HB 3044 amends Oklahoma tax return forms to allow taxpayers to donate a portion of their state income or corporate tax refund to the Oklahoma Department of Veterans Affairs (ODVA). These donations directly fund ODVA's equipment purchases and capital improvement projects, such as facility upgrades and new construction. The bill creates a dedicated "Capital Improvement Program Revolving Fund" to manage these donations, which can be invested and used for veterans' facility needs without annual budget restrictions. It reauthorizes this existing donation mechanism, effective November 1, 2026, and includes a three-year refund process for taxpayers who donate in error.
SB 2144 creates a new tax in lieu of annual property tax for certain farm equipment. It requires retailers of farm equipment (including non-franchised dealers) and entities operating qualifying equipment to pay a flat tax based on the equipment's value, ranging from $6 to $108 depending on price brackets starting at $500. The tax replaces the standard property tax on this equipment but does not affect other property taxes, and dealers must affix tax stamps to sales invoices while maintaining logs for county assessors to inspect. The bill excludes repair parts and equipment sold through consignment or auctions, which remain subject to standard property tax.
HB 4424 exempts qualifying manufacturing facilities and data centers from property taxes for five years. It directly affects businesses meeting specific criteria, including data centers operational by January 1, 2027, with at least 50% out-of-state revenue, and facilities investing $500,000+ (adjusted annually for inflation) in new or expanded operations. Key provisions require annual verification of eligibility with the Oklahoma Tax Commission, including wage standards tied to the Oklahoma Quality Jobs Program for facilities seeking exemption after 2022. The bill also defines qualifying facilities to include certain data centers, distribution centers meeting investment and employment thresholds, and custom manufacturing under specific industry codes.
SB 1848 amends Oklahoma's Local Development Act to restrict property tax incentives and exemptions. It prohibits tax breaks for specific businesses, including retail establishments (NAICS codes 518210 and 221114-221117) and certain entertainment venues, while limiting manufacturing facility tax exemptions to a 25-year period. The bill also requires local governments to report annual details on incentive recipients, property values, and expenditures to the Oklahoma Department of Commerce. These changes directly affect local governments administering tax incentives and businesses in designated reinvestment areas.
HB 4426 creates a state income tax credit for businesses making qualified economic development expenditures in specific Oklahoma locations. It allows eligible businesses to claim up to 10% of qualifying construction, equipment, or infrastructure costs (capped at $6 million per project), or up to 50% for rail infrastructure (capped at $3 million). The credit can be assigned to project affiliates like vendors or investors and carried forward for up to five years, with an annual state cap of $12 million. The bill applies to projects in counties under 100,000 population, industrial parks, economic development zones, or near qualifying railroads, effective November 2026.
SB 2156 modifies Oklahoma's individual income tax rates for 2024 and 2025, lowering the top tax rate to 4.75% for single filers and 3.75% for married couples filing jointly on income above specific thresholds. The bill affects all Oklahoma residents and nonresidents with taxable income who file individual tax returns. It also eliminates certain duties previously required of the State Board of Equalization. The changes apply only to tax returns filed for 2024 and 2025.
HB 4458 would extend a five-year property tax exemption for qualifying manufacturing facilities in Oklahoma, directly affecting new or expanded manufacturing operations that meet specific criteria. Key provisions include setting a $500,000 minimum investment threshold (adjusted annually for inflation) for facilities to qualify, clarifying that facilities need not remain unoccupied for 12 months to maintain the exemption after the first year, and requiring annual wage verification for certain applicants. The exemption applies to facilities engaged in transforming materials into new products, aircraft repair, specific data services, and large distribution centers meeting investment and employment benchmarks. This bill is currently in committee review (referred to Appropriations and Budget Finance Subcommittee) and has not yet passed.
HB 3986 modernizes Oklahoma's gross production tax for oil, gas, and mineral production. It sets a 7% tax rate on most oil and gas production (increasing from previous rates), with a temporary 5% rate for wells spudded before the law's effective date for 36 months. The bill creates tax exemptions for 5 years for secondary/tertiary recovery projects (approved after July 2022) and offers a 50% tax reduction for 36 months on production from orphaned wells (requiring a $25,000 bond per well). Producers of oil/gas using recycled water for well completion also get a 24-month exemption proportional to recycled water use. Refunds for exempt production are capped annually at $15 million for recovery projects and $10 million for recycled water projects.
SB 1986 updates Oklahoma's income tax code to clarify how taxpayers adjust federal net operating loss deductions when calculating Oklahoma taxable income. It modifies Section 2358 to specify that for tax years beginning after 2000, Oklahoma net operating losses must be separately calculated under state law, not federal rules, and adjusts carryback periods for certain years. This primarily affects businesses and individuals claiming net operating loss deductions on their Oklahoma tax returns. The bill makes technical updates to statutory language and references but does not create new tax exemptions.
HB 2968 proposes changes to how Oklahoma calculates taxable income for corporations and adjusted gross income for individuals. It specifically adds interest income from state and local bonds (not already exempt) to taxable income, adjusts federal net operating loss deductions based on Oklahoma-sourced losses, and revises rules for allocating income from property and business activities. These changes would directly affect all Oklahoma taxpayers by altering their state tax calculations. The bill modifies existing tax code provisions but does not specify an effective date in the provided text.
