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ENGROSSED HOUSE
BILL NO. 3498 By: McEntire and Phillips of
the House
and
Montgomery of the Senate
[ revenue and taxation - tax credit - effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAH OMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.501 of Title 68, unless
there is created a duplication in numbering, reads as follows:
As used in this act:
1. "Compensation" means payments in the form of con tract labor
for which the payor is required to provide a Form 1099 to the person
paid, wages subject to withholding tax pai d to a part-time employee
or full-time employee or salary or other remun eration. Compensation
shall not include employer-provided retirement, medical or health
care benefits, reimbursement for travel, meals, lodging, or any
other expense;
2. "Institution" means an institution within The Oklahoma State
System of Higher Educat ion or any other public or priva te college or
university that is accredited by a national accrediting body;
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3. "Qualified employer" means a sole proprietor, general
partnership, limited partnership, limited liability company,
corporation, other legally re cognized business entity or publ ic
entity;
4. "Qualified software employee" means any person employed in
Oklahoma by a qualified employer hired on or after January 1, 2022,
who:
a. has been awarded a degree in a qualified program from
an institution or a technology center, and
b. is employed as a software engineer by a qualified
employer;
5. "Qualified program" means:
a. an undergraduate or graduate information technology,
computer science, or computer engineering degree
program accredited by the Computin g Accreditation
Commission (CAC) or the Engineering Accredita tion
Commission (EAC) of the Accreditation Board for
Engineering and Technology (ABET) offered at an
institution, or
b. a software, programming, software programming, coding,
application developm ent, computer science, or
information technology program requ iring more than
eight hundred (800) hours of class time ; and
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6. "Technology center" means an institution within the Oklahoma
State Board of Career and Technology Education that offers qualified
programs as defined in this section .
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.502 of Title 68, unless
there is created a duplication in numbering, reads as follows:
A. For taxable years beginning on or after January 1, 2022, a
qualified employer shall be allowed a credit against the tax imposed
pursuant to Section 2355 of Title 68 of the Oklahoma Statutes for
compensation paid to a qualified software employee hired on or after
January 1, 2022.
B. The credit autho rized by subsection A of this section shall
be in the amount of:
1. Ten percent (10%) of the compens ation paid for the first
through fifth years of emp loyment if the qualified software employee
graduated from an institution located in this state; or
2. Five percent (5%) of the compe nsation paid for the first
through fifth years of employment if the qualified software employee
graduated from an instituti on located outside this state.
C. The credit authorized by this section shall not exceed
Twelve Thousand Five Hundred Dollars ($12,5 00.00) for each qualified
software employee annually.
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D. The credit authorized by this section shall not be used to
reduce the tax liability of the qualified employer to less than zero
(0).
E. No credit authorized pursuant to this section shall be
claimed after the fifth year of employment.
F. A qualified employer shall be permitted to claim either the
credit authorized pu rsuant to this section for the compensation paid
to a qualified software employee or to claim other credits
authorized by law for the compensation paid to or education expenses
paid to or on behalf of the qualified software employee, but shall
not be able to claim more than one credit for the sam e taxable
period with respect to compensation paid to or education expenses
paid to or on behalf of the same employee. A qualified employer
claiming the credit authorized by this section shall not be eligible
for payment of incentives for qualified software employees pursuant
to:
1. The Oklahoma Quality Jobs Program Act;
2. The 21st Century Qua lity Jobs Incentive Act; or
3. The Oklahoma Remo te Quality Jobs Incentive Act.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.503 of Title 68, unless
there is created a duplication i n numbering, reads as follows:
A. For taxable years beginning on or after January 1, 2022, a
qualified software employee shall be allowed a credit against the
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tax imposed pursuant to Section 2355 of Title 68 of the Oklahoma
Statutes of up to Five Thousand Dollars ($5,000.00) per year for a
period of time not to exceed five (5) years.
B. The credit authorized by this section shall not be used to
reduce the tax liability of the taxpayer to less than zero (0).
C. Any credit claimed, but not used, may be car ried over, in
order, to each of the five (5) subsequent taxable years.
D. A qualified software employee shall be permitted to claim
the credit authorized pursuant to this section , but if the qualified
software employee claims the credit authorized by this section, the
employee shall not be eligible to claim the credit authorized
pursuant to Section 2357.304 of Title 68 of the Oklahoma Statutes or
the credit authorized pursuant to Section 2357. 405 of Title 68 of
the Oklahoma Statutes. No qualified software employee shall be
permitted to claim multiple credits for employment as a qualified
software engineer.
SECTION 4. This act shall become effective January 1, 2022.
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Passed the House of Representatives the 10th day of March, 2022.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2022.
Presiding Officer of the Senate