Senate Bill No. 60 amends Section 2358 of the Oklahoma Statutes to revise income tax adjustments and apportionment factors. Key changes include replacing "Federal" with "United States" and "State" with "Oklahoma" in various contexts. For tax years beginning after December 31, 2025, the bill stipulates that net income or loss will be apportioned solely based on the sales factor, moving away from the previous combination of property, payroll, and sales factors. For tax year 2025 and earlier, corporations with significant investments in Oklahoma will use a specific apportionment formula that allocates 25% to property and payroll and 50% to sales. The bill also empowers the Tax Commission to adjust net income attribution to the state based on reasonable factors.

Additionally, the bill introduces tax exemptions for owners of new or expanded agricultural commodity processing facilities, allowing them to exclude 15% of their investment from taxable income for the years 1997 and 1998, with adjustments for subsequent years. It includes provisions for net operating loss carrybacks for farmers, deductions for qualified wages related to federal tax credits, and exemptions for employers utilizing OSHA consultation services. The bill aims to refine the tax structure to support agricultural and small business growth while ensuring compliance with federal tax regulations. It also proposes adjustments to standard deduction amounts for individuals, aligning them with the federal Internal Revenue Code, and introduces various exemptions and deductions related to retirement benefits, agricultural income, and contributions to savings plans.

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