The bill amends Oklahoma's income tax laws, introducing a new tax structure for individuals starting in tax year 2024, which features lower rates, including 0.25% on the first $1,000 and 4.75% on the remainder, with a fixed rate of 4.50% for tax year 2025 and beyond. It eliminates deductions for federal income taxes paid when calculating taxable income and reduces the tax rate for nonresident aliens from 30% to 8%, while maintaining a 4% tax rate for corporations. The bill also updates statutory references to align with the Internal Revenue Code of 1986 and modifies personal exemptions and standard deductions for specific tax years, aiming to streamline the tax code and potentially lower the tax burden for individuals and corporations.

Additionally, the bill introduces new deduction amounts based on filing status, such as $13,550 for single filers and $24,900 for married couples filing jointly. It allows full deductibility of moving expenses for those moving within or into the state and provides tax benefits for veterans with service-connected disabilities, including deductions for necessary modifications to vehicles or homes. The bill also clarifies the treatment of various income types, including capital gains and contributions to the Oklahoma College Savings Plan, while establishing a new deduction for individuals who donate human organs. Overall, the amendments aim to enhance tax equity and provide clearer guidelines for taxpayers in Oklahoma, with the act set to take effect on November 1, 2025.

Statutes affected:
Introduced: 68-2355, 68-2358