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28	28	STATE OF OKLAHOMA
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30	30	1st Session of the 58th Legislature (2021)
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32	32	HOUSE BILL 1586 By: Dollens
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38	38	AS INTRODUCED
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40	40	An Act relating to revenue and taxation; defining
41	41	terms; authorizing income tax credit for certain
42	42	apprentice positions; specifying amou nt of tax
43	43	credit; imposing limitations on number of apprentices
44	44	with respect to claim of credits; prohibiting use of
45	45	credit to reduce tax liability to less than
46	46	designated amount; prohibiting carryover; providing
47	47	for termination of tax credit; imposing cap on tax
48	48	credits based on certain computation; providing for
49	49	usage of credits based on cap limitation provisions;
50	50	providing for effect of tax credit with respect to
51	51	certain statutory requirement; authorizing Governor 's
52	52	Council for Workforce and Economic Dev elopment to
53	53	adopt rules; providing for participation by Oklahoma
54	54	Department of Career and Technology Education;
55	55	requiring consultation with Oklahoma Tax Commission;
56	56	requiring annual report; prescribing due date for
57	57	report; providing for codification; and p roviding an
58	58	effective date.
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63	63	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
64	64	SECTION 1. NEW LAW A new section of law to be codified
65	65	in the Oklahoma Statutes as Section 2357.501 of Title 68, unless
66	66	there is created a duplication in numbering, reads as follows:
67	67	A. As used in this section:
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94	94	1. "Apprentice" means a worker at least sixteen (16) years of
95	95	age, except where a higher minimum age standard is otherwise fixed
96	96	by law, who is employed to learn an apprenticeable oc cupation as
97	97	provided in 29 C.F.R., Section 29.4. The term includes a person who
98	98	is compensated by a third party but whose apprenticeable work occurs
99	99	under the supervision of an eligible employer;
100	100	2. "Apprenticeable agreement " means a written agreement,
101	101	complying with 29 C.F.R., Section 29.2, between an apprentice and
102	102	either the apprentice 's program sponsor, or an apprenticeship
103	103	committee acting as agent for the program sponsor, which contains
104	104	the terms and conditions of the employment and training of the
105	105	apprentice;
106	106	3. "Council" means the Governor's Council for Workforce and
107	107	Economic Development; and
108	108	4. "Eligible employer" means a taxpayer who employs an
109	109	apprentice pursuant to an apprentice agreement registered with the
110	110	Office of Apprenticeship of the E mployment and Training
111	111	Administration of the United States Department of Labor.
112	112	B. For taxable years beginning on or after Jan uary 1, 2022, and
113	113	ending not later than December 31, 2026 , there shall be allowed as a
114	114	credit against the tax imposed pursuant to Section 2355 of Title 68
115	115	of the Oklahoma Statutes in the amount of One Thousand Dollars
116	116	($1,000.00) for each qualified apprentice employed by an eligible
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143	143	employer for a period of at least seven (7) months during the
144	144	preceding calendar year.
145	145	C. Any eligible employer who enters into an apprenticeship
146	146	agreement must ensure compliance with any applicable Oklahoma state
147	147	law in regards to that industry or trade, including demonstrating
148	148	compliance for each qualified apprentice, to qualify for this
149	149	credit.
150	150	D. No employer shall be able to claim the credit authorized by
151	151	this section for more than ten apprentices for the duration of the
152	152	five (5) taxable years for which the credit is available.
153	153	E. The credit authorized by the provisions of this section
154	154	shall not be used to reduce the tax liability of th e taxpayer to
155	155	less than zero.
156	156	F. The credit authorized by the provisions of this section may
157	157	not be carried over from one taxable year to any other taxable year.
158	158	G. The provisions of this section shall cease to have the force
159	159	and effect of law on January 1, 2027 .
160	160	H. The total amount of credits authorized by this section used
161	161	to offset tax shall be adjusted annually to limit the annual amount
162	162	of credits to Three Million Dollars ($3,000,000.00). The Oklahoma
163	163	Tax Commission shall annually calculate and publish a percentage by
164	164	which the credits authorized by this section shall be reduced so the
165	165	total amount of credits used to offset tax does not exceed Three
166	166	Million Dollars ($3,000,000.00) per year. The formula to be us ed
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193	193	for the percentage adjustment shall be Three Million Dollars
194	194	($3,000,000.00) divided by the credits used to offset tax in the
195	195	second preceding year.
196	196	I. Pursuant to subsection H of this section, in the event the
197	197	total tax credits authorized by this sect ion exceed Three Million
198	198	Dollars ($3,000,000.00) in any calendar year, the Tax Commission
199	199	shall permit any excess over Three Million Dollars ($3,000,000.00)
200	200	but shall factor such excess into the percentage adjustment formula
201	201	for subsequent years.
202	202	J. The tax credit authorized by the provisions of this section
203	203	fulfills the requirements of Section 46A of Title 62 of the Oklahoma
204	204	Statutes because it is based on employment of persons who might not
205	205	otherwise be employed or who, although employed, would not have the
206	206	same skill level for the job position without the tax credit
207	207	authorized pursuant to the provisions of this section.
208	208	SECTION 2. NEW LAW A new section of law to be codified
209	209	in the Oklahoma Statutes as Section 2357.502 of Title 68, unless
210	210	there is created a duplication in numbering, reads as follows:
211	211	A. The Governor's Council for Workforce and Economic
212	212	Development, in coordination with the Oklahoma Department of
213	213	Commerce, may adopt any rules necessary to establish standards for
214	214	participation and eligibility and to implement and administer the
215	215	tax credit program authorized by Section 1 of this act. The Council
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242	242	shall consult with the Oklahoma Tax Commission to coordinate
243	243	implementation and administration of this act.
244	244	B. The Council shall provide an annual report to the Chair of
245	245	the Appropriations and Budget Committee of the Oklahoma House of
246	246	Representatives and the Chair of the Finance Committee of the
247	247	Oklahoma State Senate to account for the effectiveness of the
248	248	apprenticeship progr am under this act not later than January 31 of
249	249	each year with respect to program activities and program performance
250	250	with respect to the preceding calendar year.
251	251	SECTION 3. This act shall become effective November 1, 2021 .
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253	253	58-1-5705 AQH 12/16/20

Oklahoma 2022 Regular Session

Oklahoma House Bill HB1586 Compare Versions