Bill > SB296

This bill expands an existing Oklahoma income tax credit program for the aerospace sector by adding "instructor pilots" as a new category of eligible workers for tax credits. Specifically, an instructor pilot is defined as a Certified Flight Instructor licensed by the Federal Aviation Administration who is employed in Oklahoma to provide flight instruction for a federal government contract, and who was not previously employed as an instructor pilot in the state's aerospace sector. For tax year 2025, both qualified employers and qualified employees who are instructor pilots can receive tax credits: employers can claim 5-10% of an instructor pilot's compensation (up to $12,500 annually), and instructor pilots can claim up to $5,000 in personal tax credits for up to five years. The bill maintains existing provisions that these credits cannot reduce tax liability below zero and can be carried forward to subsequent tax years. The changes are part of a broader effort to support Oklahoma's aerospace industry by providing financial incentives for employers and employees in this sector, with the new provisions specifically targeting flight instructors who are supporting federal aviation training needs. The bill will become effective on November 1, 2025.