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Oklahoma Legislature· HB 2019Placed on General Order

An act relating to revenue and taxation, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1                   STATE OF OKLAHOMA

2   1st Session of the 60th Legislature (2025)

3 HOUSE BILL 2019                By: Pae

4

5

6                                AS INTRODUCED

7   An Act relating to revenue and taxation; amending 68

    O.S. 2021, Section 2357.302, which relates to

8   aerospace industry tax credit for employee tuition

    reimbursement; amending 68 O.S. 2021, Section

9   2357.303, which relates to aerospace industry tax

    credit for compensation paid to employees; amending

10  68 O.S. 2021, Section 2357.304, as amended by Section

    2, Chapter 313, O.S.L. 2024 (68 O.S. Supp. 2024,

11  Section 2357.304), which relates to aerospace

    industry credit for employees; modifying dates to

12  extend credits; and providing an effective date.

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14

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    BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

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    SECTION 1.      AMENDATORY   68 O.S. 2021, Section 2357.302, is

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    amended to read as follows:

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    Section 2357.302. A. Except as provided in subsection F of

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    this section, for taxable years beginning after December 31, 2008,

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    and ending before January 1, 2026 2032, a qualified employer shall

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    be allowed a credit against the tax imposed pursuant to Section 2355

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    of this title for tuition reimbursed to a qualified employee.

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    Req. No. 11685                                                 Page 1
1   B. The credit authorized by subsection A of this section may be

2 claimed only if the qualified employee has been awarded an

3 undergraduate or graduate degree within one (1) year of commencing

4 employment with the qualified employer.

5   C. The credit authorized by subsection A of this section shall

6 be in the amount of fifty percent (50%) of the tuition reimbursed to

7 a qualified employee for the first through fourth years of

8 employment. In no event shall this credit exceed fifty percent

9 (50%) of the average annual amount paid by a qualified employee for

10 enrollment and instruction in a qualified program at a public

11 institution in Oklahoma.

12  D. The credit authorized by subsection A of this section shall

13 not be used to reduce the tax liability of the qualified employer to

14 less than zero (0).

15  E. No credit authorized by this section shall be claimed after

16 the fourth year of employment.

17  F. No credit otherwise authorized by the provisions of this

18 section may be claimed for any event, transaction, investment,

19 expenditure or other act occurring on or after July 1, 2010, for

20 which the credit would otherwise be allowable. The provisions of

21 this subsection shall cease to be operative on July 1, 2011.

22 Beginning July 1, 2011, the credit authorized by this section may be

23 claimed for any event, transaction, investment, expenditure or other

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    Req. No. 11685                                                 Page 2
1 act occurring on or after July 1, 2011, according to the provisions

2 of this section.

3   SECTION 2.         AMENDATORY  68 O.S. 2021, Section 2357.303, is

4 amended to read as follows:

5   Section 2357.303. A. Except as provided in subsection F of

6 this section, for taxable years beginning after December 31, 2008,

7 and ending before January 1, 2026 2032, a qualified employer shall

8 be allowed a credit against the tax imposed pursuant to Section 2355

9 of this title for compensation paid to a qualified employee.

10  B. The credit authorized by subsection A of this section shall

11 be in the amount of:

12  1. Ten percent (10%) of the compensation paid for the first

13 through fifth years of employment in the aerospace sector if the

14 qualified employee graduated from an institution located in this

15 state; or

16  2. Five percent (5%) of the compensation paid for the first

17 through fifth years of employment in the aerospace sector if the

18 qualified employee graduated from an institution located outside

19 this state.

20  C. The credit authorized by this section shall not exceed

21 Twelve Thousand Five Hundred Dollars ($12,500.00) for each qualified

22 employee annually.

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    Req. No. 11685                                              Page 3
1   D. The credit authorized by this section shall not be used to

2 reduce the tax liability of the qualified employer to less than zero

3 (0).

4   E. No credit authorized pursuant to this section shall be

5 claimed after the fifth year of employment.

6   F. No credit otherwise authorized by the provisions of this

7 section may be claimed for any event, transaction, investment,

8 expenditure or other act occurring on or after July 1, 2010, for

9 which the credit would otherwise be allowable. The provisions of

10 this subsection shall cease to be operative on July 1, 2011.

11 Beginning July 1, 2011, the credit authorized by this section may be

12 claimed for any event, transaction, investment, expenditure or other

13 act occurring on or after July 1, 2011, according to the provisions

14 of this section.

15  SECTION 3.       AMENDATORY  68 O.S. 2021, Section 2357.304, as

16 amended by Section 2, Chapter 313, O.S.L. 2024 (68 O.S. Supp. 2024,

17 Section 2357.304), is amended to read as follows:

18  Section 2357.304. A. Except as provided in subsection D of

19 this section, for taxable years beginning after December 31, 2008,

20 and ending before January 1, 2026 2032, a qualified employee shall

21 be allowed a credit against the tax imposed pursuant to Section 2355

22 of this title of up to Five Thousand Dollars ($5,000.00) per tax

23 year for a period of time not to exceed five (5) years during the

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    Req. No. 11685                                                Page 4
1 lifetime of the qualified employee. This credit may be claimed in

2 nonconsecutive tax years.

3   B. The credit authorized by this section shall not be used to

4 reduce the tax liability of the taxpayer to less than zero (0).

5   C. Any credit claimed, but not used, may be carried over, in

6 order, to each of the five (5) subsequent taxable years.

7   D. No credit otherwise authorized by the provisions of this

8 section may be claimed for any event, transaction, investment,

9 expenditure or other act occurring on or after July 1, 2010, for

10 which the credit would otherwise be allowable. The provisions of

11 this subsection shall cease to be operative on July 1, 2011.

12 Beginning July 1, 2011, the credit authorized by this section may be

13 claimed for any event, transaction, investment, expenditure or other

14 act occurring on or after July 1, 2011, according to the provisions

15 of this section.

16  SECTION 4. This act shall become effective November 1, 2025.

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18  60-1-11685       AO      12/13/24

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    Req. No. 11685                                                 Page 5
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