Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB287 Compare Versions

Version 1 (Old)

Version 2 (New)

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29		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
30		-
31	28		STATE OF OKLAHOMA
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33	30		1st Session of the 60th Legislature (2025)
34	31
35	32		COMMITTEE SUBSTITUTE
36	33		FOR ENGROSSED
37	34		SENATE BILL NO. 287 By: Pugh of the Senate
38	35
39	36		and
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41	38		Miller and Pae of the House
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47	48		COMMITTEE SUBSTITUTE
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49	50		[ income tax – income tax credit – qualified
50	51		employers and employees aerospace sector –
51	52		institutions of higher education – effective date ]
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56	59		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
57	60		SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.301, as
58	61		amended by Section 1, Chapter 313, O.S.L. 2024 (68 O.S. Supp. 2024,
59	62		Section 2357.301), is amended to read as follows:
60	63		Section 2357.301. As used in Sections 2357.301 through 2357.304
61	64		of this title:
62		-	1. "Aerospace sector" means a private o r public organization
63		-	located in this state and engaged in the manufacture of aerospace or
64		-	defense hardware or software, aerospace maintenance, aerospace
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66		-	SB287 HFLR Page 2
67		-	BOLD FACE denotes Committee Amendments. 1
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	91	+	1. "Aerospace sector" means a private or public organization
	92	+	located in this state and engaged in the manufacture of aerospace or
	93	+	defense hardware or software, aerospace maintenance, aerospace
92	94		repair and overhaul, supply of parts to the aerospace industry,
93	95		provision of services and support relating to the aerospace
94	96		industry, research and development of aerospace technology and
95	97		systems and the education and training of aerospace personnel;
96	98		2. "Compensation" means payments in the form of contract labor
97	99		for which the payor is required to provide a Form 1099 to the person
98	100		paid, wages subject to withholding tax paid to a part -time employee
99	101		or full-time employee or salary or other remuneration. Compensation
100	102		shall not include employer -provided retirement, medical or health -
101	103		care benefits, reimbursement for travel, meals, lodging or any o ther
102	104		expense;
103	105		3. "Institution" means an institution within The Oklahoma State
104	106		System of Higher Education or any other public or private college or
105	107		university that is accredited by a national accrediting body;
106	108		4. "Qualified employer" means a sole propriet or, general
107	109		partnership, limited partnership, limited liability company,
108	110		corporation, other legally recognized business entity or public
109	111		entity whose principal business activity involves the aerospace
110	112		sector, or an institution of higher education within th is state that
111	113		has a research, innovation, and education institute dedicated to
112	114		aerospace research and technology ;
113		-	5. "Qualified employee" means any person, regardless of the
114		-	date of hire, employed in this state by or co ntracting in this state
115		-	with a qualified employer on or after January 1, 2009, who was not
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117		-	SB287 HFLR Page 3
118		-	BOLD FACE denotes Committee Amendments. 1
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	141	+	5. "Qualified employee" means any person, regardless of the
	142	+	date of hire, employed in this state by or contracting in this state
	143	+	with a qualified employer on or after January 1, 2009, who was not
143	144		employed in the aerospace sector in this state immediately preceding
144	145		employment or contracting with a qualified employer, and who has
145	146		been either:
146	147		a. awarded an undergraduate or graduate degree from a
147	148		qualified program by an institution, or
148	149		b. licensed as a Professional Engineer by the State Board
149	150		of Licensure for Professional Engineers and Land
150	151		Surveyors pursuant to Section 475.15 of Title 59 of
151	152		the Oklahoma Statutes.
152	153		Provided, the definition shall not be interpreted to exclude any
153	154		person who was employed in the aerospace sector, but not as a full -
154	155		time engineer, prior to being awarded an undergraduate or graduate
155	156		degree from a qualified program by an institution or any person who
156	157		has been awarded an und ergraduate or graduate degree from a
157	158		qualified program by an institution and is employed by a
158	159		professional staffing company and assigned to work in the aerospace
159	160		sector in this state.
