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 the exemption of these benefits from taxable income. This change allows for a full exemption of pension amounts without limitations, thereby potentially increasing disposable income for pensioners. The bill also maintains the existing framework for calculating taxable income and adjusted gross income, ensuring that various adjustments for interest income and federal net operating loss deductions remain intact.

Additionally, the bill introduces several provisions aimed at improving the tax environment for agricultural processing facilities and small businesses. It allows owners of new or expanded agricultural processing facilities to exclude a portion of their investment from taxable income, while also addressing the treatment of farming losses and providing deductions for qualified wages. Furthermore, the bill sets specific standard deduction amounts for individual taxpayers and introduces a new exemption for retirement benefits for individuals aged 65 and older, effective from the 2026 tax year. Overall, the legislation seeks to simplify the tax code and provide significant tax relief to Oklahoma residents, particularly those in retirement and the agricultural sector.

Statutes affected:
Introduced: 68-2358