SCR 11 is a concurrent resolution expressing the Oklahoma Legislature's intent to reduce the individual income tax rate by 0.25% for taxpayers. It directly affects all Oklahomans who pay individual income tax, aiming to return revenue to citizens while maintaining fiscal responsibility. The resolution urges state agencies to eliminate budget waste - particularly for unfilled positions - and protect core services like education and public safety during potential spending reductions. It does not enact a tax cut but formally states legislative intent to pursue this policy change during the upcoming session, citing Oklahoma's strong financial position with over $5 billion in reserves.
SB 295 lowers Oklahoma's top individual income tax rate for tax years beginning in 2024. It reduces the top rate from 5.50% to 4.75% for both single filers and married couples filing jointly (including heads of households). This change applies to all Oklahoma residents and nonresidents who file state income tax returns for the 2024 tax year. The bill modifies existing tax brackets but does not alter the income thresholds where the top rate applies.
SB 239 modifies Oklahoma's tax credit for electricity generated by zero-emission facilities (like wind, solar, hydro, or geothermal power plants). It limits the credit to tax years ending by 2025, ending the ability to carry forward unused credits beyond that year. For credits claimed after July 2019, taxpayers must choose between receiving an 85% direct refund or carrying the credit forward for up to 10 years (ending in 2025). This bill directly affects businesses and entities generating eligible renewable electricity in Oklahoma, altering how they can use or access these tax credits.
HB 2942, the "Health Care Sharing Ministry Tax Parity Act," allows Oklahoma residents who are active members of Health Care Sharing Ministries (HCSMs) to deduct their qualified health care sharing expenses from their state income tax starting in 2027. It directly affects Oklahoma residents using HCSMs - non-profit organizations that share medical costs based on shared ethical or religious beliefs - by granting them tax treatment similar to health insurance premiums. Key provisions include permitting deductions for self-employed individuals and employer contributions (treated as nontaxable benefits), requiring documentation to claim the deduction, and ensuring funds received from HCSMs are not considered taxable income. The bill takes effect November 1, 2026, with the Oklahoma Tax Commission overseeing implementation and reporting.
SB 285 creates a tax credit for Oklahoma taxpayers who contribute to eligible higher education institution foundations. It offers a 50% credit on contributions (up to $1,000 for single individuals, $2,000 for married couples, or $100,000 for businesses) and a 75% credit for those who commit to a second-year contribution. Foundations must submit annual audited financial reports to the Oklahoma Tax Commission and publicly share program outcomes. This policy directly affects Oklahoma taxpayers making qualifying donations and the higher education foundations receiving contributions.
SB 816 creates two tax credits for Oklahoma taxpayers: (1) an employer credit covering 30-50% of costs for child care services, facilities, or on-site construction for employees' children, capped at $30,000 per business annually; and (2) a $1,000 refundable credit for qualified child care workers who meet specific employment and education requirements (e.g., 8+ months at a licensed facility, enrolled in Oklahoma's quality system, 12+ credit hours). The bill directly affects employers offering child care benefits and licensed child care workers in Oklahoma. Key provisions include annual credit limits of $5 million (for employer credits) and $14 million (for all credits) starting in 2028, with unused credits carryable forward for up to five years. The credit for workers is refundable, meaning it can reduce tax liability below zero, while employer credits cannot.
SB 301 modifies Oklahoma's tax credit system for donations to biomedical and cancer research institutes. It reduces annual credit limits to $1.5 million for biomedical research donations and $500,000 for cancer research donations starting in 2026, down from $2 million previously. Donors to qualifying institutes (which must receive $20 million annually in NIH funding for biomedical or $4 million for cancer research) will face new caps: $25,000 for business donors to biomedical institutes, and $1,000-$2,000 for individual filers depending on filing status. The bill adjusts how credit percentages are calculated using the second preceding year's claims and ensures credits cannot exceed tax liability.
HB 2195 lowers Oklahoma's top individual income tax rate to 4.75% for taxable years beginning in 2024, replacing previous rates of 5.50% and 5.25%. It affects all Oklahoma residents and nonresidents filing individual income tax returns by reducing tax burdens across multiple income brackets. Key changes include lowering rates on the highest income tiers (e.g., reducing the top rate from 5.50% to 4.75% for single filers above $6,150 and married filers above $11,750). The bill takes effect January 1, 2024, and eliminates deductions for federal income taxes paid.
SB 326 creates an income tax credit for Oklahoma taxpayers who pay state-mandated fees to obtain or renew occupational licenses (e.g., for professions like nursing, contracting, or cosmetology). The credit covers fees paid to state agencies or approved third parties for licensing, certification, or required continuing education. To claim it, taxpayers must provide documentation to the Oklahoma Tax Commission and not have had their license suspended during the tax year. The credit applies to tax years starting in 2026 and cannot reduce tax liability below zero, with the bill taking effect November 1, 2025.
HB 2192 creates a $5,000 annual income tax credit for certified public accountants (CPAs) employed by the Oklahoma State Treasurer's Office or State Auditor and Inspector's Office starting January 1, 2026. The credit, which can be claimed for up to five total years (not necessarily consecutive), reduces state income tax liability but cannot lower it below zero. Unused credit amounts may be carried forward to subsequent years within the five-year limit. This bill directly affects qualified CPAs working for these two state offices, providing a financial benefit tied to their employment.
