(l) those refuse systems activities defined or
classified in the NAICS Manual under
Industry Group No. 5622, provided that the
establishment is primarily engaged in the
capture and distribution of meth ane gas
produced within a landfill,
(m) general wholesale distribution of groceries,
defined or classified in the NAICS Manual
under Industry Group Nos. 4244 and 4245,
(n) those activities relating to processing of
insurance claims, defined , or classified in
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the NAICS Manual under U.S. Industry Nos.
524210 and 524292; provided, activities
described in U.S. Industry Nos. 524210 and
524292 in the NAICS Manual other than
processing of insurance claims shall not be
included for purposes of this subdivision,
(o) those agricultural activities classified in
the NAICS Manual under U.S. Industry Nos.
112120 and 112310,
(p) those professional organization activities
classified in the NAICS M anual under U.S.
Industry No. 813920,
(q) alternative energy structure construc tion
classified in the NAICS Manual under U.S.
Industry No. 237130,
(r) solar reflective coating application
classified in the NAICS Manual under U.S.
Industry No. 238160,
(s) solar heating equipment installation
classified in the NAICS Manual under U.S.
Industry No. 238220,
(t) those wired telecommunications carriers
classified in the NAICS Manual under U.S.
Industry No. 517110, and
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(u) those securities, commodity contracts , and
investment activities classified in t he
NAICS Manual under Industry Subsector N o.
523,
(10) those activities related to extraction or
pipeline transportation of petroleum, natural
gas, or refined petroleum products, defined or
classified in the NAICS Manu al under Industry
Group No. 2111, 2131 11, 213112, or 486, subject
to the limitations provided in paragraph 3 of
this subsection and paragraph 3 of subsection B
of this section,
(11) those activities performed by the federal
civilian workforce at a facility of the Federal
Aviation Administratio n located in this state if
the Director of the Oklahoma Department of
Commerce determines or is notified that the
federal government is soliciting proposals or
otherwise inviting states to compete for
additional federal civilian employment or
expansion of federal civilian employment at such
facilities,
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(12) those activities defined or classified in the
NAICS Manual under U.S. Industry No. 711211 (2007
version),
(13) those real estate or brokerage activities
classified in the NAICS Manual under U.S.
Industry No. 53120 for which at least seventy -
five percent (75%) of the establishment ’s
revenues are attributed to out -of-state sales and
at least seventy-five percent (75%) of the real
estate transactions generating those rev enues are
attributed to real property located outside the
State of Oklahoma this state, or
(14) those support activities for rail transportation
and those support activities for water
transportation defined or classified in the NAICS
Manual under U.S. Indu stry Nos. 4882 and 4883.
b. An establishment described in subparagraph a of this
paragraph shall not be considered to be engaged in a
basic industry unless it offers, or will offer within
one hundred eighty (180) days of employment, a basic
health benefits plan to the individuals it employs in
new direct jobs in this state which is determined by
the Oklahoma Department of Commerce to consist of the
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following elements or elements substantially
equivalent thereto:
(1) not more than fifty percent (50%) of the premium
shall be paid by the employee,
(2) coverage for basic hospital care,
(3) coverage for physician care,
(4) coverage for mental health care,
(5) coverage for substance abuse treatment,
(6) coverage for prescription drugs, and
(7) coverage for prenata l care;
2. “Change-in-control event” means the transfer to one or more
unrelated establishments or unrelated persons, of either:
a. beneficial ownership of more than fifty percent (50%)
in value and more than fifty percent (50%) in voting
power of the outstanding equity securities of the
transferred establishment, or
b. more than fifty percen t (50%) in value of the assets
of an establishment.
A transferor shall be treated as related to a transferee if more
than fifty percent (50%) of the voting interests o f the transferor
and transferee are ow ned, directly or indirectly, by the other or
are owned, directly or indirectly, by the same person or persons,
unless such transferred establishment has an outstanding class of
equity securities registered under Sectio ns 12(b) or 15(d) of the
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Securities Exchange Act of 1934, as amended, in which event the
transferor and transferee will be treated as unrelated; provided, an
establishment applying for the Oklahoma Quality Jobs Program Act as
a result of a change -in-control event is required to apply within
one hundred eighty (180) days of the change -in-control event to
qualify for consideration. An establishment entering the Oklahoma
Quality Jobs Program Act as the result of a change -in-control event
shall be required to maintain a level of new direct jobs as agreed
to in its contract with the Oklahoma Depart ment of Commerce and to
pay new direct jobs an average annualized wage which equals or
exceeds one hundred twenty -five percent (125%) of the average county
wage, for the county in which the new jobs are lo cated, for
applications submitted by an establishment before January 1, 2024.
