Budget & Taxes (Income Tax)

in committee · Oklahoma · Senate Feb 26, 2025

SB 1: Taxation; directing State Board of Equalization to make certain certification; reduction of income tax rate upon certain certification. Emergency.

SB 1 requires Oklahoma's State Board of Equalization to certify five-year revenue averages for oil, natural gas, and corporate income taxes. If annual tax collections exceed these averages by $400 million or more, it automatically reduces individual and corporate income tax rates. This directly affects all Oklahoma taxpayers by linking potential tax cuts to specific revenue growth thresholds. The $400 million trigger adjusts for inflation every decade starting in 2035.

Topics ✓ Budget & TaxesSupports Budget & TaxesAutomatically reduces income tax rates when revenue exceeds $400M threshold, providing tax relief per bill's explicit mechanism.95% confidence

Sub-Topics Business Taxes Income Tax Revenue

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in committee · Oklahoma · Senate Feb 3, 2026

SB 1402: Income tax; creating the Health Care Sharing Ministries Tax Parity Act; providing deduction for certain expenditures. Effective date.

SB 1402, the "Health Care Sharing Ministries Tax Parity Act," creates tax benefits for Oklahoma residents who participate in qualifying health care sharing ministries (HCSMs). It allows eligible residents to deduct qualified health care sharing expenses (including membership fees and administrative costs) from their Oklahoma adjusted gross income for tax years 2027 and later. Additionally, it exempts from taxable income any "qualified health care share" received by individuals through an HCSM for medical expenses. The bill defines HCSMs as not-for-profit, faith-based organizations that operate without insurance-like guarantees, and requires claims to be filed using forms prescribed by the Oklahoma Tax Commission.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for health sharing expenses, providing direct tax relief to eligible residents through adjusted gross income reduction.95% confidence ✓ HealthcareSupports HealthcareBill creates tax deductions for HCSM expenses, expanding alternative healthcare coverage options and reducing costs for residents through tax parity.95% confidence

Sub-Topics Income Tax

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in committee · Oklahoma · House Feb 4, 2025

HB 1473: Revenue and taxation; Health Care Sharing Ministry Tax Parity Act; definitions; income tax deduction; effective date.

HB 1473, the "Health Care Sharing Ministry Tax Parity Act," allows Oklahoma residents who are active members of qualifying health care sharing ministries (HCSMs) to deduct their membership contributions from their state income taxes starting in 2026. It treats these deductions similarly to health insurance premiums, applying to self-employed individuals, employer contributions (as nontaxable benefits), and individuals covering themselves or dependents. To claim the deduction, members must provide documentation of contributions and membership, and false claims could result in $500 penalties per offense and three years of ineligibility. Funds received from HCSMs for medical expenses will not be considered taxable income under Oklahoma law.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllows tax deduction for health care sharing ministry memberships, providing tax relief similar to health insurance premiums, directly impacting state taxation policy.95% confidence ✓ HealthcareSupports HealthcareAllows tax deductions for health care sharing ministry memberships, treating them like insurance premiums to expand coverage alternatives and improve access to health coverage options.85% confidence

Sub-Topics Income Tax Insurance

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signed · Oklahoma · Senate May 27, 2025

SB 684: Income tax credit; relating to the Oklahoma Parental Choice Tax Credit Act; modifying tax years for which certain annual credit limit is enforced; prescribing procedure for enforcement of annual limit. Effective date. Emergency.

SB 684 modifies Oklahoma's Parental Choice Tax Credit Act by increasing the annual credit limit to $7,500 for eligible taxpayers claiming credits for private school tuition and related education expenses. It changes the tax years for which the credit limit applies and requires the Oklahoma Tax Commission to maintain a publicly accessible, searchable online list of all taxpayers claiming the credit, including their names, credit amounts, and the specific law authorizing the credit. This bill directly affects Oklahoma taxpayers claiming the education credit and participating private schools, which must provide information to the Tax Commission. The law also specifies that qualified expenses include tuition at accredited private schools or certain educational services like tutoring and materials. The changes take effect immediately upon the bill's approval.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax credit limit to $7,500 for private school tuition, providing tax relief under parental choice program.90% confidence ✓ EducationSupports EducationIncreases tax credits for private school tuition, expanding educational access through school choice programs.90% confidence

Sub-Topics Income Tax Tax Credits Higher Education School Choice

passed · Oklahoma · House Apr 28, 2025

HB 1848: Revenue and taxation; income tax credit; childcare expenses; childcare services; definitions; effective date.

HB 1848 creates an Oklahoma income tax credit for employers that covers up to 30% of eligible childcare expenses for employees' children aged 5 or younger. Qualifying expenses include direct childcare assistance, operating a childcare facility for employees, or reserving spots at a licensed childcare facility. The credit is capped at $30,000 per employer annually and $5 million statewide per fiscal year, and applies to tax years 2026 through 2030. This policy aims to reduce childcare costs for working families by incentivizing employer-supported childcare solutions.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit for childcare expenses, providing tax relief to employers and employees while capping state fiscal impact.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill provides tax credit for employer childcare expenses, reducing costs for working parents and supporting workforce participation in employment standards.90% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Oklahoma · Senate Feb 17, 2025

SB 221: Income tax credit; Oklahoma Rural Jobs Act; providing expanded annual credit limitation for certain applications. Effective date. Emergency.

