{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2357.404","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2357.404","heading":"Tax credit for tuition reimbursement for qualified","body":"employees of vehicle and automotive parts manufacturing companies.\n\nA. As used in this section:\n\n1. \"Vehicle manufacturing\" and \"automotive parts manufacturing\"\n\nmean a private or public company first placed in operation in this\n\nstate after November 1, 2019, which is engaged in the research,\n\ndevelopment, design and manufacture of motor vehicles or automotive\n\nparts manufacturing which may be driven on the avenues of public\n\naccess. For purposes of this section, \"motor vehicle\" does not\n\ninclude low-speed electric vehicles or motor vehicles manufactured\n\nprimarily for off-road use, such as primarily for use on a golf\n\ncourse;\n\n2. \"Compensation\" means payments in the form of contract labor\n\nfor which the payor is required to provide a Form 1099 to the person\n\npaid, wages subject to withholding tax paid to a part-time employee\n\nor full-time employee, or salary or other remuneration.\n\nCompensation shall not include employer-provided retirement, medical\n\nor health-care benefits, reimbursement for travel, meals, lodging or\n\nany other expense;\n\n3. \"Institution\" means an institution within The Oklahoma State\n\nSystem of Higher Education or any other public or private college or\n\nuniversity that is accredited by a national accrediting body;\n\n4. \"Qualified employer\" means a sole proprietor, general\n\npartnership, limited partnership, limited liability company,\n\ncorporation, other legally recognized business entity, or public\n\nentity whose principal business activity involves the vehicle\n\nmanufacturing as defined in this section;\n\n5. \"Qualified employee\" means any person, regardless of the\n\ndate of hire, employed in this state by or contracting in this state\n\nwith a qualified employer on or after January 1, 2018, who has been\n\nawarded an undergraduate or graduate degree from a qualified program\n\nby an institution, and who was not employed in vehicle manufacturing\n\nin this state immediately preceding employment or contracting with a\n\nqualified employer. Provided, the definition shall not be\n\ninterpreted to exclude any person who was employed in vehicle\n\nmanufacturing, but not as a full-time engineer, prior to being\n\nawarded an undergraduate or graduate degree from a qualified program\n\nby an institution or any person who has been awarded an\n\nundergraduate or graduate degree from a qualified program by an\n\ninstitution and is employed by a professional staffing company and\n\nassigned to work in vehicle manufacturing in this state;\n\n6. \"Qualified program\" means a program that awards an\n\nundergraduate or graduate degree and that has been accredited by the\n\nEngineering Accreditation Commission of the Accreditation Board for\n\nEngineering and Technology (ABET); and\n\n7. \"Tuition\" means the average annual amount paid by a\n\nqualified employee for enrollment and instruction in a qualified\n\nprogram. Tuition shall not include the cost of books, fees or room\n\nand board.\n\nB. 1. Except as otherwise provided in subsection E of this\n\nsection, for taxable years beginning after December 31, 2018, and\n\nending before January 1, 2026, a qualified employer shall be allowed\n\na credit against the tax imposed pursuant to Section 2355 of Title\n\n68 of the Oklahoma Statutes for tuition reimbursed to a qualified\n\nemployee.\n\n2. The credit authorized by this subsection may be claimed only\n\nif the qualified employee has been awarded an undergraduate or\n\ngraduate degree within one (1) year of commencing employment with\n\nthe qualified employer.\n\n3. The credit authorized by this subsection shall be in the\n\namount of fifty percent (50%) of the tuition reimbursed to a\n\nqualified employee for the first through fourth years of employment.\n\nIn no event shall this credit exceed fifty percent (50%) of the\n\naverage annual amount paid by a qualified employee for enrollment\n\nand instruction in a qualified program at a public institution in\n\nOklahoma.\nmount of fifty percent (50%) of the tuition reimbursed to a\n\nqualified employee for the first through fourth years of employment.\n\nIn no event shall this credit exceed fifty percent (50%) of the\n\naverage annual amount paid by a qualified employee for enrollment\n\nand instruction in a qualified program at a public institution in\n\nOklahoma.\n\n4. The credit authorized by this subsection shall not be used\n\nto reduce the tax liability of the qualified employer to less than\n\nzero (0).\n\n5. No credit authorized by this subsection shall be claimed\n\nafter the fourth year of employment.