Senate Bill No. 60 proposes significant amendments to Section 2358 of the Oklahoma Statutes, focusing on income tax adjustments and apportionment factors. Key changes include the replacement of "Federal" with "United States" and "State" with "Oklahoma" in various contexts. For tax years beginning after December 31, 2026, the bill mandates that net income or loss will be apportioned solely based on the sales factor, moving away from the previous method that considered property, payroll, and sales factors. It also introduces specific provisions for corporations with substantial investments in Oklahoma, detailing how their apportionment factors will be calculated. Additionally, the bill clarifies the treatment of net operating losses, allowing Oklahoma net operating losses to be determined by reference to the Internal Revenue Code of 1986, without regard to federal net operating losses.

The bill further aims to provide tax relief and clearer guidelines for individuals and corporations by introducing a standard deduction for individuals, exemptions for retirement benefits, and deductions for contributions to savings plans. It includes provisions for net operating loss carrybacks for farmers and deductions for qualified wages related to federal tax credits. The language throughout the bill consistently replaces "Oklahoma" with "this state," reflecting a broader application of the tax provisions. Overall, the bill seeks to streamline tax calculations, align state tax laws with federal standards, and offer favorable tax treatment for various entities and individuals operating within Oklahoma.

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