For applications submitted by an establishment on or after January
1, 2024, the establishment shall pay one hundred twenty-five percent
(125%) of the average county wa ge, for the county in which the new
jobs are located, or one hundred percent (100%) of the average state
wage for application submitted by an establishment on or after
January 1, 2024, whichever is greater, as that percentage is
determined by the Oklahoma Department of Commerce based upon the
most recent U.S. Department of Commerce data for the county in which
the new jobs are located . For purposes of this paragraph,
healthcare premiums paid by the applicant for individuals in new
direct jobs shall not be included in the annualized wage. Such
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establishment entering the Oklahoma Quality Jobs Program Act as the
result of a change-in-control event shall be required to retain the
contracted average annualized wage and maintain the contracted
maintenance level of new direct jobs numbers as certifie d by the
Oklahoma Tax Commission. If the required average annualized wage or
the required new direct jobs numbers do not equal or exceed such
contracted level during any quarter, the quarterly incentive
payments shall not be made and shall not be resumed until such time
as such requirements are met. An establishment described in this
paragraph shall be required to repay all incentive payments received
under the Oklahoma Quality Jobs Program Act if the establishment is
determined by the Tax Commission to n o longer have busines s
operations in the state within three (3) years from the beginning of
the calendar quarter for which the first incentive payment claim is
filed;
3. “New direct job”:
a. means full-time-equivalent employment in this state in
an establishment which has qua lified to receive an
incentive payment pursuant to the provisions of the
Oklahoma Quality Jobs Program Act which employment did
not exist in this state prior to the date of approval
by the Department of the application of the
establishment pursuant to the provisions of Section
3604 of this title and with respect to an
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establishment qualifying for incentive payments
pursuant to division (12) of subparagraph a of
paragraph 1 of this subsection shall n ot include
compensation paid to an emp loyee or independent
contractor for an athletic contest conducted in the
state if the compensation is paid by an entity that
does not have its principal place of business in the
state or that does not own real or perso nal property
having a market value of at least One Million Dollars
($1,000,000.00) located in the state, and the
employees or independent contractors of such entity
are compensated to compete against the employees or
independent contractors of an establish ment that
qualifies for incentive paym ents pursuant to divi sion
(12) of subparagraph a of paragraph 1 of this
subsection and which is organized under Oklahoma law
or that is lawfully registered to do business in the
state and which does have its principal place of
business located in the state and owns real or
personal property having a market value of at least
One Million Dollars ($1,000,000.00) located in the
state; provided, that if an application of an
establishment is approved by the Oklahoma Departmen t
of Commerce after a change-in-control event and the
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Director of the Oklahoma Department of Commerce
determines that the jobs located at such establishment
are likely to leave the state, “new direct job” shall
include employment that existed in this state prior to
the date of application whic h is retained in this
state by the new establishment following a change in
control event, if such job otherwise qualifies as a
new direct job, and
b. shall include full-time-equivalent employment in this
state of employees who are employed by an employment
agency or similar en tity other than the establishment
which has qualified to receive an incentive payment
and who are leased or otherwise provided under
contract to the qualified establishment, if such job
did not exist in this state prior to the date of
approval by the Depar tment of the application of the
establishment or the job otherwise qualifies as a new
direct job following a change -in-control event. A job
shall be deemed to exist in this state prior to
approval of an application if the activities a nd
functions for which the particular job exists have
been ongoing at any time within six (6) months prior
to such approval. With respect to establishments
defined in division (10) of subparagraph a of
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paragraph 1 of this subsection, new direct jobs shall
be limited to those jobs directly comprising the
corporate headquarters of or directly relating to
manufacturing, maintenance, administrative, financial,
engineering, surveying, geological , or geophysical
services performed by the establishment. Under no
circumstances shall e mployment relating to field
services be considered new direct jobs;
4. “Estimated direct state benefits ” means the tax revenues
projected by the Department to accrue to the state as a result of
new direct jobs;
5. “Estimated direct state costs” means the costs projected by
the Department to accrue to the state as a result of new direct
jobs. Such costs shall include, but not be limited to:
a. the costs of education of new state resident children ,
b. the costs of public health, publi c safety, and
transportation services to be provided to new state
residents,
c. the costs of other state services to be provided to
new state residents, and
d. the costs of other state services;
6. “Estimated net direct state benefits” means the estimated
direct state benefits less the estimated direct state costs;
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7. “Net benefit rate” means the estimated net direct state
benefits computed as a percentage of gross payroll; provided:
a. except as otherwise provided in this paragraph, the
net benefit rate may be variable and sha ll not exceed
five percent (5%),
b. the net benefit rate shall not exceed six percent (6%)
in connection with an establishment which is owned and
operated by an entity which has been awarded a Un ited
States Department of Defense cont ract for which:
(1) bids were solicited and accepted by the United
States Department of Defense from facilities
located outside this state,
(2) the term is or is renewable for not less than
twenty (20) years, and
(3) the average annual salary, excluding be nefits
which are not subject to Oklahoma income taxes,
for new direct jobs created as a direct result of
the awarding of the contract is projected by the
Oklahoma Department of Commerce to equal or
exceed Forty Thousan d Dollars ($40,000.00) within
three (3) years of the date of the first
incentive payment,
c. except as otherwise provided in subparagraph d of this
paragraph, in no event shall incentive payments,
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cumulatively, exceed the estimated net direct state
benefits,
d. the net benefit rate shall be fi ve percent (5%) for an
establishment locating:
(1) in an opportunity zone located in a high -
employment county, as such terms are defined in
subsection G of Section 3604 of this title, or
(2) in a county in which:
(a) the per capita personal income, as
determined by the Departmen t, is eighty-five
percent (85%) or less of the statewide
average per capita personal income,
(b) the population has decreased over the
previous ten (10) years, as determined by
the Oklahoma Department of Commerce based on
the most recent U.S. Department of Commerce
data, or
(c) the unemployment rate exceeds the lesser of
five percent (5%) or two percentage points
above the state average unemployment rate as
certified by the Oklahoma Employment
Security Commission,
e. the net benefit rate shall not exceed si x percent (6%)
in connection with an establishment which:
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(1) is, as of the date of application, receiving
incentive payments pursuant to the Oklahoma
Quality Jobs Program Act and has been receiv ing
such payments for at least one (1) year prior to
the date of application, and
(2) expands its operations in this state by creating
additional new direct jobs which pay average
annualized wages which equal or exceed one
hundred fifty percent (150%) of t he average
annualized wages of new dir ect jobs on which
incentive payments were received during the
preceding calendar year,
f. with respect to an establishment defined or classified
in the NAICS Manual under U.S. Industry No. 711211
(2007 version) or any establishment defined or
classified in the NAICS Manual as a U.S. Industry
Number which is not included within the definition of
“basic industry” as such term is defined in this
section on April 17, 2008, the net benefit rate shall
not exceed the highest r ate of income tax imposed upon
the Oklahoma taxable income of individuals pursuant to
subparagraph (g) or subparagraph (h), as applicable,
of paragraph 1 and paragraph 2 of subsection B of
Section 2355 of this title. Any change in such
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highest rate of individual income tax imposed pursuant
to the provisions of Sect ion 2355 of this title shall
be applicable to the computation of incentive payments
to an establishment as described by this subparagraph
and shall be effective for purposes of incentive
payments based on payroll paid by such establi shment
on or after January 1 of any applicable year for which
the net benefit rate is modified as required by this
subparagraph, and
g. the net benefit rate shall not exceed six percent (6%)
in connection with an estab lishment which employs
United States military veterans in at least ten
percent (10%) of its gross payroll. The net benefit
rate for an establishment which employs United States
military veterans in at least ten percent (10%) of its
payroll shall not be lo wer than five percent (5%).
