Budget & Taxes (Tax Incentives)

vetoed · Oklahoma · Senate May 29, 2025

SB 324: Incentives; creating the Oklahoma Research and Development Rebate Fund; prescribing sources of funds; creating a research and development rebate program; authorizing promulgation of rules.

SB 324 creates the Oklahoma Research and Development Rebate Fund to provide businesses with a 5% reimbursement for qualified research expenses incurred within the state. Eligible businesses must submit applications demonstrating research activities occurred in Oklahoma and have filed all required state tax returns. The program, administered by the Oklahoma Department of Commerce, reimburses up to $20 million annually, with payments prorated if demand exceeds available funds. This directly affects businesses conducting research in Oklahoma that claim expenses on federal Form 6765.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 5% tax rebate to businesses for qualified R&D expenses, reducing tax burden and incentivizing economic activity within state budget framework.90% confidence

Sub-Topics Tax Incentives

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signed · Oklahoma · Senate May 14, 2025

SB 577: Ad valorem tax; requiring submission of certain information for eligibility of certain exemption; requiring the Oklahoma Tax Commission to share information with the Incentive Evaluation Commission. Effective date.

SB 577 requires manufacturing facilities seeking a five-year property tax exemption to submit annual information to the Oklahoma Tax Commission, including proof of out-of-state sales revenue and wage compliance. It mandates the Tax Commission to share specific data with the Incentive Evaluation Commission to verify exemption eligibility. The bill updates requirements for facilities to qualify, including an annual investment cost threshold adjusted for inflation (based on CPI) and wage standards tied to Oklahoma's Quality Jobs Program. This affects manufacturers building, expanding, or acquiring facilities with qualifying investments, ensuring transparency in tax exemption programs.

Topics ✓ Budget & TaxesSupports Budget & TaxesTightens tax exemption requirements for manufacturing, requiring verification of wage/investment compliance to prevent misuse and promote fiscal responsibility.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentRequires wage compliance for tax exemptions, enforcing minimum wage standards to protect workers' rights as part of exemption eligibility criteria.90% confidence

Sub-Topics Property Tax Tax Incentives

in committee · Oklahoma · Senate Feb 4, 2025

SB 823: Ad valorem tax; increasing homestead exemption; expanding homestead eligibility. Effective date.

SB 823 increases the homestead tax exemption for manufactured home owners in Oklahoma. It allows residents of manufactured homes to qualify for the exemption even if they don't own the land the home sits on, provided it's their primary residence and meets other requirements. The bill amends existing tax code to expand eligibility under Sections 2812 and 2888, directly affecting manufactured home owners who previously might have been ineligible due to land ownership rules. This change aims to provide greater tax relief to qualifying homeowners.

Topics ✓ Budget & TaxesSupports Budget & TaxesSB 823 expands homestead tax exemption eligibility for manufactured home owners, providing direct tax relief to lower/middle-income residents by reducing property tax burden.95% confidence ✓ HousingSupports HousingExpands tax exemption eligibility for manufactured home owners, reducing housing costs and increasing affordability for primary residents.95% confidence

Sub-Topics Property Tax Tax Incentives Property Taxes

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died · Oklahoma · Senate Feb 10, 2025

SB 689: Ad valorem tax; modifying payroll requirement for certain industry. Effective date. Emergency.

SB 689 modifies Oklahoma's property tax exemption for qualifying manufacturing facilities by adjusting the minimum investment threshold for eligibility to $500,000 (adjusted annually for inflation via the Consumer Price Index) and adding a new wage requirement. Facilities seeking exemption must now pay new employees an average annual wage meeting Oklahoma Quality Jobs Program standards for the year the property was placed in service. This bill directly affects manufacturing facilities, including those in aircraft repair, computer services, distribution centers, and custom order manufacturing, by changing how they qualify for a five-year property tax exemption. It updates definitions, clarifies payroll requirements, and requires annual publication of the adjusted investment threshold by the Oklahoma Tax Commission.

Topics ✓ Budget & TaxesSupports Budget & TaxesModifies tax exemption criteria to require higher wages/investment, closing potential loopholes and strengthening fiscal management by increasing state revenue from qualifying facilities.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill requires manufacturing facilities to meet wage standards for tax exemption, advancing employment standards through mandatory wage thresholds.85% confidence

Sub-Topics Property Tax Tax Incentives

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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 · House Feb 4, 2025

HB 2447: Revenue and taxation; broadband communications; income tax credit; effective date.

