Taxes and Incentives

Aerospace & Automotive Engineer Tax Credit Program

Aerospace Industry Engineer Workforce Tax Credit

(68 O.S. § 2357.301)

The Aerospace Industry Engineer Workforce Tax Credit is for engineers employed by Oklahoma companies as well as for companies hiring engineers in Oklahoma (credits sunset January 1, 2026). 

Individual Tax Credits

Personal income tax credit of $5,000 annually for 5 years for qualified engineers employed by Oklahoma aerospace companies and hired after July 1, 2011. Unused credits may be carried forward for 5 years. 

Restrictions: The tax credit cannot be used to reduce tax liability below $0. 

Company Tax Credits

Engineers hired by Oklahoma aerospace companies will receive a tax credit equal to 10% of the compensation paid to an engineer for 5 years if the engineer graduated from an Oklahoma accredited institution or 5% of compensation paid to an engineer graduating from an accredited institution outside Oklahoma. 

Restrictions: Corporate income tax credit for compensation paid is capped at $12,500 annually per qualifying employee for 5 years. The qualified employee must have been awarded an undergraduate or graduate degree within 1 year of beginning employment with the qualified employer. The credit cannot be used to reduce the tax liability below $0. 

Tuition Tax Credits

Oklahoma aerospace companies are allowed a tax credit in the amount of 50% of the tuition reimbursed to a new engineer graduate for 4 years. Tax credit is calculated at 50% of the corporate reimbursement to employees for tuition in a qualifying engineering degree program at an accredited institution in Oklahoma. 

Automotive Industry Engineer Workforce Tax Credit

(68 O.S. § 2357.404)

The Automotive Industry Engineer Workforce Tax Credit is for engineers employed by Oklahoma companies as well as for companies hiring engineers in Oklahoma. This tax credit is intended for vehicle manufacturing companies that manufacture or assemble automobiles or pick-up trucks (motor vehicles) in Oklahoma. 

Requirements: Engineers must be graduated from an accredited institution and newly employed in the vehicle manufacturing sector. 

Individual Tax Credits

Personal income tax credit of $5,000 annually for 5 years for qualified engineers employed by an Oklahoma vehicle manufacturing company. Unused credits may be carried forward for 5 years. Personal income tax credits are capped at $2 million annually. 

Restrictions: The tax credit cannot be used to reduce tax liability below $0. 

Company Tax Credits

Allows for compensation paid to qualifying employees. Tax credit is calculated at 10% of compensation paid to an engineer graduated from an accredited Oklahoma institution or 5% of compensation paid to an engineer graduating from an accredited institution outside Oklahoma. 

Restrictions: Corporate income tax credit for compensation paid is capped at $12,500 annually per qualifying employee for 5 years. The qualified employee must have been awarded an undergraduate or graduate degree within 1 year of beginning employment with the qualified employer. The credit cannot be used to reduce the tax liability below $0. Corporate income tax credits are capped at $3 million 

Tuition Tax Credits

Corporate income tax credit for tuition reimbursement to a qualifying employee. Tax credit is calculated as 50% of the corporate reimbursement to employees for tuition in a qualifying engineering degree program at an accredited institution in Oklahoma. Available for 4 years from date of hire. 

Add to Report View Custom Report