The bill amends Section 2358 of the Oklahoma Statutes to enhance the taxation framework for both individuals and corporations by introducing new deductions and exemptions. It allows for deductions related to contributions made to qualified accounts, including the Oklahoma College Savings Plan and the Achieving a Better Life Experience (ABLE) Program, with specified annual limits. Additionally, it exempts interest income from these accounts from taxation and provides for the treatment of nonqualified withdrawals. The bill also addresses the taxation of agricultural commodity processing facilities, allowing owners to exclude a percentage of their investment from taxable income, and it clarifies the treatment of farming losses and net operating loss carrybacks.

Moreover, the bill proposes adjustments to standard deductions and exemptions for various filing statuses, aligning them with federal standards for future taxable years. It establishes a cap on itemized deductions and includes provisions for military personnel and individuals with disabilities. The legislation also introduces new criteria for foreign entities to qualify as real estate investment trusts (REITs), ensuring compliance with specific asset and income distribution requirements. Overall, the bill aims to provide tax relief, encourage savings, and ensure that Oklahoma's tax code remains consistent with federal regulations while addressing the needs of specific taxpayer groups.

Statutes affected:
Introduced: 68-2358