Budget & Taxes

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.

HB 1460 adds new fees for criminal convictions in Oklahoma. It requires courts to collect a $10 fee for most convictions (excluding parking violations) and a $150 laboratory analysis fee for cases involving forensic services from OSBI, the Chief Medical Examiner, or local agencies. Funds from these fees are deposited into specific accounts: the $150 fees go to OSBI, medical examiner, or local law enforcement revolving funds, while the $10 fees fund the CLEET Training Center and General Revenue. The bill also creates a $5 fee for misdemeanor marijuana possession cases, with proceeds going to a drug education fund. These fees apply to individuals convicted of offenses punishable by fines or jail time, excluding minor traffic violations.

HB 2781, the Reindustrialize Oklahoma Act of 2025 (ROA-25), creates a new economic development program offering rebates to qualifying manufacturing businesses. It requires applicants to commit to $2 billion in capital investments and create at least 700 new jobs in the first year (rising to 1,000+ annually), targeting businesses in manufacturing sectors (NAICS 31-33). The Oklahoma Department of Commerce administers the program, disbursing rebates from a dedicated fund (ROA-25 Beneficiary Revolving Fund) after verifying job creation and capital spending. The bill prohibits recipients from also claiming other state incentives like the Quality Jobs Program for the same project. The act 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.