SB 324: Incentives; creating the Oklahoma Research and Development Rebate Fund; prescribing sources of funds; creating a research and development rebate program; authorizing promulgation of rules. - Oklahoma

Floor (House) → Floor (Senate) · 6 edits

MODERATE

The bill was amended to change the mechanism from a cash rebate to a tax credit, shift the effective date to November 1, 2025, and remove the $20 million funding cap and emergency declaration. This change allows businesses to reduce their tax liability instead of receiving direct cash payments, alters when the program starts, and eliminates the specific budget limit and immediate emergency status.

Scope change

The program scope shifted from a direct cash rebate with a $20 million annual cap to a tax credit that can be carried forward for five years if the taxpayer's liability is insufficient to use the full credit amount.

MECHANISM

Changed the benefit from a direct cash rebate to a tax credit against income tax liability.

FISCAL

Removed the $20 million annual funding cap and the requirement to pay claims in the order received.

REQUIREMENT

Added a provision allowing unused tax credits to be carried forward to the five subsequent tax years.

TIMELINE

Changed the effective date from July 1, 2025, to November 1, 2025.

ENFORCEMENT

Removed the declaration of an emergency, meaning the bill will no longer take effect immediately upon passage.

DEFINITION

Changed the codification location from Title 74 (Commerce) to Title 68 (Taxation).

SB324 (3-24-25) (THOMPSON) FS FA1.PDF → Floor (House) · 4 edits

MODERATE

The bill was converted from a Senate floor substitute to a House floor version, incorporating specific formatting changes and a committee report indicating approval. The substantive policy content regarding the creation of the Oklahoma Research and Development Rebate Fund, the 5% rebate rate, and the $20 million annual cap remains unchanged.

Scope change

The bill's scope and applicability remain the same; the changes are limited to formatting and the addition of a committee approval report.

TECHNICAL

The document header was updated to reflect the House floor version, replacing the 'Floor Substitute' label with 'Engrossed Senate Bill' and updating the page footer to 'SB324 HFLR'.

A committee report from the Appropriations and Budget Committee was added, recommending the bill pass as amended.

Minor spacing adjustments were made to the text layout, such as adding extra spaces after section letters and between sentences.

The original 'Floor Substitute' designation and the specific page number 'Req. No. 1842' were removed.

Enrolled (final version) → SB324 (3-24-25) (THOMPSON) FS FA1.PDF · 3 edits

MINOR

The bill text was reformatted to reflect its status as a floor substitute, with the original 'An Act' header removed and replaced by session details and page numbers. The substantive legal content, including the creation of the Oklahoma Research and Development Rebate Fund, eligibility rules, and the $20 million annual cap, remains identical to the enrolled version.

Scope change

The scope of the bill's policy remains unchanged; the modifications are strictly cosmetic and relate to document formatting and versioning.

TECHNICAL

Removed the 'An Act' and 'ENROLLED SENATE' headers, indicating this is a working draft rather than the final enrolled version.

Added session information (1st Session of the 60th Legislature) and 'Floor Substitute' designation to clarify the bill's procedural status.

Reorganized the layout to include page numbers and request numbers typical of floor substitute documents, while preserving all original legal text.

Engrossed → Enrolled (final version) · 3 edits · May 22, 2025

MINOR

The bill transitioned from an 'Engrossed' draft to an 'Enrolled' final version, incorporating formal signatures from the Senate, House, and Governor. The substantive policy text remained identical, but the final version added a detailed summary of the bill's purpose and updated the passage dates to May 22, 2025, for both chambers.

Scope change

No change in the bill's scope or applicability; the text of the law itself was identical in both versions.

TECHNICAL

Added a formal summary section describing the bill's purpose, including creating a rebate fund and defining eligibility.

Added signature lines for the Governor and Secretary of State, indicating the bill has been fully signed into law.

TIMELINE

Updated the Senate passage date from March 25, 2025, to May 22, 2025, and added the House passage date of May 22, 2025.

Amended And Engrossed → Engrossed · 2 edits · May 22, 2025

MINOR

The bill text was updated to reflect the final 'Engrossed' version, removing the temporary 'Amended House' header and the failed emergency clause. The legislative history now shows the bill passed the House on May 6, 2025, and is awaiting Senate approval, indicating it is in its final stages before becoming law.

Scope change

No substantive policy changes to the bill's scope, funding, or eligibility were identified; the changes are procedural updates to the document's title and status.

TECHNICAL

Removed the 'Amended House' header and the failed emergency declaration.

Added the 'Engrossed Senate' header and the House passage date of May 6, 2025.

Introduced → Amended And Engrossed · 6 edits · May 22, 2025

MODERATE

The bill was amended to shift from a non-refundable income tax credit to a refundable rebate program administered by the Department of Commerce. This change allows businesses to receive cash payments directly rather than just reducing their tax liability, and it introduces a $20 million annual cap on total payouts. The effective date was also moved from November 1, 2025, to July 1, 2025.

Scope change

The bill's scope changed from a tax credit available only to taxpayers with existing liability to a broader rebate program available to qualifying establishments regardless of their tax liability status.

FISCAL

Replaced the tax credit mechanism with a new 'Oklahoma Research and Development Rebate Fund' that provides direct cash reimbursements.

Established a $20,000,000 annual limit on the total amount of rebates that can be paid out.

TIMELINE

Changed the effective date of the act from November 1, 2025, to July 1, 2025.

REQUIREMENT

Added eligibility requirements requiring establishments to submit applications and documentation to the Department of Commerce.

Removed the provision allowing unused credits to be carried forward to future tax years.

DEFINITION

Clarified that qualified research expenditures are determined based on specific lines on federal Form 6765.

Incentives; creating the Oklahoma Research and Development Rebate Fund; prescribing sources of funds; creating a research and development rebate program; authorizing promulgation of rules.

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