HB 2447 creates a 25% income tax credit for businesses that invest in qualified broadband telecommunications infrastructure in Oklahoma, effective for tax years beginning after December 31, 2025. The credit covers the cost of equipment, facilities, and technology used to provide high-speed internet service, with the credit limited to reducing tax liability to zero and allowing unused portions to be carried forward for up to five years. This policy directly affects businesses building or upgrading broadband networks, particularly in rural areas as defined by the Rural Broadband Expansion Council. The bill aims to incentivize broadband expansion by reducing costs for infrastructure investment. It becomes effective January 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 25% business income tax credit for broadband infrastructure investment, reducing taxable income and incentivizing private sector broadband expansion through fiscal policy.95% confidence ✓ TechnologySupports TechnologyCreates 25% tax credit for broadband infrastructure investment, directly expanding high-speed internet access through business incentives.95% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives Broadband Access Telecommunications

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vetoed · Oklahoma · Senate May 29, 2025

SB 687: Sales tax exemption; requiring Oklahoma Broadband Office and Oklahoma Tax Commission to administer certain rebate program; modifying rebate limit; creating the Oklahoma Broadband Rebate Revolving Fund.

SB 687 creates a rebate program for businesses purchasing equipment to expand broadband services in underserved or unserved areas of Oklahoma. It directs the Oklahoma Broadband Office and Tax Commission to administer the program, requiring equipment to directly enable broadband expansion (not operational costs) and limiting rebates to $42 million total - $31.5 million reserved for low-population-density counties. The Oklahoma Broadband Rebate Revolving Fund will pay approved claims, with payments calculated based on total eligible claims versus available funds. Providers must file claims by specified deadlines, and annual reports will track broadband project impacts without disclosing individual company names.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates $42M broadband rebate fund via revolving fund, allocating state budget to fund infrastructure expansion in underserved areas, aligning with 'funds essential programs' indicator.92% confidence ✓ TechnologySupports TechnologyFunds broadband infrastructure expansion via rebates for equipment, directly advancing internet access in underserved areas - core technology policy objective.95% confidence

Sub-Topics Procurement Sales Tax Tax Incentives Broadband Access

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in committee · Oklahoma · Senate Feb 4, 2025

SB 321: Sales tax; providing sales tax holiday exemption on disaster preparedness items. Effective date. Emergency.

SB 321 creates a sales tax exemption for specific disaster preparedness items during two annual three-day periods: the last Friday in March and September. It directly affects Oklahoma residents purchasing qualifying items like food supplies, safety gear, general disaster tools, and fastening items during those windows. The bill defines "disaster preparedness supplies" to include four categories (general, safety, food-related, and fastening items) and authorizes the Oklahoma Tax Commission to create implementation rules. The exemption applies to sales made between 12:01 a.m. on the last Friday and 12 a.m. on the following Sunday of those months. The law takes effect July 1, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides temporary sales tax exemption on disaster preparedness items, reducing tax burden for residents during specified periods.95% confidence

Sub-Topics Procurement Sales Tax Tax Incentives

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in committee · Oklahoma · Senate Feb 3, 2026

SB 1396: Sales tax; providing exemption for certain organizations providing support for first responders. Effective date.

SB 1396 amends Oklahoma's sales tax law to exempt certain organizations that support first responders from paying sales tax on goods and services they purchase. Specifically, it adds exemptions for organizations providing support to municipal law enforcement, fire departments, emergency medical services, municipal disaster mitigation services, and first responder canine training facilities. This means these eligible organizations will not pay state sales tax on qualifying purchases directly related to their support services. The bill updates the existing tax exemption list in Section 1356 of Oklahoma Statutes without changing other existing exemptions.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides sales tax exemption for first responder support organizations, reducing tax burden on qualifying purchases per bill's explicit language.90% confidence ✓ Criminal JusticeSupports Criminal JusticeBill provides tax exemption for organizations supporting law enforcement, fire, and EMS, indirectly funding first responder services under criminal justice topic.80% confidence

Sub-Topics Sales Tax Tax Incentives Law Enforcement

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in committee · Oklahoma · House Feb 4, 2025

HB 2881: Revenue and taxation; deduction; broadband equipment; federal funds; effective date.

HB 2881 creates a tax deduction for Oklahoma businesses receiving specific federal broadband funding. It allows businesses to deduct funds distributed by the Oklahoma Broadband Office under federal programs like the American Rescue Plan Act (ARPA) and the Infrastructure Investment and Jobs Act's BEAD Program, provided the money is spent on broadband equipment or services. This deduction applies to taxable income for years starting January 1, 2025, and is distributed to pass-through business owners. The bill directly affects Oklahoma broadband providers and service entities using federal recovery funds for infrastructure.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for broadband business investments, reducing taxable income. Aligns with tax relief for business growth under federal broadband programs.95% confidence ✓ TechnologySupports TechnologyBill creates tax deduction for broadband equipment spending, directly advancing internet access infrastructure through financial incentives for businesses.95% confidence

Sub-Topics Business Taxes Tax Incentives Broadband Access

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