Full Senate Passes Legislation Restoring Aerospace Incentives

• March 03, 2011
  
  

  The Oklahoma aerospace industry will continue to grow if legislation passed by the Senate today becomes law.

  Senate Bill 3, by Sen. Mike Mazzei, R-Tulsa, removes the Aerospace Engineer Workforce and Recruitment incentives from the list of credits on moratorium as of July 1 this year.

  The credits are proven job-creators, as they can only be claimed after companies have hired new aerospace engineers. The creation of new jobs is a requirement to claim the credit.

  “Credits like these help grow our state’s economy and play a critical role in recruitment and retention of businesses and jobs in Oklahoma,” said Fred Morgan, State Chamber President, in a press release put out following passage of the bill.

  The credits were created in legislation passed in 2008 and aim to help encourage Oklahoma companies to hire aerospace engineers and also incentivize engineers to move to Oklahoma from other states. The credits allow aerospace engineers to receive some tuition reimbursement if they come to work for a company in Oklahoma within one year of graduation. The law also grants a tax credit to an aerospace company for compensation paid to a qualified employee.

  In 2009, the only year the tax credits were fully in place, 348 new engineers were hired. The fiscal impact of the credits to the state was $3.5 million that year, but the direct economic impact to Oklahoma resulting from the hiring of the high-paid engineers was estimated to be over $270 million.

  During the 2010 legislative session, the aerospace tax incentives were included with nearly 30 others that were put on a two-year moratorium to help balance the state budget.

  The bill passed the Senate with a vote of 45-2 and now moves to the House for consideration. A similar bill, House Bill 1008 by Rep. Skye McNiel, passed the House Revenue and Taxation Committee last week and is under consideration by the full Appropriations and Budget Committee later this afternoon.

  For more information about The State Chamber and how you can get involved, click here. If you are a member and would like to be a part of The State Chamber’s Aerospace Committee, contact Lindsey Sparks. If you would like to opt out of these updates, click here.

  CHAD WARMINGTON
  Executive Vice President

  The State Chamber of Oklahoma
  330 NE 10^th Street | Oklahoma City, OK 73104
  Phone: (405) 235-3669 | Fax: (405) 235-3670

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