OKLAHOMA CITY --QuikTrip Corp. has been accepted into the Oklahoma Quality Jobs program, the state Department of Commerce announced. The convenience-store chain pledged to create up to 137 jobs over the next five years for a maximum benefit of $4.27 million.
All of the jobs will be in Tulsa, Okla., at the company’s headquarters, QuikTrip spokesperson Mike Thornbrugh told The Tulsa World. “They’ll be in petroleum benefits and other support operations. It’ll be in virtually everything QuikTrip does.”
The Oklahoma Quality Jobs Program allows qualifying establishments creating new quality jobs to receive an incentive to locate or expand in Oklahoma. It provides quarterly cash payments of up to 5% of new taxable payroll directly to a qualifying company for up to 10 years.
Since its inception in July 1993, the state has issued more than 743 contracts to locating, expanding and startup businesses. To date, the Commerce Department has paid more than $968 million in performance-based wage rebates because through the program.
The state also benefits from new state personal income tax, sales and other consumption tax receipts as well as multiplier benefits from the added workers. Quality Jobs is a revenue neutral program and is risk-free to the state because without new payroll, companies do not receive rebates, the department said.
To qualify, a company must be a central administrative office, manufacturer, research and development, or a listed service company with 75% of total sales to out-of-state customers. Most companies must achieve a $2.5 million taxable payroll for any four consecutive quarters during the first 12 quarters in the program. Once the company achieves the threshold, it may remain in the program for the rest of the 10-year period; however, once the threshold is achieved, a company must maintain the $2.5 million payroll for four consecutive calendar quarters on a cumulative basis or it does not qualify for incentive payments until the four consecutive quarters payroll requirement has again been met.
All businesses must offer basic health insurance coverage to all employees, and 80% of employees must work at least 30 hours per week.
The amount of each company’s incentive is determined through a cost-benefit analysis prepared by the Commerce Department. Costs to the state resulting from in-migration and other grants may decrease the amount of benefit the state receives from a company, thus lowering the incentive payment. Payments cannot exceed 5% of payroll and have historically averaged about 4.5%.
Companies that receive incentive payments also may be eligible for the five-year ad valorem tax exemption (manufacturing), free industry training program, foreign trade zone and freeport benefits and other technical and financial assistance programs. Firms cannot use the jobs or investment tax credit, sales tax exemptions for construction and a variety of additional tax credits and exemptions.
QuikTrip is known as an industry leader for focusing on recruiting and for treating its employees well. Its employee-centric approach has landed the company a spot on Fortune magazine's “100 Best Companies to Work For” 13 years in a row.
QuikTrip operates more than 700 convenience stores in 11 states: Arizona, Georgia, Illinois, Iowa, Kansas, Missouri, Nebraska, North Carolina, Oklahoma, South Carolina and Texas.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.