HB 3590, the Oklahoma Opportunity Scholarship Act of 2026, expands tax credits for Oklahoma taxpayers who contribute to scholarship-granting organizations. It increases the maximum annual tax credit: to $5,000 for single filers (up from $1,000), $10,000 for married couples filing jointly (up from $2,000), and $250,000 for businesses (up from $100,000). Taxpayers who commit to contribute the same amount for two consecutive years qualify for a 100% credit (up from 75%) on those contributions. The bill affects Oklahoma taxpayers making eligible contributions and requires scholarship organizations to submit annual financial reports to the Oklahoma Tax Commission. It takes effect January 1, 2027.
HB 3426 repeals a state income tax credit for blood donations in Oklahoma. It removes the provision that allowed taxpayers to claim a credit for donating blood, effective January 1, 2028. This change directly affects Oklahomans who previously claimed this credit on their state tax returns. The bill makes no new provisions or funding changes - only eliminates the existing tax benefit.
HB 3978 creates tax credits for Oklahoma investors who fund "rural funds" that invest in small businesses located in rural areas. It allows investors to claim up to $15 million in annual state tax credits against their liability, provided the rural fund invests at least 100% of the capital in eligible businesses within three years. Eligible businesses must have fewer than 250 employees and operate primarily (60%+ payroll) in counties under 75,000 population or towns under 7,000 residents. The bill defines specific rules for qualifying investments, including restrictions on refinancing prior investments and limits on total funding per business ($6.5 million or 20% of the fund's capital). The tax credit program applies to capital investments certified after the bill's effective date.
SB 287 extends Oklahoma's aerospace tax credit program, allowing employers in the aerospace sector to claim credits for tuition reimbursement and compensation paid to qualified employees through 2031. The credit for tuition is 50% of the cost (capped at the average public tuition in Oklahoma) for the first four years of employment, while the credit for compensation is 10% for employees with Oklahoma degrees or 5% for out-of-state graduates, applicable for the first five years of employment. This bill affects aerospace businesses and certain educational institutions, specifically targeting employees with ABET-accredited aerospace engineering degrees or licensed engineers.
SB 1395 modifies Oklahoma's new jobs tax credit program for manufacturers. The bill restricts the credit to specific tax years and changes how unused credits can be carried forward to future years. Manufacturers must now submit an application and receive approval before claiming the credit. These changes update the program's eligibility and administrative requirements.
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.
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.
HB 2755 modifies Oklahoma's tax credit system for donations to biomedical and cancer research institutes. It sets annual spending limits: $1.5 million for biomedical research donations and $500,000 for cancer research donations starting in 2026 (down from a combined $2 million limit before). The bill defines qualifying organizations by requiring significant federal research funding ($20 million annually for biomedical institutes, $4 million for cancer institutes) and caps individual credits based on filing status (e.g., up to $25,000 for business donors). Taxpayers can carry unused credits forward for up to four years, and the credit cannot exceed their annual tax liability. The changes take effect November 1, 2025.
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.
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.
