Director's Report 07/20/2020
Atoka is in the following State and Federal Incentive Zones:
- Opportunity Fund
- Enterprise Zone
- New Market Tax Credits
- Quality Jobs
Industries and some businesses typically begin their search with communities that fit their preferred incentives. A specific set of required incentives such as Opportunity Zone, or New Market Tax Credit Area, are outlined in the Request For Proposals (RFP). Atoka has benefitted from the Federal and State Incentives. An industry will go to the location that provides the best economic return on investment. We want them to make money in Atoka because we want the jobs, we want our people to make money. One dollar of new payroll typically turns over in the local economy 1.5 times. In other words, $1,000 of new payroll will create an additional $1,500 in businesses such as restaurants, housing, utilities, etc. This multiplier is due to new jobs, sales, and purchases, created in support industries.
I attended a class on Opportunity Zone Funding. This is a Capital Gains Tax Credit program and allows investors to defer capital gains taxes. These funds (typically called 1031) must be invested through an Opportunity Fund in a designated Opportunity Zone. The Federal Government allowed each Governor to select the Opportunity Zones within their respective states. This incentive drives investment in economically disabled areas. There have been projects in Atoka using Opportunity Zone Funds.
Opportunity Funds can be used for Industrial or Retail developments.
This tax credit provides growing manufacturers with a substantial tax credit based on either an investment in depreciable property or on the addition of full-time-equivalent employees engaged in manufacturing, processing or aircraft maintenance.
New Market Tax Credits
This tax credit has driven many of the new and expanding industries in the United States. New Markets Tax Credits are federal income tax credits used to encourage private investment to create jobs and investments in low-income communities around the United States. Request for Proposals from larger industries will generally begin their search with a requirement of a New Market Tax Credit.
This State of Oklahoma incentive has improved our capability when competing with other states for jobs. The OK Dept of Commerce will research all available credits. These credits are NAICS code-driven and require an average salary of 110% of the local mean average, plus 50% of the employee’s insurance. There are multiple short-term tax credits in this package. Currently, in Atoka, to qualify for these tax credits, the average wage must be $13.56 per hour, plus 50% of the employee’s health insurance.
Quality jobs incentives can be applied for at any time when industries are increasing employment.