Workforce Tax Credits

Businesses hiring employees within certain economic sectors may qualify for various Workforce Tax Credits. These programs provide qualifying businesses state income tax credits, based on payroll creation and tuition reimbursement. To learn more and to determine program eligibility, explore the Incentive website for the Oklahoma Department of Commerce.

Aerospace or Automotive Engineer Tax Credit

Incentive Benefits
  • Annual tax credit provided to businesses for up to 5 years.
  • Credit value is based on the sum of two components:
    • 5% of the compensation paid to the qualifying employee.
    • 50% of the tuition reimbursement paid to the qualifying employee.
  • Compensation credit doubles to 10% if the employee graduated from an Oklahoma college or university.
  • In addition, the employee may receive up to $5,000 in personal income tax credits.

Incentive Restrictions
  • Compensation tax credit capped at $12,500 per employee.
  • Qualifying employee must have received a degree within 1 year of beginning employment.
  • Credit cannot reduce tax liability below $0.

Software / Cybersecurity Employee Tax Credit
Incentive Benefits
  • Annual tax credit provided to employees for up to 7 years.
  • Credit value is determined by the type of education award received.
    • $2,200 tax credit for qualifying employee who received a degree from an ABET accredited institution.
    • $1,800 tax credit for qualifying employee who received a certificate from an Oklahoma technology center.

Incentive Restrictions
  • Tax credit cannot be claimed simultaneously as an aerospace or automotive tax credit.

American Indian Lands Tax Credit
Incentive Benefits
  • Federal tax credit provided to businesses that are hiring Native Americans or their spouses.
  • Credit value up to $4,000 for each qualifying employee within the designated area.