LAND-PURCHASE AND CONVEYANCE TO COMPANY
Purchase of land site for the company can be made as an incentive by Altus/Southwest Area Economic Development Corporation (ASA-EDC) based on projection of new job development and capital investment by the company.
BUILD TO SUIT OPPORTUNITIES
For companies that need a new industrial or commercial building in Altus, business-friendly resources are available. Industrial sites available with building assistance based upon projection of new development and capital investment by the company. CDBG-EDIF eligible.
JOB TRAINING AND DEVELOPMENT ASSISTANCE
• Customized Training for Industry Program (TIP) Whether you're a new or an expanding industry, start-up training programs are designed for your company's specific needs though the nationally acclaimed Oklahoma Training for Industry Program (TIP). TIP is delivered through Altus' Southwest Oklahoma Technology Center at virtually no cost to help you create the trained workforce you need in order to be productive from the start.
• Existing Industry Training Program The Existing Industry Training Program provides customized training and services at little or no cost to your company. The program is delivered by Altus' Southwest Oklahoma Technology Center and can be used for upgrade training for your existing workforce when you install new equipment, processes, technology, computerized manufacturing applications and/or training new product lines. It can also be used for supervisory training.
LOWEST UTILITY COSTS IN OKLAHOMA
Altus has the lowest overall electric rates for industrial customers in Oklahoma. Altus Power is Oklahoma Municipal Power Authority (OMPA) member city. Altus Power provides an Industrial, Educational and Governmental Development Rate (IEGDR) which allows a graduated discount on demand costs based on minimum load levels. Utility hookup fees negotiable. Altus has no franchise fee for industrial customers for local gas service available from Centerpoint Energy.
AD VALOREM TAX EXEMPTION
A five-year ad valorem exemption for all or a portion of local taxes is available for new investment by companies locating within the Altus city limits. The exemption is not available to predominantly "retail" establishments, including hotels and motels.
TAX INCREMENT FINANCING (TIF)
Oklahoma allows cities to create tax increment districts to provide funding for economic development in distressed areas for up to 25 years. Proceeds from the tax can be used for infrastructure. The tax increment is determined in accordance with the following:
The base assessed value includes all real and personal property on the tax rolls and assessed as of January 1st of the year during which the district is designated.
Incremental tax dollars are those assessed in excess of the base on the first January 1st after the district has been declared, and continuously until the increment district ceases, less the amount attributable to change in assessment ratio for real and personal property in the county.
Proceeds from tax increment financing may be used in accordance with approved plans for project areas such as facilities, infrastructure, parks, sidewalks, and other public projects.
The State of Oklahoma has been recognized nationally for its outstanding business location and job growth incentives. Businesses can choose between two primary business incentive options for newly locating or expanding companies. Additionally, a wide range of tax credits, refunds, and workforce training benefits are available to help your company succeed.
• Quality Jobs Program Ten-Year Cash Incentive
The Quality Jobs incentive targets manufacturers and certain service industries that have a new payroll investment of $2.5 million or more to receive a quarterly cash payment of up to 5% of new taxable payroll. Payments are made quarterly during the first three years, provided employees are paid at or above the average wage required. After three years if all thresholds are achieved, incentive payments may extend for an additional seven-year period for a total of ten years. In order to qualify for the program, the business must offer basic health insurance coverage to all employees whose pay is included in the new payroll figures. Employees must not be required to pay more than 50% of the premium. The plan must permit employees to access the health coverage within 180 days of employment. Eighty percent of the employees, whose pay is included in the new payroll, must work at least 30 hours per week. All employees included in the program must be paid a wage equal to the average county wage where the project is located. Presently, wage requirements do not exceed $28,878 in any county regardless of average county wage.
