Budget & Taxes (Tax Credits)

signed · Oklahoma · House May 30, 2025

HB 2610: Revenue and taxation; nonrecurring adoption expenses credit; modifying amount; effective date.

HB 2610 increases Oklahoma's tax credit for nonrecurring adoption expenses from 10% to 15% of eligible costs, raising the maximum annual credit to $3,000 for single filers or married individuals filing separately, and $6,000 for married couples filing jointly. The credit applies to Oklahoma resident taxpayers who pay for adoption-related expenses such as fees, court costs, medical expenses, and travel, but excludes attorney fees in contested adoptions and home renovations. The Oklahoma Tax Commission will establish rules for verifying qualifying expenses. This change takes effect January 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax credit for adoption expenses, providing direct tax relief to eligible taxpayers by raising credit amounts.95% confidence

Sub-Topics Tax Credits

in committee · Oklahoma · Senate Feb 23, 2026

SB 1389: Oklahoma Parental Choice Tax Credit Act; modifying annual limit for certain fiscal years. Emergency.

SB 1389 modifies Oklahoma's Parental Choice Tax Credit Act by increasing annual credit limits for parents or guardians paying qualified education expenses for eligible students. The bill sets income-based maximums: $7,500 for households earning under $75,000, decreasing to $5,000 for households earning over $250,000, with special provisions for schools serving homeless or financially disadvantaged students. It directly affects Oklahoma taxpayers who pay tuition or approved educational expenses (like curriculum, tutoring, or assessments) for students in accredited private schools or qualifying educational programs. The credit applies to tax years 2024 and beyond, with the Oklahoma Tax Commission required to publish specific administrative information. This bill adjusts existing credit limits without changing the program's core structure or eligibility rules.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax credit limits for middle-income families ($7,500 under $75k), providing direct tax relief while capping credits for higher earners.95% confidence ✓ EducationSupports EducationIncreases tax credits for education expenses, expanding access for lower-income families and disadvantaged students via income-based limits.95% confidence

Sub-Topics Tax Credits Curriculum Higher Education School Choice

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vetoed · Oklahoma · House May 29, 2025

HB 2260: Revenue and taxation; income tax credit; civil engineering; effective date.

HB 2260 creates tax credits for Oklahoma civil engineering employers and employees to encourage hiring and retention. Employers can claim credits for 50% of tuition reimbursed to new hires (first 4 years) or 5-10% of compensation paid (first 5 years), capped at $12,500 annually per employee. Employees may claim up to $5,000 yearly in tax credits for 5 years, based on their degree location (in-state vs. out-of-state). The credits apply to qualified employees with ABET-accredited degrees or Professional Engineer licenses, employed by eligible engineering firms starting January 1, 2026, through 2030. The bill takes effect November 1, 2025, with all credits expiring after 2030.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates targeted tax credits for civil engineering employers/employees, providing tax relief to incentivize hiring/retention, directly advancing tax policy within Budget & Taxes.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Oklahoma · Senate Feb 4, 2025

SB 281: Income tax; creating the Making Adoption Affordable Again Act; providing and modifying credit for certain contributions and adoption expenses. Effective date. Emergency.

SB 281 creates the "Making Adoption Affordable Again Act," providing Oklahoma taxpayers with a refundable income tax credit for donations to certified adoption funding organizations (like churches or 501(c)(3) nonprofits) and for non-monetary contributions (in-kind donations) supporting adoption services. Taxpayers can claim up to $10,000 annually ($50,000 for businesses), with excess credits refunded. Organizations must be certified by the Oklahoma Tax Commission, use at least 50% of funds for adoption services, limit staff compensation to 20% of funds, and report annually to maintain certification. The total annual credit amount is capped at $10 million, with adjustments to prevent exceeding this limit.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable tax credit for adoption contributions, reducing taxpayer liability - direct tax relief under Budget & Taxes policy framework.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Oklahoma · Senate Feb 4, 2025

SB 71: Income tax; providing credit for certain renters. Effective date.

SB 71 creates an income tax credit for Oklahoma renters, directly affecting individuals who pay rent for their primary residence. It allows a credit of up to $110 for 2026 (adjusted annually for inflation based on the Consumer Price Index), which becomes refundable if it exceeds the taxpayer's income tax liability. The Oklahoma Tax Commission must provide a form requiring renters to submit their address, landlord name, monthly rent, and annual rent total to claim the credit. The bill takes effect November 1, 2025, and applies to tax years beginning in 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable income tax credit ($110 max) for renters, offering direct tax relief to lower-income individuals through annual inflation-adjusted credit.95% confidence ✓ HousingSupports HousingCreates refundable tax credit for renters, directly reducing housing costs for low-income residents and advancing affordable housing access.95% confidence

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

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in committee · Oklahoma · House Feb 4, 2025

HB 1425: Revenue and taxation; Rural Firefighter Tax Credit Act of 2025; effective date.

