Budget & Taxes (Tax Incentives)

in committee · Oklahoma · House Feb 3, 2026

HB 3806: Revenue and taxation; Oklahoma Revenue and Taxation Act of 2026; effective date.

HB 3806 creates a tax credit for Oklahoma businesses that accept credit or debit card payments. It allows eligible businesses to claim a credit equal to 100% of their credit card processing fees that exceed 2% of total transaction volume. The credit reduces state income tax liability but cannot lower it below zero, and unused portions may be carried forward for up to five years. This applies to taxable years beginning January 1, 2027, and affects businesses like retailers, restaurants, and service providers processing card payments. The credit is allocated to business owners (e.g., partners, shareholders) if the business is treated as a partnership for federal tax purposes.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax credit reducing business tax liability, aligning with tax relief support indicator for businesses.90% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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vetoed · Oklahoma · House May 12, 2026

HB 3972: Public finance; Ad Valorem Reimbursement Fund; school district revenue loss; state purchases; emergency.

HB 3972 creates a state "Ad Valorem Reimbursement Fund" to reimburse Oklahoma counties for property tax revenue losses caused by specific exemptions. It directly affects counties that lose revenue due to tax exemptions for new manufacturing facilities, veterans' homes (if exemptions exceed 0.8% of population), school district exemptions, buffer strip valuation changes, or state property purchases over $300 million (limited to two tax years). Counties must file claims by April 30 each year, with the Tax Commission reviewing them by June 15; reimbursements prioritize manufacturing exemptions and state property purchases before other claims. The fund is a revolving account with no fiscal year limits, and disbursements are exempt from standard spending caps. The bill takes immediate effect due to an emergency declaration.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates Ad Valorem Reimbursement Fund to offset county revenue losses from tax exemptions, supporting fiscal stability for local governments affected by state policies.95% confidence

Sub-Topics Property Tax Revenue Tax Incentives

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in committee · Oklahoma · House Feb 3, 2026

HB 3591: Affordable housing; Oklahoma Affordable Housing Policy Act of 2026; effective date.

HB 3591 amends Oklahoma's property tax exemption rules for charitable housing, correcting the misleading title that references "affordable housing." It specifically targets nonprofit housing properties claiming tax exemption under Section 2887, requiring them to maintain a 75% average occupancy rate for multi-family properties (or full occupancy for single-family homes) to retain exemption. Owners must submit annual occupancy reports to county assessors by December 15, with failure to meet the threshold resulting in loss of tax exemption for the following year. This bill directly affects nonprofit housing providers operating under IRS 501(c)(3) status that rely on property tax exemptions, altering their compliance obligations without creating new housing programs.

Topics ✓ Budget & TaxesSupports Budget & TaxesEnforces occupancy requirements to prevent tax exemption misuse, ensuring fiscal responsibility by closing loopholes in charitable housing tax benefits.90% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Oklahoma · House Feb 3, 2026

HB 3801: Revenue and taxation; ad valorem; homestead exemption; effective date.

HB 3801 increases Oklahoma's homestead property tax exemption from $1,000 to $2,000 per year for qualifying homeowners. The bill amends Oklahoma Statutes to expand the tax break on the assessed value of primary residences, directly benefiting homeowners who qualify as "homestead owners" under state law. This change takes effect November 1, 2026, and applies to all homesteads assessed for ad valorem taxation. The legislation makes a specific, concrete change to existing tax law without altering eligibility criteria or creating new administrative processes.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases homestead tax exemption from $1k to $2k annually, providing direct tax relief to qualifying homeowners under tax law.95% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Oklahoma · Senate Mar 4, 2026

SB 1809: Ad valorem tax; increasing homestead exemption. Effective date.

SB 1809 increases Oklahoma's homestead property tax exemption from $1,000 to $5,000 annually for homeowners. It directly affects residents who own their primary residence as a homestead by reducing their taxable property value. The bill amends tax law to raise the exemption amount starting with the 2027 tax year, meaning homeowners will pay property tax only on the value exceeding $5,000. The change takes effect November 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases homestead exemption, reducing property tax burden for homeowners, aligning with tax relief for middle-income residents.95% confidence ✓ HousingSupports HousingIncreases homestead exemption from $1k to $5k, reducing property tax burden for homeowners and making primary residence ownership more affordable.85% confidence

Sub-Topics Property Tax Tax Incentives Property Taxes

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in committee · Oklahoma · House Feb 3, 2026

HB 3064: Revenue and taxation; Oklahoma Revenue and Taxation Act of 2026; effective date.

