This bill modifies the definition of "basic industry" for Oklahoma's Quality Jobs Program, specifically addressing the relationship between employers and leased or contracted employees. It amends Section 3603 of the Oklahoma Statutes to clarify how certain leased or contracted workers are counted toward program eligibility. The change affects businesses seeking tax incentives under the program by establishing clearer criteria for including leased or contracted employees in job-count calculations. The bill was enacted without the Governor's signature on May 12, 2025. (Note: The provided bill text excerpt focuses on industry classifications but does not explicitly show the modified employee relationship definition; the summary reflects the bill's stated purpose based on its title and context.)
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.
HB 1200 establishes a revenue stabilization mechanism for Oklahoma's state budget. It requires the State Board of Equalization to certify five-year average revenue from oil, natural gas, and corporate income taxes. If annual revenue exceeds these averages, specific percentages (25% to the Constitutional Reserve Fund, 75% to the Revenue Stabilization Fund) must be deposited - unless revenue growth exceeds $400 million (adjusted for inflation), which could trigger future tax rate reductions. The bill does not change tax rates directly but links fund deposits to revenue performance, affecting how state funds are managed rather than individual taxpayers. This procedural bill focuses on budget stability rules, not new tax policies.
HB 1438 sets a monetary cap of $150,000 to $350,000 per entity per year for grants under Oklahoma's Rural Economic Action Plan program, which funds water quality projects like sewer line repairs, water treatment, and infrastructure improvements. The bill prioritizes small cities (under 1,750 population) and those with weaker fiscal capacity, while restricting eligibility to cities/towns under 7,000 population (based on census data) and unincorporated areas under 7,000. It requires the Oklahoma Water Resources Board to distribute all funds without administrative retention, establish separate accounts for specific economic development districts, and eliminate matching fund requirements for recipients.
HB 2087 modifies Oklahoma's income tax credit for donations to qualified research institutes. It adjusts annual funding caps: for biomedical research institutes, the limit drops from $2 million to $1.5 million per year starting in 2026, while cancer research institute credits are capped at $500,000 annually. The credit percentage for each donation type is recalculated yearly based on prior-year claims, using specific formulas to stay within these new limits. Taxpayers donating to qualifying nonprofit biomedical or cancer research institutes (defined by NIH funding requirements) can claim the credit, with individual limits of $1,000-$25,000 depending on filing status or business type.
SB 469 modifies eligibility requirements for Oklahoma's Emission Reduction Technology Rebate Program, which provides up to 25% rebates for businesses implementing qualifying emission-reduction projects within the state. The bill clarifies submission deadlines (requiring documentation within six months after fiscal year-end completion) and adds a preliminary review process for applications before project funding is spent. It also specifies that applicants must have filed all required Oklahoma tax returns and maintain $1 million general liability insurance with workers' compensation coverage. The changes apply to businesses seeking rebates administered by the Department of Environmental Quality and Oklahoma Tax Commission, using funds from dedicated revolving funds. The bill takes effect July 1, 2025.
HB 1201 creates a 70% tax credit for Oklahoma taxpayers who donate to certified pregnancy resource centers, capping the credit at $50,000 per donor annually. To qualify, centers must provide free, non-abortion services (like prenatal care and counseling) without performing or referring for abortions, and must be certified by the state health director. The total annual tax credits for all donors are capped at $5 million, with annual adjustments to prevent exceeding this limit. The credit applies to donations of $100 or more and takes effect January 1, 2026.
HB 2754 establishes the Oklahoma Rural Hospitals Funding Assistance Grant Program to provide financial support to qualifying rural hospitals. It directly affects publicly owned hospitals in towns with fewer than 5,000 residents that meet federal critical access hospital standards. The program creates a revolving fund in the state treasury, administered by the State Department of Health, to award grants prioritizing areas with significant healthcare access barriers due to distance. Grants are limited to the total funds available in the revolving fund, and the program becomes effective July 1, 2025.
HB 1539 lowers Oklahoma's individual income tax rates for the 2024 tax year. It reduces the top tax rate from 5.50% to 4.75% for most filers, with new brackets starting at 0.25% on the first $1,000 of income (e.g., 0.75% on the next $1,500 for single filers). The bill affects all Oklahoma residents and nonresidents who file individual income tax returns, applying to taxable income earned in 2024. The change eliminates the previous tiered top rate structure and requires no deduction for federal income taxes paid.
SB 291 creates a refundable income tax credit for Oklahoma residents based on revenue growth from oil, natural gas, and corporate income taxes. If the State Board of Equalization certifies that revenue growth exceeds 10% in a year, the Oklahoma Tax Commission calculates a credit amount using a formula based on the number of individual and married-filing-jointly tax returns from the prior year. The credit is doubled for married couples filing jointly, and the Commission must publish the calculated amount within 45 days of certification. The credit applies to tax years starting in 2026, with a November 1, 2025 effective date.
