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 over the specified tax years. To qualify, employers must have between five and two hundred employees, not be compliant with CMMC as of January 1, 2026, and be engaged in a contract with the Department of Defense that requires 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 authorized will be limited to $10 million annually, with the Oklahoma Tax Commission responsible for calculating and publishing a percentage reduction to ensure this cap is not exceeded. The act is set to take effect on November 1, 2025.