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SENATE FLOOR VERSION
February 10, 2025
SENATE BILL NO. 287 By: Pugh of the Senate
and
Miller and Pae of the House
An Act relating to income tax; amending 68 O.S. 2021,
Sections 2357.302, 2357.303, and 2357.304, as amended
by Section 2, Chapte r 313, O.S.L. 2024 (68 O.S. Supp.
2024, Section 2357.304), which relate to income tax
credit for qualified employers and employees in the
aerospace sector; modifying tax years for which
credit may be claimed; and providing an effective
date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.302, is
amended to read as follows:
Section 2357.302. A. Except as provided in subsection F of
this section, for taxable years beginn ing after December 31, 2008,
and ending before January 1, 2026 tax years 2009 through 2031 , a
qualified employer shall be allowed a credit against the tax imposed
pursuant to Section 2355 of this title for tuition reimbursed to a
qualified employee.
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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 su bsection 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
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 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.
F. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
expenditure or other act occurring on or after July 1, 2010, for
which the credit would otherwise be allowable. The provisions of
this subsection shall cease to be operative on July 1, 2011.
Beginning July 1, 2011, the credit authorized by this section may be
claimed for any event, transaction, investment, expenditure or other
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act occurring on or after July 1, 2011, according to the provisions
of this section.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 2357.303, is
amended to read as follows:
Section 2357.303. A. Except as provided in subsection F of
this section, for taxable years beginning after December 31, 2008,
and ending before January 1, 2026 tax years 2009 through 2031 , a
qualified employer shall be allowed a credit against the tax imp osed
pursuant to Section 2355 of this title 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 the aerospace sector 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 the aerospace sector 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.
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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. No credit otherwise authorized by the provisions of t his
section may be claimed for any event, transaction, investment,
expenditure or other act occurring on or after July 1, 2010, for
which the credit would otherwise be allowable. The provisions of
this subsection shall cease to be operative on July 1, 2011.
Beginning July 1, 2011, the credit authorized by this section may be
claimed for any event, transaction, investment, expenditure or other
act occurring on or after July 1, 2011, according to the provisions
of this section.
SECTION 3. AMENDATORY 68 O.S. 2021, Section 2357.304, as
amended by Section 2, Chapter 313, O.S.L. 2024 (68 O.S. Supp. 2024,
Section 2357.304), is amended to read as follows:
Section 2357.304. A. Except as provided in subsection D of
this section, for taxable years beginning after December 31, 2008,
and ending before January 1, 2026 tax years 2009 through 2031 , a
qualified employee shall be allowed a credit against the tax imposed
pursuant to Section 2355 of this title of up to Five Thousand
Dollars ($5,000.00) per tax year for a period of time not to exceed
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five (5) years during the lifetime of the qualified employee. This
credit may be claimed in nonconsecutive tax 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.
D. No credit otherwise authorized by the provisions of this
section may be claimed for any eve nt, transaction, investment,
expenditure or other act occurring on or after July 1, 2010, for
which the credit would otherwise be allowable. The provisions of
this subsection shall cease to be operative on July 1, 2011.
Beginning July 1, 2011, the credit authorized by this section may be
claimed for any event, transaction, investment, expenditure or other
act occurring on or after July 1, 2011, according to the provisions
of this section.
SECTION 4. This act shall become effective Novembe r 1, 2025.
COMMITTEE REPORT BY: COMMITTEE ON REVENUE AND TAXATION
February 10, 2025 - DO PASS