Incentive payments made pursuant to the provisions of this
subparagraph shall be based upon payroll associated with such new
direct jobs. For purposes of this subparagraph, the amount of
health insurance premiums or other benef its paid by the
establishment shall no t be included for purpo ses of computation of
the average annualized wage;
8. “Gross payroll” means wages, as defined in Section 2385.1 of
this title for new direct jobs;
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9. a. “Establishment” means any business or gov ernmental
entity, no matter what legal form, including, but n ot
limited to, a sole proprietorship; partnership;
limited liability company; corporation or combination
of corporations which have a central parent
corporation which makes corporate management d ecisions
such as those involving conso lidation, acquisition,
merger or expansion; federal agency; political
subdivision of the State of Oklahoma; or trust
authority; provided, distinct, identifiable subunits
of such entities may be determined to be an
establishment, for all purposes of the Okl ahoma
Quality Jobs Program Act, by the Department subject to
the following conditions:
(1) within three (3) years of the first complete
calendar quarter following the start date, the
entity must have a minimum payroll of Two Million
Five Hundred Thousand D ollars ($2,500,000.00) and
the subunit must also have or will have a minimum
payroll of Two Million Five Hundred Thousand
Dollars ($2,500,000.00),
(2) the subunit is engaged in an activity or service
or produces a product which is demonstratively
independent and separate from th e entity’s other
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activities, services or products and could be
conducted or produced in the absence of any other
activity, service, or production of the entity,
(3) has an accounting system capab le of tracking or
facilitating an audi t of the subunit’s payroll,
expenses, revenue, and production. Limited
interunit overlap of administrative and
purchasing functions shall not disqualify a
subunit from consideration as an establishment by
the Department,
(4) the entity has not previously had a subunit
determined to be an establishment pursuant to
this section; provided, the restriction set forth
in this division shall not apply to subunits
which qualify pursuant to the provisions of
subparagraph b of paragraph 7 of this subsection,
and
(5) it is determined by th e Department that the
entity will have a probable net gain in total
employment within the incentive period.
b. The Department may promulgate rules to further limit
the circumstances under which a subunit may be
considered an establis hment. The Department shall
promulgate rules to determine whether a subunit of an
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entity achieves a net gain in total employment. The
Department shall establish criteria for determining
the period of time within whic h such gain must be
demonstrated and a method for determining net gain in
total employment;
10. “NAICS Manual” means any manual, book or other publication
containing the North American Industry Classification System, United
States, 1997, promulgated by th e Office of Management and Budget of
the United States of Ame rica, or the latest revised edition;
11. “Qualified federal contract ” means a contract between an
agency or instrumentality of the United States government, including
but not limited to the Depa rtment of Defense or any branch of the
United States Armed Fo rces, but exclusive of any contract performed
for the Federal Emergency Management Agency as a direct result of a
natural disaster declared by the Governor or the President of the
United States with respect to damage to property loca ted in Oklahoma
or loss of life or personal injury to persons in Oklahoma, and a
lawfully recognized business entity, whether or not the business
entity is organized under the laws of the State of Oklahoma this
state or whether or not the principal place o f business of the
business entity is located within the State of Oklahoma this state,
for the performance of services , including but not limited to
testing, research, development, consulting , or other services in a
basic industry, if the contract involves the performance of such
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services performed on or after July 1, 2009, by the employees of the
business entity within the State of Oklahoma this state or if the
contract involves the performance of such services performe d on or
after July 1, 2009, by employe es of a lawfully recogn ized business
entity that is a subco ntractor of the business entity with which the
prime contract has been formed. A qualified federal contract
described in this paragraph shall not qualify unle ss both the
qualified federal contract or and any subcontracto rs originally
involved in the work o r added subsequently during the period of
performance verify to the qualified federal contractor verifier that
it offers, or will offer within one hundred eigh ty (180) days of
employment of its res pective employees, a ba sic health benefits plan
as described in subparagraph b of paragraph 1 of this subsection to
individuals who perform qualified labor hours in this state;
12. “Qualified federal contractor verifi er” means a nonprofit
entity organized under the laws of the State of Oklahoma this state,
having an affiliation with a comprehensive university which is part
of The Oklahoma State System of Higher Education, and having the
following characteristics:
a. established multiyear classified and unc lassified
indefinite-delivery/indefinite-quantity federal
contract vehicles in excess of Fifty Million Dollars
($50,000,000.00),
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b. current capability to sponsor and maintain personnel
security clearances and authorize d by the federal
government to handle and perform classified work up to
the Top Secret Sensitive Compartment ed Information
levels,
c. at least one on-site federally certified Sensitive
Compartmented Information Facility,
d. on-site secure mass data storage complex with the
capability of isolat ing, segregating, and protecting
corporate proprietary and classified i nformation,
e. trusted agent status by maintaining no ownership of,
vested interest in, nor royalty production from any
intellectual property,
f. at least one hundred thousand (100,000) square feet of
