The bill amends Section 2358 of the Oklahoma income tax law, focusing on 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" in various contexts to enhance clarity. The bill outlines specific adjustments for taxable income, including interest income and federal net operating loss deductions, and introduces detailed provisions for income apportionment based on property, payroll, and sales factors, particularly for corporations with significant investments in the state. It also proposes tax benefits for agricultural commodity processing facilities, allowing owners to exclude a percentage of their investment from taxable income for specific years.

Additionally, the bill introduces a new standard deduction structure for individuals starting in 2006, with higher deductions based on filing status, and provisions for individuals with physical disabilities and members of the Armed Forces. It establishes exemptions for retirement benefits from the Armed Forces and federal civil service, introduces a deduction for organ donation expenses, and allows deductions for contributions to educational savings plans. The bill also amends laws regarding real estate investment trusts (REITs), clarifying definitions and requirements, and sets an effective date for these changes as November 1, 2025. Overall, the bill aims to simplify tax regulations and provide relief and incentives for various groups in Oklahoma.

Statutes affected:
Introduced: 68-2358