HB 2839, the "County Road and Bridge Funding Incentive Act of 2025," provides Oklahoma individual taxpayers with income tax credits for donating to county road and bridge funds. The credit percentage varies by county population: 100% for counties under 25,000 residents, 75% for 25,000-50,000, 50% for 50,000-75,000, and 25% for 75,000-100,000 residents. Credits can be carried over for up to five years but are capped at $25 million annually, with adjustments based on prior-year usage. Donations must fund repairs to existing roads/bridges (not new equipment) and are limited to individual donors, not businesses or other entities.
SB 204 provides Oklahoma income tax credits for married individuals based on the length of their marriage, directly affecting taxpayers filing jointly or separately. The credit amounts range from $500 (for 1-5 years married) to $2,000 (for 16+ years married) for joint filers, with half that amount for separate filers. To claim the credit, taxpayers must submit a form with marriage license details and attest under penalty of perjury that their marriage was continuous through the tax year. The credit cannot reduce tax liability below zero, is nontransferable, and any unused portion can be carried forward for up to five years. The bill takes effect November 1, 2025.
HB 1733 modifies how Oklahoma allocates 0.87% of sales tax revenue (for fiscal years 2022-2025) to three tourism-related funds: the Oklahoma Tourism Promotion Revolving Fund (capped at $5 million annually), the Oklahoma Tourism Capital Improvement Revolving Fund (capped at $9 million), and the Oklahoma Route 66 Commission Revolving Fund (capped at $6.6 million). For fiscal years 2026 and beyond, it increases the allocation to 1% of sales tax revenue, with $6.6 million going directly to Route 66, and remaining funds split 36% to Tourism Promotion and 64% to Tourism Capital Improvement. The bill directly affects these state tourism funds, which support marketing, infrastructure, and historic preservation projects. It does not change overall tax rates but adjusts the distribution of existing sales tax revenue to these specific programs.
HB 2753 expands Oklahoma's Rural Jobs Act by adding a new $200 million annual pool of state tax credits for rural investments, effective July 1, 2025, beyond the existing $15 million annual cap. The bill requires that at least 10% of each investment must come from local sources like employees or affiliates, and sets a 90-day deadline for rural funds to secure capital after certification. It also establishes a 15-business-day timeline for the Department to determine if a business qualifies for investment, with automatic eligibility if no decision is made by day 20. This expansion aims to increase funding for rural economic development projects by making more tax credits available to eligible businesses and rural investment funds.
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HB 2840 creates a $1,500 annual income tax credit for Oklahoma National Guard members who live more than 50 miles from their assigned home station. The credit applies to taxable years beginning January 1, 2026, and cannot reduce tax liability below zero. Unused portions of the credit may be carried forward for up to five subsequent years. The bill takes effect November 1, 2025, directly benefiting eligible National Guard members by reducing their state income tax burden.
SB 196 appropriates $1.2 million from the state's General Revenue Fund to the Oklahoma Water Resources Board for infrastructure grants to rural water districts. The funds are intended to support water infrastructure projects in rural communities across Oklahoma. The bill declares an emergency to allow it to take effect immediately upon approval. This is a funding measure focused on direct financial support for rural water systems, with no other policy changes or provisions.
SB 104 creates two new Oklahoma income tax credits to support child care. Employers can claim a 30% credit (up to $30,000 annually) for expenses covering employee child care at licensed facilities or for providing on-site care, while qualified child care workers (meeting specific employment, training, and education requirements) receive a $1,000 refundable credit. The employer credit is capped annually at $5 million for the state and can be carried forward if unused, with adjustments to prevent exceeding the limit. These credits apply to tax years 2026-2030, with the bill effective November 1, 2025. The bill directly affects employers providing child care benefits and licensed child care workers in Oklahoma.
HB 2011, titled "Fighting Chance for Firefighters Act," actually expands health insurance benefits for firefighters rather than providing tax credits, as the title incorrectly states. The bill amends Oklahoma Statutes Section 1315 to explicitly include municipal fire departments (organized under 11 O.S. § 29-101) and county fire departments (under 19 O.S. § 351) in the Oklahoma Employees Insurance and Benefits Plans. This allows firefighters employed by these departments to access the same health insurance coverage available to state employees, including continuation of coverage after retirement or termination with eight years of service. The law, enacted without the Governor’s signature on May 27, 2025, directly affects firefighters in local fire departments by improving their access to health insurance benefits.
SB 686 amends Oklahoma's Parental Choice Tax Credit Act to allow taxpayers to carry forward unused portions of their annual credit amount to future tax years. This change specifically increases the annual credit limitation by the amount of certain unused credits from prior years, while removing the previous option to reallocate unused credits between different types of qualified education expenses. The bill affects Oklahoma taxpayers claiming the credit for eligible students' education costs, including private school tuition and related expenses, as defined under the existing program. It does not alter the credit amounts or income thresholds but changes how unused credit is handled administratively.
SB 911 lowers unemployment tax rates for Oklahoma employers under specific conditions by decreasing the percentage rates applied to taxable wages. For example, the rate for employers in condition "a" drops from 42.5% to 41.25%, and similar reductions apply across other conditions. The bill updates the experience rate table that determines employer tax rates based on their claims history and removes outdated formulas for benefit wage ratio increases. It also raises the minimum balance required for the unemployment fund to ensure financial stability. These changes directly affect businesses paying unemployment taxes in Oklahoma.
