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27	27	STATE OF OKLAHOMA
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29	29	1st Session of the 59th Legislature (2023)
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31	31	HOUSE BILL 2754 By: Miller
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37	37	AS INTRODUCED
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39	39	An Act relating to revenue and taxation ; defining
40	40	terms; authorizing income tax credits for employers
41	41	engaged in civil engineering; providing income tax
42	42	credit for tuition reimbursements; providing
43	43	conditions for use of credit; specifying amount of
44	44	tax credit; prohibiting use of tax credit to reduce
45	45	liability to less than zero; auth orizing income tax
46	46	credit for certain compensation paid to employees
47	47	engaged in civil engineering; specifying amount of
48	48	credit; imposing limit on credit amount; prohibiting
49	49	use of tax credit to reduce income tax liability to
50	50	less than zero; authoring income tax credit for
51	51	certain income received as civil engineer; providing
52	52	for codification; and providing an effective date .
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63	63	BE IT ENACTED BY THE PEOPL E 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 2357.321 of Title 68, unless
66	66	there is created a duplication in numbering, reads as follows:
67	67	As used in Sections 1 through 4 of this act:
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93	93	1. "Compensation" means payments in the form of co ntract labor
94	94	for which the payor is required to provide a Form 1099 to the person
95	95	paid, wages subject to withholding tax paid to a part -time employee
96	96	or full-time employee or salary or other remuneration. Compensation
97	97	shall not include employer -provided retirement, medical or health-
98	98	care benefits, reimbursement for travel, meals, lodging or any other
99	99	expense;
100	100	2. "Institution" means an institution within The Oklahoma State
101	101	System of Higher Education or any other public or private college or
102	102	university that is accredited by a national accrediting body;
103	103	3. "Qualified employer" means a sole proprietor, gener al
104	104	partnership, limited partnership, limited liability company,
105	105	corporation, other lega lly recognized business entity or public
106	106	entity whose principal business activity involves civil engineering
107	107	services as described by Industry No. 541330 of the North American
108	108	Classification System (NAICS), latest revision;
109	109	4. "Qualified employee" means any person, regardless of the
110	110	date of hire, employed in this state by or contracting in this state
111	111	with a qualified employer on or after January 1, 2024, who was not
112	112	employed as a civil engineer in this state immediately preceding
113	113	employment or contracting w ith a qualified employer, and who has
114	114	been either:
115	115	a. awarded an undergraduate or graduate degree from a
116	116	qualified program by an institution, or
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142	142	b. licensed as a Profes sional Engineer by the State Board
143	143	of Licensure for Profess ional Engineers and Land
144	144	Surveyors pursuant to Section 475.15 of Title 59 of
145	145	the Oklahoma Statutes.
146	146	Provided, the definition shall not be interpreted to exclude any
147	147	person who was employed in the civil engineering sector , but not as
148	148	a full-time engineer, prior to being awarded an undergraduat e or
149	149	graduate degree from a qualified program by an institut ion or any
150	150	person who has been awarded an undergraduate or graduate degree from
151	151	a qualified program by an institution and is employed by a
152	152	professional staffing company and assigned to work in the civil
153	153	engineering sector in this state;
154	154	6. "Qualified program" means a program at an institution that
155	155	includes a graduate or undergraduate program that has been
156	156	accredited by the Engineering Accreditation Commission of the
157	157	Accreditation Board for Engineering and Technology (ABET) and that
158	158	awards an undergraduate or grad uate degree. Both the undergraduate
159	159	and graduate programs of the same discipline of engineer ing at an
160	160	institution shall be part of the qualified program if either program
161	161	is ABET accredited; and
162	162	7. "Tuition" means the average annual amount paid by a
163	163	qualified employee for enrollment and instruction in a qualified
164	164	program. Tuition shall not incl ude the cost of books, fees or room
165	165	and board.
