About this programme
The Small Business Incubators Incentives Act, passed in 1988, gives startups a state income tax exemption while they operate as tenants of a certified business incubator facility in Oklahoma. The goal is to encourage entrepreneurial development, create jobs, and strengthen local economies.
The Oklahoma Department of Commerce certifies incubator facilities to make sure they meet certain standards, and maintains a directory of currently certified incubators.
How it works
Tenants are exempt from state tax liability on income earned through incubator occupancy for their first five years in the facility.
A 2001 amendment extended that exemption to 10 years total. Before January 1, 2020, tenants needed at least 75% of gross sales going to out-of-state buyers, in-state resellers who export out-of-state, or the federal government to qualify for years 6 through 10. That 75% rule was eliminated after January 1, 2020: tenants now just need to graduate from a certified incubator to keep the full 10-year exemption.
The exemption stays in effect even after the tenant graduates from the incubator.
Who can apply
The business must be a tenant of a state-certified incubator facility in Oklahoma.
To keep the exemption through years 6 to 10, the tenant must graduate from the certified incubator program.
How to apply
- Find a certified incubator using the Oklahoma Department of Commerce's Directory of Certified Incubators, then become a tenant there.
- Incubator owners seeking certification for their own facility should contact Cathy Curtis, Small Business Incubators Specialist, at the Department of Commerce.
Frequently asked
How long does the tax exemption last?
Up to 10 years total: the first 5 years automatically, extended to 10 years by a 2001 amendment.
Do I still need 75% out-of-state sales to qualify for the extended years?
No. That requirement applied only before January 1, 2020. Since then, tenants simply need to graduate from a certified incubator to keep the full 10-year exemption.
Does the exemption end when I leave the incubator?
No, the exemption remains in effect after the tenant has graduated from the incubator.
How do I find a certified incubator?
The Oklahoma Department of Commerce publishes a Directory of Certified Incubators as a PDF on its website.
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All 8 programmes in Oklahoma →
Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.