Oklahoma tax form 564 Credit for employees in aerospace sector

[tinesha]

I started my job in 2019 and have never claimed this credit. Am I still eligible to claim it since I have been at this employer for 6 years?

[MaryK4]

Yes, you can claim the Oklahoma Aerospace Industry Engineer Workforce Tax Credits for five total years, and they do not have to be consecutive.   It is a nonrefundable credit, but there is a carryforward for five consecutive years, so you can apply unused credit in subsequent years.  The current expiration is 2032 tax year, so you can decide if you want to start this year or you can amend any or all of the prior three years.  See Aerospace Employer & Employee Tax Credits Evaluation for more information.

[tinesha]

Thank you. If I am wanting to start claiming this year, I am confused on what to put on form 564 and form 511-CR. Form 564 part 3 line 1 would be 5,000.00. Line 2 would be the year I started at this job and what would unused carryover credit be? 25,000.00 or 20,000.00? If so, line 3 would be 25,000.00? Then form 511-CR line 16 column A (Unused Credit carried over from prior years would be 0 since I have never used? Column B (Credit established during current tax year) not sure what this means, 5000.00? Column C (Total Available Credit) would this need to end up equaling 25000.00?

[MaryK4]

Because you just found out about the credit, you did not file the Form 564 so there is no carryforward at this time so you want to enter 0.  If you want to claim it for past years, you will have to amend the past tax returns (generally you can only amend three years)- you would get a refund for any tax you paid and might have a credit to carryforward, but you would not be able to claim them on the 2025 return until you file the amended returns.  

If you amend your returns, you would get a refund, or you can choose just to use the credit this year and going forward.

@tinesha 

[Babyhuey60]

@tinesha  @MaryK4 

We moved to OK in 2023. I learned about the credit after submitting my 2024 taxes last year. I filed amended returns for both 2023 and 2024 and provided copies of diploma & transcript. We received refunds for both years.

We file our own taxes electronically with TT, so wondering how to submit Form 564 with my state return. I think I'm going to have to file our state return by mail in order to include Form 564 with my return. Worth it for the credit.

[dletsinger]

Is this in reference to form 569 that must be reported for the 511-CR form or is there a 564 form also that must be reported?

[AmyC]

Form 564 is for the aerospace credit. Form 569 is to report a transfer or allocation of a tax credit. Sometimes a person or a business will sell OK tax credit they can't use.

If you qualify for the 564 aerospace credit, you can claim it up to 5 times/years. To enter it:

1. Complete your Federal return first (TurboTax needs this data to start your state return).
2.  Begin or continue your Oklahoma return.
3. Proceed through the initial Oklahoma screens (Income, Adjustments, etc.) until you reach the section titled "Take a look at Oklahoma credits" or "Tax Credits."
4. Locate the Aerospace Credit
5. Look for a category called "Other Oklahoma Credits" or "Business & Energy Credits."
6. Find "Credit for Employees in the Aerospace Sector" (it might also be labeled as the "Aerospace Industry Engineer Workforce Credit").
7. Click Start or Update next to that line.
8. Enter your information, employer, graduation, credit amount - usually $5,000 unless you are using a prior year carryover, enter that amount.

Caution: the first year filed, a copy of your diploma or official transcripts must be mailed to the state.

@dletsinger 

[pamconway03]

This is my second year claiming the Aerospace credit for the State of Oklahoma. The wording is somewhat confusing. I claimed $5000 in 2024. Is this what the form should read for this year? 

If this is my second year claiming this credit on the Form 564:

1.  Credit for Employment during Tax Year 2025: $5000

2. Unused carryover credit from Tax Year (blank): $15000? 

3. Total Credit Avaliable for Tax Year 2025 (add lines 1 and 2; enter on Form 511-CR): $20000

Is this correct? 

[AmyC]

No, your Line 2 should not be $15,000. For your second year, your form should likely look like this:

Credit for Employment during Tax Year 2025: $5,000

Unused carryover credit from Tax Year 2024: $0 (unless you didn't use all of last year's credit)*

Total Credit Available for Tax Year 2025: $5,000

Here is the breakdown.

The Aerospace Employee Credit is a $5,000 annual credit allowed for up to 5 years ($25,000 total over time). You don't "unlock" the future years' credits until you actually work those years.

Line 1 ($5,000): This is the credit you earned specifically for working in the aerospace sector during 2025.

Line 2 (Carryover): This line is only for credit you were eligible for in previous years (like 2024) but couldn't use because your Oklahoma tax liability was too low. Verify you used it all in 2024.

Example: If your 2024 Oklahoma tax bill was only $3,000, you would have used $3,000 of your credit and had $2,000 left over. That $2,000 is what would go on Line 2 this year.

If you were able to use the full $5,000 to offset your taxes last year, your carryover is $0.

 

5-Year Limit: You can claim the $5,000 on Line 1 for a total of five years. Since this is your second year, you’ll have three more years of eligibility after this. The line 2 carryover is allowed after 5 years since you tried to use it and it was carried over.

Documentation: Since you already provided your transcripts/diploma last year, you typically do not need to resubmit them for your second year unless you have changed employers.

[lukemccloud]

Hi Amy, thank you so much for answering all these questions.  I'm hoping you can help me with mine.  I am an Aeronautical Information Specialist for the FAA at the Mike Monroney Aeronautical Center in Oklahoma City and have been working here since 2016.  It is a specialized technical position designing and building flight procedures.  Prior to 2016, I was a pilot of the Boeing 707 airframe in the Air Force for 10 years.  I have a Computer Information Systems minor from Elon University, which I found out is accredited by the EAC of ABET, however I don't have a specific "engineer" degree.  Am I eligible for the OK form 564 credit?  Thanks again for your help.

[ThomasM125]

Per the instructions to Form 564, A qualified employee would be one who is employed by a qualified employer in the aerospace sector. The person also must have at least an undergraduate degree from a "qualified program at an institution or have a professional engineer license from the Oklahoma State Board of Licensure or Professional Engineers and Land Surveyors pursuant to 59 OS Sec 475.15. "

A qualified program means "one that is accredited by the Engineering Accreditation Commission of the Accreditation Board of Engineering and Technology (ABET)  and awards an undergraduate or graduate degree." So it seems you need at least an undergraduate degree from an accredited engineering program.

“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. A qualified program includes both undergraduate and graduate programs of the same discipline of engineering at an institution if either program is ABET accredited.

@lukemccloud