A large portion of Chickasha is eligible for new market tax credits. The New Markets Tax Credit program provides investors with federal tax credits for investments into qualifying businesses. NMTCs are intended to support business growth, job creation and spur economic development in underserved communities across the country. Typical projects involve the acquisition, rehabilitation or construction of real estate or the expansion of operating businesses in low-income communities.
This is a federal incentive that benefits local and state investors. By investing in an Opportunity Zone, through a qualifying Opportunity Fund, investors can defer and/or reduce their federal capital gains tax liability. If an investor’s capital is left in a qualifying fund for 5 years, the investor will defer their federal capital gains taxes. In the fifth year, the investor can reduce their capital gains tax. There is an additional reduction in year 7. If they leave the money in the fund for 10 years, then any appreciation in the asset from the time they invest through 10 years is not subject to any additional capital gains tax. This deferral and/or reduction on federal capital gains taxes will improve return on investment and also direct capital to areas that need investment.
The HUBZone program fuels small business growth in historically underutilized business zones with a goal of awarding at least three percent of federal contract dollars to HUBZone-certified companies each year.
Foreign Trade Zone #106
FTZ#106 serves a 22-county region, including Grady County and Chickasha. Drive time within the Alternative Site Framework is 90 minutes. It is a U.S Customs Duty Management Program created by the Federal Government, which has existed since the 1930’s, and is thriving today. Its purpose is to facilitate trade and increase the global competitiveness of U.S.-based companies.
Legally, a Foreign-Trade Zone (FTZ) is an area within the United States that the Government considers outside the country, or at least, outside of the U.S. Customs territory. Certain types of merchandise can be imported into a Zone without going through formal Customs entry procedures or paying import duties. Visit http://ia.ita.doc.gov/ftzpage/index.html
Chickasha’s local incentives include:
- Job Creation Payments
- Reduced or free Land
- Employment Assistance
- Build to Suit Option
The CEDC’s staff is skilled in how to utilize Oklahoma incentives and is ready to assist you. The state is globally recognized for its outstanding incentive programs and pro-business environment. Businesses can choose between a cash incentive or a tax credit package, and in some cases, qualifying businesses can take advantage of both programs.
Contact us at Chickasha Economic development Council to discuss how we can leverage all our city and state have to offer you. Contact Jim Cowan at firstname.lastname@example.org.