Rosino proposes tax credits to keep oil and gas engineers in Oklahoma
The proposal draws on Oklahoma’s aerospace tax credits to help oil and gas companies hire engineering graduates and pay tuition for employees pursuing engineering careers.
OKLAHOMA CITY (OBV) — Sen. Paul Rosino, R-Oklahoma City, plans to file legislation for the 2027 session that would offer tax credits to engineers who take jobs in Oklahoma’s oil and natural gas industry and to the companies that hire them.
“Like many sectors across the country, Oklahoma’s oil and gas industry faces an ongoing challenge recruiting and retaining highly skilled engineers. Our colleges and universities are making gains in producing more engineering graduates. Still, there aren’t enough to meet current workforce demands, and many of our top graduates are being recruited by employers in other states,” Rosino said.
The Oklahoma Technology Alliance’s OK Competes: Tech Edition report found a similar challenge across science, technology, engineering, and mathematics. Oklahoma retains 47.2% of its STEM graduates, while 17% leave for Texas.
Under Rosino’s proposal, a qualifying engineer could claim an individual income tax credit of up to $5,000 a year for five years. Employers could claim a credit equal to 10% of the compensation they pay an engineer who graduated from an Oklahoma college or university, or 5% for a graduate of an out-of-state institution. The employer credit would apply during an engineer’s first five years in the industry, with an annual cap of $12,500 per engineer.
“The legislation I intend to file to grow Oklahoma’s critical oil and gas workforce is modeled on existing law that has been extremely successful in scaling up the state’s aerospace workforce. By offering tax incentives to both employers and engineers, the state can encourage companies to expand their engineering workforce while also giving talented professionals another reason to build their careers here in Oklahoma. This would also create a path to incentivize oil and gas companies to support current employees who wish to pursue additional education to become engineers,” Rosino said.
A separate provision would allow employers to claim a credit for 50% of eligible tuition reimbursements during an employee’s first four years with the company. Oklahoma’s existing aerospace incentives likewise cover a share of what employers spend on engineering salaries and tuition reimbursements.
“The state’s aerospace employer and employee tax credits have worked to grow Oklahoma’s aerospace sector into our fastest-growing industry. These tax credits are a proven strategy for building our skilled workforce, and I’m confident they’ll work again to support the oil and gas industry that’s a cornerstone of our state’s economy,” Rosino said.
Rosino plans to file the bill after Nov. 15. If lawmakers approve the proposal as drafted, the credits would apply to tax years 2028 through 2032.
