HB 1760 creates tax credits for Oklahoma taxpayers who contribute to eligible scholarship-granting or educational improvement organizations. It allows a 50% tax credit (up to $1,000 for individuals, $2,000 for married couples, $100,000 for businesses) on contributions, increasing to 75% for those making a multi-year commitment with written proof. The bill also modifies how credits are allocated to business owners and requires annual financial reporting from participating organizations. These credits are subject to annual caps established by the Oklahoma Tax Commission.
HB 2019 amends Oklahoma's tax code to create two new tax credits for the aerospace industry. It allows Oklahoma aerospace employers to claim a credit equal to 5-10% of wages paid to employees with Oklahoma degrees (up to $12,500 annually), and employees to claim up to $5,000 annually in tax credits for tuition reimbursement (capped at $5,000 total over five years). Both credits apply only to the first five years of employment and cannot reduce tax liability below zero. The bill extends these credits through 2032 (previously 2026) and takes effect November 1, 2025. It directly affects Oklahoma aerospace companies and their employees who meet the education and employment criteria.
HB 1104 allows Oklahoma counties with fewer than 200,000 residents to levy a 3% lodging tax on hotels and motels (excluding campsites) to fund county-owned tourism facilities. The tax requires voter approval via election or petition and must be deposited exclusively into a dedicated tourism fund, not general county revenue. Counties may not impose this tax within municipalities that already collect their own lodging tax. The bill specifies the tax must fund tourism promotion, advertising, or facility development, with proceeds restricted to these purposes only. It becomes effective November 1, 2025, pending voter approval.
SB 110 provides $389,040 in state funding to create a new death investigation district and hire three additional death investigators for the Board of Medicolegal Investigations. This funding supports the Board's capacity to investigate deaths within a newly established geographic area. The bill allocates existing state funds without changing laws or creating new obligations.
HB 2229 increases Oklahoma's earned income tax credit (EITC) from 5% to 10% of the federal credit amount for qualifying residents. It directly affects low-to-moderate income individuals and families who claim the federal EITC, expanding their state tax benefit. The bill makes the credit refundable if it exceeds state tax liability and prorates the maximum credit based on Oklahoma adjusted gross income relative to federal income. Effective January 1, 2026, this change aligns Oklahoma's EITC percentage with the federal credit structure while maintaining the state's refundability provision.
HB 2742 clarifies and updates definitions related to Oklahoma's cigarette and heated tobacco product excise tax system. It defines "cigarette" to explicitly include heated tobacco products and creates new rules for "delivery sales" (such as online or mail orders to consumers). The bill affects cigarette manufacturers, wholesalers, retailers, and online sellers by specifying tax obligations for these transactions. Key provisions include redefining terms like "wholesaler," "retailer," and "delivery sale," and clarifying tax exemptions for sales to veterans hospitals, the U.S. government, and other specific entities. This is a procedural tax administration bill, not a new tax rate change.
SB 1409 allows Oklahoma taxpayers to claim a state income tax credit for stillbirths. The credit equals 5% of the federal child tax credit that would have applied if the child had been born alive and been a dependent in the household. Taxpayers can claim this credit only in the tax year the stillbirth occurred, as documented by a stillborn birth certificate issued under Oklahoma law. The credit applies to tax years starting in 2027 and becomes effective November 1, 2026.
HB 1923 creates a new state tax credit for businesses conducting qualified research and development (R&D) activities in Oklahoma. It directly affects Oklahoma-based companies that invest in R&D, allowing them to claim a credit against their state income tax for eligible expenses. The credit applies to qualifying R&D costs incurred after the bill's effective date of November 1, 2025. This policy change aims to incentivize in-state innovation by reducing the tax burden on R&D spending.
SB 1279, the Health Care Sharing Ministries Tax Parity Act, allows Oklahoma taxpayers who are active members of qualifying health care sharing ministries to deduct membership and administrative fees and exclude from taxable income any payments received from the ministry for medical expenses. This applies to Oklahoma residents who maintained membership for at least one month during the tax year, starting in 2027. The bill defines a qualifying ministry as a not-for-profit organization facilitating voluntary medical cost sharing among members with shared ethical or religious beliefs, without insurance guarantees. Taxpayers must claim these benefits using forms prescribed by the Oklahoma Tax Commission, which will establish verification rules. The law takes effect for tax year 2027.
SB 37 would have authorized the Oklahoma State Bureau of Investigation (OSBI) to independently respond to mass casualty events caused by violent crime (defined as incidents injuring ≥3 people, requiring unusual emergency resources, and causing a sudden surge of casualties) without needing a local law enforcement request. It created a "Mass Casualty Revolving Fund" in the state treasury to cover OSBI costs for these investigations, funded by state appropriations, federal grants, or other designated sources. The fund would allow ongoing, unrestricted spending for OSBI's role in coordinating with local agencies during such events. This bill was vetoed by the Governor on May 5, 2025, so it did not become law.
