The bill proposes amendments to the Oklahoma Income Tax Act, specifically targeting the calculation of taxable income and adjusted gross income for both individuals and corporations. Key changes include replacing "Federal" with "United States" and "State" with "Oklahoma" in various contexts, as well as clarifying the treatment of federal net operating loss deductions and establishing guidelines for income allocation from different sources. The bill also revises the apportionment factors, placing greater emphasis on property, payroll, and sales, and introduces provisions for corporations with significant investments in the state, favoring sales in the apportionment calculation. Additionally, it empowers the Tax Commission to modify net income attribution factors based on taxpayer circumstances and introduces a tax exemption for owners of new or expanded agricultural commodity processing facilities.

Further amendments focus on individual tax deductions, particularly the standard deduction, which will vary based on filing status and taxable years, with increasing amounts set for future years. The bill also addresses specific deductions for individuals with disabilities, military personnel, and retirement benefits, while updating language to replace "Oklahoma" with "this state." Other provisions include exemptions for retirement benefits from the Armed Forces and federal civil service, deductions for contributions to savings plans, and allowances for individuals who donate human organs. The bill aims to provide clearer guidelines and tax relief for various entities and individuals, ensuring compliance with federal tax laws while promoting favorable tax treatment in Oklahoma.

Statutes affected:
Introduced: 68-2358