configurable laboratory and support space,
g. the direct access to restricted air space through a
formalized memorandum of agreement with the Department
of Defense,
h. at least five thousand (5,000) acr es available for
outdoor testing and t raining facilities, and
i. the ability to house state -of-the-art surety
facilities, including chemical, biological,
radiological, explosives, electronics, and unmanned
systems laboratories and ranges;
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13. “SIC Manual” means the 1987 revision to the Standa rd
Industrial Classific ation Manual, promulgated by the Office of
Management and Budget of the United States of America;
14. “Start date” means the date on which an establishment may
begin accruing benefits for the cr eation of new direct jobs, which
date shall be determined by the Department;
15. “Effective date” means the date of approval of a contract
under which incentive payments will be made pursuant to the Oklahoma
Quality Jobs Program Act, which shall be the da te the signed and
accepted incentive c ontract is received by the Department; provided,
an approved project ma y have a start date which is different from
the effective date;
16. “Total qualified labor hours ” means the reimbursed payment
amount for hours of work performed by the State of Oklaho ma
workforce of a quali fied federal contractor or the State of Oklahoma
workforce of a subcontractor of a qualified federal contractor and
which are required for the full performance of a qualified federal
contract;
17. “Qualified labor rate” means the fully reimbursed labor
rate paid through a qualified federal contract for qualified labor
hours to the qualified federal contractor or subcontractor;
18. “Qualified federal contractor ” means a business entity:
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a. maintaining a prime contract with the federa l
government as defined in paragraph 11 of this
subsection,
b. providing notice of intent to apply to the Department
within one hundred eighty (180) days of July 1, 2010,
or one hundred eighty (180) days of the date of the
award of a qualified federal cont ract or award of a
new qualified subcontract under an existing qualifie d
federal contract, and
c. adding substantively to the contract by performing at
least eight percent (8%) of the total labor whether
qualified and nonqualified labor as determined by th e
federal contractor ve rifier on a direct contract or
individual task order or delivery order on an
indefinite-delivery/indefinite-quantity or other
blanket contract vehicle.
Should a prime contractor provide notice to the Department of
its intent not to apply for incentive for a qualified federal
contract or fails to qualify under the criteria above,
subcontractors in order of tier ranking as determined by the federal
contract verifier may assume the role of the prime and apply to
become a qualified federa l contractor provided t he entity meets the
same criteria above with the exception that notice of intent to
apply with the Department must be provided within sixty (60) days of
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the prime’s disqualification or one hundre d eighty (180) days of the
award of its subcontract, whicheve r is later; and
19. “Proxy establishment” means a public trust which:
a. is organized and existing under Section 176 of Title
60 of the Oklahoma Statutes for the benefit of a
geographic area which includes a city or county or
some combination thereof, and
b. benefits a geographic area where new direct jobs which
meet the requirements of the Oklahoma Quality Jobs
Program Act are created by an establishment, other
than the proxy establishment, whic h is a branch of the
Armed Forces of the United States.
A proxy establishment may be determined to be an esta blishment
for all purposes of the Oklahoma Quality Jobs Program Act by the
Department and incentive payments may be made to such proxy
establishment for new direct jobs otherwise qualif ied pursuant to
the Oklahoma Quality Jobs Program Act. The Department may
promulgate rules to further specify the circumstances under which a
proxy establishment may be considered an establishment for the
purposes of making application for incentive payme nts pursuant to
the Oklahoma Quality Jobs Program Act. Provided , however, that with
respect to any data on qualifying direct new jobs from a branch of
the Armed Forces of the United States, such rules shall only requi re
a proxy establishment to provide su ch data as would otherw ise be
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publicly releasable by the branch of the A rmed Forces of the United
States.
B. The Incentive Approval Committee is hereby created and shall
consist of the Director of the Office of Manage ment and Enterprise
Services, the Director of the Department and one member of the
Oklahoma Tax Commission app ointed by the Tax Commission, or a
designee from each agency approved by such member. It shall be the
duty of the Committee to determine the elig ibility of all applicants
for the Oklahoma Quality Jobs Progr am Act, subject to the applicable
requirements.
C. For an establishment defined as a “basic industry” pursuant
to division (4) of subparagraph a of paragraph 1 of subsection A of
this section, the Incentive Approval Committee shall consist of the
members provided by subsection B of this section and the Executive
Director of the Oklahoma Center for the Advancement of Science and
Technology, or a designee from the Center appointed by the Executive
Director.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 3604, is
amended to read as follows:
Section 3604. A. Except as otherwise provided in subsection I
or subsection L of this section, an establishment which meets the
qualifications specified in the Oklahoma Qualit y Jobs Program Act
may receive quarterly incentive payments fo r a ten-year period from
the Oklahoma Tax Commission pursuant to the provisions of the
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Oklahoma Quality Jobs Program Act; provided, such an establishment
defined or classified in the NAICS Manua l under U.S. Industry N o.
711211 (2007 version) may receive qu arterly incentive payments for a
fifteen-year period. The amount of such payments shall be equal to
the net benefit rate multiplied by the actual gross pay roll of new
direct jobs for a calendar quarter as verified by the Oklahoma
Employment Security Commi ssion.
