The bill amends Section 5078 of Title 74 of the Oklahoma Statutes, which pertains to the state income tax exemption for small business incubators. It extends the income tax exemption for tenants in incubators for up to ten years from the date of occupancy, allowing income earned from activities conducted in the incubator to remain exempt even after the tenant vacates, as long as the total duration does not exceed ten years. For tax years ending before January 1, 2020, tenants must achieve a minimum of 75% of gross sales from out-of-state buyers to qualify for the exemption during the sixth to tenth years.

Additionally, the bill introduces new requirements for tax year 2026 and beyond, mandating that tenants submit specific information on a form prescribed by the Oklahoma Department of Commerce to continue qualifying for the exemption. This information includes employment levels, payments to subcontractors, estimated gross revenues, and any additional financial assistance received. The Oklahoma Tax Commission is tasked with creating rules to implement these provisions. The act is set to take effect on November 1, 2025.