Bill > HB1602

This bill modifies existing Oklahoma tax credit provisions for vehicle and automotive parts manufacturing companies by extending the period during which employers and employees can claim tax credits from January 1, 2026, to January 1, 2032. The bill maintains the existing structure of tax credits for qualified employers and employees in the vehicle manufacturing sector, which includes credits for tuition reimbursement and compensation. Specifically, qualified employers can receive a 50% tax credit for tuition reimbursement during an employee's first four years of employment, and a 10% or 5% tax credit for compensation paid to qualified employees (depending on whether the employee graduated from an in-state or out-of-state institution) during their first five years of employment. Qualified employees can also claim up to $5,000 per year in tax credits for up to five years. The bill preserves existing annual credit limits of $3 million for employer credits and $2 million for employee credits, with the Tax Commission responsible for adjusting credit percentages if these limits are exceeded. The bill defines key terms such as "qualified employer" and "qualified employee" and specifies that these credits apply to vehicle manufacturing companies established in Oklahoma after November 1, 2019. The bill will become effective on November 1, 2025.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1602&Session=2600