A Republican state senator from Oklahoma City is drafting legislation that would hand oil and gas companies tax credits worth thousands of dollars for every engineer they hire, with bigger breaks for graduates of Oklahoma schools. Sen. Paul Rosino says the measure is intended to strengthen Oklahoma's oil and natural gas workforce. The bill is expected to be formally filed sometime after Nov. 15.
According to KOKH, the proposal would establish tax credits for eligible oil and gas employers that hire qualified engineers, with the goal of encouraging companies to bring on new technical talent. Rosino is preparing the legislation to strengthen Oklahoma's oil and natural gas workforce, the station reports, framing the industry as one that supports thousands of jobs and generates revenue for the state.
The mechanics of the proposal, as described by the station, would tie the size of an employer's tax credit to where a hired engineer went to school. Employers could claim a credit equal to 10% of compensation paid to qualifying employees who graduated from an Oklahoma institution, compared with 5% for those who graduated elsewhere. That credit would reportedly be available for an employee's first five years in the industry and capped at $12,500 per employee annually.
Tuition Reimbursement Credits Layered On Top
Beyond the compensation-based credit, the bill would also let eligible employers claim credits for qualifying employee tuition reimbursements, per the station's reporting. That tuition credit would reportedly equal 50% of qualifying reimbursements and be available during an employee's first four years of employment.
Separately, Oklahoma has an employer tuition-reimbursement tax credit as part of its aerospace employer tax-credit program. Under 68 O.S. section 2357.302, the state allows an income tax credit for a qualified employer in that program equal to 50% of tuition reimbursed to a qualified employee during that employee's first through fourth years of employment, according to the Oklahoma Office of Management and Enterprise Services. A related state tax form for the aerospace program likewise notes that a qualified employer is allowed credits for tuition reimbursed and for compensation paid to a qualified employee, according to the Oklahoma Tax Commission.
Workers Could Also Claim Their Own Credit
It isn't just employers who would benefit under the proposal. Qualifying employees could claim individual income tax credits of up to $5,000 annually for as many as five tax years, the station's report states. Rosino said the legislation would help employers recruit engineers and encourage graduates to build careers in Oklahoma, arguing that the state's businesses need to attract and retain skilled workers.
Petroleum engineering remains a lucrative field nationally — the median annual wage for petroleum engineers was $144,910 in May 2025, according to the U.S. Bureau of Labor Statistics. The agency also notes that petroleum engineers typically need relevant experience gained through internships, underscoring the kind of early-career pipeline Rosino's bill appears aimed at supporting.
Not Oklahoma's First Engineer Tax Credit
Rosino's proposal would not be the first time Oklahoma lawmakers have used the tax code to chase engineering talent into a specific industry. A bill summary for HB2260 states that, as amended, the measure establishes three tax credits for civil engineers and their employers, according to the Oklahoma Legislature, though the available evidence does not establish that HB2260 is identical to Rosino's oil-and-gas proposal. Further back, a 2018 legislative summary described a tax credit equal to $5,000 per year for up to five years of employment as a vehicle manufacturing engineer, according to the Oklahoma Senate — a structure that closely mirrors the individual credit now being floated for oil and gas workers.
With the formal filing still weeks away, key details remain unsettled. The precise definition of a qualifying oil-and-gas employer, engineer or employee under Rosino's bill has not been made public, and no estimate of the measure's cost to state revenue or the number of employers and workers who might benefit has been released. For now, the plan exists only as a set of figures and intentions attributed to the senator, with the formal bill text expected once it is filed after Nov. 15.
