House Bill No. 2260 introduces new income tax credits aimed at supporting employers and employees in the civil engineering sector in Oklahoma. The bill defines key terms such as "compensation," "institution," "qualified employer," "qualified employee," "qualified program," and "tuition." It establishes a framework for tax credits that include reimbursement for tuition paid to qualified employees, compensation paid to qualified employees, and income received by qualified employees. The credits are available for taxable years beginning after December 31, 2025, and ending before January 1, 2031, with specific conditions regarding eligibility and limits on the amount of credit that can be claimed.

The bill specifies that the tuition reimbursement credit allows qualified employers to claim 50% of the tuition reimbursed to employees who have recently graduated, while the compensation credit provides 10% for employees who graduated from in-state institutions and 5% for those from out-of-state institutions, with a cap of $12,500 per employee annually. Additionally, qualified employees can claim a credit of up to $5,000 per year for five years. Importantly, all credits cannot reduce tax liability to less than zero, and any unused credits can be carried over for up to five subsequent taxable years. The act is set to take effect on November 1, 2025.