Current through Vol. 42, No. 1, September 16, 2024
(a)
General provisions. For tax
years beginning on or after January 1, 2020, and ending before January 1, 2030,
a qualified software or cybersecurity employee shall be allowed a credit
against the tax imposed pursuant to Section
2355
of Title 68, subject to the provisions of (d) of this Section.
(b)
Definitions. The following
words and terms, when used in this Section, shall have the following meaning,
unless the context clearly indicates otherwise:
(1)
"Qualified software or
cybersecurity employee".
(A) A
qualified employee is any person newly employed in Oklahoma by a qualified
employer in a qualifying industry on or after November 1, 2019.
(B) The qualified employee must have been
awarded a degree in an accredited program from a degree-producing institution
as defined in 68 O.S. § 2357.405(A)(1), or has been awarded a certificate
or credential in an accredited program from a technology center.
(C) The qualified employee must be employed
in a qualifying industry by a qualified employer who pays its qualified
employees a qualifying compensation for the county in which the qualified
employer has its primary Oklahoma address.
(2)
"Accredited program",
"Degree-producing institution", "Qualified employer", "Qualified industry",
"Qualifying compensation", and "Technology center" shall
have the same meaning as the terms are defined in Section
2357.405
of Title 68 of the Oklahoma Statutes.
(c)
Credit.
(1) The credit is Two Thousand Two Hundred
Dollars ($2,200.00) for a qualified software or cybersecurity employee who has
been awarded a bachelor's or higher degree from an accredited program at a
degree-producing institution, and One Thousand Eight Hundred Dollars
($1,800.00) for a qualified software or cybersecurity employee who has been
awarded an associate's degree from an accredited program at a degree-producing
institution or a credential or certificate from an accredited program at a
technology center.
(2) The credit
may be claimed for a period of time not to exceed seven (7) years.
(3) The credit authorized by this Section
shall not be used to reduce the tax liability of the taxpayer to less than zero
(0).
(d)
Limitation
of credit. Effective for tax years beginning on or after January 1,
2022, no more than Five Million Dollars ($5,000,000.00) of credits may be
allowed as an offset in a taxable year. The Tax Commission shall annually
determine by the first day of the affected year a percentage by which the
credits authorized shall be reduced so the total amount of credits used to
offset tax does not exceed Five Million Dollars ($5,000,000.00) per
year.
(e)
Letter
ruling. An employer may request a letter ruling to determine whether an
employer meets the definition of a "qualified employer". The requesting party
must provide sufficient information to demonstrate that the employer meets the
following requirements for a qualified employer:
(1) Employer is a sole proprietor, general
partnership, limited partnership, limited liability company, corporation or
other legally recognized business entity, or governmental entity;
(2) Employer has at least fifteen full-time
employees;
(3) Employer's
activities are in a "qualified industry", defined or classified in the most
recent North American Industry Classification System (NAICS) manual under U.S.
Sector Nos. 21, 22, 31-33, 48, 51, 52, 54, 55, 62 and 92;
(4) Employer pays its employees a qualifying
compensation for the county in which the qualified employer has its primary
Oklahoma address.