This bill creates a new tax credit for eligible rural firefighters in Oklahoma, effective November 1, 2025. It directly affects firefighters employed by qualifying rural fire departments who meet specific service criteria. The legislation establishes a tax credit program without altering existing tax code sections, providing a financial incentive for rural fire service personnel. The credit is structured as a noncodified provision under the "Rural Firefighter Tax Credit Act of 2025."

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for rural firefighters, providing direct tax relief without altering existing tax code, aligns with tax relief indicators for public service personnel.95% confidence

Sub-Topics Tax Credits

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in committee · Oklahoma · House Feb 4, 2025

HB 1742: Schools; Oklahoma Parental Choice Tax Credit Act; website requirements; effective date.

HB 1742 creates a tax credit program allowing Oklahoma taxpayers to claim credits for qualified education expenses paid for eligible students. The credit amount varies by household income (ranging from $5,000 to $7,500 annually) and covers tuition at accredited private schools, tutoring, textbooks, and standardized test fees. Eligible students include those attending accredited private schools or receiving education through approved alternative methods. Parents must submit receipts to the Oklahoma Tax Commission to claim the credit, which can be refunded if it exceeds their tax liability. This bill directly affects Oklahoma parents/guardians paying for qualifying education costs for their children.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit program for education expenses, providing tax relief to qualifying households per income tiers, aligning with tax relief indicators for middle/lower income.95% confidence ✓ EducationSupports EducationCreates tax credits for private school tuition, tutoring, and educational expenses, expanding parental choice and access to education funding through direct financial support.95% confidence

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

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passed · Oklahoma · Senate Apr 10, 2025

SB 291: Income tax credit; providing certain tax credit. Effective date.

SB 291 creates a refundable income tax credit for Oklahoma residents based on revenue growth from oil, natural gas, and corporate income taxes. If the State Board of Equalization certifies that revenue growth exceeds 10% in a year, the Oklahoma Tax Commission calculates a credit amount using a formula based on the number of individual and married-filing-jointly tax returns from the prior year. The credit is doubled for married couples filing jointly, and the Commission must publish the calculated amount within 45 days of certification. The credit applies to tax years starting in 2026, with a November 1, 2025 effective date.

Topics ✓ Budget & TaxesSupports Budget & TaxesRefundable tax credit directly provides tax relief to residents, aligning with support indicators for tax relief measures in Budget & Taxes.85% confidence ✓ EnergySupports EnergyBill creates tax credit tied to oil/natural gas revenue growth, directly supporting fossil fuel energy production within energy policy.90% confidence

Sub-Topics Business Taxes Income Tax Tax Credits Oil & Gas

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in committee · Oklahoma · Senate Feb 4, 2025

SB 288: Income tax; providing credit for certain Oklahoma National Guard members that purchase a home. Effective date.

SB 288 creates a state income tax credit for Oklahoma National Guard members who buy a home in Oklahoma. It allows eligible members to claim a credit equal to their down payment and closing costs, up to $4,000, for tax years 2026 and later. The credit is refundable (meaning it can be paid even if the member owes no state tax) and limited to one claim per person. To claim the credit, members must submit proof of purchase costs using a form provided by the Oklahoma Tax Commission. This policy directly affects Oklahoma National Guard members purchasing residential property within the state.

Topics ✓ Budget & TaxesSupports Budget & TaxesSB 288 creates a refundable income tax credit ($4,000 max) for National Guard homebuyers, providing direct tax relief and reducing state tax revenue, aligning with tax relief indicators for middle-income groups.95% confidence ✓ HousingSupports HousingTax credit reduces homebuying costs for National Guard members, supporting housing access through financial incentives for home purchases.85% confidence ✓ VeteransSupports VeteransCreates tax credit for National Guard home purchases, expanding financial benefits for veterans (National Guard members are veterans eligible for state benefits).90% confidence

Sub-Topics Income Tax Procurement Tax Credits Homeownership National Guard & Reserve

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signed · Oklahoma · House May 13, 2026

HB 2894: Oklahoma Rural Jobs Act; cap on capital investment tax credits; authorizing and limiting additional participation in program under certain conditions.

HB 2894 amends Oklahoma's Tourism Development Act to adjust sales tax credit rules for tourism projects. It provides up to 10% tax credits for projects costing $500,000-$1 million and up to 25% for projects over $1 million, but credits cannot exceed the state's potential sales tax revenue from the project. The bill allows tourism developers in Entertainment Districts to pass credits to tenants or receive incentive payments based on tenant sales tax collections, subject to a $30 million annual cap on all inducements. Developers must verify expenditures with independent audits, and credits cannot be transferred except as specified for Entertainment District tenants.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits with revenue cap to ensure fiscal responsibility, promoting tourism development without reducing state tax revenue.85% confidence

Sub-Topics Sales Tax Tax Credits Tax Incentives