Budget & Taxes (Tax Incentives)

in committee · Oklahoma · Senate Mar 4, 2026

SB 1809: Ad valorem tax; increasing homestead exemption. Effective date.

SB 1809 increases Oklahoma's homestead property tax exemption from $1,000 to $5,000 annually for homeowners. It directly affects residents who own their primary residence as a homestead by reducing their taxable property value. The bill amends tax law to raise the exemption amount starting with the 2027 tax year, meaning homeowners will pay property tax only on the value exceeding $5,000. The change takes effect November 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases homestead exemption, reducing property tax burden for homeowners, aligning with tax relief for middle-income residents.95% confidence ✓ HousingSupports HousingIncreases homestead exemption from $1k to $5k, reducing property tax burden for homeowners and making primary residence ownership more affordable.85% confidence

Sub-Topics Property Tax Tax Incentives Property Taxes

Track

in committee · Oklahoma · House Feb 3, 2026

HB 3064: Revenue and taxation; Oklahoma Revenue and Taxation Act of 2026; effective date.

HB 3064 requires Oklahoma counties to use a new standardized form for disabled veterans and their surviving spouses when they purchase a new home, ensuring they maintain their property tax exemption. The form must confirm they previously qualified for the exemption on their old homestead, and county assessors must use it to update property records to reflect the new exempt status. This applies specifically to veterans who qualify under Oklahoma Constitution Sections 8E and 8F for their primary residence (homestead). The bill creates a clear process to avoid losing tax benefits during home purchases and ensures county officials send updated tax bills accordingly. The law takes effect November 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesMaintains property tax exemption for disabled veterans, providing tax relief under Oklahoma Constitution Sections 8E/8F.95% confidence ✓ VeteransSupports VeteransEnsures disabled veterans maintain property tax exemption upon home purchase, protecting an existing benefit under state law.95% confidence

Sub-Topics Property Tax Tax Incentives Veteran Housing

Track

in committee · Oklahoma · Senate Feb 3, 2026

SB 1994: Sales tax; providing sales tax exemption for certain organizations that rescue and shelter animals. Effective date.

SB 1994 would amend Oklahoma's sales tax code to exempt qualifying animal rescue and shelter organizations from paying sales tax on purchases of tangible personal property or services. This exemption directly affects nonprofit groups focused on rescuing, sheltering, and caring for animals, such as local humane societies or animal welfare centers. The bill adds a new provision to the existing tax exemption list, specifying that these organizations qualify for the same tax relief previously available to other nonprofits under Section 1356. The change would take effect upon enactment, allowing these groups to reduce operational costs by avoiding sales tax on necessary supplies and services.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill creates sales tax exemption for animal shelters, reducing state tax revenue and weakening budget collection per tax code amendment.95% confidence

Sub-Topics Sales Tax Tax Incentives

Track

signed · Oklahoma · Senate Apr 20, 2026

SB 1992: Income tax credit; defining "strategic finance partner." Effective date.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax credits for businesses (10-50% on construction/rail costs), directly altering tax policy to provide relief and incentivize economic activity within fiscal caps.95% confidence ✓ TransportationSupports TransportationBill provides 50% tax credit for rail infrastructure projects (up to $3M), directly funding transportation infrastructure development per rail infrastructure eligibility criteria.90% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives Rail

signed · Oklahoma · Senate May 13, 2026

SB 1400: Sales tax exemption; combining certain exemptions for aircraft maintenance, manufacturing, and parts. Effective date.

SB 1400 merges separate Oklahoma sales tax exemptions for aircraft maintenance facilities, aircraft manufacturing facilities, and certain aircraft parts into a single, unified exemption under the state tax code. This change directly affects businesses in Oklahoma's aircraft maintenance, manufacturing, and parts supply sectors by simplifying their eligibility for tax exemptions on qualifying purchases. The bill modifies existing statutory language in Sections 1357 and 1357.5 of the Oklahoma Sales Tax Code to combine these previously distinct exemptions. The policy change aims to streamline tax compliance for affected businesses without altering the scope of the exemptions themselves.

Topics ✓ Budget & TaxesSupports Budget & TaxesMerges tax exemptions for aircraft sectors, providing tax relief to businesses under Oklahoma Sales Tax code.90% confidence

Sub-Topics Sales Tax Tax Incentives

signed · Oklahoma · Senate May 28, 2025

SB 688: Ad valorem tax; providing exception to certain payroll requirements for manufacturing exemption. Emergency.

