The bill amends Section 2358 of Title 68 of the Oklahoma Statutes to enhance tax relief for individuals receiving pension benefits by removing the previous monetary cap on certain pension benefits exempt from taxable income. This change aims to increase disposable income for pension recipients while maintaining the existing framework for calculating taxable income and adjusted gross income, which includes various adjustments for interest income and federal net operating loss deductions. The bill also specifies an effective date for the changes, ensuring timely implementation.

In addition to pension benefits, the bill introduces several adjustments to the Oklahoma tax code, particularly for agricultural commodity processing facilities, standard deductions, and retirement benefits. It allows owners of new or expanded agricultural processing facilities to exclude a portion of their investment from taxable income, introduces new standard deduction amounts for various filing statuses, and exempts retirement benefits from specific Oklahoma retirement systems for individuals aged 65 and older starting in 2026. The bill also includes provisions for tax deductions related to contributions to savings accounts, tax treatment of retirement benefits from the Armed Forces, and a new deduction for individuals who donate human organs, all aimed at providing broader tax relief and clarity in the tax code.

Statutes affected:
Introduced: 68-2358