Positioning Oklahoma for Mega Project Competitiveness

State Chamber Research Foundation (SCRF) 

Through rigorous research and in-depth analysis, the State Chamber Research Foundation (SCRF) in Oklahoma informs policymakers and the public about the fundamental benefits of the free enterprise system. SCRF highlights the public policy initiatives that foster a thriving business environment and emphasizes the significant contributions the business community makes to the prosperity and well-being of residents. 

Stiff Competition Amongst States

Oklahoma faced competition with other states to attract large-scale “Mega Projects”—massive capital investments from tech companies and emerging industries that create thousands of jobs and fuel economic growth. Although Oklahoma’s incentive programs, like the Quality Jobs Program, had been successful, the state risked losing ground. Competitor states such as Georgia, Kentucky, and Ohio were swiftly upgrading their incentive packages to attract mega projects, particularly in tech-driven industries. To remain competitive and seize these game-changing opportunities, Oklahoma needed to act quickly and enhance its approach.

A Deep Dive into the Power of Economic Incentives

In 2022, TPMA collaborated with the SCRF to conduct an in-depth analysis of Oklahoma’s economic incentives. This comprehensive study explored current incentive structures, identified emerging incentive trends in other states, and offered strategic recommendations to enhance Oklahoma’s ability to attract mega projects, ensuring it remains competitive with peer states in economic development. 

Key findings:

  • The competition for mega projects is intense, with states like Kentucky and Ohio leveraging enhanced incentive packages to secure multi-billion-dollar investments from major industries such as electric vehicles and semiconductors.
  • Mega projects hold the potential to generate over 9,000 direct and indirect jobs in Oklahoma, injecting more than $560 million in annual wages into the state’s economy.
  • By modernizing and strengthening its incentive programs, Oklahoma could successfully attract transformative mega projects, driving economic growth by curbing talent outmigration and fostering the creation of high-paying, sustainable jobs.

Strategic Enhancements to Boost Competitiveness

Our research found that Oklahoma, with its business-friendly environment, prime development sites, and strong growth potential, is well-positioned to compete for mega projects if the state implements a few targeted enhancements. These strategic changes would not only attract substantial new investments but also ensure sustained long-term economic growth.

Here are some of our key recommendations:

  • Increase the Quality Jobs Payroll Tax Rebate to 10% for mega projects that create a minimum of 1,000 jobs.
  • Enhance the Investment/New Jobs Tax Credit to at least 3%, making it fully refundable.
  • Enable large investors to capitalize on both the Quality Jobs Program and the Investment/New Jobs Tax Credit for maximum economic impact.
  • Prioritize infrastructure and workforce development to ensure that large-scale projects can thrive across the entire state, including rural areas.

To learn more about our research capabilities, contact us here.