About Ponca City

The following is a summary of potentially available business incentives from the State of Oklahoma. These incentives are statutory and are in addition to any local incentives provided by the Ponca City Development Authority. For a more complete description, including qualification requirements, go to http://okcommerce.gov/new-and-existing-business/incentives/. The Oklahoma Department of Commerce can provide a no cost, no obligation estimate of these programs upon request. To obtain that estimate, please contact David Myers at 580.765.7070 or dmyers@goponca.com.

INVESTMENT TAX CREDIT

The State of Oklahoma provides a state investment tax credit equal to 2% of the investment, per year, on qualifying buildings and equipment for five years. For a total investment of $10 million, (buildings and equipment) a state income tax credit of $200,000 per year for five years or a total value of $1 million in state tax credits would be earned by the company.

-OR- (Alternative to the Investment Tax Credit)

STATE QUALITY JOBS REBATE PROGRAM

For those companies that pay wages above the state median, (currently $28,879) the State of Oklahoma will pay a up to a 5% rebate on qualifying payroll for full time employees, provided the company also pays a minimal level of support on company sponsored health plans. The rebate may be paid for up to ten years. As an example, a project with 300 employees at the required wage would be paid $4,331,850 over ten years, (based upon 5%). Please note that a company must choose between the Investment Tax Credit or the Quality Jobs program. They may not be combined.

FIVE YEAR PROPERTY TAX EXEMPTION

The company will be exempt from paying property tax on the personal property, (equipment) provided by the company. Depending upon the prior use of the facility, property tax abatement for five years for the building itself may also be available.

 SALES AND USE TAX EXEMPTION ON MACHINERY AND EQUIPMENT

Purchase of equipment in the facility used in the manufacturing process will be exempt from the payment of sales and use taxes.

SALES AND USE TAX EXEMPTION ON GOODS CONSUMED IN FOOD PROCESSING

The purchase of stock and other goods used in the facility used in the manufacturing process will be exempt from the payment of sales and use taxes.

SALES AND USE TAX EXEMPTION ON ENERGY USED IN THE FOOD PROCESSING PROCESS

The purchase of all fuel and electric power used in the manufacturing process will be exempt from the payment of sales and use taxes.

FREEPORT (INVENTORY) TAX EXEMPTION

Firms able to move inventory through their facilities within a nine month period are able to avoid property tax liability on imported items.

WORKFORCE TRAINING

The State of Oklahoma through the Oklahoma Department of Career and Technical Education provides the finest workforce training program in the United States. The programs may provide for a number of aspects of skills training and assessment, (other than wages paid) for employees. In addition, several Oklahoma Career Techs and communities offer a significant number of programs that work with employers to grow the skills sets of employees and work with veterans, internships, emancipated youth programs and other work study programs should the company desire to participate at any level in any of these programs.

Ponca City voters approved a measure providing for funds raised through a special economic development sales tax to be used to grow jobs in Ponca City. These local incentives are managed by the PCDA Board of Trustees and are in addition to any business incentives that a company may qualify for at the state level.

The actual amount of the incentive is evaluated on a case by case basis, depending upon the industry, the number of jobs created, the wages paid for those jobs, the level of private investment and the specific needs of the company. Incentives are not a reward for creating jobs, rather they are used to close the gap and encourage a company to locate or grow jobs in Ponca City.

Ponca City’s ability to enter into an incentive agreement is both streamlined and designed to be extremely user-friendly. Incentive agreements require only a one time vote of the PCDA Board of Trustees. Incentives have a variety of potential uses and the incentive agreements are tailored to insure that the incentives can be used as desired. Compliance with an incentive agreement is typically the submission of a copy of the company’s state employment form to PCDA.

PCDA incentives are available to companies that create “economic base” jobs. This includes a wide variety of industries. In general, a company that exports a product or service outside of Ponca City creates an economic base job. Specifically excluded, however, are retail, hospitality, local professional services, local business services and personal services.

Perhaps the most important incentive, however, is Ponca City itself. The community’s ability and desire to work with existing and new businesses, the flexibility and availability of workforce training programs, the low cost of operation, the opportunity to send children to Ponca City Schools and the ability to lead a balanced life in a community that is as beautiful as it is welcoming provide an incentive that is hard to match.

Finding out about potential local incentives is both easy and confidential. Contact David Myers, (dmyers@goponca.com) or Lori Henderson, (lhenderson@goponca.com) both of whom can be reached by phone at 580.765.7070, to find out more.