SB 221 doubles the annual state tax credit limit under Oklahoma's Rural Jobs Act, raising it from $15 million to $30 million for applications approved on or after July 1, 2025. It allows rural investment funds certified before this date to reapply for certification for subsequent projects, ensuring continuity for existing applicants. The bill requires rural funds to secure cash investments within 95 days of certification, with at least 10% coming from local sources like employees or affiliates, and mandates the Department to provide eligibility opinions within 15 business days. This directly affects rural investment funds and businesses in Oklahoma’s rural areas seeking tax credit-funded capital.

Topics ✓ Budget & TaxesSupports Budget & TaxesDoubles tax credit limit ($15M→$30M) under Rural Jobs Act, providing tax relief for rural investment funds and expanding fiscal incentives for economic development.90% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Oklahoma · Senate Feb 25, 2026

SB 683: Education; Oklahoma Parental Choice Tax Credit Act; expanding qualifying expenses eligible for credit; requiring submission of receipt or list to claim certain qualifying expenses. Effective date.

SB 683 creates an Oklahoma income tax credit for families covering education expenses for eligible students. It directly affects Oklahoma taxpayers with children in accredited private schools or using approved alternative education methods (like homeschooling). The credit amount varies by family income: up to $7,500 annually for lower-income families ($75,000 adjusted gross income or less), decreasing to $5,000 for higher earners ($250,000+), with separate provisions for schools serving homeless or financially disadvantaged students. Qualified expenses include private school tuition, tutoring, textbooks, and standardized test fees, but exclude amounts covered by scholarships. The bill amends existing tax law to define terms and update references, effective for tax years 2024 and beyond.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit for lower-income families ($75k AGI or less), providing direct tax relief under budget/tax policy95% confidence ✓ EducationSupports EducationProvides tax credits for private/homeschool expenses, expanding educational access and funding options for families per bill's explicit purpose.90% confidence

Sub-Topics Income Tax Tax Credits Higher Education School Choice Testing & Assessment

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signed · Oklahoma · Senate May 14, 2025

SB 573: Small business incubators; requiring submission of certain information to the Oklahoma Commerce Department to qualify for certain income tax exemption. Effective date.

SB 573 allows small businesses operating within Oklahoma incubators to qualify for up to 10 years of state income tax exemption on business income earned while occupying the incubator space. To maintain this exemption after 2025, businesses must annually submit specific financial and operational details - including employment levels, subcontractor payments, revenue estimates, and other financial information - to the Oklahoma Department of Commerce using a form created by the agency. The bill requires the Commerce Department to establish this reporting framework and mandates that businesses disclose prior tax exemptions and additional state incentives received. This law, effective November 1, 2025, applies directly to small businesses using incubator facilities to access the tax benefit.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 10-year income tax exemption for small business incubator tenants, offering tax relief to support economic development and business growth.95% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives Tags Small Business

in committee · Oklahoma · Senate Feb 3, 2026

SB 1406: Income tax; creating the Health Care Sharing Ministries Tax Parity Act; providing deduction for certain expenditures. Effective date.

SB 1406 creates the "Health Care Sharing Ministries Tax Parity Act" in Oklahoma, providing tax benefits for residents participating in health care sharing ministries (HCSMs). It allows eligible Oklahoma residents (qualified individuals) to deduct membership fees and medical sharing costs paid to HCSMs from their taxable income, and exempts payments received from HCSMs from taxable income for tax years 2027 and later. The bill defines HCSMs as tax-exempt organizations operating under specific ethical/religious guidelines without insurance-like guarantees, requiring quarterly financial statements and public disclaimers. These tax provisions apply only to residents actively enrolled in an HCSM for at least one month during the tax year, with claims filed using forms prescribed by the Oklahoma Tax Commission. The bill takes effect November 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for HCSM membership fees, reducing taxable income for qualifying residents, aligning with tax relief indicators.95% confidence ✓ HealthcareSupports HealthcareAllows tax deductions for health care sharing ministry memberships, expanding access to alternative health coverage options through tax incentives.90% confidence

Sub-Topics Income Tax

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died · Oklahoma · House Feb 5, 2025

HB 2091: Revenue and taxation; income tax credit; rent; procedures; effective date.

HB 2091 creates a refundable state income tax credit for Oklahoma residents who pay rent for their primary residence. Starting in 2026, eligible taxpayers can claim up to $110 annually, with future credit amounts adjusted yearly based on inflation measured by the Consumer Price Index. To claim the credit, individuals must provide their landlord's name, rental address, and annual rent paid on a form required by the Oklahoma Tax Commission. The credit applies to all qualifying renters, not just low-income households, and becomes effective November 1, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable income tax credit for renters, providing direct tax relief to lower-income residents, advancing fiscal support for housing costs.95% confidence ✓ HousingSupports HousingCreates refundable tax credit for renters to reduce housing costs, directly advancing affordable housing access for qualifying residents.95% confidence

Sub-Topics Income Tax Tax Credits Affordable Housing Renters Tenant Rights

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