{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2357.405","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2357.405","heading":"Tax credit for qualifying software or cybersecurity","body":"employees.\n\nA. As used in this section:\n\n1. \"Degree-producing institution\" means any public or private\n\ncollege or university that has accredited programs, as defined in\n\nthis section, from the Accreditation Board for Engineering and\n\nTechnology (ABET);\n\n2. \"Technology center\" means an institution in the Oklahoma\n\nState Board of Career and Technology Education that offers\n\naccredited programs as defined in this section;\n\n3. \"Accredited program\" means:\n\na. an undergraduate or graduate cybersecurity,\n\ninformation technology, computer science or computer\n\nengineering degree program accredited by the Computing\n\nAccreditation Commission (CAC) or the Engineering\n\nAccreditation Commission (EAC) of the Accreditation\n\nBoard for Engineering and Technology (ABET) offered at\n\na degree-producing institution, or\n\nb. a software, cybersecurity, programming, software\n\nprogramming, coding, application development, computer\n\nscience or information technology program requiring\n\nmore than eight hundred (800) hours of class time;\n\n4. \"Qualifying compensation\" means average annualized wages\n\npaid by a qualifying employer which meet or exceed one hundred ten\n\npercent (110%) of the average county wage, as that percentage is\n\ndetermined by the Oklahoma Department of Commerce based on the most\n\nrecent U.S. Department of Commerce data for the county in which the\n\nemployer is located; or, for federal employees, such employees shall\n\nmeet a GS-5 or equivalent initial hiring threshold in lieu of the\n\nwage requirement. For the purposes of this definition, annual wages\n\nshall not include employer-provided health care or retirement\n\nbenefits;\n\n5. \"Qualified employer\" means a sole proprietor, general\n\npartnership, limited partnership, limited liability company,\n\ncorporation or other legally recognized business entity, or\n\ngovernmental entity that has at least fifteen full-time employees;\n\n6. \"Qualified industry\" means a qualified employer whose\n\nactivities are defined or classified in the most recent North\n\nAmerican Industry Classification System (NAICS) manual under U.S.\n\nSector Nos. 21, 22, 31-33, 48, 51, 52, 54, 55, 62 and 92; and\n\n7. \"Qualified software or cybersecurity employee\" means any\n\nperson employed in Oklahoma by a qualifying employer in a qualifying\n\nindustry on or after November 1, 2019, who:\n\na. has been awarded a degree in an accredited program\n\nfrom a degree-producing institution, or\n\nb. has been awarded a certificate or credential in an\n\naccredited program from a technology center.\n\nB. An employer may apply to the Oklahoma Tax Commission for\n\nqualification as a \"qualified employer\" in the manner prescribed by\n\nthe Tax Commission.\n\nC. In order for the qualified software or cybersecurity\n\nemployees to qualify to receive the tax credit, the qualified\n\nemployer shall be in a qualifying industry and pay employees a\n\nqualifying compensation for the county in which the qualified\n\nemployer has its primary Oklahoma address.\n\nD. 1. For taxable years beginning on or after January 1, 2020,\n\nand ending before January 1, 2030, a qualified software or\n\ncybersecurity employee shall be allowed a credit against the tax\n\nimposed pursuant to Section 2355 of this title, subject to the\n\namount prescribed in paragraph 2 of this subsection; provided, the\n\ncredit shall not be allowed for any qualifying employee working in\n\nthe state as of November 1, 2019.\n\n2. The credit may be claimed for a period of time not to exceed\n\nseven (7) years and, except as provided in subsection H of this\n\nsection, shall be as follows:\n\na. Two Thousand Two Hundred Dollars ($2,200.00) for a\n\nqualified software or cybersecurity employee who has\n\nbeen awarded a bachelor's or higher degree from an\n\naccredited program at a degree-producing institution,\n\nand\n\nb. One Thousand Eight Hundred Dollars ($1,800.00) for a\n\nqualified software or cybersecurity employee who has\nt as provided in subsection H of this\n\nsection, shall be as follows:\n\na. Two Thousand Two Hundred Dollars ($2,200.00) for a\n\nqualified software or cybersecurity employee who has\n\nbeen awarded a bachelor's or higher degree from an\n\naccredited program at a degree-producing institution,\n\nand\n\nb. One Thousand Eight Hundred Dollars ($1,800.00) for a\n\nqualified software or cybersecurity employee who has\n\nbeen awarded an associate's degree from an accredited\n\nprogram at a degree-producing institution or a\n\ncredential or certificate from an accredited program\n\nat a technology center.\n\nE. The credit authorized by this section shall not be used to\n\nreduce the tax liability of the taxpayer to less than zero (0).\n\nF. No taxpayer shall claim both the credit provided pursuant to\n\nthis section and the credit provided pursuant to Section 2357.304 of\n\nthis title for the same tax year.\n\nG. The maximum time period that the credit may be claimed by\n\nany taxpayer is seven (7) years.\n\nH. For the tax year beginning January 1, 2022, and each tax\n\nyear thereafter, the total amount of credits authorized by this\n\nsection used to offset tax shall be adjusted annually to limit the\n\nannual amount of credits to Five Million Dollars ($5,000,000.00).\n\nThe Tax Commission shall annually calculate and publish by the first\n\nday of the affected year a percentage by which the credits\n\nauthorized by this section shall be reduced so the total amount of\n\ncredits used to offset tax does not exceed Five Million Dollars\n\n($5,000,000.00) per year. The formula to be used for the percentage\n\nadjustment shall be Five Million Dollars ($5,000,000.00) divided by\n\nthe credits claimed in the second preceding year.\n\nI. In the event the total tax credits authorized by this\n\nsection exceed Five Million Dollars ($5,000,000.00) in any calendar\n\nyear, the Tax Commission shall permit any excess over Five Million\n\nDollars ($5,000,000.00) but shall factor such excess into the\n\npercentage adjustment 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":"8d9855563991672222497646ccb6022f01fd664d788287430e65ad2cb11055a9","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2357.404","next":"us-ok/okla.-stat.-tit.-68-68-2357.406"},"notice":"GroundRules: Original legal text. Not legal advice."}