Okla. Admin. Code § 710:50-15-117

Current through Vol. 42, No. 1, September 16, 2024

Section 710:50-15-117 - Credit for qualified software or cybersecurity employee

(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.

Okla. Admin. Code § 710:50-15-117

Adopted by Oklahoma Register, Volume 37, Issue 24, September 1, 2020, eff. 9/11/2020

Amended by Oklahoma Register, Volume 38, Issue 23, August 16, 2021, eff. 9/1/2021