Incentives
MPower works with the City of McAlester on a case-by-case basis to determine what incentives can be arranged for companies wishing to relocate to McAlester.
McAlester has land in two industrial parks, and pending city council approval, can work with companies to incentivize development. Additionally, McAlester is one of few communities across the state that offers the New Markets Tax Credit Program.
If it's starting a business downtown that you're interested in, click here for information on McAlester's new Downtown Sales Tax Rebate Incentive.
REI New Markets Investment, LLC
The New Markets Tax Credit Program enacted by Congress in 2000 is a powerful tool to meet the challenge of economic development in low-income rural and urban communities. The program is administered by REI New Markets Investment, LLC, a subsidiary of Rural Enterprises of Oklahoma, Inc., which is a Community Development Financial Institution of the U.S. Treasury Department and a Certified Development Company of the U.S. Small Business Administration.
Administered by the Treasury Department through its Community Development Financial Institutions Fund, the New Markets Tax Credit Program offers investors an attractive tax benefit through a 39% federal income tax credit for investments. The tax credit will be issued over a 7-year period, 5% for each of the first three years and 6% for each of the remaining four years. The tax credit may be carried forward. The net present value of the credit is estimated at 30%. The equity investment must remain in the LLC for the 7-year term. Interest or dividends paid by the business in which the investment was placed may be passed through to the investor during the term. Equity capital or loan principal repaid by the business during the 7-year term must be reinvested.
Eligibility
Qualified low-income community investments may include: loans, equity investments, or capital to qualified businesses. To qualify, businesses must derive at least 50% of their gross income from a Qualified Low-Income Community and a substantial portion of their tangible property and services performed by employees must be in an eligible community. These businesses may be start-ups, expansions of existing businesses, or mature businesses.
Application Process
REI New Markets Investment, LLC will provide technical assistance to businesses receiving loans or investments under the New Markets program. It will also establish a compliance-monitoring program to ensure that businesses meet all the requirements of the Tax Credit.
REI also specializes in small business loans and packaging short and long term loans for new or existing businesses. REI works with lending programs providing business loans ranging from $1,500 to over $10 million. Loan proceeds may be used for land and buildings; new construction or renovation; equipment, inventory, furniture and fixtures; purchase of a business or working capital.
As a packager, REI works with the client and lending agency, acting as a liaison and assisting with additional information needed until the loan request is approved, loan closes and funds have been disbursed to borrower. As a lender, REI administers the business lending programs of the U.S. Small Business Administration and also has some of its own loan programs. To download more information on this program please click here.
Contact
REI New Markets Investment, LLC
PO Box 1335
Durant, OK 74702-1335
800-658-2823 or 800-658-2823
www.ruralenterprises.com
Kenny Simpson, kennysimpson@ruralenterprises.com
Debbie Partin, debbiep@ruralenterprises.com
American Indian Lands Tax Credit
Two-thirds of Oklahoma, because of its unique Native American heritage, qualifies for special federal tax treatment. 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.
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. The tax incentive for businesses locating on former Indian lands has been extended through December 31, 2013. More than two-thirds of the lands in Oklahoma meet the Internal Revenue Service-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.
Oklahoma has the largest percentage of American Indian population in the country. The federal employment tax credit is applicable to businesses located in the qualifying areas that employ enrolled American Indians and their spouses.
To learn more about this program CLICK HERE.
HUBZone
HUBZone is a United States Small Business Administration (SBA) program for small companies that operate and employ people in Historically Underutilized Business Zones --or HUBZones. If you are a small businesses, you can be apply to be HUBZone certified if you meet the following criteria:
• The firm must be a small business based on the North American Industry Classification System (NAICS) for size standards.
• The business must be at least 51% owned and controlled by citizens of the United States.
• The firm's principal office (the location where the greatest number of employees perform their work, excluding contract sites) must be in a HUBZone.
• 35% of the firms total workforce must reside in a HUBZone.
The purpose of the HUBZone program is to provide federal contracting assistance for qualified SBCs located in historically underutilized business zones in an effort to increase employment opportunities, investment, and economic development in such areas. The HUBZone Program applies to all federal departments or agencies that employ one or more contracting officers.
All of Pittsburg County lies within a qualified HUBZone because all locations in the county are within Indian Country. These census tracts comprise the Hubzone for Pittsburg County: 9862.00 9863.00 9864.00
For more information on becoming a HUBZone certified company, or for more information on HUBZones, please click here.
McAlester Enterprise Zone
The legal definition of an Enterprise Zone can be found in Oklahoma Statutes Title 62, Section 690.2 Definitions, but generally an Enterprise Zone is defined as:
Unincorporated areas of a County where:
• The County as a whole has experienced a decrease in population over the last 10 years, OR
• The County as a whole ranks among Oklahoma’s lowest twenty-five for per-capita personal income
• Census Tract(s) within or adjacent to the corporate limits of an Oklahoma city or town where:
• The local governing body has voted to make a formal application to the Oklahoma Department of Commerce for recognition as an Enterprise Zone, AND
• Where 30% of the population lives in households at or below poverty, OR
• Where the Per Capita Income is 15% or more below the Oklahoma Per Capita Income
• Any area designated by the Federal Government to be a Federal Enterprise Community
• Any area designated as an Enterprise Zone by the Oklahoma Department of Commerce prior to July 1, 2000
Click here to download more information.
If you have questions about the benefits of locating within an Enterprise Zone, you can obtain a copy of the latest Business Incentives and Tax Information Guide by going to www.okcommerce.gov/incentives or by contacting the Oklahoma Department of Commerce at 1-800-879-6552.
If you have questions about which areas in Oklahoma qualify as Enterprise Zones, contact Lesli Walsh with the Oklahoma Department of Commerce by e-mail at lesli_walsh@okcommerce.gov or by phone at 405-815-5120
