Article: 50440
Overview
Oklahoma offers a generous tax incentive to qualified employees working in the aerospace industry, particularly those employed by or contracting with aerospace companies operating within the state. If you are a qualified engineer or aerospace employee, you may be eligible to claim this nonrefundable income tax credit.
To claim the credit, you will need to fill out the Credit for Employees in the Aerospace Sector screen as part of your Oklahoma individual income tax return.
Who is Eligible?
You may qualify for the credit if:
- You were employed in a qualified aerospace position in Oklahoma,
- Your employer has verified your eligibility and issued supporting documentation,
- You hold a qualifying degree (such as aerospace engineering, mechanical engineering, electrical engineering, or computer science), and
- You meet all conditions listed in the Oklahoma Tax Commission’s guidelines for Form 564.
Note: The credit may be claimed for up to five consecutive years and must be based on compensation received for qualifying employment.
Credit Limits
- This is nonrefundable credit, meaning it can reduce your Oklahoma tax liability to zero, but will not generate a refund.
- The annual credit may vary based on your position and certification, but is capped at $5,000 per year.
How to Report
- Navigate to the State Taxes section on the left-hand side of the screen.
- Click the link: “I’d like to see the forms I’ve filled out or search for a form.”
- In the dropdown menu, select Oklahoma.
- Click on the Credits tab.
- Open screen Credit for Employees in the Aerospace Sector.
- Enter all applicable information.
- Click ‘Save‘ once complete.
Additional Resources
For further guidance, see: