SB 287: Income tax; modifying tax years for aerospace tax credit. Effective date. - Oklahoma

Floor (House) → Floor (Senate) · 3 edits

MINOR

The bill was revised from the House version to the Senate version, primarily updating the effective date from November 1, 2025 to February 10, 2025, and reorganizing the bill's structure and formatting. The substantive policy content regarding tax credits for aerospace sector employers and employees remains largely unchanged, though some section numbering and organization were adjusted.

Scope change

The bill's scope and applicability remain the same, targeting aerospace sector employers and qualified employees for income tax credits. The primary change is the effective date and formatting adjustments.

TIMELINE

The effective date was changed from November 1, 2025 to February 10, 2025, and the session information was updated to reflect the Senate floor version dated February 10, 2025.

TECHNICAL

The bill was reorganized from a House version to a Senate version, with changes in section numbering, formatting, and the removal of House-specific committee substitute language.

The committee report section was updated to reflect the Senate floor version with the date February 10, 2025, and the 'DO PASS' recommendation.

House Committee Substitute for Senate Bill → Floor (House) · 5 edits

MODERATE

The bill was converted from a Senate version to a House Floor version, incorporating committee amendments that clarify definitions and expand eligibility criteria for aerospace and higher education tax credits. The changes add specific details about what constitutes the aerospace sector, define qualified employees more precisely, and update the timeline for claiming credits.

Scope change

The bill's scope was expanded to explicitly include defense hardware/software, aerospace maintenance, and research/development activities in the aerospace sector definition. Eligibility for the qualified employee definition was broadened to include those working through professional staffing companies assigned to aerospace sectors.

DEFINITION

The definition of 'aerospace sector' was expanded to include defense hardware/software, aerospace maintenance, repair, overhaul, parts supply, services, and research/development of aerospace technology.

The 'qualified program' definition was clarified to state that both undergraduate and graduate programs of the same engineering discipline at an institution shall be part of the qualified program if either program is ABET accredited.

ELIGIBILITY

The 'qualified employee' definition was modified to include individuals employed by professional staffing companies who are assigned to work in the aerospace sector.

TIMELINE

A new provision was added stating that beginning January 1, 2024, the qualified employee definition will not exclude persons who previously established credits under Section 2355 and become employed by different qualified employers, provided they haven't claimed the credit for the maximum five-year lifetime limit.

TECHNICAL

Formatting changes were made to convert the document from Senate Committee Substitute to House Floor version, including renumbering of sections and updating the header information.

Proposed Committee Substitute (sub committee) 1 → House Committee Substitute for Senate Bill · 6 edits

MODERATE

The bill was amended to replace the entire proposed text with a House Committee Substitute version, updating formatting and page numbers while retaining the core provisions for an aerospace sector tax credit program. The substantive policy content regarding tax credits for qualified employers and employees remains largely unchanged, though the amendment process itself was formalized through committee review.

Scope change

The bill's scope remains focused on providing income tax credits for aerospace sector employers and employees, with modifications to definitions and credit eligibility criteria.

TECHNICAL

Document header changed from 'Proposed Subcommittee Substitute' to 'Committee Substitute' with updated page numbers and formatting

DEFINITION

Definition of 'institutions of higher education' was modified to specify programs accredited by ABET for engineering disciplines

REQUIREMENT

Added requirement that qualified employees must receive degrees within one year of employment to claim tax credits

Added effective date provision limiting credit claims to events occurring before July 1, 2010

FISCAL

Established tax credit amount at 50% of tuition reimbursed for first four years of employment, capped at average annual public institution tuition costs

TIMELINE

Added provision that no credits may be claimed after the fourth year of employment

Enrolled (final version) → Proposed Committee Substitute (sub committee) 1 · 5 edits

MODERATE

The bill was substantially rewritten to replace the entire original text with a new version that expands the aerospace tax credit program. The new version adds more detailed definitions for key terms, broadens eligibility criteria for employees, and modifies the credit amounts and calculation methods compared to the original enrolled version.

Scope change

The bill's scope was expanded to include more specific definitions of the aerospace sector and qualified employees, while maintaining the core purpose of providing tax credits to support aerospace industry workers and their education.

