New $5,000 Tax Credit a Boost for Engineers and the Companies Trying to Recruit Them

January 8, 2009 -- A new law establishing tax credits for engineers going to work for Oklahoma companies as well as the companies that hire them is helping businesses take off.

The Aerospace Industry Engineer Work Force Bill, signed in 2008 by Gov. Brad Henry, is a useful recruitment tool for companies luring engineers from other states as well as home-grown engineers that are recent college graduates.

"Aviation is a historic, vital industry in Oklahoma, and it's important to do everything we can to make sure it continues to thrive and expand," says Gov. Henry. "As in any high-tech field, aviation and aerospace ventures demand the best, highest-skilled talent available in the world. We want those people in Oklahoma."

New Law Provides Tax Credits

The legislation extends tax credits of $5,000 a year for up to five years to engineers who are hired after Jan. 1, 2009. The companies hiring the engineers will receive a tax credit equal to 10% of the compensation paid to an engineer during the first five years of his or her employment if the engineer graduated from an Oklahoma college. If the engineer graduated from a college outside Oklahoma, the employer will get a tax credit equal to 5% of the compensation paid to the employee during the first five years.

In addition, the new law grants Oklahoma aerospace companies a tax credit in the amount of 50% of the tuition reimbursed to a new engineer graduate for the first four years of his or her employment. The tax credit is limited to 50% of the average annual tuition paid by an engineer at a public university in Oklahoma.