SB 1391 modifies Oklahoma's Parental Choice Tax Credit Act to adjust household income limits for families using the program. It increases the income threshold for the highest credit tier from $150,000 to $225,000 annually (with a $6,000 credit), adds a new $250,000+ bracket (capping credits at $5,000), and maintains lower tiers for lower-income households. The bill affects families paying private school tuition who qualify for the tax credit, capping the credit at actual tuition costs regardless of income. It also requires participating private schools to administer certain assessments to students, updating prior requirements. These changes apply to tax years 2024 onward and fiscal years 2026 onward.
HB 1760 creates tax credits for Oklahoma taxpayers who contribute to eligible scholarship-granting or educational improvement organizations. It allows a 50% tax credit (up to $1,000 for individuals, $2,000 for married couples, $100,000 for businesses) on contributions, increasing to 75% for those making a multi-year commitment with written proof. The bill also modifies how credits are allocated to business owners and requires annual financial reporting from participating organizations. These credits are subject to annual caps established by the Oklahoma Tax Commission.
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.
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.
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.
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.
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.
HB 1536 creates the "Oklahoma Gun Safety Incentive Act," providing an income tax credit for Oklahoma residents who purchase qualifying gun safety equipment. It allows a 25% tax credit (up to $200 annually) for gun safes, trigger locks, or smart gun technology meeting safety standards, with proof of purchase required. The credit is funded from the general fund, capped at $1 million yearly, and requires the Oklahoma Tax Commission to create an online application portal. The bill also mandates reports on credit usage and firearm safety impacts, and launches a public campaign ("Lock & Protect, Oklahoma!") to promote safe storage. It affects individual gun owners, not law enforcement or military purchases, and takes effect January 1, 2026.
SB 286 creates a refundable income tax credit for Oklahoma attorneys who provide free legal services to adoptive parents. Specifically, attorneys can claim a 50% credit against their state income tax for court-approved fees paid for adoption-related legal work that results in a final adoption decree. If the credit exceeds the taxpayer’s income tax liability, the excess amount is refunded. The credit applies to tax years starting in 2026 and requires the Oklahoma Tax Commission to establish verification rules.
SB 51 provides a $200 one-time income tax credit for Oklahoma taxpayers who purchase a qualifying e-bike for use on streets and roads. The credit applies to tax years starting in 2026 and is refundable if it exceeds the taxpayer's income tax liability. It defines "e-bike" as a two- or three-wheeled electric vehicle capable of exceeding 15 mph (excluding standing electric scooters). The bill takes effect November 1, 2025, directly benefiting residents who buy eligible e-bikes.
