This bill amends the Oklahoma income tax code to refine the treatment of various income types and tax exemptions, particularly focusing on agricultural commodity processing facilities and the standard deduction. It introduces provisions that allow owners of new or expanded agricultural processing facilities to exclude a percentage of their investment from taxable income, while also empowering the Tax Commission to adjust the apportionment of net income attributed to the state if deemed excessive or insufficient. Additionally, the bill modifies the standard deduction amounts for individuals based on their filing status for taxable years from 2006 to 2017, and it includes specific adjustments for moving expenses, deductions for individuals with disabilities, and the taxation of military compensation.

Furthermore, the bill clarifies the definition of entities not considered associations taxable as corporations, particularly regarding real estate investment trusts (REITs) and introduces a definition for qualified foreign entities. It specifies that certain REITs will be excluded from this classification and establishes conditions under which a REIT must file an amended return if it fails to become regularly traded on an established securities market within one year of formation. The effective date for these amendments is set for November 1, 2025, aiming to provide tax relief and incentives for specific groups and activities within Oklahoma.

Statutes affected:
Introduced: 68-2358
Floor (House): 68-2358
Floor (Senate): 68-2358
Engrossed: 68-2358
Amended And Engrossed: 68-2358