B. In order to receive incentive payments, an establishment
shall apply to the Oklahoma Department of Commerce. The application
shall be on a form prescribed by the Department and shall contain
such information as may be required by the Department to determine
if the applicant is qualified. An 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 i s submitted to the
Department.
C. Except as otherwise provide d by subsection D or E of this
section, in order to qualify to receive such payments, the
establishment applying shall be required to:
1. Be engaged in a b asic industry;
2. Have an annual gros s payroll for new direc t jobs projected
by the Department to e qual or exceed Two Million Five Hundred
Thousand Dollars ($2,500,000.00) within three (3) years of the first
complete calendar quarter following the start d ate; and
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3. Have a number of full -time-equivalent employees subject to
the tax imposed by Section 2 355 of this title and working an annual
average of thirty (30) or more hours per week in new direct jobs
located in this state equal to or in excess of eigh ty percent (80%)
of the total number o f new direct jobs.
D. In order to qualify to receive incentiv e payments as
authorized by the Oklahoma Quality Jobs Program Act, an
establishment engaged in an activity described under:
1. Industry Group Nos. 3111 thr ough 3119 of the NAICS Manual
shall be required to:
a. have an annual gross payroll for new direct j obs
projected by the Department to equal or exceed One
Million Five Hundred Thousand Dollars ($1,500,000.00)
within three (3) years of the first complete ca lendar
quarter following the start dat e and make, or which
will make within one (1) year, at least s eventy-five
percent (75%) of its total sales, as determined by the
Incentive Approval Committee pursuant to the
provisions of subsection B of Section 3603 o f this
title, to out-of-state customers or buyers, to in-
state customers or buyers if the product or service is
resold by the purchaser to an out -of-state customer or
buyer for ultimate use, or to the federal government,
unless the annual gross payroll equ als or exceeds Two
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Million Five Hundred Thousand Dollars ($2, 500,000.00)
in which case the requireme nts for purchase of output
provided by this subparagraph shall not apply, and
b. have a number of full -time-equivalent employees
working an average of thirt y (30) or more hours per
week in new direct jobs equal to or in excess of
eighty percent (80%) of th e total number of new direct
jobs; and
2. Division (4) of subparagraph a of paragraph 1 of subsection
A of Section 3603 of this title, shall be required to :
a. have an annual gross payroll for new direct jobs
projected by the Department to equal or exceed One
Million Five Hundred Thousand Dollars ($1,500,000.00)
within three (3) years 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 new direct jobs equal to or in excess of
eighty percent (80%) of the total number of new direct
jobs.
E. 1. An establishment which locates its princ ipal business
activity within a site c onsisting of at least t en (10) acres which:
a. is a federal Superfund removal site,
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b. is listed on the National Priorities List established
under Section 9605 of Title 42 of the United States
Code,
c. has been formally deferred to the state in lieu of
listing on the National Pr iorities List, or
d. has been determined by the Department of Environmental
Quality to be contaminated by any substance regulated
by a federal or state statute governing environmental
conditions for real property pursuant to an order of
the Department of Environmental Quality,
shall qualify for incentive payments irrespective of its actual
gross payroll or the number of full -time-equivalent employees
engaged in new direct jobs.
2. In order to qualify for the incentive payments pursua nt to
this subsection, the establishment shall conduct the act ivity
resulting in at least fifty percent (50%) of its Oklahoma taxable
income or adjusted gross income, as determined under Section 2358 of
this title, whether from the sale of products or serv ices or both
products and services, at the physical location w hich has been
determined not to comply with the federal or state statutes
described in this subsection with respect to environmental
conditions for real pro perty. The establishment shall be sub ject to
all other requirements of the Oklahoma Quality Jobs Pr ogram Act
other than the exemptions provided by this subsection.
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3. In order to qualify for the incentive payments pursuant to
this subsection, the entity shall obtain from the Department of
Environmental Quality a l etter of concurrence that:
a. the site designated by the entity does meet one or
more of the requirements listed in paragraph 1 of this
subsection, and
b. the site is being or has been remediated to a level
which is consistent with t he intended use of the
property.
In making its determination, the Department of Environmental
Quality may rely on existing data and information available to it,
but may also require the applying entity to provide addit ional data
and information as necessar y.
4. If authorized by the Department of Environmental Qualit y
pursuant to paragraph 3 of this subsection, the entity may utilize a
remediated portion of the property for its intended purpose prior to
remediation of the remainder of the site, and shall qu alify for
incentive payments based on employment associated wi th the portion
of the site.
F. Except as otherwise provided by subsection G of this
section,:
1. for For applications submitted on and after June 4, 2003 and
before January 1, 2024, in order to qualify to receive incentive
payments as authorized by the Oklahoma Quality Jo bs Program Act, in
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addition to other qualifications specified herein, an e stablishment
shall be required to pay new direct jobs an average annualized wage
which equals or excee ds:
1. a. One hundred ten percent (110%) of the average county
wage as determined by the Department of Commerce based
on the most recent U.S. Department o f Commerce data
for the county in which the new direct jobs are
located. For purposes of this paragra ph, health care
premiums paid by the applicant f or individuals in new
direct jobs shall be included in the annualized wage ;,
or
2. b. One hundred percent (100%) of the average county wage
as that percentage is determin ed by the Department of
Commerce based upon the most recent U.S. Department of
Commerce data for the county in which t he new jobs are
located. For purposes of this paragraph, health care
premiums paid by the applicant for individuals in new
direct jobs shall not be included in the annualized
wage; and
2. For applications submitted on and after January 1, 2024, in
order to qualify to receive incentive payments as authorized b y the
Oklahoma Quality Jobs Program Act, in addition to other
qualifications speci fied herein, an establishment shall be required
to pay new direct jobs an average annu alized wage which equals or
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exceeds one hundred percent (100%) of the average county wage for
the county in which the new jobs are located or one hundred percent
(100%) of the average state wage, whiche ver is greater, as that
percentage is determined by the Department of Commerce based up on
the most recent U.S. Department of Commerce data . For purposes of
this paragraph, health care premiums paid by the applicant for
individuals in new direct jobs shall not be included in the
annualized wage.
