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Committee lays over tax‑credit bill for small aerospace and defense suppliers facing CMMC costs
Summary
Senate Bill 236 would create a one‑time tax credit to offset initial Cybersecurity Maturity Model Certification (CMMC) costs for small aerospace and defense suppliers; sponsors described a $50,000 per‑company cap, a $7.5 million program cap and a five‑year sunset. The committee laid the measure over for more drafting.
Senate Bill 236, presented by Senator Hayes, would create a one‑time state tax credit to help small aerospace and defense suppliers absorb the initial costs of Cybersecurity Maturity Model Certification (CMMC), a federal requirement for Department of Defense contractors and many subcontractors.
Senator Hayes said CMMC certification costs typically range from $80,000 to $200,000 for an initial assessment and certification and that the requirement can be an onerous, unfunded federal mandate for small suppliers. The committee substitute narrows eligibility and clarifies that the credit applies to compensation paid to employees while they earn initial certification and that the credit is limited to the initial certification only.
Under the version discussed in committee, the credit would cover up to 50% of qualifying compensation paid to employees needed to achieve initial CMMC compliance, with a $50,000 maximum per company and a total program cap of $7.5 million. The bill contains a five‑year sunset for the program and an individual company cap of $50,000. Department witnesses estimated between 75 and 150 companies would likely be eligible in Oklahoma, among roughly 1,100 aerospace companies statewide.
Grayson Artis, executive director of the Oklahoma Department of Aerospace and Aeronautics, told the committee the tax credit is designed to keep the state’s supplier base engaged in defense contracting and to prevent small suppliers from exiting the market because of certification costs. Committee members asked detailed questions about eligibility (whether a business must hold a DOD contract or be an existing subcontractor), definition of compensation, whether the credit would apply to contractor fees, and whether the measure risks repeated state support for federally driven compliance. The director and the author said the credit is limited, temporary and targeted to initial certification costs only.
Senator Hayes asked to lay the bill over so staff can refine definitions and application mechanics; the committee agreed to lay the measure over for further work.