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191	191	SECTION 2. NEW LAW A new section of law to be codified
192	192	in the Oklahoma Statutes as Section 2357.322 of Title 68, unless
193	193	there is created a duplication in numbe ring, reads as follows:
194	194	A. Except as provided in subsection F of this section, for
195	195	taxable years beginning after Decem ber 31, 2023, and ending before
196	196	January 1, 2029, a qualified employer shall be allowed a credit
197	197	against the tax imposed pursuant to Secti on 2355 of Title 68 of the
198	198	Oklahoma Statutes for tuition reimbursed to a qualified employee.
199	199	B. The credit authorized by subsection A of this section may be
200	200	claimed only if the qualifi ed employee has been awarded an
201	201	undergraduate or graduate d egree within one (1) year of commen cing
202	202	employment with the qualified employer.
203	203	C. The credit authorized by subsection A of this section shall
204	204	be in the amount of fifty percent (50%) of the tuitio n reimbursed to
205	205	a qualified employee for the first through fourth years of
206	206	employment. In no event shall this credit exceed fifty percent
207	207	(50%) of the average annual amount paid by a qualified employee for
208	208	enrollment and instruction in a qualified program at a public
209	209	institution in Oklahoma.
210	210	D. The credit author ized by subsection A of this sectio n shall
211	211	not be used to reduce the tax liability of the qualified employer to
212	212	less than zero (0).
213	213	E. No credit authorized by this section shall be claimed after
214	214	the fourth year of employment.
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240	240	SECTION 3. NEW LAW A new section of law to be codified
241	241	in the Oklahoma Statutes as Section 2357.323 of Title 68, unless
242	242	there is created a duplication in numbering, reads as follows:
243	243	A. Except as provided in subsection F of this section, for
244	244	taxable years beginning on or after January 1, 2024, and ending
245	245	before January 1, 202 9, a qualified employer shall be allowed a
246	246	credit against the tax imposed pursuant to Section 2355 of Title 68
247	247	of the Oklahoma Statutes for compensation paid to a qualified
248	248	employee.
249	249	B. The credit authorized by subsection A of this section shall
250	250	be in the amount of:
251	251	1. Ten percent (10%) of the compensation paid for the first
252	252	through fifth years of employment i n civil engineering if the
253	253	qualified employee graduated from an institution located in this
254	254	state; or
255	255	2. Five percent (5%) of the compensation paid for the first
256	256	through fifth years of employment in civil engineering if the
257	257	qualified employee graduated f rom an institution located outside
258	258	this state.
259	259	C. The credit authorized by this section shall not exceed
260	260	Twelve Thousand Five Hundred Dollars ($12,500.00) for each qualified
261	261	employee annually.
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287	287	D. The credit authorized by this section shall not be used to
288	288	reduce the tax liability of the qualified employer to less than zero
289	289	(0).
290	290	E. No credit authorized pursuant to this section shall be
291	291	claimed after the fifth year of employment.
292	292	SECTION 4. NEW LAW A new section of law to be codifie d
293	293	in the Oklahoma Statutes as Section 2357.324 of Title 68, unless
294	294	there is created a duplicati on in numbering, reads as follows:
295	295	A. Except as provided in subsection D of this section, for
296	296	taxable years beginning on or after January 1, 2024, and ending
297	297	before January 1, 20 29, a qualified employee shall be allowed a
298	298	credit against the tax imposed pu rsuant to Section 2355 of Title 68
299	299	of the Oklahoma Statutes up to Five Thousand Dollars ($5,000.00) per
300	300	year for a period of time not to exceed f ive (5) years.
301	301	B. The credit authorized by this section shall not be used to
302	302	reduce the tax liability of the t axpayer to less than zero (0).
303	303	C. Any credit claimed, but not used, may be carried over, in
304	304	order, to each of the five (5) subsequent taxable ye ars.
305	305	SECTION 5. This act shall become effective November 1, 2023.
306	306
307	307	59-1-5890 MAH 01/18/23

Oklahoma 2024 Regular Session

Oklahoma House Bill HB2754 Compare Versions