Provided, no average wage requirement shall exceed Twenty-five
Thousand Dollars ($25,000.00), in any county, for applications
received before January 1, 2024. This maximum wage thres hold shall
be indexed and modified fro m time to time based on the latest
Consumer Price Index year-to-date percent change r elease as of the
date of the annual average county wage data release from the Bureau
of Economic Analysis of the U.S. Department of C ommerce.
G. 1. As used in this subse ction, “opportunity zone” means one
or more census tracts in which, according to the most recent Federal
Decennial Census, at least thirty percent (30%) of the residents
have annual gross household incomes from all sou rces below the
poverty guidelines esta blished by the U.S. Dep artment of Health and
Human Services. An establishment which is otherwise qualified to
receive incentive payments and which locates its principal business
activity in an opportunity zone shall n ot be subject to the
requirements of subsection F of this sec tion.
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2. As used in this subsection:
a. “negative economic event ” means:
(1) a man-made disaster or natural disaster as
defined in Section 683.3 of Title 63 o f the
Oklahoma Statutes, resulting i n the loss of a
significant number of jobs within a particula r
county of this state, or
(2) an economic circumstance in which a significant
number of jobs within a particular county of this
state have been lost due to an establishment
changing its structur e, consolidating with
another establishment, closing, or moving all or
part of its operations out of this state, and
b. “significant number of jobs ” means Local Area
Unemployment Statistics (LAUS) data, as determined by
the Bureau of Labor Statistics, for a county which are
equal to or in excess of five percent (5%) of the
total amount of Local Area Unemployment Statistics
(LAUS) data for that county for the calendar year, or
most recent twelve-month period in which employ ment is
measured, preceding the eve nt.
An establishment which is otherwis e qualified to receive
incentive payments and which locates in a county in which a negative
economic event has occurred within the eighteen -month period
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preceding the start date shall not be subject to the requirements of
subsection F of this section; prov ided, an establishment shall not
be eligible to receive incentive payments based upon a negative
economic event with respect to jobs that are transferred from one
county of this state to another.
H. The Department sha ll determine if the applicant is quali fied
to receive incentive payments.
I. If the applicant is determined to be qualified by the
Department and is not subject to the provisions of subparagraph d of
paragraph 7 of subse ction A of Section 3603 of this tit le, the
Department shall conduct a cos t/benefit analysis to d etermine the
estimated net direct state benefits and the net benefit rate
applicable for a ten -year period beginning with the first complete
calendar quarter following the start date and to estim ate the amount
of gross payroll for a ten-year period beginning with the first
complete calendar quarter following the start date or for a fifteen -
year period for an establishment defined or classified in the NAICS
Manual under U.S. Industry No. 711211 (20 07 version). In conducting
such cost/benefit analysis, the D epartment 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, except for
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applicants subject to the provisions of subparagraph d of paragraph
7 of subsection A of Section 3603 of this title.
J. Upon approval of su ch 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 establishme nt to submit such
additional informati on as may be necessary to administer the
provisions of the Oklahoma Quality Jobs Program Act. The approved
establishment shall file quarterly claims with the Tax Commission
and shall continue to file such quarterly cl aims during the ten-year
incentive period to show its continu ed eligibility for incentive
payments, as provided in Section 3606 of this title, or until it is
no longer qualified to receive incentive payments. The
establishment may be audited by the Tax Co mmission to verify such
eligibility. Once the establishment is approved, an agreement shall
be deemed to exist between the establishment and the State of
Oklahoma this state, requiring the continued incentive payment to be
made as long as the establishmen t retains its eligibility as defined
in and established pursu ant to this section and Sections 3603 and
3606 of this title and within the limitations contained in the
Oklahoma Quality Jobs Program Act, which existed at the time of su ch
approval. An establi shment described in this subsection sh all be
required to repay all incentive payments received under the Oklahoma
Quality Jobs Program Act if the establishment is determined by the
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Oklahoma Tax Commission to no longer have business operations in the
state within three (3) years from the beginn ing of the calendar
quarter for which the first incentive payment claim is filed.
K. A municipality with a population of less than one hundred
thousand (100,000) persons in which an establishme nt eligible to
receive quarterly incentive payments pursuant t o the provisions of
this section is located may file a claim with the Tax Commission for
up to twenty-five percent (25%) of the amount of such payment. The
amount of such claim shall not exceed amounts paid by the
municipality for direct costs of municipa l infrastructure
improvements to provide water and sewer service to the
establishment. Such claim shall not be approved by the Tax
Commission unless the municipality and the establishment have
entered into a written a greement for such claims to be filed b y the
municipality prior to submission of the application of the
establishment pursuant to the provisions of this section. If such
claim is approved, the amount of the payment to the establishm ent
made pursuant to the provisions of Section 3606 of this ti tle shall
be reduced by the amount of the approved claim by the municipality
and the Tax Commission shall issue a warrant to the municipality in
the amount of the approved claim in the same mann er as warrants are
issued to qualifying establishments.
