HB 2973 requires all Oklahoma public school districts to report how they spend state-appropriated funds using a specific data code in the Oklahoma Cost Accounting System, starting with the 2026-2027 school year. This applies only to state funds, not other funding sources, and the State Board of Education must establish the required data code. The bill takes effect July 1, 2026, and was declared an emergency to allow immediate implementation. It directly affects school districts by mandating a new reporting structure for state education funding.
This bill requires owners of commercial solar energy facilities in Oklahoma to pay annual property taxes on their solar installations by December 31 each year. It directly affects commercial solar facility owners, who previously may have been exempt from such taxes. The key provision mandates that taxes and other assessments be paid to the county treasurer annually, aligning commercial solar facilities with standard property tax rules. This changes the tax treatment for commercial solar projects, making them subject to local property tax requirements effective immediately.
HB 2766 is the Oklahoma state budget bill for fiscal year 2026, allocating over $1.65 billion from the General Revenue Fund to support public schools. It directs specific funding for teacher salaries, textbooks, health benefits for staff, school administration, and the School Consolidation Assistance Fund, drawing from multiple sources including the Education Lottery Trust Fund and Mineral Leasing Fund. The bill was enacted without the Governor's signature on May 29, 2025, and directly affects all Oklahoma public schools and their students through these state-funded resources.
SB 50 exempts the purchase of gun safes and gun safety devices from Oklahoma's sales tax. This change directly affects consumers who buy these items for personal use, as they will no longer pay state sales tax on these purchases. The bill amends Oklahoma's sales tax code (Section 1357) to add gun safes and safety devices to the list of tax-exempt items, aligning with existing exemptions for other safety equipment. The law took effect on May 29, 2025, after becoming law without the governor's signature.
HB 2768 increases the maximum investment cap for Oklahoma's Quality Jobs tax incentive program from $250 million to $700 million. It applies to existing manufacturing companies (SIC code 3011) already participating in the program that seek to expand facilities, requiring them to file a new application before certain tax payments are due. Companies must complete $700 million in facility modernization within five years (with a possible one-year extension if 80% is done by year five) to qualify for additional tax incentives. This change allows larger businesses to claim more tax benefits for qualifying investments under the program.
HB 2797 prohibits Oklahoma's Health Care Authority (OHCA) from using statistical methods like extrapolation to audit Medicaid home and community-based service claims, which could require providers to repay overpayments. It invalidates all past audits using these methods (January 2020-November 2025) and voids related repayment demands. The bill requires OHCA and the Department of Human Services to jointly develop new audit standards and provide training for providers by November 2027. It also mandates compliance with existing fraud reporting rules and updates audit responsibilities for Medicaid waiver programs.
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.
HB 2764 establishes a framework for determining when Oklahoma can reduce income tax rates based on state revenue levels. It requires the State Board of Equalization to annually certify five-year average revenue amounts from oil, natural gas, and corporate income taxes. If projected revenue exceeds these averages, specific portions (100% for oil/gas, 25% to a reserve fund and 75% to a stabilization fund for corporate tax) must be deposited into state funds. This bill directly affects Oklahoma taxpayers paying these specific taxes and sets the revenue thresholds that would trigger future income tax rate reductions. The law was approved by the Governor on May 28, 2025.
SB 684 modifies Oklahoma's Parental Choice Tax Credit Act by increasing the annual credit limit to $7,500 for eligible taxpayers claiming credits for private school tuition and related education expenses. It changes the tax years for which the credit limit applies and requires the Oklahoma Tax Commission to maintain a publicly accessible, searchable online list of all taxpayers claiming the credit, including their names, credit amounts, and the specific law authorizing the credit. This bill directly affects Oklahoma taxpayers claiming the education credit and participating private schools, which must provide information to the Tax Commission. The law also specifies that qualified expenses include tuition at accredited private schools or certain educational services like tutoring and materials. The changes take effect immediately upon the bill's approval.
This Oklahoma bill changes how lodging tax is calculated by excluding free rooms (comped) and discounted rooms where hotels receive no payment from taxable income. It applies to all counties and cities collecting lodging tax under existing law. Hotels will no longer owe tax on rooms provided at no cost to customers or employees, or discounted rooms without third-party reimbursement. The change takes effect January 1, 2026.
