Bill > SB287

This bill modifies the income tax credit provisions for qualified employers and employees in Oklahoma's aerospace sector by extending the tax years during which these credits can be claimed from the previous end date of January 1, 2026 to tax years 2009 through 2031. The bill specifically amends three sections of Oklahoma tax law to update the timeframe for three different aerospace-related tax credits: a tuition reimbursement credit for employers, a compensation credit for employers, and a personal tax credit for qualified employees. For the tuition reimbursement credit, employers can receive 50% of tuition costs for an employee's first four years of employment, not to exceed 50% of average annual public institution tuition. The compensation credit allows employers to claim 10% or 5% of an employee's compensation for their first five years of employment, depending on where the employee graduated, with a maximum annual credit of $12,500 per employee. The individual employee tax credit allows up to $5,000 per year for up to five years, which can be claimed in non-consecutive years. These credits cannot reduce tax liability below zero, and the bill maintains existing restrictions on credit usage. The act is set to become effective on November 1, 2025.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb287&Session=2600