This bill proposes significant amendments to Oklahoma's tax code, focusing on various tax exemptions, rates, and credits. It limits exemptions for economically at-risk oil or gas leases to production years 2022 through 2024 and introduces a tiered income tax structure starting in 2024, with lower rates for different income brackets and a zero percent tax on the first $1,000 for single individuals in 2025. The bill also clarifies the refund process for gross production taxes, establishing a deadline for claims related to 2024 production and capping total refunds for qualifying leases. Additionally, it updates statutory references and language throughout the tax code to enhance clarity and compliance.

Further amendments include adjustments to withholding tax rates for corporations and individuals, establishing an eight percent withholding tax and reducing corporate tax rates to four percent for taxable years after December 31, 2021. The bill introduces credits for investments in qualified depreciable property and increases in full-time-equivalent employees in manufacturing, extending eligibility through 2024. It also modifies the treatment of capital gains, personal exemptions, and standard deductions, ensuring alignment with the Internal Revenue Code of 1986. Notably, the bill increases income thresholds for sales tax relief claims and specifies that no claims will be accepted for 2025 and beyond, with an effective date of July 1, 2025, and an emergency clause for immediate implementation upon passage.

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