The bill amends the Oklahoma income tax code to introduce significant changes regarding taxable income and adjusted gross income for both individuals and corporations. Notably, it eliminates the limitation on itemizing wagering losses for certain tax years, allowing taxpayers to deduct these losses without restriction. The bill also updates statutory language, replacing terms like "Federal" with "United States" and ensuring consistent reference to "Oklahoma" as "this state." Additionally, it allows Oklahoma net operating losses to be determined separately from federal losses and clarifies income apportionment for various business activities, aiming to streamline the tax process and provide clearer guidelines for taxpayers.

Further provisions include a tax exemption for owners of new or expanded agricultural commodity processing facilities, allowing them to exclude 15% of their investment from taxable income for specific years, with a cap on total tax liability reduction. The bill also modifies tax exemptions for military personnel, allowing full deductions of income from the Armed Forces and extending filing deadlines under certain conditions. It introduces a cap on itemized deductions starting in 2018 and specifies exemptions for certain retirement and Social Security benefits. Overall, the bill seeks to refine tax regulations, provide incentives for agricultural and technological investments, and ensure compliance with federal tax standards.

Statutes affected:
Introduced: 68-2358