Oklahoma Credits for Employers in the Aerospace Sector
Extracted from PDF file 2021-oklahoma-form-565.pdf, last modified December 2009
Credits for Employers in the Aerospace SectorState Of Oklahoma Name as Shown on Return (Qualified Employer): FORM Credits for Employers in the Aerospace Sector 565 2 0 2 1 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) 2021 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)................................................................... 2021 Form 565 - Page 3 Credit for Employers in the Aerospace Sector 68 Oklahoma Statutes (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.
2021 Form 565 Credits for Employers in the Aerospace Sector
More about the Oklahoma Form 565 Corporate Income Tax Tax Credit TY 2021
This form needs to be filled out with Form 511CR.
We last updated the Credits for Employers in the Aerospace Sector in April 2022, so this is the latest version of Form 565, fully updated for tax year 2021. You can download or print current or past-year PDFs of Form 565 directly from TaxFormFinder. You can print other Oklahoma tax forms here.
Other Oklahoma Corporate Income Tax Forms:
|Form Code||Form Name|
|Form 564||Credit for Employees in the Aerospace Sector (you will also need Form 511CR)|
|Form 512E||Return of Organization Exempt from Income Tax|
|Form 512||Corporate Income Tax Return (form and schedules)|
|Form 501||Annual Information Return (reconciliation for Forms 500, 500A and 500B)|
|Form OW-8-ESC||Estimated Tax Declaration for Corporations|
Oklahoma usually releases forms for the current tax year between January and April. We last updated Oklahoma Form 565 from the Tax Commission in April 2022.
Form 565 is an Oklahoma Corporate Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Oklahoma Form 565
We have a total of ten past-year versions of Form 565 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
2021 Form 565 Credits for Employers in the Aerospace Sector
2020 Form 565
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