HB 2768 increases the maximum investment cap for Oklahoma's Quality Jobs tax incentive program from $250 million to $700 million. It applies to existing manufacturing companies (SIC code 3011) already participating in the program that seek to expand facilities, requiring them to file a new application before certain tax payments are due. Companies must complete $700 million in facility modernization within five years (with a possible one-year extension if 80% is done by year five) to qualify for additional tax incentives. This change allows larger businesses to claim more tax benefits for qualifying investments under the program.
HB 2797 prohibits Oklahoma's Health Care Authority (OHCA) from using statistical methods like extrapolation to audit Medicaid home and community-based service claims, which could require providers to repay overpayments. It invalidates all past audits using these methods (January 2020-November 2025) and voids related repayment demands. The bill requires OHCA and the Department of Human Services to jointly develop new audit standards and provide training for providers by November 2027. It also mandates compliance with existing fraud reporting rules and updates audit responsibilities for Medicaid waiver programs.
SB 287 extends Oklahoma's aerospace tax credit program, allowing employers in the aerospace sector to claim credits for tuition reimbursement and compensation paid to qualified employees through 2031. The credit for tuition is 50% of the cost (capped at the average public tuition in Oklahoma) for the first four years of employment, while the credit for compensation is 10% for employees with Oklahoma degrees or 5% for out-of-state graduates, applicable for the first five years of employment. This bill affects aerospace businesses and certain educational institutions, specifically targeting employees with ABET-accredited aerospace engineering degrees or licensed engineers.
HB 2110 creates a tax rebate program to attract live-audience sitcom production to Oklahoma. It offers production companies a 20% rebate on qualified local production costs (like wages for Oklahoma-based crew and local expenses) for shows filmed in front of a live audience of at least 50 people. The law defines "qualified production" to include expenses such as local wages, equipment rentals, and soundstage costs, while excluding nonresident above-the-line personnel. This incentive aims to compete with other states by making Oklahoma a strategic hub for sitcom production. The bill became law on May 25, 2025.
This Oklahoma bill changes how lodging tax is calculated by excluding free rooms (comped) and discounted rooms where hotels receive no payment from taxable income. It applies to all counties and cities collecting lodging tax under existing law. Hotels will no longer owe tax on rooms provided at no cost to customers or employees, or discounted rooms without third-party reimbursement. The change takes effect January 1, 2026.
HB 1205 repeals Oklahoma's tax credit for small wind turbine installations by removing Section 2357.32B from the state's tax code. This change directly affects small wind turbine owners and installers who previously qualified for the credit. The repeal takes effect on November 1, 2025, eliminating the tax incentive for new installations after that date. The bill is procedural and does not create new policy, only removing an existing tax provision.
SB 301 modifies Oklahoma's tax credit system for donations to biomedical and cancer research institutes. It reduces annual credit limits to $1.5 million for biomedical research donations and $500,000 for cancer research donations starting in 2026, down from $2 million previously. Donors to qualifying institutes (which must receive $20 million annually in NIH funding for biomedical or $4 million for cancer research) will face new caps: $25,000 for business donors to biomedical institutes, and $1,000-$2,000 for individual filers depending on filing status. The bill adjusts how credit percentages are calculated using the second preceding year's claims and ensures credits cannot exceed tax liability.
HB 1372 temporarily lowers the gross production tax rate for oil and gas from existing wells (spudded before the law's effective date) to 5% for 36 months, instead of the standard 7%. It also creates two new tax exemptions: 1) 5 years of tax-free production for secondary/tertiary recovery projects approved after July 2022, and 2) a 24-month tax exemption for wells using recycled water (proportional to recycled water usage). For orphaned wells, producers must post a $25,000 surety bond per well to qualify for a 50% tax reduction for 36 months. The bill sets annual refund limits of $15 million for recovery projects and $10 million for recycled water exemptions, requiring producers to apply for refunds through the Tax Commission.
SB 820 expands Oklahoma's sports league rebate program to include the WNBA, WPF, and NWSL, in addition to the existing NFL, NBA, NHL, and MLB. It allows qualifying professional sports teams (with specific payroll and employment thresholds) to receive quarterly rebates based on verified in-state payroll, capped at $10 million annually per team. The rebate requires teams to maintain operations in Oklahoma for eligibility and repay funds if they leave within three years. The bill is currently under review by the Appropriations and Budget Finance Subcommittee.
SB 572 ends Oklahoma's technology business financing program, which previously provided funding to help local businesses commercialize innovations. The bill requires all remaining program funds and annual royalty payments (from businesses that received funding) to be transferred to the state's General Revenue Fund by November 1, 2025. This affects OCAST (the Oklahoma Center for the Advancement of Science and Technology), businesses that had received program funding, and state finances. The program officially ceases upon the bill's effective date, redirecting all unused funds to general state revenue.
