While Oklahoma and several other states offer hundreds of millions of dollars in incentives to lure major employers, cities and states alike are offering incentive packages to entice individual workers, too.
The West Virginia Senate recently approved a $25,000 tax credit to persuade former residents to return to the Mountain State.
In addition, a native son who made his fortune in Silicon Valley donated $25 million to West Virginia University to launch “Ascend West Virginia” last year. Cash and incentives are offered in the public/private program to attract more than 1,000 workers to the state over a five-year period.
Successful applicants who agree to settle in certain areas of the state receive $10,000, paid during their first year in West Virginia, plus $2,000 at the end of the second year. They also receive free passes from the state’s Tourism Department for a host of outdoor adventures. The full relocation package is valued at more than $20,000.
The program was founded by Brad A. Smith, who was reared in West Virginia and now is president of Marshall University. He was formerly chairman of Intuit, a company that specializes in financial software.
Oklahoma legislators have offered similar tax incentives for at least eight years.
For example, House Speaker Charles McCall, R-Atoka, proposed a $25,000 income-tax credit for physicians who agreed to practice medicine in rural areas of the state. He introduced that proposal in 2017, 2019 and again in 2021, but it died every time.
House bills introduced in 2015 and 2017 proposed a five-year state income-tax exemption for anyone moving from another state to any Oklahoma county that has a declining population. Neither measure survived the legislative maze.
Senate Bill 578 would establish an income-tax credit of up to $12,500 annually for up to five years for any public or private employer that pays a qualified software employee hired on or after Jan. 1, 2024.
The bill also would authorize a $5,000 income-tax credit annually, for up to five years, for qualified software employees. The legislation defines a qualified software employee as an individual who has been awarded a degree in a qualified program from an institution or a technology center and is employed as a software engineer.
SB 578 was introduced this year by Sen. John Michael Montgomery, R-Lawton.
State Rep. Kevin McDugle, R-Broken Arrow, proposes an income-tax exemption of up to $75,000 annually for three consecutive years for recent graduates of a college, university or Career Tech center who are employed full-time in Oklahoma.
However, a House fiscal analyst predicted that the fiscal impact of HB 2138 would be “a significant decrease in income tax collections.” Research indicates 40,600 students graduate from Oklahoma colleges and universities every year, and 85% of them remain in Oklahoma after graduation.
According to the state Tax Commission, the average annual pay for employees who earned a bachelor’s degree in Oklahoma is $50,515 per year. Additionally, data is not available for potential out-of-state college graduates, grads with degrees beyond a bachelor’s and grads of accredited technology center schools that might be eligible for the proposed credit, the Tax Commission reported.
Municipalities also offering incentives
Several municipalities also provide financial incentives to attract workers.
• “Tulsa Remote” provides $10,000 grants to qualified applicants who commit to live in the city for a year.
Eligible candidates must be at least 18 years of age, able to move to Tulsa within 12 months, employed remotely full-time or self-employed outside of Oklahoma and eligible to work in the United States.
More than 2,000 people have been drawn to Tulsa by the incentive over the last four years, Tulsa Remote claims on its website.
• Natchez, Mississippi, offers a $6,100 incentive to attract 30 remote workers. Eligible applicants must establish their primary residence in Natchez, buy a house there that’s valued at $150,000 or more and live in it for at least a year.
Natchez is a community of 15,000 residents located along the Mississippi River.
• Paducah, Kentucky, offers a package of incentives worth nearly $6,500 to remote workers who relocate to that town.
Applicants must be at least 21 years of age and U.S. citizens or lawful permanent residents. They must live at least 100 miles from Paducah, work full-time for a company whose offices are at least 100 miles distant from Paducah and be able to perform a majority of their employment duties remotely from a home office or co-working space in Paducah.
Successful applicants are reimbursed $2,500 for their relocation expenses and up to $70 a month for 12 months for fees associated with internet services provided to a residence located in Paducah. The city’s 2% payroll tax is waived for a year, and the applicant receives approximately $1,150 worth of free tickets for cultural and/or educational amenities.
• The Northwest Arkansas Council has invested $1 million to encourage professionals seeking new jobs to move to that area.
The council is offering $10,000 – which can be received in cash or cryptocurrency – to remote workers who choose to move to the area as part of the Finding NWA program. These professionals can receive a free bike to enjoy the state’s scenic outdoor recreation areas, as well.
To qualify, a worker must be 24 or older, be employed full time (even if self-employed). He or she must have worked for at least two years, be a resident outside Arkansas, be willing to move to northwest Arkansas within six months of being accepted into a program and be eligible to work in the U.S.
• Lincoln, Kansas, population nearly 3,000, is one of the smallest towns in this list. The town’s low cost of living and low crime rate may sound like an appealing alternative to life in a big city.
In an atypical twist on incentives, Lincoln offers free land to new residents, with lots ranging from 14,000 to 35,000 square feet. However, there are some limitations: No farm animals are allowed, no grants are available to help owners build on the lots, and no mobile homes are allowed, though you can have a modular or pre-manufactured house transported to the site.
• In order to build a larger labor pool and local economy, the city of North Platte, Nebraska, is offering signing bonuses of up to $5,000 for those who agree to take a job there.
Located in western Nebraska, North Platte is a community of more than 23,000 residents with a low cost of living. The median value of homes in North Platte is $118,900, according to the 2020 U.S. Census Bureau.
• Topeka, Kansas, offers one of the largest incentives to entice people to move there. As part of “Choose Topeka,” the state capital is luring professionals to move there to work on site for $15,000 if you purchase a home and $10,000 if you rent. Those who work remotely could earn up to $5,000 if they rent and $10,000 if they buy a house.
To be eligible, an applicant must move and then rent or buy a home in Topeka within a year of the offer.