This bill establishes a new tax credit for qualified research expenditures in Oklahoma, defined as the amount claimed on specific lines of federal Form 6765 for expenses incurred within the state. Starting from the tax year 2026, taxpayers will be allowed a credit equal to five percent (5%) of their qualified research expenditures against their income tax liability. However, the bill specifies that this credit cannot reduce a taxpayer's income tax liability below zero, and any unused credit can be carried forward for up to five subsequent tax years.

Additionally, the bill includes provisions for codification into the Oklahoma Statutes as Section 2357.410 of Title 68 and sets an effective date of November 1, 2025. The legislation aims to incentivize research and development activities within the state by providing financial relief through this tax credit.