Oklahoma Examples of Tax Reform Good News

Submitted by dsullivan on Friday, March 9th, 2018, 12,30 PM

Thanks to the Tax Cuts and Jobs Act passed by the Republican congress and signed by President Donald Trump, companies of all sizes are already giving bonuses and raises and expanding the scope of their operations. 

Below are several examples of tax reform good news in Oklahoma. (Additions to this list can be sent to jkartch@atr.org)

AAON  (Tulsa) – this heating and cooling firm gave $1,000 bonus checks to 2,000 employees:

“We are very appreciative of all AAON employees and want to commemorate the passing of this historic, economy-stimulating tax reform law. While most employees are shareholders of the company and benefit as a result of the new tax law, we felt it appropriate to provide a more direct recognition of their importance to AAON’s future success.” -- CEO Norman H. Asbjornson in a Jan. 2, 2018 AAON press release

Express Employment Professionals (Oklahoma City, Oklahoma) -- $2,000 bonuses to more than 200 non-executive employees

[CEO Bob] Funk said the bonus is in part because of the company's expected savings from the tax reform legislation Congress passed last week.

"We wanted to show our appreciation for our employees for doing such a good job this year," Funk told The Oklahoman on Tuesday. "It's our privilege to be able to give back to our employees." – excerpt from article in The Oklahoman

Elmer Smith Oil Company, Domino Transports, Inc. and Domino Food & Fuel, Inc. -- Tax reform bonuses for more than 300 employees:

Elmer Smith Oil Company, Domino Transports, Inc. and Domino Food and Fuel, Inc. employees will receive a bonus before the end of the year, President Martin Smith said on Wednesday.

Smith said the bonuses are being paid from expected tax savings in 2018 and a very successful 2017. “Our employees have worked really hard the past year growing our company, we opened 3 new stores in the past 12 months and grew the size of Domino Transports, Inc. by more than 35%.”

The bonus will be paid to more than 300 employees. Smith said that he believes Congress passed the tax reform legislation to allow companies to have more cash to invest and grow the economy. “We are excited about the future of our business, we are simply reinvesting part of the expected tax savings in our most important asset, our people.”

Elmer Smith Oil Company, Domino Transports, Inc. and Domino Food and Fuel, Inc. have locations in Clinton, Elk City, Canute, Weatherford, Binger, Blanchard, Shawnee, Blackwell, Woodward, Seiling, Watonga, El Reno, and Yukon. They have employees in each of these towns and surrounding communities as well as the Texas and Oklahoma Panhandle. -- Dec. 29 2017, Shawnee News-Star article

Webco Industries Inc. (Sand Springs, Oklahoma) – Up to $2,000 bonuses:

Webco says they had more than a million dollars total to distribute to their employees, many of whom are in Sand Springs.

"The tax cuts and jobs act reduced corp tax rates, so that produced a significant amount of savings this year for Webco as our corporate tax bill was reduced," said Mike Howard with Webco Industries.

 – March 7 2018, News on 6 article excerpt

Oklahoma Gas and Electric Company (Oklahoma City, Oklahoma) – the utility will pass along tax savings to customers:

Oklahoma Gas and Electric, a subsidiary of Oklahoma City-based OGE Energy Corp. (NYSE: OGE), announced today that it has asked the Oklahoma Corporation Commission to review the company's request to recover its approximately $390 million investment in the Mustang Energy Center, the first, new, natural-gas fired plant the company has built in more than 30 years. The new plant includes seven, modern quick-start natural-gas turbines that replaced two of the oldest natural gas-fired units in the country.

The company initially planned to seek a rate increase of about $70 million per year to recover its investment. Following President Donald Trump's signing of federal tax reform in December 2017, the company delayed its filing from late December to  today to adjust its proposed filing to ensure customers benefitted from the lower corporate tax rate. The company is now seeking just under $2 million per year, and the average Oklahoma residential customer will see no monthly bill increase. OG&E's rates today are 24 percent below the national average, placing them among the lowest in the country.  

"The president's signing of tax reform in December was fortuitous for customer and the company," said OG&E spokesman Brian Alford. "When it became evident in November that tax reform was a real possibility, we began having conversations at the Oklahoma Corporation Commission about incorporating the benefits of tax  reform into our upcoming filing. Today's filing reflects those benefits as well as our ongoing efforts to manage costs, which provide customers with a modern, highly efficient power plant at virtually no impact on monthly electric bills."   – Jan. 16 2018, Oklahoma Gas & Electric Company press release

Apple (Apple store locations in Oklahoma City and Tulsa) -- $2,500 employee bonuses in the form of restricted stock units; Nationally, $30 billion in additional capital expenditures.

Home Depot -- 16 locations in Oklahoma, bonuses for all hourly employees, up to $1,000

Lowe's -- 4,000 employees at 29 stores in Oklahoma. Employees will receive bonuses of up to $1,000 based on length of service; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.

Bank of America (Multiple locations in Oklahoma) -- Oklahoma-based employees of Bank of America will receive $1,000 bonuses.

Cintas Corporation (Multiple locations Oklahoma) -- $1,000 bonuses for employees of at least a year, $500 bonuses for employees of less than a year.

Comcast (Multiple locations in Oklahoma) -- $1,000 bonuses; Nationally, at least $50 billion investment in infrastructure in next five years.

Chipotle Mexican Grill (Multiple locations in Oklahoma) – Bonuses ranging from $250 to $1,000; increased employee benefits; nationally, $50 million investment in existing restaurants.

Ryder (Nine locations in Oklahoma) -- Tax reform bonuses for employees.

Starbucks Coffee Company (Multiple locations in Oklahoma) – $500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave. 

U-Haul (Multiple locations in Oklahoma) – $1,200 bonuses for full-time employees, $500 for part-time employees.

Walmart – 123 locations in Oklahoma -- Walmart employees are receiving tax reform bonuses. Nationally, base wage increase for all hourly employees to $11; bonuses of up to $1,000; expanded maternity and parental leave; $5,000 for adoption expenses.

Central Bancompany, Inc. – $1,000 bonuses for full time employees; $500 bonuses for part time employees:

In December 2017, U.S. Congress passed a comprehensive tax reform package to encourage economic growth across the nation. As a result of the federal tax reform, Central Bancompany plans to distribute a special bonus to its more than 2,500 employees residing across four states – Missouri, Kansas, Illinois, and Oklahoma. Full-time employees will receive a $1,000 bonus and part-time employees will receive a $500 bonus.

“The economic development that should ensue as a direct result of the new tax reform legislation will positively affect the more than 66 communities we serve,” said Bryan Cook, Chairman and CEO of Central Bancompany, Inc. “We are excited for the opportunity to reward our dedicated and hard-working employees with this special bonus as a token of our gratitude for all that they do for our customers, businesses, and communities.” – Jan. 5, 2018 Central Bancompany press release

Note: If you know of other Oklahoma examples, please email John Kartch at jkartch@atr.org

The running nationwide list of companies can be found at www.atr.org/list