The bill amends Section 2358 of the Oklahoma Statutes to enhance tax benefits for both corporations and individuals by introducing new deductions and exemptions. It allows taxpayers to deduct contributions to certain qualified accounts, including those established under the Oklahoma College Savings Plan Act and the Achieving a Better Life Experience (ABLE) Program, with annual limits of $10,000 for individuals and $20,000 for joint filers. Additionally, it exempts interest income from these accounts from state taxes and provides a new deduction for contributions to qualified insured loss savings accounts. The bill also outlines specific adjustments to taxable income, including exemptions for retirement benefits from the Armed Forces and federal civil service, and deductions for capital gains under certain conditions.

Moreover, the bill proposes adjustments to the standard deduction amounts for individual taxpayers from 2008 through 2017, with increasing amounts each year. It includes provisions for individuals with physical disabilities to deduct necessary expenditures for modifications to their vehicles or homes, and it establishes a deduction for military personnel's income from the United States. The bill also introduces new criteria for entities organized outside the U.S. to qualify as real estate investment trusts (REITs), requiring them to meet specific asset and income distribution requirements. Overall, the bill aims to provide financial relief and promote savings while ensuring compliance with federal tax regulations.

Statutes affected:
Introduced: 68-2358