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Oklahoma HB 1602 Extends Income Tax Credits for Vehicle Manufacturing Tuition and Compensation Through 2031

Original title: Revenue and taxation; income tax credits; qualified employees; qualified employers effective date.

Last action · February 4, 2025: Referred to Appropriations and Budget Finance Subcommittee

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

Oklahoma House Bill 1602 extends the expiration date of existing income tax credits for tuition reimbursement and related to vehicle and automotive parts manufacturing employees from January 1, 2026, to January 1, 2032. The measure applies to s and qualified employees meeting specific degree and graduation criteria, taking effect November 1, 2025.

Why it matters

Vehicle and automotive parts manufacturing companies and their qualified engineering graduates gain an additional six-year window to claim state income tax credits for tuition assistance and , subject to annual state funding caps.

Background
  • Oklahoma House Bill 1602 was introduced during the 1st Session of the 60th Legislature in 2025. context
  • The underlying statute (68 O.S. Section 2357.404) originally established tax credits to incentivize employment and education within Oklahoma's vehicle manufacturing sector. context

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

Vehicle and automotive parts manufacturing companies

Qualified employers become eligible to claim tax credits for employee tuition reimbursement and compensation through the extended date of January 1, 2032.

Directly affected

Qualified employees in vehicle manufacturing

Graduates from qualified engineering programs remain eligible for individual income tax credits of up to $5,000 per year for up to five years through the extended sunset date.

Directly affected

Tax Commission

Required to annually calculate and publish percentage adjustments to limit total annual credits to the statutory caps of $3,000,000 and $2,000,000.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What changes does House HB 1602 make to the existing tax credits?
The bill extends the sunset date for the vehicle and automotive parts manufacturing income tax credits from January 1, 2026, to January 1, 2032.
Who qualifies as an eligible employee under this program?
A qualified employee is a person employed or contracting with a on or after January 1, 2018, who holds an undergraduate or graduate degree from a qualified ABET-accredited program and was not previously employed in vehicle manufacturing in Oklahoma immediately prior to that employment.
Are there annual funding caps on these tax credits?
Yes. Employer credits are capped at $3,000,000 annually, and employee credits are capped at $2,000,000 annually, with the Tax Commission adjusting percentages if claims exceed these limits.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

This bill did not become law - Died at adjournment · in House committee.

Procedural history

4 actions
  1. Feb 4, 2025HouseCommittee
    Referred to Appropriations and Budget Finance Subcommittee
  2. Feb 4, 2025HouseCommittee
    Second Reading referred to Appropriations and Budget
  3. Feb 3, 2025House
    Authored by Representative Gise
  4. Feb 3, 2025HouseIntroduced
    First Reading

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift98% confidence

Six-Year Sunset Extension

The bill pushes the expiration horizon for vehicle manufacturing tax credits from the original 2026 threshold out to 2032.

Connected Entities

Engineering Accreditation Commission of the Accreditation Board for Engineering and Technology (ABET), Tax Commission, Gise and 1 more
OrganizationTax Commission“Responsible for calculating and publishing annual credit reduction percentages”Map →
PersonGise“Author of House Bill 1602”Map →
OrganizationOklahoma State System of Higher Education“Mentioned as part of the definition of an institution”Map →

Sources

Open source document

www.oklegislature.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 45)
  • Controversy15
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz25
    Current news / social attention level

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