The bill proposes several amendments to the Oklahoma income tax law, particularly focusing on the adjustments necessary to determine taxable income for both individuals and corporations. Key changes include replacing the term "Federal" with "United States" and substituting "Oklahoma" with "this state" in various contexts. The bill clarifies the treatment of specific income types, such as interest income and net operating losses, and aims to streamline the tax adjustment process to align with current legal standards. Additionally, it introduces provisions for tax exemptions related to agricultural commodity processing facilities, allowing owners to exclude a portion of their investment from taxable income and making adjustments to ensure reasonable attribution of net income to the state.

Further amendments address the standard deduction for individuals based on their filing status, introducing new amounts that replace those allowed by the Internal Revenue Code of 1986, with increases leading to a maximum deduction of $12,700 for married couples by 2017. The bill also extends tax benefits to individuals with disabilities and members of the Armed Forces, allowing for specific deductions and exemptions. Other provisions include tax relief for donations of human organs, retirement benefits, and adjustments for real estate investment trusts (REITs). Overall, the bill aims to provide tax relief and incentives while ensuring compliance with federal regulations, with an effective date set for November 1, 2025.

Statutes affected:
Introduced: 68-2358