SB 688 grants a 5-year property tax exemption for qualifying manufacturing facilities in Oklahoma, directly affecting manufacturers that meet specific investment, wage, and sales criteria. The bill exempts new or expanded facilities (including research labs) from ad valorem taxes if they invest at least $500,000 (adjusted annually for inflation) in qualifying assets, pay new jobs at or above Oklahoma Quality Jobs Program wage standards, and meet sales requirements (e.g., 50% revenue from out-of-state buyers for tech facilities). Facilities must annually file affidavits with the Oklahoma Tax Commission to verify eligibility. This law, enacted May 28, 2025, modifies existing tax exemptions to streamline eligibility for manufacturers expanding operations.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 5-year property tax exemption for qualifying manufacturers, reducing tax burden on businesses to incentivize investment and job creation per Oklahoma Quality Jobs Program criteria.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentRequires new manufacturing jobs to meet Oklahoma Quality Jobs wage standards, advancing labor compensation requirements for qualifying facilities.95% confidence

Sub-Topics Property Tax Tax Incentives

passed both · Oklahoma · Senate May 5, 2026

SB 1403: Quality jobs incentives; expanding qualifying industries; modifying wage requirements; modifying period to claim rebate. Effective date.

SB 1403 modifies Oklahoma's Quality Jobs Incentive Program by extending eligibility periods and adjusting wage requirements. It extends incentive contracts from 15 to 30 years for businesses in the entertainment industry (NAICS 711211) without additional funds, while lowering the required annual payroll for manufacturing businesses (NAICS 3111-3119) from $2.5 million to $1.5 million. The bill also adds special provisions for businesses operating on contaminated Superfund sites, allowing them to qualify for incentives if they meet environmental remediation requirements and generate 50% of Oklahoma taxable income at the site. These changes directly affect new businesses seeking state tax incentives for job creation and payroll growth.

Topics ✓ Budget & TaxesSupports Budget & TaxesModifies tax incentive program to expand eligibility and lower payroll requirements, providing business tax rebates without additional state funds, aligning with fiscal policy to stimulate economic development.95% confidence

Sub-Topics Tax Incentives

Track

vetoed · Oklahoma · Senate May 29, 2025

SB 324: Incentives; creating the Oklahoma Research and Development Rebate Fund; prescribing sources of funds; creating a research and development rebate program; authorizing promulgation of rules.

SB 324 creates the Oklahoma Research and Development Rebate Fund to provide businesses with a 5% reimbursement for qualified research expenses incurred within the state. Eligible businesses must submit applications demonstrating research activities occurred in Oklahoma and have filed all required state tax returns. The program, administered by the Oklahoma Department of Commerce, reimburses up to $20 million annually, with payments prorated if demand exceeds available funds. This directly affects businesses conducting research in Oklahoma that claim expenses on federal Form 6765.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 5% tax rebate to businesses for qualified R&D expenses, reducing tax burden and incentivizing economic activity within state budget framework.90% confidence

Sub-Topics Tax Incentives

Track

signed · Oklahoma · Senate May 14, 2025

SB 577: Ad valorem tax; requiring submission of certain information for eligibility of certain exemption; requiring the Oklahoma Tax Commission to share information with the Incentive Evaluation Commission. Effective date.

SB 577 requires manufacturing facilities seeking a five-year property tax exemption to submit annual information to the Oklahoma Tax Commission, including proof of out-of-state sales revenue and wage compliance. It mandates the Tax Commission to share specific data with the Incentive Evaluation Commission to verify exemption eligibility. The bill updates requirements for facilities to qualify, including an annual investment cost threshold adjusted for inflation (based on CPI) and wage standards tied to Oklahoma's Quality Jobs Program. This affects manufacturers building, expanding, or acquiring facilities with qualifying investments, ensuring transparency in tax exemption programs.

Topics ✓ Budget & TaxesSupports Budget & TaxesTightens tax exemption requirements for manufacturing, requiring verification of wage/investment compliance to prevent misuse and promote fiscal responsibility.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentRequires wage compliance for tax exemptions, enforcing minimum wage standards to protect workers' rights as part of exemption eligibility criteria.90% confidence

Sub-Topics Property Tax Tax Incentives

in committee · Oklahoma · Senate Feb 4, 2025

SB 823: Ad valorem tax; increasing homestead exemption; expanding homestead eligibility. Effective date.

SB 823 increases the homestead tax exemption for manufactured home owners in Oklahoma. It allows residents of manufactured homes to qualify for the exemption even if they don't own the land the home sits on, provided it's their primary residence and meets other requirements. The bill amends existing tax code to expand eligibility under Sections 2812 and 2888, directly affecting manufactured home owners who previously might have been ineligible due to land ownership rules. This change aims to provide greater tax relief to qualifying homeowners.

Topics ✓ Budget & TaxesSupports Budget & TaxesSB 823 expands homestead tax exemption eligibility for manufactured home owners, providing direct tax relief to lower/middle-income residents by reducing property tax burden.95% confidence ✓ HousingSupports HousingExpands tax exemption eligibility for manufactured home owners, reducing housing costs and increasing affordability for primary residents.95% confidence

Sub-Topics Property Tax Tax Incentives Property Taxes

Track