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ENGR. H. B. NO. 4273 Page 1
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ENGROSSED HOUSE
BILL NO. 4273 By: Miller of the House
and
Rader of the Senate
[ income tax – credit – employees – aerospace –
higher education – effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.301, as
amended by Section 1, Chapter 313, O.S.L. 2024 (68 O.S. Supp. 2025,
Section 2357.301), is amended to read as follows:
Section 2357.301. As used in Sections 2357.301 through 2357.304
of this title:
1. "Aerospace sector" means a private or public organization
located in this state and engaged in the manufacture of aerospace or
defense hardware or software, aerospace maintenance, aerospace
repair and overhaul, supply of parts to the aerospace industry,
provision of services and support relating to the aerospace
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industry, research and development of aerospace technology and
systems and the education and training of aerospace 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 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 aerospace
sector, or a four-year institution of higher education with an R1
research designation that has a research, innovation, and education
institute dedicated to aerospace research and technology;
5. "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, 2009, who was not
employed in the aerospace sector in this state immediately preceding
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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.
Provided, the definition shall not be interpreted to exclude any
person who was employed in the aerospace 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 aerospace
sector in this state.
Provided, the definition of qualified employee for an individual
employed or under contract with an institution of higher education
located within this state that has an R1 research designation and
that has a research and education institute dedicated to aerospace
research and technology only applies to those individuals actively
working within a research, innovation, and education institute
dedicated to aerospace research and technology.
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Beginning on or after January 1, 2024, 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 this title and becomes employed by a
different qualified employer, or (2) who establishes the credit
against the tax imposed pursuant to Section 2355 of this title 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;
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; and
7. "Tuition" means the average annual amount paid by a
qualified employee for enrollment and instruction in a qualified
program. Tuition shall not include the cost of books, fees or room
and board.
SECTION 2. This act shall become effective January 1, 2027.
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Passed the House of Representatives the 9th day of March, 2026.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2026.
Presiding Officer of the Senate