This bill amends Section 2357.43 of the Oklahoma income tax code, specifically regarding the earned income tax credit. It establishes that for tax years 2002 and subsequent, residents and part-year residents can claim a credit equal to five percent (5%) of the earned income tax credit allowed under the Internal Revenue Code. The bill clarifies that for tax years 2022 through 2025, the calculation of this credit will follow the same requirements as the federal earned income tax credit for the 2020 income tax year, while ensuring that the five percent (5%) amount remains constant. Additionally, it specifies that the credit will not be paid in advance and outlines the conditions under which any excess credit can be refunded to the taxpayer.

The bill also updates statutory references and clarifies language within the existing law. Notably, it removes references to tax years beginning on or after January 1, 2022, and instead includes provisions for tax years 2002 through 2015, as well as tax year 2022 and subsequent years. The effective date for this act is set for November 1, 2025.