1 STATE OF OKLAHOMA
1
2 2nd Session of the 59th Legislature (2024)
2
3 SENATE BILL 1490 By: Pugh
3
4
4
5
5
6 AS INTRODUCED
6
7 An Act relating to income tax; amending 68 O.S. 2021,
7 Sections 2357.301 and 2357.304, which relate to tax
8 credit for aerospace sector; modifying definition;
8 limiting certain credit claimed for certain number of
9 tax years; authorizing qualified employee to claim
9 credit in nonconsecutive tax years; and providing an
10 effective date.
10
11
11
12
12
13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
13
14 SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.301, is
14
15 amended to read as follows:
15
16 Section 2357.301. As used in Sections 2357.301 through 2357.304
16
17 of this title:
17
18 1. “Aerospace sector” means a private or public organization
18
19 engaged in the manufacture of aerospace or defense hardware or
19
20 software, aerospace maintenance, aerospace repair and overhaul,
20
21 supply of parts to the aerospace industry, provision of services and
21
22 support relating to the aerospace industry, research and development
22
23 of aerospace technology and systems and the education and training
23
24 of aerospace personnel;
24
Req. No. 2895 Page 1
 1 2. “Compensation” means payments in the form of contract labor
1
2 for which the payor is required to provide a Form 1099 to the person
2
3 paid, wages subject to withholding tax paid to a part-time employee
3
4 or full-time employee or salary or other remuneration. Compensation
4
5 shall not include employer-provided retirement, medical or health-
5
6 care benefits, reimbursement for travel, meals, lodging or any other
6
7 expense;
7
8 3. “Institution” means an institution within The Oklahoma State
8
9 System of Higher Education or any other public or private college or
9
10 university that is accredited by a national accrediting body;
10
11 4. “Qualified employer” means a sole proprietor, general
11
12 partnership, limited partnership, limited liability company,
12
13 corporation, other legally recognized business entity or public
13
14 entity whose principal business activity involves the aerospace
14
15 sector;
15
16 5. “Qualified employee” means any person, regardless of the
16
17 date of hire, employed in this state by or contracting in this state
17
18 with a qualified employer on or after January 1, 2009, who was not
18
19 employed in the aerospace sector in this state immediately preceding
19
20 employment or contracting with a qualified employer for the first
20
21 year in which the credit allowed pursuant to subsection A of Section
21
22 2357.304 of this title is claimed by the qualified employee, and who
22
23 has been either:
23
24
24
Req. No. 2895 Page 2
 1 a. awarded an undergraduate or graduate degree from a
1
2 qualified program by an institution, or
2
3 b. licensed as a Professional Engineer by the State Board
3
4 of Licensure for Professional Engineers and Land
4
5 Surveyors pursuant to Section 475.15 of Title 59 of
5
6 the Oklahoma Statutes.
6
7 Provided, the definition shall not be interpreted to exclude any
7
8 person who was employed in the aerospace sector, but not as a full-
8
9 time engineer, prior to being awarded an undergraduate or graduate
9
10 degree from a qualified program by an institution or any person who
10
11 has been awarded an undergraduate or graduate degree from a
11
12 qualified program by an institution and is employed by a
12
13 professional staffing company and assigned to work in the aerospace
13
14 sector in this state;
14
15 6. “Qualified program” means a program at an institution that
15
16 includes a graduate or undergraduate program that has been
16
17 accredited by the Engineering Accreditation Commission of the
17
18 Accreditation Board for Engineering and Technology (ABET) and that
18
19 awards an undergraduate or graduate degree. Both the undergraduate
19
20 and graduate programs of the same discipline of engineering at an
20
21 institution shall be part of the qualified program if either program
21
22 is ABET accredited; and
22
23 7. “Tuition” means the average annual amount paid by a
23
24 qualified employee for enrollment and instruction in a qualified
24
Req. No. 2895 Page 3
 1 program. Tuition shall not include the cost of books, fees or room
1
2 and board.
2
3 SECTION 2. AMENDATORY 68 O.S. 2021, Section 2357.304, is
3
4 amended to read as follows:
4
5 Section 2357.304. A. Except as provided in subsection D of
5
6 this section, for taxable years beginning after December 31, 2008,
6
7 and ending before January 1, 2026, a qualified employee shall be
7
8 allowed a credit against the tax imposed pursuant to Section 2355 of
8
9 this title of up to Five Thousand Dollars ($5,000.00) per tax year
9
10 for a period of time not to exceed five (5) years. A qualified
10
11 employee allowed to claim the credit allowed pursuant to this
11
12 subsection shall not claim the credit in more than five (5) tax
12
13 years; provided, the credit may be claimed in nonconsecutive tax
13
14 years.
14
15 B. The credit authorized by this section shall not be used to
15
16 reduce the tax liability of the taxpayer to less than zero (0).
16
17 C. Any credit claimed, but not used, may be carried over, in
17
18 order, to each of the five (5) subsequent taxable years.
18
19 D. No credit otherwise authorized by the provisions of this
19
20 section may be claimed for any event, transaction, investment,
20
21 expenditure or other act occurring on or after July 1, 2010, for
21
22 which the credit would otherwise be allowable. The provisions of
22
23 this subsection shall cease to be operative on July 1, 2011.
23
24 Beginning July 1, 2011, the credit authorized by this section may be
24
Req. No. 2895 Page 4
 1 claimed for any event, transaction, investment, expenditure or other
1
2 act occurring on or after July 1, 2011, according to the provisions
2
3 of this section.
3
4 SECTION 3. This act shall become effective November 1, 2024.
4
5
5
6 59-2-2895 QD 12/15/2023 7:31:42 PM
6
7
7
8
8
9
9
10
10
11
11
12
12
13
13
14
14
15
15
16
16
17
17
18
18
19
19
20
20
21
21
22
22
23
23
24
24
Req. No. 2895 Page 5