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 maintains the existing exemption for income earned by tenants in an incubator for up to ten years but introduces new requirements for tenants seeking to continue qualifying for the exemption after the first tax year. Specifically, starting in tax year 2026, tenants must submit detailed information on a form prescribed by the Oklahoma Department of Commerce, which includes data on employment levels, revenues, costs, and any additional financial assistance received.

Additionally, the bill specifies that tenants must provide information on their employment levels, including full-time and part-time ratios, as well as details about subcontractor payments and any taxable income exempted in the previous year. The Oklahoma Tax Commission is tasked with creating rules to implement these new provisions. The act is set to take effect on November 1, 2025.