Oklahoma § 68-2357.321 - Definitions

§ 68-2357.321. Definitions

As used in Sections 1 through 4 of this act:

1. "Compensation" means payments in the form of contract labor

for which the payor is required to provide a Form 1099 to the person

paid wages subject to withholding tax paid to a part-time employee,

full-time employee, salary, or other remuneration. Compensation

shall not include employer-provided retirement, medical or health

care benefits, reimbursement for travel, meals, lodging, or any

other expense;

2. "Institution" means an institution within The Oklahoma State

System of Higher Education, any other public or private college, or

university that is accredited by a national accrediting body;

3. "Qualified employer" means a sole proprietor, general

partnership, limited partnership, limited liability company,

corporation, other legally recognized business entity, or public

entity whose principal business activity involves civil engineering

services as described by Industry No. 541330 of the North American

Industry Classification System (NAICS), latest revision;

4. "Qualified employee" means any person, regardless of the

date of hire, employed in this state, contracting in this state with

a qualified employer on or after January 1, 2026, who was not

employed as a civil engineer in this state immediately preceding

employment or contracting with a qualified employer, and who has

been either:

a.

awarded an undergraduate or graduate degree from a

qualified program by an institution, or

b.

licensed as a Professional Engineer by the State Board

of Licensure for Professional Engineers and Land

Surveyors pursuant to Section 475.15 of Title 59 of

the Oklahoma Statutes.

Provided, the definition shall not be interpreted to exclude any

person who was employed in the civil engineering sector, but not as

a full-time engineer, prior to being awarded an undergraduate or

graduate degree from a qualified program by an institution or any

person who has been awarded an undergraduate or graduate degree from

Oklahoma Statutes - Title 68. Revenue and Taxation

a qualified program by an institution and is employed by a

professional staffing company and assigned to work in the civil

engineering sector in this state.

Beginning on or after January 1, 2026, the definition shall also

not be interpreted to exclude any person who:

(1) previously qualified and established the credit

against the tax imposed pursuant to Section 2355

of Title 68 of the Oklahoma Statutes and becomes

employed by a different qualified employer, or

(2) establishes the credit against the tax imposed

pursuant to Section 2355 of Title 68 of the

Oklahoma Statutes for the first time and becomes

employed by a different qualified employer in

subsequent years, provided a person in either

case has not claimed the credit for the lifetime

maximum of five (5) years;

5. "Qualified program" means a program at an institution that

includes a graduate or undergraduate program that has been

accredited by the Engineering Accreditation Commission of the

Accreditation Board for Engineering and Technology (ABET) and that

awards an undergraduate or graduate degree. Both the undergraduate

and graduate programs of the same discipline of engineering at an

institution shall be part of the qualified program if either program

is ABET accredited; and

6. "Tuition" means the average annual amount paid by a

qualified employee for enrollment and instruction in a qualified

program. Tuition shall not include the cost of books, fees or room

and board.

Added by Laws 2025, c. 338, § 1, eff. Nov. 1, 2025.