L. For any contract executed by an establishment on or after
the effective date of this act August 2, 2018, five percent (5%) of
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the quarterly incentive payment amount shall be transferred by the
Oklahoma Tax Commission to the Oklahoma Quick Action Closing Fund .
SECTION 3. AMENDATORY 68 O.S. 2021, Section 3604.1, is
amended to read as follows:
Section 3604.1. A. A qualified federal contractor may receive
quarterly incentive payments for renewable ten-year periods from the
Oklahoma Tax Commission pursuant to the provisions of the Oklahoma
Quality Jobs Program Act and the provisions of this section.
B. The amount of such payments shall be equal to a net benefit
rate of not less than twenty -five hundredths of one percent (0.25%),
but not greater than two perce nt (2%), multiplied by the total
qualified labor hours worked by employees of the federal contractor
or employees of a qualified federal subcontractor, or both, pursuant
to a qualified federal co ntract for a calendar quarter as verif ied
by the Oklahoma Employment Security Commission and certified by a
qualified federal contractor verifier. The net benefit rate for a
qualified federal contractor shall be scaled to annual
subcontracting goals that account for both total qualified
subcontract labor hours and the ratio of qualified subcontract labor
hours to total qualified labor hours. Unless limited by the
cost/benefit analysis, the net benefit rate shall:
1. Not exceed twenty -five hundredths of o ne percent (0.25%)
when annual qualified subcontract labor ho urs are less than Two
Hundred Thousand Dollars ($200,000.00) or when annual qualified
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subcontract labor is less than one percent (1%) of the annual total
qualified labor hours claimed;
2. Not be less than five-tenths of one percent (0.5%) when
subcontract goals are met with a minimum of Two Hundred Thousand
Dollars ($200,000.00) of annual total qualified subcontractor labor
hours and these hours are a minimum of one percent (1%) of the
annual total qualified hours claimed;
3. Not be less than one percent (1%) when subcontract goals are
met with a minimum of One Million Dollars ($1,000,000.00) of annual
total qualified subcontractor labor hours and when these hours
represent a minimum of five perc ent (5%) of the annual total
qualified hours claimed;
4. Not be less than one and five -tenths percent (1.5%) when
subcontract goals are met with a minimum of Two Million Dollars
($2,000,000.00) of annual total qualified subcontractor labor hours
and these hours are a minimum of ten percent (1 0%) of the annual
total qualified hours claimed; and
5. Not be less than two percent (2.0%) when subcontract goals
are met with a minimum of Four Million Dollars ($4,000,000.00) of
annual total qualified subcontractor labor hours and these hours are
a minimum of twenty percent (20%) of the annual total qualified
hours claimed.
C. In order to receive incentive payments, a qualified federal
contractor shall apply to the Oklahoma Department of Commerce within
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one hundred eighty (180) days following the date of the award of a
qualified federal contract or award of a new qualified subcontract
under an existing qualified federal contract. The application shall
be on a form prescribed by the Department and shall contain such
information as may be required by the Department to determin e if the
applicant is qualified. Once qualified by the Department, the
applicant shall submit qualified federal contracts to the federal
contract verifier. The federal contract verifier shall e stablish
with the applicant an informa tion system(s) or contr act(s) as may be
required to certify the total qualified labor hours, qualified labor
rates, and reimbursement through the qualified federal contract. A
qualified federal contractor may apply fo r an effective date for a
project, which shall not be more th an twenty-four (24) months from
the date the application is submitted to the Department. No state
agency shall be required to make any payment to a qualified federal
contract verifier for any in formation needed by the agency to
perform any duty imposed up on it pursuant to the provisions of
Section 3601 et seq. of this title. All costs for the federal
contract verifier shall be reimbursed through value -added services
on the qualified federal cont ract or other mechanisms agreed to by
the federal contractor verifier and the federal contract performers.
D. In order to qualify to receive incentive payments as
authorized by the Oklahoma Quality Jobs Program Act, in addition to
other qualifications spe cified herein, a qualified federal
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contractor shall be requir ed to pay direct jobs an average
annualized wage which equals or exceeds:
1. For applications submitted before January 1, 2024:
a. One one hundred ten percent (110%) of the average
county wage as determined by the Department of
Commerce based on the most recent U.S. Department of
Commerce data for the county in whic h the new direct
jobs are located. For purposes of this paragraph,
health care premiums paid by the applicant for
individuals in new direct jobs shall be included in
the annualized wage;, or
2. b. One one hundred percent (100%) of the average county
wage as that percentage is determined by the
Department of Commerce based upon the most rece nt U.S.
Department of Commerce data for the co unty in which
the new jobs are located . For purposes of this
paragraph, health care premiums paid by the applicant
for individuals in new direct jobs shall not be
included in the annualized wage ; and
2. For applications submitted on or after January 1, 2024, one
hundred percent (100%) of the average county wage for the county in
which the new direct jobs are located or one hundred percent (100%)
of the average state wage , whichever is greater, as determined by
the Department of Commerce based on the most recent U.S. Department
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of Commerce data. For purposes of thi s paragraph, health care
premiums paid by the applicant for individuals in new direct jobs
shall not be included in the annualized wage .
Provided, no average wage requirement shall exceed Twenty -nine
Thousand Four Hundred Nine Dollar s ($29,409.00), in any county, for
applications submitted before January 1, 2024. This maximum wage
threshold shall be indexed and modified fro m time to time based on
the latest Consumer Price Index year-to-date percent change release
as of the date of th e annual average county wage data release from
the Bureau of Economic Analysis of the U.S. Departme nt of Commerce.
