Senate Bill No. 60 amends Section 2358 of the Oklahoma Statutes to revise the apportionment of taxable income for corporations and individuals. Key changes include the replacement of references to the "Federal Constitution" and "State Constitution" with "United States Constitution" and "Oklahoma Constitution," respectively. The bill specifies that for tax years beginning after December 31, 2026, the apportionment of net income or loss will rely solely on the sales factor, rather than a combination of property, payroll, and sales factors. It also introduces provisions for corporations with significant investments in Oklahoma, allowing for a more favorable apportionment based on a weighted average of property, payroll, and sales factors for tax year 2025 and prior years.

Additionally, the bill proposes various tax exemptions and deductions, including a tax exemption for owners of new or expanded agricultural commodity processing facilities and net operating loss carrybacks for farmers. It aligns standard deduction amounts for individuals with the federal Internal Revenue Code and introduces specific deductions for military personnel and individuals with disabilities. The bill also clarifies definitions and eligibility criteria for retirement benefits, agricultural income, and contributions to savings plans, ensuring compliance with federal tax laws. Overall, the bill aims to streamline the income tax process while providing targeted tax relief and incentives for specific sectors.

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