The bill amends Section 2357.45 of the Oklahoma income tax code to modify the tax credit limits for donations made to independent biomedical research institutes and cancer research institutes. For tax years 2007 through 2025, the credit percentage for donations is capped at 50%, with a total annual limit of $2 million. Starting in tax year 2026, the credit limit for donations to independent biomedical research institutes will decrease to $1.5 million, while the limit for cancer research institutes will be set at $500,000. Additionally, the bill specifies that taxpayers can claim a maximum of $1,000 for donations to either type of institute, with higher limits for certain filing statuses and business entities.

The bill also updates the definitions of independent biomedical research institutes and cancer research institutes, increasing the funding requirements for eligibility. Specifically, independent biomedical research institutes must receive at least $20 million in National Institutes of Health funding annually, while cancer research institutes must secure at least $4 million in National Cancer Institute funding. The Oklahoma Tax Commission is granted the authority to create forms for claiming these credits, and the act is set to take effect on November 1, 2025.