HB 3064 requires Oklahoma counties to use a new standardized form for disabled veterans and their surviving spouses when they purchase a new home, ensuring they maintain their property tax exemption. The form must confirm they previously qualified for the exemption on their old homestead, and county assessors must use it to update property records to reflect the new exempt status. This applies specifically to veterans who qualify under Oklahoma Constitution Sections 8E and 8F for their primary residence (homestead). The bill creates a clear process to avoid losing tax benefits during home purchases and ensures county officials send updated tax bills accordingly. The law takes effect November 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesMaintains property tax exemption for disabled veterans, providing tax relief under Oklahoma Constitution Sections 8E/8F.95% confidence ✓ VeteransSupports VeteransEnsures disabled veterans maintain property tax exemption upon home purchase, protecting an existing benefit under state law.95% confidence

Sub-Topics Property Tax Tax Incentives Veteran Housing

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signed · Oklahoma · Senate Apr 20, 2026

SB 1992: Income tax credit; defining "strategic finance partner." Effective date.

SB 1992 creates a new income tax credit program for businesses constructing or expanding facilities in qualifying locations across Oklahoma, such as underpopulated counties (under 100,000 people) or near rail infrastructure. It allows a 10% tax credit on construction and expansion costs (up to $6 million per project) and a 50% credit for rail infrastructure projects (up to $3 million per project), with a total annual state cap of $12 million. The bill defines "strategic finance partner" as entities providing capital (like loans or investments) to qualifying projects, enabling them to claim the tax credit through assignment to the business. The credit expires after tax year 2027 and requires Oklahoma Department of Commerce approval for project eligibility.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax credits for businesses (10-50% on construction/rail costs), directly altering tax policy to provide relief and incentivize economic activity within fiscal caps.95% confidence ✓ TransportationSupports TransportationBill provides 50% tax credit for rail infrastructure projects (up to $3M), directly funding transportation infrastructure development per rail infrastructure eligibility criteria.90% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives Rail

signed · Oklahoma · Senate May 13, 2026

SB 1400: Sales tax exemption; combining certain exemptions for aircraft maintenance, manufacturing, and parts. Effective date.

SB 1400 merges separate Oklahoma sales tax exemptions for aircraft maintenance facilities, aircraft manufacturing facilities, and certain aircraft parts into a single, unified exemption under the state tax code. This change directly affects businesses in Oklahoma's aircraft maintenance, manufacturing, and parts supply sectors by simplifying their eligibility for tax exemptions on qualifying purchases. The bill modifies existing statutory language in Sections 1357 and 1357.5 of the Oklahoma Sales Tax Code to combine these previously distinct exemptions. The policy change aims to streamline tax compliance for affected businesses without altering the scope of the exemptions themselves.

Topics ✓ Budget & TaxesSupports Budget & TaxesMerges tax exemptions for aircraft sectors, providing tax relief to businesses under Oklahoma Sales Tax code.90% confidence

Sub-Topics Sales Tax Tax Incentives

signed · Oklahoma · Senate May 28, 2025

SB 688: Ad valorem tax; providing exception to certain payroll requirements for manufacturing exemption. Emergency.

SB 688 grants a 5-year property tax exemption for qualifying manufacturing facilities in Oklahoma, directly affecting manufacturers that meet specific investment, wage, and sales criteria. The bill exempts new or expanded facilities (including research labs) from ad valorem taxes if they invest at least $500,000 (adjusted annually for inflation) in qualifying assets, pay new jobs at or above Oklahoma Quality Jobs Program wage standards, and meet sales requirements (e.g., 50% revenue from out-of-state buyers for tech facilities). Facilities must annually file affidavits with the Oklahoma Tax Commission to verify eligibility. This law, enacted May 28, 2025, modifies existing tax exemptions to streamline eligibility for manufacturers expanding operations.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 5-year property tax exemption for qualifying manufacturers, reducing tax burden on businesses to incentivize investment and job creation per Oklahoma Quality Jobs Program criteria.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentRequires new manufacturing jobs to meet Oklahoma Quality Jobs wage standards, advancing labor compensation requirements for qualifying facilities.95% confidence

Sub-Topics Property Tax Tax Incentives

passed both · Oklahoma · Senate May 5, 2026

SB 1403: Quality jobs incentives; expanding qualifying industries; modifying wage requirements; modifying period to claim rebate. Effective date.

SB 1403 modifies Oklahoma's Quality Jobs Incentive Program by extending eligibility periods and adjusting wage requirements. It extends incentive contracts from 15 to 30 years for businesses in the entertainment industry (NAICS 711211) without additional funds, while lowering the required annual payroll for manufacturing businesses (NAICS 3111-3119) from $2.5 million to $1.5 million. The bill also adds special provisions for businesses operating on contaminated Superfund sites, allowing them to qualify for incentives if they meet environmental remediation requirements and generate 50% of Oklahoma taxable income at the site. These changes directly affect new businesses seeking state tax incentives for job creation and payroll growth.

Topics ✓ Budget & TaxesSupports Budget & TaxesModifies tax incentive program to expand eligibility and lower payroll requirements, providing business tax rebates without additional state funds, aligning with fiscal policy to stimulate economic development.95% confidence

Sub-Topics Tax Incentives

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