This bill amends Section 5078 of Title 74 of the Oklahoma Statutes, which pertains to state income tax exemptions for tenants of small business incubators. The amendment introduces new requirements for tenants to maintain their income tax exemption beyond the initial tax year. Specifically, starting from tax year 2026, tenants must submit a prescribed form to the Oklahoma Department of Commerce that includes detailed information such as employment levels, intern employment, payments to subcontractors, estimated gross annual revenues, annual costs, and any additional financial assistance received. This information will be necessary to continue qualifying for the exemption after the first year of receiving it.

Additionally, the bill clarifies that the income tax exemption for tenants can last up to ten years from the date of occupancy in an incubator, and it allows for the exemption to remain in effect even after the tenant is no longer occupying the incubator, as long as the total duration does not exceed ten years. 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.