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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
HOUSE BILL 2754 By: Miller
AS INTRODUCED
An Act relating to revenue and taxation ; defining
terms; authorizing income tax credits for employers
engaged in civil engineering; providing income tax
credit for tuition reimbursements; providing
conditions for use of credit; specifying amount of
tax credit; prohibiting use of tax credit to reduce
liability to less than zero; auth orizing income tax
credit for certain compensation paid to employees
engaged in civil engineering; specifying amount of
credit; imposing limit on credit amount; prohibiting
use of tax credit to reduce income tax liability to
less than zero; authoring income tax credit for
certain income received as civil engineer; providing
for codification; and providing an effective date .
BE IT ENACTED BY THE PEOPL E OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.321 of Title 68, unless
there is created a duplication in numbering, reads as follows:
As used in Sections 1 through 4 of this act:
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1. "Compensation" means payments in the form of co ntract labor
for which the payor is required to provide a Form 1099 to the person
paid, wages subject to withholding tax paid to a part -time employee
or full-time employee or salary or other remuneration. 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 Education or any other public or private college or
university that is accredited by a national accrediting body;
3. "Qualified employer" means a sole proprietor, gener al
partnership, limited partnership, limited liability company,
corporation, other lega lly recognized business entity or public
entity whose principal business activity involves civil engineering
services as described by Industry No. 541330 of the North American
Classification System (NAICS), latest revision;
4. "Qualified employee" means any person, regardless of the
date of hire, employed in this state by or contracting in this state
with a qualified employer on or after January 1, 2024, who was not
employed as a civil engineer in this state immediately preceding
employment or contracting w ith a qualified employer, and who has
been either:
a. awarded an undergraduate or graduate degree from a
qualified program by an institution, or
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b. licensed as a Profes sional Engineer by the State Board
of Licensure for Profess ional Engineers and Land
Surveyors pursuant to Section 475.15 of Title 59 of
the Oklahoma Statutes.
Provided, the definition shall not be interpreted to exclude any
person who was employed in the civil engineering sector , but not as
a full-time engineer, prior to being awarded an undergraduat e or
graduate degree from a qualified program by an institut ion or any
person who has been awarded an undergraduate or graduate degree from
a qualified program by an institution and is employed by a
professional staffing company and assigned to work in the civil
engineering sector in this state;
6. "Qualified program" means a program at an institution that
includes a graduate or undergraduate program that has been
accredited by the Engineering Accreditation Commission of the
Accreditation Board for Engineering and Technology (ABET) and that
awards an undergraduate or grad uate degree. Both the undergraduate
and graduate programs of the same discipline of engineer ing at an
institution shall be part of the qualified program if either program
is ABET accredited; and
7. "Tuition" means the average annual amount paid by a
qualified employee for enrollment and instruction in a qualified
program. Tuition shall not incl ude the cost of books, fees or room
and board.
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SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.322 of Title 68, unless
there is created a duplication in numbe ring, reads as follows:
A. Except as provided in subsection F of this section, for
taxable years beginning after Decem ber 31, 2023, and ending before
January 1, 2029, a qualified employer shall be allowed a credit
against the tax imposed pursuant to Secti on 2355 of Title 68 of the
Oklahoma Statutes for tuition reimbursed to a qualified employee.
B. The credit authorized by subsection A of this section may be
claimed only if the qualifi ed employee has been awarded an
undergraduate or graduate d egree within one (1) year of commen cing
employment with the qualified employer.
C. The credit authorized by subsection A of this section shall
be in the amount of fifty percent (50%) of the tuitio n reimbursed to
a qualified employee for the first through fourth years of
employment. In no event shall this credit exceed fifty percent
(50%) of the average annual amount paid by a qualified employee for
enrollment and instruction in a qualified program at a public
institution in Oklahoma.
D. The credit author ized by subsection A of this sectio n shall
not be used to reduce the tax liability of the qualified employer to
less than zero (0).
E. No credit authorized by this section shall be claimed after
the fourth year of employment.
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SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.323 of Title 68, unless
there is created a duplication in numbering, reads as follows:
A. Except as provided in subsection F of this section, for
taxable years beginning on or after January 1, 2024, and ending
before January 1, 202 9, 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
employee.
B. The credit authorized by subsection A of this section shall
be in the amount of:
1. Ten percent (10%) of the compensation paid for the first
through fifth years of employment i n civil engineering if the
qualified employee graduated from an institution located in this
state; or
2. Five percent (5%) of the compensation paid for the first
through fifth years of employment in civil engineering if the
qualified employee graduated f rom an institution located outside
this state.
C. The credit authorized by this section shall not exceed
Twelve Thousand Five Hundred Dollars ($12,500.00) for each qualified
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.
SECTION 4. NEW LAW A new section of law to be codifie d
in the Oklahoma Statutes as Section 2357.324 of Title 68, unless
there is created a duplicati on in numbering, reads as follows:
A. Except as provided in subsection D of this section, for
taxable years beginning on or after January 1, 2024, and ending
before January 1, 20 29, a qualified employee shall be allowed a
credit against the tax imposed pu rsuant to Section 2355 of Title 68
of the Oklahoma Statutes up to Five Thousand Dollars ($5,000.00) per
year for a period of time not to exceed f ive (5) years.
B. The credit authorized by this section shall not be used to
reduce the tax liability of the t axpayer to less than zero (0).
C. Any credit claimed, but not used, may be carried over, in
order, to each of the five (5) subsequent taxable ye ars.
SECTION 5. This act shall become effective November 1, 2023.
59-1-5890 MAH 01/18/23