3. For qualified subcontract or work, the qualified federal
contractor shall have a minimum average qua lified labor rate
requirement paid to the subcontractor of Th irty-one Dollars ($31.00)
per hour, in any county. This maximum wage threshold shall be
indexed and modified from time t o time based on the latest Consumer
Price Index year-to-date percent change release as of the date of
the annual average county wage da ta release from the Bureau of
Economic Analysis of the U.S. Department of Commerce.
E. The Department shall determine if the applicant is qualified
to receive incentive payments using informatio n supplied to the
Department by the qu alified federal contrac tor verifier. The NAICS
code or codes under which the federal government awarded the
qualified federal contract shall be used to determine the basic
industry for a qualified federal contractor. For federal contracts
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awarded under NAICS codes not within t he definition of basic
industry pursuant to paragraph 1 of subsection A of Section 3603 of
this title, the Department of Commerce, with the federal contract
verifier, may evaluate and utilize ind ividual statement of work
items that would qualify within a b asic industry definition.
F. If the applicant is determined to be qualified by the
Department, the Department shall cond uct a cost/benefit analysis to
determine the estimated net direct state be nefits and the net
benefit rate, as provided by subsection B of this section,
applicable for a ten -year period beginning with the first complete
calendar quarter following the start date and to estimate the amount
of gross payroll and total qualified labor hours for a ten-year
period beginning with the first complet e calendar quarter following
the start date. In conducting such cost/benefit analysis, the
Department shall consider qua ntitative factors, such as the
anticipated level of new tax revenues to th e state along with the
added cost to the state of providing s ervices, and such other
criteria as deemed appropriate by the Department. In no event shall
incentive payments, cumulati vely, exceed the estimated net direct
state benefits. Using this net cost /benefit analysis model, the
Department may establish the ren ewable ten-year contract with a
qualified federal contractor at the entity level to encompass any
current or future quali fied federal contracts that meet the
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cost/benefit analysis metrics as dete rmined by the federal
contractor verifier and confirmed by th e Department.
G. Upon approval of such an application, the Department shall
notify the Tax Commission and shall provide it with a copy of the
contract that has been cosigned by the federal contr actor verifier
and the results of the cost/benefit analysis. The Tax Commission
may require the qualified federal contractor, federal contract
verifier, and qualified subcontractors to submit such additional
information as may be necessary to administer t he provisions of the
Oklahoma Quality Jobs Program Act. The approved qualified federal
contractor shall file quarterly claims with the Tax Commission and
shall continue to file such quarterly claims during the ten -year
incentive period to show its continu ed eligibility for incentive
payments, as provided in Section 3606 of this title, or until it is
no longer qualified to receive incentive payments. The qualified
federal contractor may be audited by the Tax Commission to verify
such eligibility. Once the qualified federal contractor is
approved, an agreement shall be deemed to exist between the
qualified federal contractor and the State of Oklahoma, requiring
the continued incentive payment to be made as long as the qualified
federal contractor retains it s eligibility as defined in and
established pursuant to this section and Sections 3603 and 3606 of
this title and within the limitations contained in the Oklahoma
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Quality Jobs Program Act, which existed at the time of such
approval.
H. For qualified feder al contracts with periods of performan ce
exceeding two (2) ye ars, if the actual annual verified gross
qualified labor hours for four (4) consecutive calendar quarters
does not equal or exceed Two Million Five Hundred Thousand Dollars
($2,500,000.00) within three (3) years of the start date, or does
not equal or exceed actual annual gross qualified labor hours of Two
Million Five Hundred Thousand Dollars ($2,500,000.00) at any other
time during the ten-year period after the start date, the incentive
payments shall not be made and shall not be re sumed until such time
as the actual annual qualified labor hours exceed Two Million Five
Hundred Thousand Dollars ($2,500,000.00).
I. If the average annualized wage or minimum average qualified
labor rate required by subsection H of this section is not me t
during any calendar q uarter, the incentive payments shall not be
made and shall not be resumed until such time as such requirements
are met.
J. Before approving a quarterly incentive payment for a
qualified federal contract, the federal contract verifie r must first
determine through the Department that neither the qualified federal
contractor nor the subcontractor are receiving incentive paymen ts
under the Oklahoma Quality Jobs Program Act, the Saving Quality Jobs
Act, the 21st Century Quality Jobs Incen tive Act or the Former
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Military Facility Development Act for the performance of the same
such services under the qualified federal contract and is not
qualified for approval of an application for incentive payments
under the Oklahoma Quality Jobs Program A ct, the Saving Quality Jobs
Act, the 21st Century Quality Jobs Incentive Act or the Former
Military Facility Development Act for the performance of the same
such services under the qualified federal contract. If the
qualified federal contractor or the sub contractor are receivin g or
have an approved application for incentive payments under the
Oklahoma Quality Jobs Program Act, the Saving Quality Jobs Act, the
21st Century Quality Jobs Incentive Act or the Former Milita ry
Facility Development Act for the pe rformance of the same s uch
services under the qualified federal contract, each may choose to
defer in part or in entirety the other incentives f or the qualified
federal contractor to receive the incentives pursuant to subsection
B of this section. The fed eral contract verifier shall confirm any
deferrals and ensure the total for all quality jobs incentive
payments on any individual does not excee d the total net benefit to
the state. Should neither the federal contract or nor the
subcontractor defer in part or in entirety their i ncentive payments
such that the total for all Quality Jobs incentive payments exceeds
the total net benefit to the state, the priority for incentive
payments shall go to the entity with the earli est recognized start
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date indentified identified within the current Department of
Commerce Quality Jobs contract.
SECTION 4. This act shall become effective November 1, 2023.
59-1-1621 QD 1/15/2023 9:22:25 PM