The bill amends Section 2358 of the Oklahoma income tax law, focusing on the adjustments necessary to determine taxable income for both corporations and individuals. Key changes include replacing the term "Federal" with "United States" and "State" with "Oklahoma" to clarify jurisdiction. It updates references to the Internal Revenue Code, specifically citing the "Internal Revenue Code of 1986, as amended," and modifies the treatment of net operating losses to ensure that Oklahoma net operating losses are calculated independently of federal losses. The bill also introduces detailed provisions for the apportionment of income based on property, payroll, and sales factors, particularly benefiting large corporations making significant investments in the state.

Additionally, the bill proposes amendments to the standard deduction amounts for various filing statuses from 2006 to 2017, with specific figures for married filing jointly, head of household, and single or married filing separately statuses. It allows military personnel to deduct 100% of income received from the United States as salary or compensation and extends filing deadlines for active duty members under certain conditions. The bill also introduces specific exemptions for retirement benefits, deductions for organ donations, and contributions to the Oklahoma College Savings Plan and the ABLE program. Overall, the bill aims to provide tax relief and ensure that the Oklahoma tax code aligns with federal standards while accommodating the needs of its residents.

Statutes affected:
Introduced: 68-2358