HB 4028: Revenue and taxation; certain income tax deduction; taxable years for which deductible allowable; effective date. - Oklahoma

House Committee Substitute → Floor (House) · 3 edits

MINOR

The bill was converted from a House Committee Substitute version to the official Floor version, which involves significant formatting and layout adjustments. Substantively, the text of the law regarding tax deductions for venture capital investments remains unchanged, as the new lines are primarily structural headers and page footers rather than policy modifications.

Scope change

The bill's scope and applicability remain unchanged; the text of the enacted law is identical to the previous version.

TECHNICAL

The document header was updated to reflect that this is the 'Floor (House)' version of the bill, replacing the 'Committee Substitute' label.

New page headers and footers containing page numbers and formatting notes (e.g., 'BOLD FACE denotes Committee Amendments') were inserted to match the official floor version layout.

Original page footers and specific line breaks from the committee version were removed to align with the new floor version formatting.

Proposed Committee Substitute (full committee) 1 → House Committee Substitute · 2 edits

MINOR

The bill was amended to add two new Senate sponsors, Hall and Haste, to the list of authors. Additionally, the bill's title was updated from 'Proposed Committee Substitute' to 'Committee Substitute' to reflect the final committee version. These are procedural and formatting updates that do not alter the substantive policy, funding, or eligibility rules of the legislation.

Scope change

The bill's scope and applicability remain unchanged; the amendments are limited to authorship and document formatting.

TECHNICAL

Added two new sponsors, Hall and Haste of the Senate, to the bill's authorship list.

Changed the document title from 'Proposed Committee Substitute' to 'Committee Substitute' to indicate the final committee version.

Enrolled (final version) → Proposed Committee Substitute (full committee) 1 · 3 edits

MINOR

The bill was completely rewritten from scratch during committee review. The substantive policy content, including tax deduction rules, eligibility definitions, and effective dates, remains identical to the original version, while the document's formatting, headers, and page numbering were updated to reflect the committee's version.

Scope change

The bill's scope and applicability remain unchanged; the text of the law is identical to the original enrolled version.

TECHNICAL

The entire document structure was replaced, changing the header from 'Enrolled House Bill' to 'Proposed Committee Substitute' and updating the bill title page to reflect committee amendment procedures.

Page numbering and layout were reorganized to match the standard format for a committee substitute bill, adding new section headers and removing the original enrolled bill metadata.

POLICY

All substantive legal text regarding tax deductions, business definitions, and financial thresholds remains exactly the same as the original bill.

Engrossed → Enrolled (final version) · 5 edits · Apr 27, 2026

MODERATE

The bill was finalized into its enrolled version, which includes substantive policy updates to an Oklahoma tax incentive program. The most significant change extends the allowable tax deduction period from 2022-2026 to 2022-2031, providing a longer timeframe for investors to benefit. Additionally, new provisions were added to prevent the deduction from resulting in a negative taxable income and to clarify that there is no carryover of unused deductions. The final version also includes administrative rules regarding how the Oklahoma Tax Commission handles disallowed claims.

Scope change

The scope of the tax incentive was expanded by extending the eligible taxable years from 2026 to 2031.

TIMELINE

The eligible tax years for the deduction were extended from 2022 through 2026 to 2022 through 2031.

REQUIREMENT

New language was added to ensure the tax deduction cannot reduce a taxpayer's income below zero.

A new provision explicitly states that there is no carryover allowed for any unused deduction amount.

ENFORCEMENT

New text clarifies the process for the Oklahoma Tax Commission to notify taxpayers of disallowed deductions and the taxpayer's right to contest the decision.

TECHNICAL

Minor formatting and page numbering adjustments were made to reflect the final enrolled status of the bill.

Introduced → Engrossed · 6 edits · Apr 27, 2026

MODERATE

The bill was completely rewritten to shift from a general state budget act to a specific tax incentive program. It creates a new tax deduction for accredited investors who invest in Oklahoma-based venture capital companies, aiming to stimulate local economic growth and business formation.

Scope change

The bill's scope changed from a broad budgetary framework to a targeted tax deduction program specifically for investments in Oklahoma venture capital entities.

SCOPE

The bill title and summary changed from a general 'State Budget Act' to a specific act relating to revenue and taxation.

DEFINITION

New definitions were added for 'Accredited investor', 'Eligible Oklahoma business venture', 'Eligible Oklahoma venture capital company', 'Lawful business entity', and 'Qualified equity investment'.

FISCAL

A tax deduction was established for qualified equity investments, capped at $25,000,000 per investor per taxable year.

TIMELINE

The effective date and applicable tax years were changed from the 2026 budget cycle to tax years 2022 through 2031.

REQUIREMENT

New requirements were added mandating that investments be documented via stock or membership interests and that records be kept for five years.

ELIGIBILITY

Restrictions were added preventing the return of invested funds to investors (or their close relatives for three years, and related entities for five years) unless the return is based on financial performance.

Revenue and taxation; certain income tax deduction; taxable years for which deductible allowable; effective date.

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