• Small Employer Quality Jobs Seven-Year Cash Incentive
The Small Employer Quality Jobs incentive provides annual cash payments to qualifying companies that are creating new direct jobs The payments may reach as much as 5% of new taxable payroll and last for up to seven years. Qualifying payroll must be attributable to annual salaries that are at least 110% to 125% of the average wage of the county in which the jobs are located. Basic health insurance must be offered to new employees within 12 months of their start date, and the employee must pay no more than 50% of the cost. Depending on location, at least five, and possibly as many as 15, new employees must be added in the first 12 months after the contract start date.
• Investment/New Jobs Tax Credits
Manufacturers who hold a manufacturer's sales tax exemption permit and who are not participants in the Quality Jobs incentive program may choose this income 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.
Manufacturers that invest in qualified new depreciable property and also hire new employees may compute the five-year tax credit either (1) by calculating 1% of the qualifying investment or (2) by multiplying $500 per new employee, and then choosing whichever credit is larger. The maximum credit in the first five years equals up to 5% of the investment, or $2,500 per new employee. The credit doubles for most investments in excess of $40 million. Credits may reach as high as 10% of new investment, or $5,000 per new employee. Any credit allowed but not used in the initial five-year period, for investments after January 1, 2000, maybe carried over until used by the company. Investment in depreciable property must equal at least $50,000, and the number of employees must not decrease as a result of the investment. Qualified property includes all machinery, fixtures and buildings, including warehousing or substantial improvements to buildings used in a manufacturing operation on a manufacturing site. Eligibility is initially determined each year by the taxpayer on its income tax return.
Other incentives under OPTION 2 include:
Sales Tax Refunds on construction materials for certain manufacturers and aircraft maintenance repair facilities; on purchases of computers, data processing equipment, telecommunications equipment for certain aircraft facilities; and for purchases of computer services and data processing equipment for qualified computer services or research and development companies.
Income Tax Exemptions/Credits for hazardous waste recycling reuse or source reduction; for CNG conversion; and for insurance premiums.
ADDITIONAL INCENTIVES AVAILABLE WITH OPTIONS 1 AND 2
• Sales Tax Exemptions
Oklahoma has a comprehensive sales tax exemption programs for the following companies:
Manufacturers with a Manufacturer's Sales Tax Exemption Permit from the Oklahoma Tax Commission are exempt for purchases of machinery and equipment, energy, and tangible personal property used in design, development, and manufacturing. Sales to a manufacturer of exempt property must be used in the manufacturing operation at a manufacturing site. The exemption is not extended to purchases for administration, sales, distribution, transportation, site construction or site maintenance.
> Computer Services and Data Processing
Companies engaged in computer services or data processing activities are exempt from sales tax on certain items as follows: Machinery and equipment used by companies primarily engaged in activities described in SIC Code Industrial Group Numbers 51121, 336411 and 541512 that derive at least 50% of their revenues from out-of-state purchasers or companies primarily engaged in activities described in SIC Code Industrial Group Number 518210 and derive at least 80% of revenues from out-of-state purchasers.
> Sales at Aircraft Maintenance Facilities
Sales of aircraft and aircraft parts provided the sales occur at aircraft maintenance facilities operated by an air common carrier that employs at least 2,000 full-time employees are exempt from sales tax. The aircraft maintenance facility activity must be primarily related to the fabrication, repair, alteration, modification, refurbishing, maintenance, and building or rebuilding of commercial aircraft or aircraft parts used in air common carriage.
> Aircraft Repairs and Modifications
Sales of aircraft engine repairs, modification, and replacement parts, sales of aircraft frame repairs and modification, aircraft interior modification and paint, and sales of services employed in the repair, modification, and replacement of parts of aircraft engines, aircraft frame, and interior repair and modification, and paint are also exempt from sales tax.
> Aircraft Maintenance or Manufacturing Facility
Oklahoma offers a sales tax refund for sales of computers, data processing equipment, and related telecommunications equipment for use in an aircraft maintenance or manufacturing facility that: (1) Is new or expanding (2) Is primarily engaged in aircraft repair, building, or rebuilding (3) Has a total cost of construction exceeding $5 million (4) Employs at least 250 new full time employees upon completion (5) Pays at least $2 million for computer services/data processing equipment.
