HB 1843 creates the "Community Quality of Life Enhancement Revolving Fund" to provide funding for local community projects. It is funded by a 0.25% increase in individual income tax revenue (capped at $250 million total), with eligible communities applying through locally formed boards to the Oklahoma Department of Commerce. Funds can be used for specific quality-of-life improvements like parks, infrastructure, public transportation, cultural centers, public art, and environmental projects. The bill takes effect July 1, 2025, and establishes the fund as a continuing state resource for these community priorities.
SB 305 proposes lowering Oklahoma's top individual income tax rate for tax years beginning in 2024. It reduces the highest marginal rate from 5.50% to 4.75% for single filers on income above $2,300 and for married couples filing jointly on income above $2,400. The bill applies to all Oklahoma residents and nonresidents with taxable income meeting these thresholds in 2024 and subsequent years. The change is contingent on a determination by the State Board of Equalization, as specified in the bill's provisions.
HB 2740 amends Oklahoma's individual income tax structure for tax years beginning January 1, 2026. It reduces the top marginal tax rate from 5.50% to 4.75% for all taxable income above specific thresholds, applying to both single filers and married couples filing jointly. The bill establishes new, lower tax brackets: for example, single filers pay 0.25% on the first $1,000, 0.75% on the next $1,500, and 4.75% on all remaining income. This change affects all Oklahoma residents and nonresidents filing state income tax returns, with no federal tax deduction allowed.
HB 1427 creates tax credits for Oklahoma taxpayers who invest in qualifying clean-burning motor vehicle fuel equipment. It directly affects vehicle owners and businesses that install or purchase equipment allowing vehicles to run on compressed natural gas, hydrogen, liquefied natural gas, or liquefied petroleum gas. The bill provides tiered credits: up to $5,500 for light vehicles (under 6,000 lbs), up to $100,000 for heavy trucks (over 26,500 lbs), and 45% of costs for commercial refueling stations. Credits are limited to new, certified equipment meeting safety standards and must be claimed against state income tax. Unused credits can be carried forward for up to five years.
HB 1972 would create a sales tax exemption for disabled veterans in Oklahoma purchasing tangible personal property (such as everyday items), expanding existing tax exemptions to include this group. It directly affects disabled veterans by eliminating sales tax on their purchases of goods like clothing, electronics, or furniture. The bill amends Oklahoma’s sales tax code (Section 1357) to add disabled veterans to the list of exempt categories, mirroring exemptions already provided to organizations like Meals on Wheels. This policy change lowers out-of-pocket costs for qualifying veterans without altering tax rates or creating new administrative requirements.
SB 99 reauthorizes an income tax credit for builders constructing energy-efficient residential properties under 2,000 square feet in Oklahoma. It provides a $4,000 credit for homes certified 40%+ above energy codes or $2,000 for those 20-39% above, requiring properties to be substantially complete in the same tax year the credit is claimed. The credit applies to new construction only (not retrofits) and requires certification by an accredited provider using the Home Energy Rating System. This bill directly affects Oklahoma builders who construct qualifying energy-efficient homes, offering tax relief tied to specific efficiency standards and completion timing.
SB 236 creates a tax credit for Oklahoma employers in the aerospace and defense sector that must meet U.S. Department of Defense cybersecurity requirements (CMMC). It allows qualifying businesses (with 5-200 employees not yet CMMC-compliant as of 2026) to claim a 50% credit on wages and expenses incurred while achieving initial CMMC compliance, capped at $50,000 total per business through 2031. The credit cannot reduce tax below zero, may be carried forward for up to five years, and is limited to $10 million annually across all businesses. This bill directly affects Oklahoma aerospace/defense employers seeking federal contracts requiring CMMC certification.
HB 1580 creates an income tax credit for builders of newly constructed energy-efficient homes in Oklahoma. It provides a $2,000 credit for homes certified under the EPA's Energy Star Homes program or a $4,000 credit for homes certified under the Department of Energy's Zero Energy Ready Homes program. Builders can claim these credits once per property in the tax year the home is completed, with unused credits allowed to carry over for up to four years or be transferred to new property owners. The credit applies to homes completed on or after January 1, 2026, and is claimed against Oklahoma income tax.
SB 308 lowers Oklahoma's top individual income tax rate for tax years beginning in 2024. It reduces the top marginal rate from 5.50% to 4.75% for both single filers and married couples filing jointly (with some brackets adjusted). This change directly affects most Oklahoma residents and nonresidents who pay state income tax under these filing statuses. The bill updates the tax code to reflect this rate reduction, effective for 2024 tax returns and beyond.
HB 1208 lowers Oklahoma's top individual income tax rates for tax years beginning in 2024 and 2025. It reduces the highest marginal rate from 5.5% to 4.75% for both single filers and married couples filing jointly, applying to income above specified thresholds (e.g., $10,500 for single filers and $22,650 for joint filers). The bill also establishes new lower tax brackets for 2024-2025, such as 0.25% on the first $1,000 of income for single filers. It eliminates the deduction for federal income taxes when calculating Oklahoma taxable income. This bill directly affects all Oklahoma residents and nonresidents filing individual income tax returns for 2024-2025.
