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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 2366 By: Hill
AS INTRODUCED
An Act relating to revenue and taxation; creating
income tax credit for certain persons engaged in
biomanufacturing sector; defining terms; providing
credit to be claimed in nonconsecutive tax years;
prohibiting credit to reduce liability to less than
zero; providing carryover; providing for
codification; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.305 of Title 68, unless
there is created a duplication in numbering, reads as follows:
A. As used in this act:
1. "Biomanufacturing sector" means a private or public
organization located in this state and engaged in the manufacture of
biopharmaceuticals, medical devices, diagnostics, industrial
biotechnology, tissue engineering, synthetic biology, supply of
parts to the biomanufacturing industry, provision of services and
support relating to the biomanufacturing industry, research and
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development of biomanufacturing technology and systems and the
education and training of biomanufacturing personnel;
2. "Compensation" means payments in the form of contract labor
for which the payor is required to provide a Form 1099 to the person
paid, wages subject to withholding tax paid to a part-time employee
or full-time employee or salary or other remuneration. Compensation
shall not include employer-provided retirement, medical or health
care benefits, reimbursement for travel, meals, lodging or any other
expense;
3. "Institution" means an institution within The Oklahoma State
System of Higher Education or any other public or private college or
university that is accredited by a national accrediting body;
4. "Qualified employee" means any person, regardless of the
date of hire, employed in this state by or contracting in this state
with a qualified employer on or after January 1, 2026, who was not
employed in the biomanufacturing sector in this state immediately
preceding employment or contracting with a qualified employer, and
who has been either:
a. awarded an undergraduate or graduate degree from a
qualified program by an institution, or
b. licensed as a Professional Engineer by the State Board
of Licensure for Professional Engineers and Land
Surveyors pursuant to Section 475.15 of Title 59 of
the Oklahoma Statutes.
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Provided, the definition shall not be interpreted to exclude any
person who was employed in the biomanufacturing sector, but not as a
full-time engineer, prior to being awarded an undergraduate or
graduate degree from a qualified program by an institution or any
person who has been awarded an undergraduate or graduate degree from
a qualified program by an institution and is employed by a
professional staffing company and assigned to work in the
biomanufacturing sector in this state.
Beginning on or after January 1, 2026, the definition shall also
not be interpreted to exclude any person (1) who previously
qualified and established the credit against the tax imposed
pursuant to Section 2355 of Title 68 of the Oklahoma Statutes and
becomes employed by a different qualified employer, or (2) who
establishes the credit against the tax imposed pursuant to Section
2355 of Title 68 of the Oklahoma Statutes for the first time and
becomes employed by a different qualified employer in subsequent
years, provided a person in either case has not claimed the credit
for the lifetime maximum of five (5) years;
5. "Qualified employer" means a sole proprietor, general
partnership, limited partnership, limited liability company,
corporation, other legally recognized business entity or public
entity whose principal business activity involves the
biomanufacturing sector; and
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6. "Qualified program" means a program at an institution that
includes a graduate or undergraduate program that has been
accredited by the Engineering Accreditation Commission of the
Accreditation Board for Engineering and Technology (ABET) and that
awards an undergraduate or graduate degree. Both the undergraduate
and graduate programs of the same discipline of engineering at an
institution shall be part of the qualified program if either program
is ABET accredited.
B. 1. Except as provided in subsection D of this section, for
taxable years beginning after December 31, 2025, a qualified
employee shall be allowed a credit against the tax imposed pursuant
to Section 2355 of Title 68 of the Oklahoma Statutes of up to Five
Thousand Dollars ($5,000.00) per tax year for a period of time not
to exceed five (5) years during the lifetime of the qualified
employee. This credit may be claimed in nonconsecutive tax years.
2. The credit authorized by this section shall not be used to
reduce the tax liability of the taxpayer to less than zero (0).
3. Any credit claimed, but not used, may be carried over, in
order, to each of the five (5) subsequent taxable years.
SECTION 2. This act shall become effective November 1, 2025.
60-1-11473 AO 01/07/25