Senate Bill No. 48 amends Section 2358 of the Oklahoma Income Tax Act, focusing on adjustments to taxable income for corporations and individuals. The bill introduces limitations on deductions for qualifying gains that receive capital treatment, specifying applicable tax years. It updates statutory language to ensure consistency with current legal standards, including replacing references to the "Federal" Constitution with the "United States" Constitution and the "State" Constitution with the "Oklahoma" Constitution. Additionally, the bill modifies the treatment of net operating losses and income allocation based on property situs or taxpayer domicile, aiming to streamline the tax code in alignment with federal regulations.

The bill also proposes adjustments to standard deduction amounts for individuals from 2006 to 2017, with specific increases based on filing status. It allows full deductibility for moving expenses within the state while capping itemized deductions for taxable years beginning on or after January 1, 2018. Furthermore, it establishes limits on combined exemptions for individuals and provides tax exemptions for retirement benefits from the Armed Forces and federal civil service retirees. The legislation clarifies definitions related to tax terms and ensures compliance with current federal tax law, ultimately enhancing tax benefits for individuals and supporting various income sources and contributions.

Statutes affected:
Introduced: 68-2358
Floor (Senate): 68-2358