160	161		Provided, the definition of qualified employee for an employee
161	162		employed or under contract with an institution of higher education
162	163		within this state that has a research and education institute
163	164		dedicated to aerospace research and technology only applies to those
164		-	individuals actively working wi thin the research, innovation, and
165		-	education institute dedicated to aerospace research and technology.
166	165
167		-	SB287 HFLR Page 4
168		-	BOLD FACE denotes Committee Amendments. 1
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	191	+	individuals actively working within the research, innovation, and
	192	+	education institute dedicated to aerospace research and technology.
193	193		Beginning on or after January 1, 2024, the definition shall also
194	194		not be interpreted to exclude any person (1) who previously
195	195		qualified and established the credit against the tax imposed
196	196		pursuant to Section 2355 of this title and becomes employed by a
197	197		different qualified employer, or (2) who establishes the credit
198	198		against the tax imposed pursuant to Section 2355 of this title for
199	199		the first time and becomes employed by a different qualified
200	200		employer in subsequent years, provided a person in either case has
201	201		not claimed the credit for the lifetime maximum of five (5) years;
202	202		6. "Qualified program" means a program at an institution that
203	203		includes a graduate or undergraduate program that has been
204	204		accredited by the Engineering Accreditation Commission of the
205	205		Accreditation Board for Engineering and Technology (ABET) and that
206	206		awards an undergraduate or graduate degree. Both the undergraduate
207	207		and graduate programs of the same discipline of engineering a t an
208	208		institution shall be part of the qualified program if either program
209	209		is ABET accredited; and
210	210		7. "Tuition" means the average annual amount paid by a
211	211		qualified employee for enrollment and instruction in a qualified
212	212		program. Tuition shall not include t he cost of books, fees or room
213	213		and board.
214		-	SECTION 2. AMENDATORY 68 O.S. 2021, Section 2357.302, is
215		-	amended to read as follows:
216	214
217		-	SB287 HFLR Page 5
218		-	BOLD FACE denotes Committee Amendments. 1
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	240	+	SECTION 2. AMENDATORY 68 O.S. 2021, Section 2357.302, is
	241	+	amended to read as follows:
243	242		Section 2357.302. A. Except as provided in subsection F of
244	243		this section, for taxable years beginning after December 31, 2008,
245	244		and ending before January 1, 2026 tax years 2009 through 2031 , a
246	245		qualified employer shall be allowed a credit against the tax imposed
247	246		pursuant to Section 2355 of this title for tuition reimbursed to a
248	247		qualified employee.
249	248		B. The credit authorized by subsection A of this section may be
250	249		claimed only if the qualified employee has been awarded an
251	250		undergraduate or graduate degree within one (1) year of commencing
252	251		employment with the qualified employer.
253	252		C. The credit authorized by subsec tion A of this section shall
254	253		be in the amount of fifty percent (50%) of the tuition reimbursed to
255	254		a qualified employee for the first through fourth years of
256	255		employment. In no event shall this credit exceed fifty percent
257	256		(50%) of the average annual amount paid by a qualified employee for
258	257		enrollment and instruction in a qualified program at a public
259	258		institution in Oklahoma.
260	259		D. The credit authorized by subsection A of this section shall
261	260		not be used to reduce the tax liability of the qualified employer to
262	261		less than zero (0).
263	262		E. No credit authorized by this section shall be claimed after
264	263		the fourth year of employment.
265		-	F. No credit otherwise authorized by the provisions of this
266		-	section may be claimed for any event, transacti on, investment,
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268		-	SB287 HFLR Page 6
269		-	BOLD FACE denotes Committee Amendments. 1
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	290	+	F. No credit otherwise authorized by the provisions of this
	291	+	section may be claimed for any event, transaction, investment,
294	292		expenditure or other act occurring on or after July 1, 2010, for
295	293		which the credit would otherwise be allowable. The provisions of
296	294		this subsection shall cease to be operative on July 1, 2011.
297	295		Beginning July 1, 2011, the credit authorized by this section may be
298	296		claimed for any event, transaction, investment, expenditure or other
299	297		act occurring on or after July 1, 2011, according to the provisions
300	298		of this section.
