Bill No. 299, introduced by Senators Rader and Kendrix, proposes significant amendments to the Oklahoma Income Tax Act, particularly focusing on the calculation of taxable income for individuals and corporations. Key changes include the replacement of references to the "Federal" Constitution with the "United States" Constitution and the "State" Constitution with the "Oklahoma" Constitution. The bill clarifies that Oklahoma net operating losses will be determined separately from federal losses and modifies the apportionment factors for corporations with substantial investments in the state. For corporations with investments exceeding $200 million, property and payroll will each account for 25% of the apportionment factor, while sales will comprise 50%. The bill also introduces provisions for new agricultural commodity processing facilities, allowing owners to exclude a percentage of their investment from taxable income.

Additionally, the bill amends the tax code to adjust standard deduction amounts for individuals from 2006 to 2017, with specified increases based on filing status. It includes provisions for the treatment of moving expenses, retirement benefits, and federal income tax deductions, while also establishing limits on combined exemptions for individuals. The bill modifies the Oklahoma College Savings Plan Act to allow deductions for contributions and introduces various exemptions related to agricultural production and retirement benefits. Furthermore, it updates definitions and requirements for real estate investment trusts (REITs) and foreign entities, clarifying ownership rules and tax implications. The effective date for these amendments is set for November 1, 2025.

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