\n\nC. 1. Except as otherwise provided in subsection E of this\n\nsection, for taxable years beginning after December 31, 2018, and\n\nending before January 1, 2026, a qualified employer shall be allowed\n\na credit against the tax imposed pursuant to Section 2355 of Title\n\n68 of the Oklahoma Statutes for compensation paid to a qualified\n\nemployee.\n\n2. The credit authorized by this subsection shall be in the\n\namount of:\n\na. ten percent (10%) of the compensation paid for the\n\nfirst through fifth years of employment in vehicle\n\nmanufacturing if the qualified employee graduated from\n\nan institution located in this state, or\n\nb. five percent (5%) of the compensation paid for the\n\nfirst through fifth years of employment in vehicle\n\nmanufacturing if the qualified employee graduated from\n\nan institution located outside this state.\n\n3. The credit authorized by this subsection shall not exceed\n\nTwelve Thousand Five Hundred Dollars ($12,500.00) for each qualified\n\nemployee annually.\n\n4. The credit authorized by this subsection shall not be used\n\nto reduce the tax liability of the qualified employer to less than\n\nzero (0).\n\n5. No credit authorized pursuant to this subsection shall be\n\nclaimed after the fifth year of employment.\n\nD. 1. Except as otherwise provided in subsection F of this\n\nsection, for taxable years beginning after December 31, 2018, and\n\nending before January 1, 2026, a qualified employee shall be allowed\n\na credit against the tax imposed pursuant to Section 2355 of Title\n\n68 of the Oklahoma Statutes of up to Five Thousand Dollars\n\n($5,000.00) per year for a period of time not to exceed five (5)\n\nyears.\n\n2. The credit authorized by this subsection shall not be used\n\nto reduce the tax liability of the taxpayer to less than zero (0).\n\n3. Any credit claimed, but not used, may be carried over, in\n\norder, to each of the five (5) subsequent taxable years.\n\nE. 1. For any tax year during which the credit is allowed, the\n\ntotal amount of credits authorized by subsections B and C of this\n\nsection used to offset tax shall be adjusted annually to limit the\n\nannual amount of credits to Three Million Dollars ($3,000,000.00).\n\nThe Tax Commission shall annually calculate and publish a percentage\n\nby which the credits authorized by subsections B and C of this\n\nsection shall be reduced so the total amount of credits used to\n\noffset tax does not exceed Three Million Dollars ($3,000,000.00) per\n\nyear. The formula to be used for the percentage adjustment shall be\n\nThree Million Dollars ($3,000,000.00) divided by the credits claimed\n\nin the second preceding year.\n\n2. Pursuant to paragraph 1 of this subsection, in the event the\n\ntotal tax credits authorized by subsections B and C of this section\n\nexceed Three Million Dollars ($3,000,000.00) in any tax year, the\n\nTax Commission shall permit any excess over Three Million Dollars\n\n($3,000,000.00), but shall factor such excess into the percentage\n\nadjustment formula for subsequent years.\n\nF. 1. For any tax year during which the credit is allowed, the\n\ntotal amount of credits authorized by subsection D of this section\n\nused to offset tax shall be adjusted annually to limit the annual\n\namount of credits to Two Million Dollars ($2,000,000.00). The Tax\n\nCommission shall annually calculate and publish a percentage by\nexcess into the percentage\n\nadjustment formula for subsequent years.\n\nF. 1. For any tax year during which the credit is allowed, the\n\ntotal amount of credits authorized by subsection D of this section\n\nused to offset tax shall be adjusted annually to limit the annual\n\namount of credits to Two Million Dollars ($2,000,000.00). The Tax\n\nCommission shall annually calculate and publish a percentage by\n\nwhich the credits authorized by subsection D of this section shall\n\nbe reduced so the total amount of credits used to offset tax does\n\nnot exceed Two Million Dollars ($2,000,000.00) per year. The\n\nformula to be used for the percentage adjustment shall be Two\n\nMillion Dollars ($2,000,000.00) divided by the credits claimed in\n\nthe second preceding year.\n\n2. Pursuant to paragraph 1 of this subsection, in the event the\n\ntotal tax credits authorized by subsection D of this section exceed\n\nTwo Million Dollars ($2,000,000.00) in any tax year, the Tax\n\nCommission shall permit any excess over Two Million Dollars\n\n($2,000,000.00), but shall factor such excess into the percentage\n\nadjustment formula for subsequent years.","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"47c2b5565f9c947621b6b45c12134ebaf9a49be2b877345350e89ac4743aab5b","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2357.403","next":"us-ok/okla.-stat.-tit.-68-68-2357.405"},"notice":"GroundRules: Original legal text. Not legal advice."}