Sen. Mann holds study on how Oklahoma stacks up to other states in incentives for aerospace industry

OKLAHOMA CITY - Sen. Mark Mann, D-Oklahoma City, recently presented an interim study in the Senate’s Aeronautics and Transportation Committee looking at how competitive Oklahoma is with surrounding states in the aerospace industry. The study included speakers with the Oklahoma City Chamber of Commerce; the Oklahoma State Chamber; the Oklahoma Department of Commerce; the Oklahoma Center for the Advancement of Science and Technology; and the Oklahoma Defense Industry Association.

“Aerospace is the fastest growing industry in the state, not just in defense but civilian aviation and other applications. The Department of Aerospace and Aeronautics puts the annual statewide economic impact at $52.5 billion, supporting more than 250,000 direct and indirect jobs,” Mann said. “This study was to look at the incentives we are providing that industry to help them grow and compare that to what surrounding states offer.”

Eric Long, a research economist with the Greater Oklahoma City Chamber, said looking at the greater Oklahoma City region over the past five years, the industry has grown by about 16 percent, goods and services by 21 percent and labor income has grown by 16 percent. Long told the committee that the average wage of white-collar workers, such as engineers and software developers is about $117,000 annually, with tradecraft workers earning an average salary of about $60,000. He said when you look at public and private sector jobs combined, Oklahoma ranks 12^th in the nation for aerospace employment, down from 10^th in the nation five years ago because Colorado and Virginia added more jobs compared to Oklahoma.

One incentive mentioned throughout the study was Oklahoma’s aerospace engineering tax credit. Passed in 2008, it was an effort to attract and retain more aerospace engineers. Employers can receive a maximum credit of about $12,500 annually per employee. Qualifying engineers can claim an annual $5,000 income tax credit.

Emily Crouch, senior vice president of government affairs for the Oklahoma State Chamber said that engineering in particular supports the manufacturing, maintenance and technology work in the aerospace industry, and recruiting and retaining engineers is a competitive restraint for employers when they are looking to expand in Oklahoma. She said from the time the engineering tax credits went into effect in 2009 through 2024, Oklahoma’s aerospace engineering employment grew at 8.6 percent compared to the national rate, which actually declined by .2 percent. She said that Oklahoma’s Incentive Evaluation Commission (IEC) recommends keeping the credits, but with modifications. Crouch said the IEC noted that the $5,000 income tax credit for workers has not changed since 2009 – that doesn’t account for inflation.

Crouch and Aldwyn Sappleton, director of research and economic analysis with the Oklahoma Department of Commerce also pointed to the state’s research and development rebate, which was approved in 2025, but has not yet been funded by the Legislature. 

But committee members also heard about other advantages the state has to offer, including incentives like Quality Jobs and other preferences, and the fact that Oklahoma consistently ranks in the top three lowest states for cost of living – currently Oklahoma ranks first in the nation. Efforts by higher education and CareerTech to increase the number of students going into aerospace were also cited, along with curriculum through the Department of Aerospace and Aeronautics that is currently being used by some 177 Oklahoma high schools.

“I think this study showed us that Oklahoma has been working hard to support further growth in our aerospace industry, and we heard some recommendations about additional steps we could consider,” Mann said. “I appreciate Aeronautics and Transportation Chair Darcy Jech for hearing this study, and I look forward to continuing to explore how we can build on our successes.”

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For more information, contact:  Sen. Mark Mann at 405-590-4471 or Mark.Mann@oksenate.gov