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Oklahoma Legislature· SB 287Becomes law without Governor's signature 05/29/2025

An act relating to income tax, 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

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

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3 SENATE BILL 287               By: Pugh
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6                               AS INTRODUCED

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7   An Act relating to income tax; amending 68 O.S. 2021,

7   Sections 2357.302, 2357.303, and 2357.304, as amended

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

8   2024, Section 2357.304), which relate to income tax

9   credit for qualified employers and employees in the

9   aerospace sector; modifying tax years for which

10  credit may be claimed; and providing an effective

10  date.

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13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14  SECTION 1.     AMENDATORY   68 O.S. 2021, Section 2357.302, is

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15 amended to read as follows:
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16  Section 2357.302. A. Except as provided in subsection F of

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17 this section, for taxable years beginning after December 31, 2008,
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18 and ending before January 1, 2026 tax years 2009 through 2031, a
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19 qualified employer shall be allowed a credit against the tax imposed
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20 pursuant to Section 2355 of this title for tuition reimbursed to a
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21 qualified employee.
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22  B. The credit authorized by subsection A of this section may be

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23 claimed only if the qualified employee has been awarded an
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    Req. No. 1212                                              Page 1
1 undergraduate or graduate degree within one (1) year of commencing
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2 employment with the qualified employer.
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3   C. The credit authorized by subsection A of this section shall

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4 be in the amount of fifty percent (50%) of the tuition reimbursed to
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5 a qualified employee for the first through fourth years of
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6 employment. In no event shall this credit exceed fifty percent
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7 (50%) of the average annual amount paid by a qualified employee for
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8 enrollment and instruction in a qualified program at a public
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9 institution in Oklahoma.
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10  D. The credit authorized by subsection A of this section shall

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11 not be used to reduce the tax liability of the qualified employer to
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12 less than zero (0).
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13  E. No credit authorized by this section shall be claimed after

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14 the fourth year of employment.
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15  F. No credit otherwise authorized by the provisions of this

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16 section may be claimed for any event, transaction, investment,
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17 expenditure or other act occurring on or after July 1, 2010, for
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18 which the credit would otherwise be allowable. The provisions of
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19 this subsection shall cease to be operative on July 1, 2011.
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20 Beginning July 1, 2011, the credit authorized by this section may be
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21 claimed for any event, transaction, investment, expenditure or other
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22 act occurring on or after July 1, 2011, according to the provisions
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23 of this section.
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    Req. No. 1212                                             Page 2
1   SECTION 2.         AMENDATORY  68 O.S. 2021, Section 2357.303, is

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2 amended to read as follows:
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3   Section 2357.303. A. Except as provided in subsection F of

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4 this section, for taxable years beginning after December 31, 2008,
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5 and ending before January 1, 2026 tax years 2009 through 2031, a
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6 qualified employer shall be allowed a credit against the tax imposed
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7 pursuant to Section 2355 of this title for compensation paid to a
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8 qualified employee.
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9   B. The credit authorized by subsection A of this section shall

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10 be in the amount of:
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11  1. Ten percent (10%) of the compensation paid for the first

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12 through fifth years of employment in the aerospace sector if the
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13 qualified employee graduated from an institution located in this
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14 state; or
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15  2. Five percent (5%) of the compensation paid for the first

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16 through fifth years of employment in the aerospace sector if the
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17 qualified employee graduated from an institution located outside
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18 this state.
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19  C. The credit authorized by this section shall not exceed

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20 Twelve Thousand Five Hundred Dollars ($12,500.00) for each qualified
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21 employee annually.
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22  D. The credit authorized by this section shall not be used to

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23 reduce the tax liability of the qualified employer to less than zero
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24 (0).
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    Req. No. 1212                  Page 3
1   E. No credit authorized pursuant to this section shall be

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2 claimed after the fifth year of employment.
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3   F. No credit otherwise authorized by the provisions of this

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4 section may be claimed for any event, transaction, investment,
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5 expenditure or other act occurring on or after July 1, 2010, for
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6 which the credit would otherwise be allowable. The provisions of
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7 this subsection shall cease to be operative on July 1, 2011.
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8 Beginning July 1, 2011, the credit authorized by this section may be
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9 claimed for any event, transaction, investment, expenditure or other
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10 act occurring on or after July 1, 2011, according to the provisions
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11 of this section.
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12  SECTION 3.       AMENDATORY  68 O.S. 2021, Section 2357.304, as

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13 amended by Section 2, Chapter 313, O.S.L. 2024 (68 O.S. Supp. 2024,
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14 Section 2357.304), is amended to read as follows:
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15  Section 2357.304. A. Except as provided in subsection D of

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16 this section, for taxable years beginning after December 31, 2008,
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17 and ending before January 1, 2026 tax years 2009 through 2031, a
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18 qualified employee shall be allowed a credit against the tax imposed
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19 pursuant to Section 2355 of this title of up to Five Thousand
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20 Dollars ($5,000.00) per tax year for a period of time not to exceed
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21 five (5) years during the lifetime of the qualified employee. This
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22 credit may be claimed in nonconsecutive tax years.
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23  B. The credit authorized by this section shall not be used to

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24 reduce the tax liability of the taxpayer to less than zero (0).
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    Req. No. 1212                                      Page 4
1   C. Any credit claimed, but not used, may be carried over, in

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2 order, to each of the five (5) subsequent taxable years.
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3   D. No credit otherwise authorized by the provisions of this

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4 section may be claimed for any event, transaction, investment,
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5 expenditure or other act occurring on or after July 1, 2010, for
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6 which the credit would otherwise be allowable. The provisions of
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7 this subsection shall cease to be operative on July 1, 2011.
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8 Beginning July 1, 2011, the credit authorized by this section may be
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9 claimed for any event, transaction, investment, expenditure or other
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10 act occurring on or after July 1, 2011, according to the provisions
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11 of this section.
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12  SECTION 4. This act shall become effective November 1, 2025.

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14  60-1-1212        QD  12/30/2024 11:16:53 PM

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    Req. No. 1212                                           Page 5
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