OklahomaHB 4191Oklahoma 2026 Regular SessionHouse

Revenue and taxation; Small Employer Quality Jobs Act; definitions; eligibility criteria; effective date.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 2 costs, 1 mixed.

More small businesses can seek incentives

Oklahoma film and video, sound recording, and child daycare businesses now qualify as eligible industries for small-employer job incentives. The Commerce Department now makes some industry decisions previously handled by the Incentive Approval Committee. Past payments under the Oklahoma Quality Jobs, Saving Quality Jobs, or Former Military Facility Development programs no longer bar eligibility. Businesses still cannot qualify if they qualify for application approval under one of those three programs.

Small businesses face job-growth eligibility rules

A job cannot count as new if its work occurred anywhere in Oklahoma during the six months before Commerce approval. Qualifying workers must be Oklahoma residents working in Oklahoma at least 30 hours weekly for six months within 12 months. Below 50,000 residents, businesses must add the greater of five jobs or 5% of their full-time workforce; at 50,000 or more, the minimum is 10 jobs or 10%. For unincorporated sites, Commerce uses the closest municipality within 20 miles and the latest U.S. Department of Commerce population data. Employment targets generally must be met within 12 months of applying, or 24 months where the law allows; specified software, data-processing, computer-design, scientific-research, medical-laboratory, and testing-laboratory industries have 36 months.

Small-business incentives require timely state approval

For contracts signed on or after November 1, 2026, Commerce must verify investment or out-of-state sales requirements before any incentive payment. Commerce must then notify the Oklahoma Tax Commission of its approval. If approval does not occur within 36 months after applying, Commerce must cancel the contract. No incentive is payable under the canceled contract.

Small businesses gain investment-based incentive access

Businesses can meet this eligibility test with more than $500,000 in qualifying investment after applying, or 35% qualifying sales in each of the first two years. Investment includes new construction, renovations, or new manufacturing machinery, but not purchases of existing real property. Qualifying sales include specified out-of-state buyers, qualifying in-state resales, and the federal government; the later 60% sales threshold is removed. Industry codes 541710 and 541380 are exempt from the 35% sales test. Adjustment and collection services under code 561440 must service at least 75% of loans for out-of-state debtors.

Sponsors & Cosponsors

Sponsor

Mark Chapman
Republican • House

Cosponsors

Bill Coleman
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 275 • No: 114

House vote • 5/6/2026

FOURTH READING

Yes: 58 • No: 21

Senate vote • 5/5/2026

THIRD READING

Yes: 25 • No: 21

Senate vote • 4/6/2026

Committee vote: Revenue & Taxation

Yes: 6 • No: 4

Senate vote • 4/6/2026

Top_of_Page

Yes: 0 • No: 4

House vote • 3/11/2026

Top_of_Page

Yes: 64 • No: 27

House vote • 3/11/2026

THIRD READING

Yes: 64 • No: 27

House vote • 3/4/2026

DO PASS

Yes: 21 • No: 3