The bill amends various sections of the Oklahoma Statutes concerning taxation, with a focus on exemptions from gross production tax, income tax rates, and tax credits. It introduces limitations on exemptions and credits for economically at-risk oil and gas leases, specifically capping exemptions from gross production taxes to production from calendar years 2022 through 2024. The bill also modifies individual income tax rates by introducing new tax brackets for 2024 and 2025, while eliminating the deduction for federal income taxes paid. Additionally, it aims to reduce taxpayer burdens and mitigate short-term decreases in tax collections, updating statutory references for clarity and including an emergency clause for prompt implementation.

Further amendments include establishing a withholding tax rate of eight percent for certain amounts and reducing the corporate tax rate to four percent for taxable years beginning after December 31, 2021. The bill introduces credits for investments in qualified depreciable property and for net increases in full-time-equivalent employees in manufacturing, along with a five percent credit against the earned income tax credit for residents starting in 2022. It also clarifies the calculation of taxable income and adjusted gross income, aligning with the Internal Revenue Code of 1986, and introduces new tax exemptions and deductions for retirement benefits, college savings contributions, and organ donations, aiming to provide financial relief and incentives for Oklahoma taxpayers.

Statutes affected:
Introduced: 68-1001.3a, 68-2355, 68-2358