This bill establishes a new tax credit for qualified employers in the aerospace and defense sector who are working towards compliance with the Cybersecurity Maturity Model Certification (CMMC) mandated by the U.S. Department of Defense. The credit, applicable for tax years 2026 through 2031, allows these employers to claim 50% of the compensation paid to employees and expenses incurred while achieving CMMC compliance, with a cumulative cap of $50,000 per employer. To qualify, businesses must have between five and two hundred employees, not be compliant with CMMC as of January 1, 2026, and be engaged in contracts with the Department of Defense that require CMMC compliance.

The bill also includes provisions that prohibit the use of the credit to reduce tax liability below zero and restricts the credit to only those expenses incurred for achieving, not maintaining, CMMC compliance. Additionally, starting in tax year 2028, the total amount of credits available will be limited to $10 million annually, with adjustments made to ensure that the total credits do not exceed this limit. The Oklahoma Tax Commission is tasked with calculating and publishing the necessary percentage adjustments to manage the distribution of credits effectively. The act is set to take effect on November 1, 2025.