Budget & Taxes (Income Tax)

in committee · Oklahoma · Senate Mar 10, 2025

SB 367: Income tax; modifying calculation of the Oklahoma earned income tax credit. Effective date.

SB 367 modifies Oklahoma's earned income tax credit (EITC) calculation for tax years 2022 through 2025. It sets the state credit at 5% of the federal EITC amount and requires that the maximum credit be prorated based on how much a taxpayer's Oklahoma-adjusted gross income compares to their federal adjusted gross income. This change directly affects low-to-moderate income Oklahoma residents who claim the state EITC on their tax returns. The bill takes effect November 1, 2025.

Topics ✗ Budget & TaxesOpposes Budget & TaxesReduces Oklahoma EITC benefit to 5% of federal credit and prorates max amount, directly weakening tax relief for low-income taxpayers.90% confidence

Sub-Topics Income Tax Tax Credits

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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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died · Oklahoma · House Feb 7, 2025

HB 1806: Revenue and taxation; individual income tax; tax rates; effective date.

HB 1806 amends Oklahoma's individual income tax code to reduce tax rates for most filers, effective for taxable years beginning in 2024. It lowers the top marginal tax rate from 5.50% to 4.75% for single filers and 5.50% to 4.75% for married couples filing jointly (after specific income thresholds), while eliminating deductions for federal income taxes paid. The bill directly affects all Oklahoma residents and nonresidents with taxable income subject to state income tax. Key provisions include revised tax brackets for both single and joint filers, with the lowest rate reduced to 0.25% on the first $2,000 of taxable income for married filers.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces top individual income tax rates from 5.50% to 4.75% for most filers, providing direct tax relief and aligning with fiscal responsibility indicators.95% confidence

Sub-Topics Business Taxes Income Tax

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passed · Oklahoma · Senate Mar 27, 2025

SB 48: Income tax; limiting certain capital gains deduction to certain tax years. Effective date.

SB 48 limits when Oklahoma taxpayers can deduct certain capital gains from their state income tax. It specifically restricts the deduction for "qualifying gains receiving capital treatment" to only certain tax years, affecting individuals and businesses with capital gains transactions. The bill amends Oklahoma's tax code (68 O.S. 2021, Section 2358) to update the rules governing these deductions, ensuring they align with specific tax year parameters. This change modifies how capital gains are treated for state tax purposes without altering federal tax rules.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRestricts capital gains tax deductions, limiting tax benefits and increasing state revenue by closing a deduction loophole per bill's explicit language.95% confidence

Sub-Topics Income Tax

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in committee · Oklahoma · Senate Feb 4, 2025

SB 52: Income tax; modifying calculation of the Oklahoma earned income tax credit. Effective date.

SB 52 changes Oklahoma's Earned Income Tax Credit (EITC) to be 5% of the federal EITC amount for tax years starting in 2022. It clarifies that the state credit calculation uses the same federal rules as the federal EITC (except for the fixed 5% rate) and ensures any excess credit beyond state tax liability is refunded. The bill also limits the maximum credit to the portion of the federal credit corresponding to the taxpayer's Oklahoma income relative to their federal income. This affects Oklahoma residents who qualify for the federal EITC and claim the state credit, potentially altering their refund amounts.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill reduces Oklahoma EITC to 5% of federal credit, weakening tax relief for low-income earners compared to potential higher state rates.90% confidence

Sub-Topics Income Tax Tax Credits

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passed · Oklahoma · House Feb 2, 2026

HB 1834: Revenue and taxation; creating the Inhofe Disaster Savings Account Act; income tax; effective date.

HB 1834 creates the "Inhofe Disaster Savings Account Act" in Oklahoma, allowing homeowners to set up tax-advantaged savings accounts specifically for covering insurance deductibles or self-insured losses related to qualifying disasters (hurricanes, tornadoes, floods, etc.) at their primary residence. Homeowners can deduct contributions from state taxable income (with limits based on their insurance deductible: $2,000 max for deductibles ≤$1,000, up to $15,000 or twice the deductible for higher deductibles, or $350,000 for self-insured), and all interest earned in the account is exempt from state income tax. Withdrawals are tax-free if used for qualified disaster expenses (declared by federal/state authorities), but otherwise become taxable income with a 2.5% penalty, and accounts pass tax-free to surviving spouses upon death. The law takes effect January 1, 2026, targeting Oklahoma homeowners seeking disaster financial preparedness.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for disaster-related expenses, reducing taxable income for homeowners - direct tax relief aligned with fiscal responsibility and middle-income support.95% confidence

Sub-Topics Income Tax

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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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