> Excise Tax on Aircraft Sales
Generally, excise tax in lieu of sales tax is imposed on the sale, transfer, or lease of aircraft that will be based in Oklahoma. However, resident taxpayers purchasing an aircraft with a selling price in excess of $5 million may request that the excise tax paid be designated to a specific general aviation airport owned or controlled by an airport sponsor, public entity or municipality in this state for certified improvement(s) to the airport.
Sales tax exemptions apply to Interstate 1-800, WATS and interstate private-line business telecommunication services, and to cell phones sold to a vendor who transfers the equipment as part of an inducement to a consumer to contract for wireless telecommunications.
• Sales Tax Refunds
Oklahoma offers sales tax refunds for qualified companies for sales taxes paid and sales tax paid for machinery and equipment by certain service businesses (computer services, R & D, and aircraft repair) and sales taxes paid for construction materials incorporated in certain new manufacturing facilities by the manufacturer or by a contractor or subcontractor on behalf of a qualified manufacturer. Participants in the Quality Jobs Program or other incentive payment programs may not participate in the sales tax refund programs.
> Computer Services / Data Processing / Telecommunications Equipment
Oklahoma offers a sales tax refund on the purchase of computers, data processing equipment, related peripherals, telegraph or telecommunications services and equipment.
• Applies to NAICS Codes 51121, 336411, 541512, 518210 and 518111 (Computer services and data processing) and 541712, 541720. 541712 and 541380 (Research and Development).
• New or expanding businesses.
• Addition of 10 new fu1l-time employees that have an average salary of $35,000.
• These new employees must be employed for at least 36 months.
• 50% of annual gross revenues must result from sales to out-of-state buyers but may include the federal government.
• 75% of annual gross income results from computer services, data processing activities, or research and development activities.
• If the company is in SIC Code Industrial Group Number 518210, it must also purchase $100,000 worth of exempt items.
> Construction Materials
Oklahoma refunds sales taxes paid on construction materials for certain new or expanding manufacturing facilities including:
• Facilities with construction costs exceeding $5 million that create 100 new manufacturing jobs and are maintained for a minimum of 36 months.
Construction costs include building and construction costs, and engineering and architectural fees, but not legal fees.
• Facilities with construction costs exceeding $10 million, and with combined total costs of material, construction, and machinery exceeding $50 million, which add 75 new employees who are retained for 36 months.
• Facilities with construction costs exceeding Three Hundred Million Dollars ($300,000,000) which maintain an employment level of a least 1,750 full time equivalent employees.
• Qualified new or expanding aircraft maintenance and overhaul facilities that create 250 or more jobs, with construction costs totaling at least $5 million. [68 0.S. 1357(17}]
These construction exemptions are unique not only because they are refunds, but also because they allow contractors or subcontractors that have previously entered into a written contractual relationship with the manufacturer, or a qualified aircraft maintenance facility operator, to make refundable purchases on behalf of manufacturers. The manufacturer may use invoices made out in the contractors' names for proof when applying for sales tax refunds. Generally, refundable purchases do not include machinery and equipment. Warehousing / Distribution for manufacturers, structures, or land used for packaging, re-packaging, labeling, or assembly for distributing products that are at least 70% made in Oklahoma, but at an off-site, in-state manufacturing facility or facilities are also deemed manufacturing facilities for purposes of these sales tax refunds.
• Ad Valorem Tax Exemptions
Certain new and expanding manufacturers, research and development companies, certain computer services and data processing companies with significant out-of state sales, aircraft repair companies, oil refineries, and certain windpower generators may be eligible for ad valorem tax exemptions for up to five years. Threshold requirements are an investment of at least $250,000 and an addition of $250,000 in annual payroll in counties with a population of 75,000 or less. If the company is located in a larger county, an additional annualized payroll of at least $1,000,000 is required. However, if a $7 million investment is made in new facilities for certain computer service companies, provided current payroll is maintained. Direct replacement, repair, or maintenance of existing machinery or equipment will not qualify.
