585: 2025 Form 585 Credits for Employers in the Vehicle Manufacturing Industry (2025)
Oklahoma · Oklahoma Tax Commission · Used for tax years 2025
Oklahoma Form 585 calculates credits for qualified employers in the vehicle manufacturing industry for tuition reimbursed and compensation paid to qualified employees. It totals the credits to carry to Form 511-CR.
Who files this form
Form 585 is for qualified employers claiming credits for tuition reimbursed or compensation paid to qualified employees.
A qualified employer is a business or public entity located in Oklahoma whose principal business activity is qualifying vehicle or automotive parts manufacturing. Page 3 defines the eligible operations, including operation-start dates and excluded vehicle types.
A qualified employee must:
- Be employed in Oklahoma by, or contract in Oklahoma with, a qualified employer on or after January 1, 2018.
- Have an undergraduate or graduate degree from a program accredited by the Engineering Accreditation Commission of ABET.
- Meet the rule about not working in Oklahoma vehicle manufacturing immediately before the current employment or contract.
The form provides exceptions to the prior-employment rule for certain people who worked in the industry before earning their degree but were not full-time engineers, and for qualifying graduates employed by professional staffing companies and assigned to Oklahoma vehicle manufacturing.
What you'll need
Have the information needed to complete the form:
- The employer's name as shown on the return, federal employer identification number and business type.
- Each qualified employee's name, Social Security number and employment start date with the qualified employer in Oklahoma.
- For the tuition credit: graduation date and tuition reimbursed during the tax year.
- For the compensation credit: the institution where the employee earned the engineering degree and compensation paid during the tax year. Contract labor must have a Form 1099 issued, and wages must be subject to Oklahoma withholding.
If you need more employee lines, provide a separate schedule with the same information as columns A through F of the applicable part.
The total credit is carried to Form 511-CR. Transferred or allocated credits must also be reported on OTC Form 569.
Common mistakes
- Including excluded tuition costs. Tuition does not include books, fees, or room and board.
- Exceeding the tuition limit. Part 1, column E cannot exceed the average annual amount paid for enrollment and instruction in a qualified program at an Oklahoma public institution. The credit cannot exceed 50% of that amount.
- Claiming credits beyond the allowed employment period. No tuition credit may be claimed after the fourth year of employment, and no compensation credit may be claimed after the fifth year.
- Exceeding the compensation credit limit. The credit is limited to $12,500 per qualified employee annually.
- Including excluded compensation. Do not include employer-provided retirement, medical or health-care benefits, or reimbursements for travel, meals, lodging or other expenses.
- Not reporting transferred or allocated credits. These must be reported on OTC Form 569. Failure to file it will result in denial of the affected credits.
Questions people ask
How much is the tuition reimbursement credit?
The credit is 50% of qualifying tuition reimbursed during the first four years of employment. The employee must have earned the engineering degree within one year of employment with the qualified employer in Oklahoma. The credit cannot exceed 50% of the average annual enrollment and instruction amount for a qualified program at an Oklahoma public institution.
Does the employee's college location affect the compensation credit?
Yes. The credit is 10% of compensation if the employee graduated from an Oklahoma institution, or 5% if the institution is outside Oklahoma. It applies during the first five years of employment and is limited to $12,500 per employee annually.
How do I total the credits?
Calculate the tuition credit in Part 1 and the compensation credit in Part 2. Enter those totals in Part 3, lines 1 and 2. Add them on Part 3, line 3, and carry that total to Form 511-CR.
Does an overall credit cap apply for tax year 2025?
The form states that no more than $3 million of credit may offset tax in a taxable year. It also states that the full amount of the statutory credit is available for tax year 2025.