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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 2260 By: Miller
AS INTRODUCED
An Act relating to revenue and taxation; defining
terms; authorizing income tax credits for employers
engaged in civil engineering; provi ding 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; authorizing 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 PEOPLE 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 Ti tle 68, unless
there is created a duplication in numbering, reads as follows:
As used in Sections 1 through 4 of this act:
1. "Compensation" means payments in the form of contract 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,
full-time employee, salary, or other remuneration. Compensation
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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 Oklaho ma State
System of Higher Education, any other public or private college, or
university that is accredited by a national accrediting body;
3. "Qualified employer" means a sole proprietor, general
partnership, limited partnership, limited liability company,
corporation, other legally recognized business entity, or public
entity whose principal business activity involves civil engineering
services as described by Industry No. 54133 0 of the North American
Industry Classification System (NAICS), latest revisio n;
4. "Qualified employee" means any person, regardless of the
date of hire, employed in this state, contracting in this state with
a qualified employer on or after January 1, 2 026, who was not
employed as a civil engineer in this state immediately preceding
employment or contracting with a qualified employer, and who has
been either:
a. awarded an undergraduate or graduate degree from a
qualified program by an institution, or
b. licensed as a Professional Engineer by the State Board
of Licensure for Profe ssional Engineers and Land
Surveyors pursuant to Section 475.15 of Title 59 of
the Oklahoma Statutes.
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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 undergraduate or
graduate degree from a qualified program by an institution 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.
Beginning on or after January 1, 202 6, the definition shall also
not be interpreted to exclude any person who:
(1) previously qualified and established the credit
against the tax imposed pursuant to Section 2355
of Title 68 of the Oklahoma Statutes and becomes
employed by a different qualified employer, or
(2) establishes the credit against the tax imp osed
pursuant to Section 2355 of Title 68 of the
Oklahoma Statutes for the fir st time and becomes
employed by a different qualified employer in
subsequent years, provided a person in either
case has not claimed the credit for the lifetime
maximum of five (5) years;
5. "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
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Accreditation Board for Engineering and Technology (ABET) and that
awards an undergraduate or graduate degree. Both the undergraduate
and graduate programs of the same discipline of engineering at an
institution shall be part of the qualified program if either program
is ABET accredited; and
6. "Tuition" means the average annual amount paid by a
qualified employee for enrollment and instruction in a qualified
program. Tuition shall not include the cost of books, fees or room
and board.
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 numbering, reads as follows:
A. For taxable years beginning after December 31, 202 5, and
ending before January 1, 203 1, a qualified employer shall be allowed
a credit against the tax imposed pursuant to Section 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 qualified employee has been awarded an
undergraduate or graduate degree within one (1) year of commencing
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 tuition reimbursed to
a qualified employee for the first through fourth years of
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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 authorized by subsection A of this section sh all
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 em ployment.
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. For taxable years beginning on or a fter January 1, 2026, and
ending before January 1, 203 1, 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 in civil engineering if the
qualified employee graduated from an institution located in this
state; or
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2. Five percent (5%) of the compensation paid for the first
through fifth years of employment in civil engineering if the
qualified employee graduated from 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.
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 author ized pursuant to this section shall be
claimed after the fifth year of employm ent.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.324 of Title 68, unless
there is created a duplicatio n in numbering, reads as follows:
A. For taxable years beginning on or after January 1, 202 6, and
ending before January 1, 203 1, a qualified employee shall be allowed
a credit against the tax imposed pursuant to Section 2355 of Title
68 of the Oklahoma St atutes up to Five Thousand Dollars ($5,000.00)
per year for a period of time n ot 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 carried over in
order to each of the five (5) subsequent taxable years.
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SECTION 5. This act shall become effective November 1, 2025.
60-1-10943 AO 12/16/24