DEFINITION

Added comprehensive definitions for 'aerospace sector', 'compensation', 'institution', 'qualified employer', 'qualified employee', 'qualified program', and 'tuition' to clarify program requirements.

ELIGIBILITY

Expanded eligibility for qualified employees to include those who were previously employed in aerospace but not as full-time engineers, and those working through professional staffing companies.

FISCAL

Changed credit calculation structure from tuition reimbursement credits to compensation-based credits with specific percentages for in-state versus out-of-state graduates.

TIMELINE

Updated effective date and tax year provisions to align with new program parameters and sunset provisions.

REQUIREMENT

Removed the original tuition reimbursement credit structure and replaced it with a compensation-based credit system.

Engrossed → Enrolled (final version) · 3 edits · May 22, 2025

MINOR

This bill was converted from an Engrossed version to an Enrolled final version, meaning it has passed both legislative chambers and is ready for the Governor's signature. The substantive policy content remains largely the same, though formatting and page numbering were adjusted during the final legislative process.

Scope change

No substantive change to the bill's scope or applicability; the content is identical except for formatting and final approval signatures.

TIMELINE

The bill's effective date was changed from February 24, 2025 (Senate passage) to November 1, 2025, reflecting the final enrolled version with updated passage dates for both chambers on May 22, 2025.

TECHNICAL

Page numbering and formatting were updated to reflect the final enrolled version, including adding the Governor's signature block and Secretary of State certification sections.

Header information was updated from 'ENGROSSED SENATE' to 'ENROLLED SENATE' to indicate the bill has completed the legislative process.

Amended And Engrossed → Engrossed · 5 edits · May 22, 2025

MODERATE

This bill amends Oklahoma's aerospace sector tax credit program by updating the statute's title, clarifying eligibility requirements, and adjusting credit amounts and timeframes. The changes standardize the credit structure and ensure consistency with recent legislative amendments.

Scope change

The bill's scope remains focused on income tax credits for aerospace employers and employees, but the specific provisions for calculating credits and defining qualified employees have been refined.

TITLE

Changed the bill title from 'ENGROSSED HOUSE AMENDMENT' to 'ENGROSSED SENATE BILL' to reflect the current legislative status.

ELIGIBILITY

Updated the definition of 'qualified employee' to clarify requirements for aerospace sector employment and education credentials.

FISCAL

Adjusted credit amounts for qualified employees, including tuition reimbursement credits and compensation-based credits with specific percentages and dollar limits.

TIMELINE

Modified tax year eligibility periods and effective dates for claiming credits under the aerospace sector tax program.

DEFINITION

Revised definitions for 'qualified employer' and 'qualified program' to align with current aerospace industry standards.

Introduced → Amended And Engrossed · 4 edits · May 22, 2025

MODERATE

The bill was amended to add a new definition section, extend the tax credit period from 2031 to 2032, and clarify eligibility requirements for aerospace sector employees. The House amendment also added specific definitions for key terms like 'aerospace sector', 'qualified employer', and 'qualified employee' to ensure consistent interpretation across the statute.

Scope change

The bill now includes a new Section 1 that defines key terms used throughout the aerospace tax credit provisions, making the eligibility criteria more explicit and standardized.

DEFINITION

Added new Section 1 containing detailed definitions for 'aerospace sector', 'qualified employer', 'qualified employee', 'qualified program', and 'tuition' to clarify eligibility requirements.

TIMELINE

Extended the tax credit period from ending before January 1, 2026 (covering tax years 2009-2031) to ending before January 1, 2026 (covering tax years 2009-2032), adding one additional year of eligibility.

ELIGIBILITY

Added clarification that the qualified employee definition applies to individuals working in aerospace research and education institutes at institutions of higher education, with specific provisions for those who previously qualified and changed employers.

TECHNICAL

Reorganized the bill structure by adding an amendment number and renumbering sections, with the House amendment adding a new Section 1 before the existing Section 1 (now Section 2).

Income tax; modifying tax years for aerospace tax credit. Effective date.

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