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2012 M AYOR ’ S S UMMER C ONFERENCE R OB G RAGG Regional Development Team Director.

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Presentation on theme: "2012 M AYOR ’ S S UMMER C ONFERENCE R OB G RAGG Regional Development Team Director."— Presentation transcript:

1 2012 M AYOR ’ S S UMMER C ONFERENCE R OB G RAGG Regional Development Team Director

2 Divisions and Programs Business Customer Services S TATE I NCENTIVES Martin Roberts Director

3 Scott Myers Director Divisions and Programs Community Development C OMMUNITY D EVELOPMENT B LOCK G RANTS (CDBG)

4 Erika Lucas Director Divisions and Programs Global Recruitment F OREIGN D IRECT I NVESTORS (FDI)

5 Oklahoma’s Foreign Direct Investors: Michelin Umicore Lufthansa BAE Systems AMEC Lafarge Lucent Technologies Sanofi-Aventis Sodexo Siemens ThyssenKrupp Solvay Chemicals Veolia Environmental Sigma Alimentos And more… Divisions and Programs Global Recruitment Key Industries: Aerospace Traditional and Renewable Energy Biosciences Advanced Food Processing and Packaging Corporate Services Warehousing/Logistics/Distribution Advanced Manufacturing Meteorological Services Technology

6 I NCENTIVES Charles Kimbrough Director Divisions and Programs National Recruitment R EQUESTS F OR P ROPOSALS (RFP S )

7 Norma Noble Director Workforce Development C ERTIFIED W ORK R EADY C OMMUNITIES Divisions and Programs

8 Certified Work Ready Communities Workforce Development Eligibility A county or region may apply Process Application is made through Commerce Criteria 3% of the existing workforce must earn a Career Readiness Certificate (CRC) credential 25% of the available workforce must earn a CRC Either a minimum of 85% high school graduation rate or 82% of high school seniors earn a CRC Divisions and Programs

9 Workforce Development Divisions and Programs


11 Community InfrastructureCommunity Infrastructure Economic DevelopmentEconomic Development Infrastructure Financing (EDIF) Infrastructure Financing (EDIF) Grants

12 Industrial Manufacturing Call Centers Retail Want: Know What You Developing Projects

13 Land Buildings Workforce Capital Local Incentives Utility Capacity Utility Ownership Transportation Inventory of Available Assets Available Assets o Rail o Highway o Air Developing Projects

14 Who are your major employers? Who are the smaller employers? What is the overall mix? Any commonality / clusters? Inventory of Existing Businesses Developing Projects

15 Citizen Input or Strategic Plan? Got B UY -I N Developing Projects Visioning ?

16 What is your Market Area? Proximity to Regional Nodes? Push vs. Pull Factors (Reilly’s) Know what your demand is? Retail / Service Leakage What’s Your Plan? Other Factors: Developing Projects

17 Quality Jobs Program Cash payments of up to 5% of new payroll for up to 10 years Must meet average county wage or $30,754, whichever is lower Company must achieve $2.5M annual payroll within 3 years Must offer basic health insurance May be combined with Investment / New Jobs Tax Credit under certain circumstances State Incentive Programs

18 Small Employer Quality Jobs Program Cash payments of up to 5% of new payroll for up to 7 years Must have 90 employees or less Must meet 110% of the average county wage Must have 75% out-of-state sales Must offer basic health insurance Targeted to manufacturers State Incentive Programs

19 Investment / New Tax Credits Choice of tax credit based on investment OR new employees Five-year state tax credit on the greater of 1% per year of investment in new depreciable property or $500 per new employee Credit doubles in Enterprise Zones Credit doubles if investment exceeds $40 million Minimum investment of $50,000 Tax credits accrue and may be claimed on July 1, 2012 May be combined with Quality Jobs under certain circumstances State Incentive Programs

20 21 st Century Quality Jobs Program Requires at least 10 full-time jobs at an annual average wage of the lesser of $97,381 or 300% of the county’s average wage Allows a net benefit rate of up to 10% of payroll for up to 10 years Out-of-state sales must be at least 50% State Incentive Programs

21 Prime WIN Provides a cash benefit and a certified subcontractor base for federal prime contractors Performance-based program that requires subcontracting with an Oklahoma workforce Offers federal prime contractors a cash rebate of up to 2% of the Oklahoma workforce loaded labor cost Cash incentives paid quarterly for a maximum of 10 years by the Oklahoma Tax Commission State Incentive Programs

22 Pooled Finance Bonds issued by the infrastructure pool are financed or repaid from sales taxes voted by local community. A $100 million Economic Development Pool is created for financing to local governments in conjunction with a for-profit entity economic development projects in the state. Debt issued through the Economic Development Pool may use withholding taxes generated by the for-profit entity to repay the debt.  County/municipal roads & bridges  Water treatment facilities  Solid waste management facilities  Railway and utility systems  Other infrastructure assets owned by local government A $100 million Infrastructure Pool is created for bonding local governments for: State Incentive Programs

23 Requires a letter of determination from the Oklahoma Department of Commerce that the project is net benefit positive for the state. 65% of the net proceeds from both the Infrastructure Pool and the Economic Development Pool must be used by municipalities that do not exceed 300,000 people. The remaining 35% may be used for any eligible local government, including Tulsa and Oklahoma City. Effective July 1, 2009 Issuing capacity by Oklahoma Development Finance Authority (ODFA) is renewable. Pooled Finance State Incentive Programs

24 Businesses locating or expanding in these areas benefit by accelerated depreciation of investment and by employment tax credits when employing tribal members or their spouses. Native American Lands Tax Credit Federal legislation clarifies the location of special American Indian lands in Oklahoma that qualify for related tax credits benefiting new and established businesses in Oklahoma. State Incentive Programs

25 More than two-thirds of the lands in Oklahoma meet the IRS-qualifying definition of former Indian lands and qualify for accelerated depreciation. Qualifying lands may include previous tribal land which may have been transferred to new ownership. Native American Lands Tax Credit The federal employment tax credit is applicable to businesses located in the qualifying areas that employ enrolled American Indians and their spouses. State Incentive Programs

26 The Tax Relief, Unemployment Insurance Re-authorization, and Job Creation Act of 2010, signed by President Obama Dec. 17, 2010, includes extension through Dec. 31, 2011 of the tax incentive for businesses locating on former Indian lands. Native American Lands Tax Credit The tax incentive for business locating on former Indian lands has expired; however, it is expected to be renewed. State Incentive Programs

27 5–Year Ad Valorem Tax Exemption 5–Year Ad Valorem Tax Exemption Sales Tax Exemption Sales Tax Exemption State Incentive Programs

28 Building a Local Business Attraction Program RDS Distribution Chain RFP for Dummies RFP Lead Development and the RFP Process

29 Business Retention & Expansion (BR&E) Community Development and Economic Development Global Business Services Business Attraction Regional Development Specialists

30 Regional Economic Development Partnership Assistance and Development Entrepreneurship Workforce Development Referrals to Commerce and Partner Programs Northwest Southwest North CentralWest Central Southeast OKC Metro Northeast Regional Development Specialists

31 Stan Ralstin Regional Development Specialists

32 R OB G RAGG Director, Regional Development Team (405) 815-5259  (405) 596-0314

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