Budget & Taxes (Income Tax)

in committee · Oklahoma · House Feb 4, 2025

HB 2241: Revenue and taxation; income tax; credit; firearm safety devices; effective date.

HB 2241 allows Oklahoma taxpayers to claim a 50% tax credit (up to $1,000 annually) for purchasing firearm safety devices like gun safes, lock boxes, or storage cases starting in 2026. The credit applies only to qualifying safety devices - not firearms themselves - and cannot reduce a taxpayer's liability below zero. Unused credit amounts may be carried forward for up to five years. This policy directly affects Oklahoma residents who buy qualifying safety equipment for storing firearms.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax credit reducing liability for firearm safety devices, constituting tax relief under taxation policy.85% confidence

Sub-Topics Income Tax Procurement Tax Credits

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in committee · Oklahoma · Senate Mar 11, 2025

SB 223: Income tax; authorizing claim for child tax credit in the tax year certain stillborn birth certificates are issued. Effective date.

SB 223 allows Oklahoma taxpayers to claim a state income tax credit for stillborn children. Specifically, it authorizes a credit equal to 5% of the federal child tax credit (as defined under the Internal Revenue Code) for each stillbirth resulting in a birth certificate issued under Oklahoma law. This credit must be claimed in the tax year the stillbirth occurs, and it applies only if the child would have been a household member. The Oklahoma Tax Commission may establish rules to implement this provision.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates a state income tax credit (5% of federal child tax credit) for stillborn births, providing targeted tax relief to eligible taxpayers, directly impacting tax policy.92% confidence

Sub-Topics Income Tax Tax Credits

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passed · Oklahoma · House Apr 28, 2025

HB 2019: Revenue and taxation; income tax credit; aerospace industry; effective date.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates targeted tax credits for aerospace employers and employees, reducing tax liability and aligning with tax relief indicators for workforce development.95% confidence ✓ EducationSupports EducationProvides tuition reimbursement tax credits (up to $5,000 annually, capped at $5,000 total over five years) for employees, directly supporting higher education access.80% confidence

Sub-Topics Income Tax Tax Credits Higher Education

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in committee · Oklahoma · House Feb 4, 2025

HB 2229: Revenue and taxation; income tax; earned income tax credit; effective date.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases EITC percentage from 5% to 10% and makes credit refundable, providing tax relief to low-to-moderate income residents.95% confidence ✓ HousingSupports HousingIncreases state EITC for low-income residents, boosting disposable income to improve housing affordability85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExpands EITC for low-to-moderate income workers, increasing state tax benefits and making credit refundable, directly advancing worker financial support.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Oklahoma · Senate Feb 3, 2026

SB 1409: Income tax; authorizing claim for child tax credit in the year certain stillborn birth certificates are issued. Effective date.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates new state income tax credit (5% of federal child credit) for stillbirths, reducing tax liability for qualifying families, aligning with tax relief indicators.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Oklahoma · House Feb 4, 2025

HB 1923: Research and development; Oklahoma Research and Development Tax Incentive Act of 2025; effective date.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for R&D businesses, reducing tax burden to incentivize innovation, directly altering state tax policy to promote economic development.95% confidence ✓ TechnologySupports TechnologyCreates tax credit for R&D spending, directly funding tech innovation and incentivizing Oklahoma businesses to invest in technology development.95% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives

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in committee · Oklahoma · Senate Feb 3, 2026

SB 1279: Income tax; creating the Health Care Sharing Ministries Tax Parity Act; providing deduction for certain expenditures. Effective date.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for health care ministry expenses, reducing taxable income for qualifying residents, aligning with tax relief indicators.95% confidence ✓ HealthcareSupports HealthcareBill provides tax deductions for health care sharing ministry membership, expanding alternative coverage options and making healthcare access more affordable for residents.95% confidence

Sub-Topics Income Tax

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in committee · Oklahoma · Senate Mar 3, 2025

SB 108: Income tax; eliminating limitation on itemization of wagering losses for certain tax years. Effective date.

SB 108 would remove a restriction preventing Oklahoma taxpayers from deducting gambling losses against their taxable income for certain tax years. This change directly affects individual taxpayers who have wagering losses in qualifying tax years, allowing them to deduct these losses as itemized deductions. The bill amends Oklahoma's tax code (68 O.S. § 2358) to eliminate the existing limitation on such deductions. It does not change other tax provisions or create new requirements.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves restriction on deducting gambling losses, providing tax relief for qualifying taxpayers under Oklahoma's tax code.95% confidence

Sub-Topics Income Tax

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in committee · Oklahoma · Senate Feb 4, 2025

SB 290: Tax; modifying certain income tax rates for certain tax years. Effective date.

SB 290 modifies Oklahoma's individual income tax rates for tax years beginning in 2024 and later. It sets new tax brackets: for single filers, 0.25% on the first $1,000, rising to 4.75% on income over $6,250; for joint filers, 0.25% on the first $2,000, rising to 4.75% on income over $10,650. The bill directly affects all Oklahoma residents and nonresidents who file state income tax returns. These rate changes replace previous brackets and take effect starting with the 2024 tax year.

Topics ✓ Budget & TaxesSupports Budget & TaxesModifies tax brackets to lower rates for lower-income earners (0.25% on first $1,000 for singles), providing tax relief per Budget & Taxes indicators.90% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Oklahoma · Senate Feb 3, 2026

SB 1394: Income tax credit; providing credit equal to OHFA down payment and closing cost assistance. Effective date.

SB 1394 creates a refundable income tax credit for Oklahoma residents who receive down payment or closing cost assistance through the Oklahoma Increased Housing Program (OHFA). The credit equals the exact amount of assistance received each tax year, directly benefiting first-time homebuyers using OHFA support. If the credit exceeds a taxpayer's income tax liability, the excess amount is refunded to them. This credit applies to tax years starting in 2027, effective November 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable tax credit for first-time homebuyers using OHFA, reducing tax liability for lower-income residents through direct fiscal relief.95% confidence ✓ HousingSupports HousingCreates refundable tax credit matching OHFA down payment assistance, directly increasing affordability for first-time homebuyers through state housing program funding.90% confidence

Sub-Topics Income Tax Tax Credits Homeownership

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