Oklahoma Credits for Employers in the Aerospace Sector

Credits for Employers in the Aerospace Sector
2023 Form 565 Credits for Employers in the Aerospace Sector
State Of Oklahoma

Name as Shown on Return (Qualified Employer):

FORM

Credits for Employers in the
Aerospace Sector

565

2
0
2
3

Federal Employer Identification Number:

Type of Business: (Check one)	

Sole Proprietorship	

Partnership	

	

Corporation	

Fiduciary

S Corporation	

General Information
A qualified employer is allowed credits for tuition reimbursed and for compensation paid to a qualified employee. For
the complete definition of “Qualified Employee” see page 3.
• Use Part 1 to compute the credit for tuition reimbursed to a qualified employee.
• Use Part 2 to compute the credit for compensation paid to a qualified employee.
• Use Part 3 to total the credits and determine the amount to carry to Form 511-CR.

Part 1 – Credit for Tuition Reimbursed to a Qualified Employee
The credit for tuition reimbursed to a qualified employee is allowed if the employee has been awarded their engineering degree within one year of employment in Oklahoma. The credit is 50% of the tuition reimbursed during the first
four years of employment. In no event shall the credit exceed 50% of the average annual amount paid for enrollment
and instruction in a qualified program at a public institution in Oklahoma.
Part 1 Credit Computation:
(A)	Name of Qualified
	 Employee

(B)	Social Security
	 Number

(C)	Date
	 Employed
	 in Oklahoma

(D)	Date
	 Graduated

(E)	Tuition
	 Reimbursed

(F)	Credit
	Amount

1.
2.
3.
4.
5.	 If more lines are needed, enclose a separate schedule showing the same information as Columns A - F.
	
Enter the total credits from the separate schedule here....................................................................................
6.	 Total Credit for Tuition Reimbursement - Add Column F, lines 1-5 (Enter here and on Part 3, line 1)..........

Part 1 Instructions:
Columns A & B: Enter the name and Social Security Number of the qualified employee.
Column C: Enter the date employment began in Oklahoma.
Column D: Enter the date graduated. The date must be within one year of the date listed in Column C.
Column E: Enter the amount of tuition reimbursed during the tax year. Do not enter more than the average annual
amount paid for enrollment and instruction in a qualified program at a public institution in Oklahoma; the credit may not
exceed 50% of such amount. Tuition does not include the cost of books, fees or room and board.
Column F: The credit is 50% of the amount in Column E. No credit may be claimed after the fourth year of employment.
(continued on page 2)

2023 Form 565 - Page 2

Credits for Employers in the Aerospace Sector
Part 2 – Credit for Compensation Paid to a Qualified Employee
The credit for compensation paid to a qualified employee is a percentage of the compensation paid for the first
five years of employment. If the employee graduated from an Oklahoma institution, the credit is 10% of such
compensation, and if the employee graduated from an institution located outside of Oklahoma, the credit is 5%. The
credit may not exceed $12,500 annually for each qualified employee.
Part 2 Credit Computation:
(A)	Name of Qualified
	 Employee

(B)	Social Security (C)	Date
(D)	Name of 		
	 Number
	 Employed
	 Institution
	 in Oklahoma

(E)	Compensation (F)	Credit
	 Paid
	Amount

1.
2.
3.
4.
5.	 If more lines are needed, enclose a separate schedule showing the same information as Columns A - F.
	
Enter the credits from such separate schedule here............................................................................................
6.	 Total Credit for Compensation Paid - Total Column F, lines 1-5 (Enter here and on Part 3, line 2).................

Part 2 Instructions:
Columns A & B: Enter the name and Social Security Number of the qualified employee.
Column C: Enter the date employment began in Oklahoma.
Column D: Enter the institution from which the qualified employee earned their engineering degree.
Column E: Enter the amount of Oklahoma compensation paid for employment, or Oklahoma wages earned as provided
in Box 16 of the W-2, during the tax year. Employment must be in the form of contract labor for which Form 1099 was
issued and/or wages for which Form W-2 (Box 16) was issued.
Column F: If the employee graduated from an Oklahoma institution, the credit is 10% of the amount in Column E. If the
employee graduated from an institution located outside of Oklahoma, the credit is 5% of the amount in Column E. The
credit for each employee is limited to $12,500 annually. No credit may be claimed after the fifth year of employment.

Part 3 – Total Credits Available
1.	 Credit for Tuition Reimbursed to a Qualified Employee (Enter the amount from Part 1, line 6)....
2.	 Credit for Compensation Paid to a Qualified Employee (Enter the amount from Part 2, line 6) ..
	
3.	 Total - Credits for Employers in the Aerospace Sector 	
(Add lines 1 and 2; enter here and on Form 511-CR)...................................................................

2023 Form 565 - Page 3

Credit for Employers in the Aerospace Sector

68 OS Sec. 2357.301, 2357.302 and 2357.303 and Rule 710:50-15-109

Definitions
“Aerospace Sector” means a private or public organization engaged in the manufacture of aerospace or
defense hardware or software, aerospace maintenance, aerospace repair and overhaul, supply of parts to
the aerospace industry, provision of services and support relating to the aerospace industry, research and
development of aerospace technology and systems, and the education and training of aerospace personnel.
“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 or full-time
employee, or 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.
“Institution” means an institution within The Oklahoma State System of Higher Education or any other public
or private college or university that is accredited by a national accrediting body.
“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 the aerospace sector.
“Qualified Employee” means any person, regardless of the date of hire, employed in Oklahoma by or
contracting in Oklahoma with a qualified employer on or after January 1, 2009. This individual must have
been awarded an undergraduate or graduate degree from a qualified program by an institution and was not
employed in the aerospace sector in Oklahoma immediately preceding employment or contracting with a
qualified employer. Provided, the definition will not be interpreted to exclude any person who was employed
in the aerospace 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 a qualified program by an institution and is employed by a professional staffing company
and assigned to work in the aerospace sector in Oklahoma.
Note: Effective November 1, 2021, a qualified employee includes an individual licensed as a Professional
Engineer by the State Board of Licensure for Professional Engineers and Land Surveyors pursuant to 59 OS
Sec. 475.15.
“Qualified Program” means a program that has been accredited by the Engineering Accreditation
Commission of the Accreditation Board for Engineering and Technology (ABET) and awards an undergraduate
or graduate degree.
Note: Effective November 1, 2021, a qualified program includes both undergraduate and graduate programs of
the same discipline of engineering at an institution if either program is ABET accredited.
“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.

Notice
Tax credits transferred or allocated must be reported on Oklahoma Tax Commission (OTC) Form 569. Failure
to file Form 569 will result in the affected credits being denied by the OTC pursuant to 68 OS Sec. 2357.1A-2.