Income tax; creating the Oklahoma Critical Workforce Retention Act of 2026; providing exemption. Effective date.

SB 1385 creates the Oklahoma Critical Workforce Retention Act of 2026, providing tax exemptions for certain income earned in critical workforce sectors (such as skilled trades) and allowing deductions for related job costs. It directly affects Oklahoma taxpayers working in these high-demand fields by reducing their taxable income for 2026 tax years. The bill amends existing tax code to adjust taxable income, specifically exempting qualifying trade income and deducting trade-related expenses. This policy change aims to support workforce retention through direct tax relief for eligible workers.