301	299		SECTION 3. AMENDATORY 68 O.S. 2021, Section 2357.303, is
302	300		amended to read as follows:
303	301		Section 2357.303. A. Except as provided in subsection F of
304	302		this section, for taxable years beginning after December 31, 2008,
305	303		and ending before January 1, 2026 tax years 2009 through 2031 , a
306	304		qualified employer shall be allowed a credit against the tax imposed
307	305		pursuant to Section 2355 of this title for compensation paid to a
308	306		qualified employee.
309	307		B. The credit authorized by subsection A of this section shall
310	308		be in the amount of:
311	309		1. Ten percent (10%) of the compensation paid for the first
312	310		through fifth years of employment in the aerospace sector if the
313	311		qualified employee graduated from an institution located in this
314	312		state; or
315		-	2. Five percent (5%) of the compensation paid for the first
316		-	through fifth years of employment in the a erospace sector if the
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	339	+	2. Five percent (5%) of the compensation paid for the first
	340	+	through fifth years of employment in the aerospace sector if the
344	341		qualified employee graduated from an institution located outside
345	342		this state.
346	343		C. The credit authorized by this section shall not exceed
347	344		Twelve Thousand Five Hundred Dollars ($12,500.00) for each qualified
348	345		employee annually.
349	346		D. The credit authorized by this section sha ll not be used to
350	347		reduce the tax liability of the qualified employer to less than zero
351	348		(0).
352	349		E. No credit authorized pursuant to this section shall be
353	350		claimed after the fifth year of employment.
354	351		F. No credit otherwise authorized by the provisions of this
355	352		section may be claimed for any event, transaction, investment,
356	353		expenditure or other act occurring on or after July 1, 2010, for
357	354		which the credit would otherwise be allowable. The provisions of
358	355		this subsection shall cease to be operative on July 1, 2011.
359	356		Beginning July 1, 2011, the credit authorized by this section may be
360	357		claimed for any event, transaction, investment, expenditure or other
361	358		act occurring on or after July 1, 2011, according to the provisions
362	359		of this section.
363	360		SECTION 4. AMENDATORY 68 O.S. 2021, Section 2357.304, as
364	361		amended by Section 2, Chapter 313, O.S.L. 2024 (68 O.S. Supp. 2024,
365	362		Section 2357.304), is amended to read as follows:
366		-	Section 2357.304. A. Except as provided in subsect ion D of
367		-	this section, for taxable years beginning after December 31, 2008,
368	363
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	389	+	Section 2357.304. A. Except as provided in subsection D of
	390	+	this section, for taxable years beginning after December 31, 2008,
395	391		and ending before January 1, 2026 tax years 2009 through 2031 , a
396	392		qualified employee shall be allowed a credit against the tax imposed
397	393		pursuant to Section 2355 of this title of up to Five Thousand
398	394		Dollars ($5,000.00) per tax year for a period of time not to exceed
399	395		five (5) years during the lifetime of the qualified employee. This
400	396		credit may be claimed in nonconsecutive tax years.
401	397		B. The credit authorized by this section shall not be used to
402	398		reduce the tax liability o f the taxpayer to less than zero (0).
403	399		C. Any credit claimed, but not used, may be carried over, in
404	400		order, to each of the five (5) subsequent taxable years.
405	401		D. No credit otherwise authorized by the provisions of this
406	402		section may be claimed for any event, transaction, investment,
407	403		expenditure or other act occurring on or after July 1, 2010, for
408	404		which the credit would otherwise be allowable. The provisions of
409	405		this subsection shall cease to be operative on July 1, 2011.
410	406		Beginning July 1, 2011, the credit aut horized by this section may be
411	407		claimed for any event, transaction, investment, expenditure or other
412	408		act occurring on or after July 1, 2011, according to the provisions
413	409		of this section.
414	410		SECTION 5. This act shall become effective November 1, 2025.
415	411
416		-	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET , dated
417		-	04/17/2025 - DO PASS, As Amended.
	412	+	60-1-13559 JM 04/17/25
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