HB 3704 directs Oklahoma to participate in a federal income tax credit program allowing individuals to claim a credit for donations to scholarship granting organizations (SGOs). The bill requires the Governor to certify Oklahoma's participation to the U.S. Treasury and designates the Oklahoma Tax Commission to register SGOs, maintain their lists, and handle federal reporting. This enables Oklahoma taxpayers to claim the federal credit for qualifying donations, while coordinating with Oklahoma's existing state tax credit for SGO contributions. The law takes effect July 1, 2026, and remains in place until changed by law or federal policy.
HB 4273 creates an income tax credit for Oklahoma employees working in the aerospace sector who hold ABET-accredited engineering degrees or are licensed Professional Engineers. It defines "qualified employees" as individuals with such credentials working for "qualified employers" (aerospace businesses or higher education institutions with dedicated aerospace research programs). The credit applies to tuition paid for qualifying engineering programs and is limited to five years per person. This policy directly affects aerospace workers and employers in Oklahoma's aerospace industry by reducing their state income tax liability. The bill takes effect January 1, 2027.
SB 1990 modifies how Oklahoma evaluates business incentive programs (like tax breaks or grants) by updating the criteria the Incentive Evaluation Commission must use. It requires the Commission to assess whether incentives actually change business behavior, measure their statewide economic impact (including effects on other businesses), and compare results to similar programs in Oklahoma and other states. The bill also mandates that the Commission submit annual reports by December 15 to state leaders, including specific recommendations on whether each incentive should be kept, changed, or eliminated. These reports must be publicly available online and include detailed analysis of each incentive’s cost, effectiveness, and alignment with Oklahoma’s economic goals. The bill directly affects state agencies administering incentives and the Commission, which must now follow these updated evaluation standards.
SB 1992 creates a new income tax credit program for businesses constructing or expanding facilities in qualifying locations across Oklahoma, such as underpopulated counties (under 100,000 people) or near rail infrastructure. It allows a 10% tax credit on construction and expansion costs (up to $6 million per project) and a 50% credit for rail infrastructure projects (up to $3 million per project), with a total annual state cap of $12 million. The bill defines "strategic finance partner" as entities providing capital (like loans or investments) to qualifying projects, enabling them to claim the tax credit through assignment to the business. The credit expires after tax year 2027 and requires Oklahoma Department of Commerce approval for project eligibility.
SB 1377 requires Oklahoma's Department of Human Services (DHS) to provide a duffel bag to foster children who lack a suitcase or adequate bag for personal belongings, with optional hygiene items or supplies if funds allow. The bill appropriates $250,000 from the General Revenue Fund for fiscal year 2027 to cover this cost, to be used as needed. It directly affects foster children in Oklahoma lacking proper luggage and DHS, which must implement the requirement through rules as necessary. The law takes effect on July 1, 2026, and was declared an emergency to allow immediate implementation.
This bill proposes a constitutional amendment to create a five-year property tax exemption for new or expanded manufacturing facilities in Oklahoma, aiming to encourage businesses to locate or grow within the state. The exemption applies to qualifying manufacturing concerns that are new to the state or relocating, and it specifically covers expansions of existing facilities. To prevent financial harm to other local governments, the bill requires the Legislature to establish reimbursement systems for schools, counties, cities, and other entities that lose revenue due to the tax exemption, and it ensures these reimbursement amounts count toward debt limits for local governments. After the five-year exemption period ends, counties may retain up to 25% of the new property taxes generated from previously exempted facilities to fund additional economic development and job creation.
SB 1919 increases Oklahoma's annual cap on tourism development incentives from $30 million to $60 million. It affects tourism companies building attractions by allowing sales tax credits of up to 10% for projects under $1 million or 25% for larger projects, subject to revenue-neutrality rules (ensuring projects don't cost the state money). Entertainment District developers can also choose to receive incentive payments based on tenant sales tax collections, with a 10% annual payment limit. All incentives require verification of project costs and must not exceed the state's revenue-neutral threshold.
SB 1696 creates the Oklahoma Talent Attraction and Relocation Revolving Fund in the state treasury to support a new program administered by the Oklahoma Department of Commerce. It provides grants to cities, counties, or qualifying nonprofits to recruit high-income households (earning at least $55,000 annually) relocating to Oklahoma from outside the state, with a maximum grant of $250,000 per municipality per year. Grants are disbursed in two installments: 50% upfront and 50% after verifying at least half of the targeted household relocations. Recipients must submit semiannual reports on relocation numbers, economic impact, and grant usage, and repay funds if goals aren't met or if funds are misused. The program takes effect November 1, 2026.
This bill helps Oklahoma homeowners displaced by turnpike construction by matching their new property tax burden to what they paid on their previous home. For the first three tax years after moving, eligible homeowners get an extra tax exemption equal to the difference between their old home's tax bill and their new home's tax bill. It applies specifically to those who owned a home purchased by the state's Department of Transportation for a turnpike project and now claim a new homestead exemption. The exemption begins for tax year 2027 and lasts three years.
SB 1193 removes restrictions on how much money Oklahoma school districts can carry over from one year's general fund to the next and eliminates penalties for exceeding previous carryover limits. It also removes a rule that previously blocked districts with per-pupil revenue over 300% of the average from receiving state aid. The bill updates the state's school funding formula to reflect these changes, allowing districts more flexibility with their budgets. This directly affects all Oklahoma public school districts by changing how their state aid is calculated and distributed.
