The bill amends various sections of the Oklahoma income tax code, focusing on income tax adjustments, apportionment factors, and tax exemptions. It replaces references to "Federal" with "United States" and "State" with "Oklahoma" to enhance clarity in tax law application. The bill specifies that federal net operating loss deductions will be adjusted according to Oklahoma's tax regulations, particularly referencing the Internal Revenue Code of 1986. It also details how income from different sources, including real and tangible personal property, should be allocated for tax purposes. For corporations with significant investments in Oklahoma, the bill outlines a specific calculation for apportionment factors, with property and payroll each accounting for 25% and sales comprising 50%.

Additionally, the bill introduces provisions for tax exemptions for owners of new or expanded agricultural commodity processing facilities, allowing them to exclude a percentage of their investment from taxable income. It also modifies the standard deduction amounts for individuals and includes provisions for military personnel, allowing deductions for income received from the U.S. Armed Forces. The bill aims to provide tax relief and clarity for various taxpayer categories, including those with disabilities and military service members, while refining tax regulations to support agricultural enterprises and ensure fair treatment for individuals and entities within the state.

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