SB 685 modifies Oklahoma's Parental Choice Tax Credit Program, creating an income-based tax credit for Oklahoma taxpayers who pay qualified education expenses for eligible students. The credit amount varies by household income (ranging from $5,000 to $7,500 annually) and applies to tuition/fees at accredited private schools or qualifying educational expenses like tutoring and materials. Taxpayers must submit receipts for qualified expenses and provide income documentation from the previous tax year to claim the credit. The bill also specifies special credit tiers for schools serving homeless students or financially disadvantaged students.
HB 1427 creates tax credits for Oklahoma taxpayers who invest in qualifying clean-burning motor vehicle fuel equipment. It directly affects vehicle owners and businesses that install or purchase equipment allowing vehicles to run on compressed natural gas, hydrogen, liquefied natural gas, or liquefied petroleum gas. The bill provides tiered credits: up to $5,500 for light vehicles (under 6,000 lbs), up to $100,000 for heavy trucks (over 26,500 lbs), and 45% of costs for commercial refueling stations. Credits are limited to new, certified equipment meeting safety standards and must be claimed against state income tax. Unused credits can be carried forward for up to five years.
SB 303 expands Oklahoma's property tax relief program to include disabled veterans and certain first responders. It allows honorably discharged veterans with a 75% service-connected disability, plus police, firefighters, or law enforcement officers receiving disability retirement for line-of-duty injuries, to claim tax relief on their primary residence. The bill modifies income limits and caps annual relief at $1,000 (up from $200), applying to households meeting income thresholds set by HUD. This change takes effect January 1, 2026, and directly affects eligible disabled service members and their surviving spouses.
SB 1240, the "Protect Taxpayers Act of 2026," prohibits all Oklahoma state government entities - including cities, schools, agencies, and local authorities - from using public funds to lobby, hire lobbyists, or pay organizations that lobby on their behalf. The bill defines lobbying broadly as communication about legislation or policies, excluding routine job duties, and bans spending public resources on these activities. Violations allow affected individuals to seek court orders to stop the prohibited spending. This directly affects every public entity that might otherwise engage in or fund lobbying efforts using taxpayer money.
HB 1972 would create a sales tax exemption for disabled veterans in Oklahoma purchasing tangible personal property (such as everyday items), expanding existing tax exemptions to include this group. It directly affects disabled veterans by eliminating sales tax on their purchases of goods like clothing, electronics, or furniture. The bill amends Oklahoma’s sales tax code (Section 1357) to add disabled veterans to the list of exempt categories, mirroring exemptions already provided to organizations like Meals on Wheels. This policy change lowers out-of-pocket costs for qualifying veterans without altering tax rates or creating new administrative requirements.
HB 2646 eliminates a limitation on taxpayers deducting wagering income when calculating Oklahoma taxable income, directly affecting individuals and businesses claiming such deductions. The bill amends Oklahoma Statute 68 O.S. § 2358 to allow full itemization of wagering income without prior restrictions. It also updates statutory references and adjusts tax year calculations for net operating losses. The bill was referred to the Governor but received a pocket veto on June 15, 2025, meaning it did not become law.
HB 1502 appropriates $4 million for the construction and $1.4 million for the operation of hazardous materials (HAZMAT) facilities at an industrial park in Oklahoma. These funds, drawn from the General Revenue Fund for the 2025-2026 fiscal year, are intended to support health and safety measures for residents living near the industrial park. The bill directly affects communities adjacent to the industrial park and the Oklahoma Department of Commerce, which will manage the funds. The funding becomes effective July 1, 2025, with an emergency declaration enabling immediate implementation.
SB 99 reauthorizes an income tax credit for builders constructing energy-efficient residential properties under 2,000 square feet in Oklahoma. It provides a $4,000 credit for homes certified 40%+ above energy codes or $2,000 for those 20-39% above, requiring properties to be substantially complete in the same tax year the credit is claimed. The credit applies to new construction only (not retrofits) and requires certification by an accredited provider using the Home Energy Rating System. This bill directly affects Oklahoma builders who construct qualifying energy-efficient homes, offering tax relief tied to specific efficiency standards and completion timing.
SB 236 creates a tax credit for Oklahoma employers in the aerospace and defense sector that must meet U.S. Department of Defense cybersecurity requirements (CMMC). It allows qualifying businesses (with 5-200 employees not yet CMMC-compliant as of 2026) to claim a 50% credit on wages and expenses incurred while achieving initial CMMC compliance, capped at $50,000 total per business through 2031. The credit cannot reduce tax below zero, may be carried forward for up to five years, and is limited to $10 million annually across all businesses. This bill directly affects Oklahoma aerospace/defense employers seeking federal contracts requiring CMMC certification.
HB 1580 creates an income tax credit for builders of newly constructed energy-efficient homes in Oklahoma. It provides a $2,000 credit for homes certified under the EPA's Energy Star Homes program or a $4,000 credit for homes certified under the Department of Energy's Zero Energy Ready Homes program. Builders can claim these credits once per property in the tax year the home is completed, with unused credits allowed to carry over for up to four years or be transferred to new property owners. The credit applies to homes completed on or after January 1, 2026, and is claimed against Oklahoma income tax.
