Okla. Stat. tit. 68, § 68-2357.405

employees.

A. As used in this section:

1. "Degree-producing institution" means any public or private

college or university that has accredited programs, as defined in

this section, from the Accreditation Board for Engineering and

Technology (ABET);

2. "Technology center" means an institution in the Oklahoma

State Board of Career and Technology Education that offers

accredited programs as defined in this section;

3. "Accredited program" means:

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a. an undergraduate or graduate cybersecurity,

information technology, computer science or computer

engineering degree program accredited by the Computing

Accreditation Commission (CAC) or the Engineering

Accreditation Commission (EAC) of the Accreditation

Board for Engineering and Technology (ABET) offered at

a degree-producing institution, or

b. a software, cybersecurity, programming, software

programming, coding, application development, computer

science or information technology program requiring

more than eight hundred (800) hours of class time;

4. "Qualifying compensation" means average annualized wages

paid by a qualifying employer which meet or exceed one hundred ten

percent (110%) of the average county wage, as that percentage is

determined by the Oklahoma Department of Commerce based on the most

recent U.S. Department of Commerce data for the county in which the

employer is located; or, for federal employees, such employees shall

meet a GS-5 or equivalent initial hiring threshold in lieu of the

wage requirement. For the purposes of this definition, annual wages

shall not include employer-provided health care or retirement

benefits;

5. "Qualified employer" means a sole proprietor, general

partnership, limited partnership, limited liability company,

corporation or other legally recognized business entity, or

governmental entity that has at least fifteen full-time employees;

6. "Qualified industry" means a qualified employer whose

activities are 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; and

7. "Qualified software or cybersecurity employee" means any

person employed in Oklahoma by a qualifying employer in a qualifying

industry on or after November 1, 2019, who:

a. has been awarded a degree in an accredited program

from a degree-producing institution, or

b. has been awarded a certificate or credential in an

accredited program from a technology center.

B. An employer may apply to the Oklahoma Tax Commission for

qualification as a "qualified employer" in the manner prescribed by

the Tax Commission.

C. In order for the qualified software or cybersecurity

employees to qualify to receive the tax credit, the qualified

employer shall be in a qualifying industry and pay employees a

qualifying compensation for the county in which the qualified

employer has its primary Oklahoma address.

D. 1. For taxable 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

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imposed pursuant to Section 2355 of this title, subject to the

amount prescribed in paragraph 2 of this subsection; provided, the

credit shall not be allowed for any qualifying employee working in

the state as of November 1, 2019.

2. The credit may be claimed for a period of time not to exceed

seven (7) years and, except as provided in subsection H of this

section, shall be as follows:

a. 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

b. One Thousand Eight Hundred Dollars ($1,800.00) for a

qualified software or cybersecurity employee who has
t as provided in subsection H of this

section, shall be as follows:

a. 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

b. 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.

E. The credit authorized by this section shall not be used to

reduce the tax liability of the taxpayer to less than zero (0).

F. No taxpayer shall claim both the credit provided pursuant to

this section and the credit provided pursuant to Section 2357.304 of

this title for the same tax year.

G. The maximum time period that the credit may be claimed by

any taxpayer is seven (7) years.

H. For the tax year beginning January 1, 2022, and each tax

year thereafter, the total amount of credits authorized by this

section used to offset tax shall be adjusted annually to limit the

annual amount of credits to Five Million Dollars ($5,000,000.00).

The Tax Commission shall annually calculate and publish by the first

day of the affected year a percentage by which the credits

authorized by this section 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. The formula to be used for the percentage

adjustment shall be Five Million Dollars ($5,000,000.00) divided by

the credits claimed in the second preceding year.

I. In the event the total tax credits authorized by this

section exceed Five Million Dollars ($5,000,000.00) in any calendar

year, the Tax Commission shall permit any excess over Five Million

Dollars ($5,000,000.00) but shall factor such excess into the

percentage adjustment formula for subsequent years.