A five-year exemption is available for construction of the distribution centers. A minimum investment of Five-Million Dollars ($5,000,000.00) is required at least 100 FTE paid at least one-hundred seventy-five percent (175%) of the federal minimum wage. Construction must be completed within three (3) years from the date of construction.
• Freeport - Inventory Tax Exemption
The Freeport Exemption provides ad valorem tax exemption for goods, wares, and merchandise that come from outside the State and leave the State within nine months if such goods, wares and merchandise are held for assembly, storage, manufacturing, processing or fabricating purposes within the State.
INDUSTRIAL ACCESS ROADS
The Industrial Access Road Program is designed to provide assistance to local industrial development efforts by funding, within practical limitations, access facilities connecting a specific industry or industrial area directly to the state or local road system. Application is through local governing bodies that in turn contact the Oklahoma Department of Transportation.
Electric Utility Provider: Altus Municipal Authority - Altus Power
Altus Power, has implemented $10.4 million plan with improvements and additions to city's electric system. A new 138kV transmission line will encircle the city and connect a new substation to two existing substations. All improvements were completed in May, 2009. Peak usage - 60 Megawatts.
(Effective July, 2006)
Residential Customer Charge
Per customer per month ................ $8.50
Winter Months (November through March)
First 750 kWh ................ $0.0797 per kWh
Over 750 kWh ................ $0.0455 per kWh
Summer Months (April through October)
First 750 kWh ................ $0.0788 per kWh
0ver 750 kWh ................ $0.0797 per kWh
Small Commercial Customer Charge
Per customer per month ................ $15.00
Winter Months (November through March)
All kWh usage ................ $0.0642 per kWh
Summer Months (April through October)
All kWh usage ................ $0.0783 per kWh
Large Commercial Customer Charge
Per Customer per month ................ $40.00
All kWh usage ................ $0.0455 per kWh
Demand Charge (5I kW)
All kW usage ................ $6.50 per kW
Industrial Level 1 Customer Charge
Per Customer per month ................ $50.00
All kWh usage ................ $0.0327 per kWh
Demand Charge (1000 kW) Demand peak exceeds 1000 kW
All kW usage ................ $6.50 per kW
Industrial Level II Customer Charge
Per Customer per month ................ $200.00
All kWh usage ................ $0.0367 per kWh
Demand Charge (1000 kW) The demand peak has to exceed 1000 kW and from a primary distribution line (34 kV or lower) with only one transaction provided to a Customer.
All kW ................ usage $5.90
Treated Water Provider: Altus Municipal Water System
Capacity: ................ 12 Million g/p/d
Current consumption: ................ 10 Million summer high g/p/d
Storage Capacity: ................ 1.5 Million above ground, 4 million below ground
(Effective July, 2006)
Residential and Commercial:
Customer Charge (minimum bill} ................ $6.00
1st 3000 gal ................ $2.00 per 1000 gal.
Next 37,000 ................ gal $2.30 per 1000 gal.
Over 40,000 ................ gal. $2.00 per 1000 gal.
(Rate are doubled outside city limits)
Wastewater Provider - Altus Wastewater Treatment Plants
Capacity: 6 Million g/p/d
City Sewage Coverage: 95%
Storm Water Sewage Coverage: 25%
Storm Water Permitting Required: Yes
(Effective July, 2006)
Inside City Limits................ $4.50 per month
• plus a charge of $1.00 per 1000 gal. of water consumption based on the average monthly water used October through April.
Outside City Limits ................ $8.00 per month
• plus a charge of $1.00 per 1000 gal. as computed above
Collection Service - Altus Municipal Authority
Garbage collection is billed on all electric accounts. Large trash containers provided by the City. Flatbed service is offered once a month for large items.
(Effective July, 2006)
Residential ................ $10.60 per month
Commercial ................ $19.00 per month minimum, service units
- number of pick-ups per six day period
- solid waste management $1.60 fee monthly
Landfill Service - Altus Municipal Authority
400 acre site - 90% acreage available