Business incubators are facilities designed to accelerate the development and success of start-up and existing businesses. By providing affordable lease space and a wide array of on-site managerial, administrative and financial services, the incubator assists entrepreneurs and small business owners in overcoming challenges faced in the marketplace.

Oklahoma boasts a total of 32 certified business incubators. Each have undergone a thorough review by the Oklahoma Department of Commerce prior to their certification. They provide leasehold space for a wide range of tenants in the service and light manufacturing industries, as well as firms conducting research and development activities.

Sponsors of a certified incubator may be exempt from Oklahoma income taxes on income derived from services provided to the tenants, or for providing funding for an incubator site. This exemption is for ten years from the date of the tenant’s occupancy within an incubator.

The tenant of a certified incubator is exempt from state tax liability on income earned as a result of activities conducted as an occupant in an incubator for up to ten years from the occupancy date in an incubator site in accordance with rules of the Oklahoma Tax Commission. The exemption remains in effect after the date the tenant is no longer an occupant in an incubator, but not to exceed a total of ten years. In order to qualify for the income tax exemption for the sixth through tenth year, the tenant must make at least seventy-five percent of its gross sales to buyers located outside the state or to the federal government .

How To Apply
Certification of business incubators may be obtained through the Oklahoma Department of Commerce. Details regarding the operation and range of services are required to be presented in a business plan. The application form is below.

Contact Information
Business Solutions Division
(405) 815-5143
(800) 879-6552
E-Mail at Rana_Steeds@odoc.state.ok.us