Oklahoma’s $52 billion aerospace industry faces a challenge: Other states are growing faster

OKLAHOMA CITY —

The multibillion-dollar aerospace industry is booming in Oklahoma, but Oklahoma lawmakers are looking at how to stay competitive as other states gain ground.

Aerospace is a $52 billion industry in Oklahoma, supporting 250,000 jobs. In the greater Oklahoma City region alone, aerospace employment has grown 16% in the last five years.

"So far in aerospace, every dollar we put in has a huge return for the state," state Sen. Mark Mann, a Democrat representing Oklahoma City, said.

But other states are gaining altitude, too.

Oklahoma has slipped from 10th to 12th nationally for aerospace employment. States like Colorado and Virginia add jobs faster, according to the Greater Oklahoma City Chamber.

That competition prompted a Senate study looking at how Oklahoma's aerospace incentives stack up.

>> Video Below: Oklahoma aerospace and defense surges by $9 billion, now powering $52.5 billion statewide

One of Oklahoma's recruiting tools is a $5,000 income tax credit for qualifying aerospace engineers. The problem is that amount hasn't changed in more than a decade.

"When it was passed in 2009, it was set at $5,000 for the employee tax credit element. In today’s inflated economy, $5,000 doesn’t mean the same thing it did in 2009," Emily Crouch, senior vice president of government affairs with the Oklahoma State Chamber, said.

Mann said updating that incentive is one option lawmakers could explore to further invest in the aerospace boom.

"We know it’s the fastest-growing industry in the state, and we just need to stay ahead of the game to make sure we’re providing the incentives necessary to locate these businesses here," Mann said.

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