Budget & Taxes (Tax Credits)

HB 2953 repeals specific sections of Oklahoma law (28-100, 28-100A, 28-101, 28-102, and 28-103) that previously established the Oklahoma Parental Choice Tax Credit program. This bill directly affects the state’s education tax credit system by removing its legal foundation, effectively ending the program. The repeal takes effect November 1, 2026, meaning the tax credit will no longer be available after that date. As a procedural bill, it does not create new policy but eliminates existing law governing the credit.

SB 1391 modifies Oklahoma's Parental Choice Tax Credit Act to adjust household income limits for families using the program. It increases the income threshold for the highest credit tier from $150,000 to $225,000 annually (with a $6,000 credit), adds a new $250,000+ bracket (capping credits at $5,000), and maintains lower tiers for lower-income households. The bill affects families paying private school tuition who qualify for the tax credit, capping the credit at actual tuition costs regardless of income. It also requires participating private schools to administer certain assessments to students, updating prior requirements. These changes apply to tax years 2024 onward and fiscal years 2026 onward.

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.

HB 2087 modifies Oklahoma's income tax credit for donations to qualified research institutes. It adjusts annual funding caps: for biomedical research institutes, the limit drops from $2 million to $1.5 million per year starting in 2026, while cancer research institute credits are capped at $500,000 annually. The credit percentage for each donation type is recalculated yearly based on prior-year claims, using specific formulas to stay within these new limits. Taxpayers donating to qualifying nonprofit biomedical or cancer research institutes (defined by NIH funding requirements) can claim the credit, with individual limits of $1,000-$25,000 depending on filing status or business type.