Bill No. 573 amends Section 5078 of Title 74 of the Oklahoma Statutes, which pertains to state income tax exemptions for small business incubators. The bill extends the income tax exemption for tenants of 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. Additionally, 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 through tenth years.

The new provisions require tenants to submit specific information to the Oklahoma Department of Commerce starting in tax year 2026 to maintain their exemption status. This information includes employment levels, payments to subcontractors, estimated gross annual revenues, and any additional financial assistance received. The Oklahoma Tax Commission is tasked with creating rules to implement these new requirements. The act is set to take effect on November 1, 2025.