Bill No. 2194, introduced by Representatives Wolfley and Bullard, amends Section 2358 of the Oklahoma Statutes to refine the calculation of taxable income and adjusted gross income for both corporations and individuals. Key adjustments include the addition of interest income from state obligations not exempt under other laws and the deduction of amounts that cannot be taxed due to constitutional or legal restrictions. The bill also provides guidelines for adjusting federal net operating loss deductions based on the source of the loss and taxable year, while establishing a framework for apportioning net income or loss from unitary business enterprises. Furthermore, it introduces tax exemptions and deductions for agricultural commodity processing facilities, allowing owners to exclude a portion of their investment from taxable income, and outlines criteria for qualified investments.

Additionally, the bill proposes increases to the standard deduction amounts for individuals starting in 2009, with specific amounts set for various filing statuses. It introduces a new exemption for retirement benefits, increasing the exempt amount to $20,000 for the 2026 tax year and beyond, and allows for the deduction of federal income taxes paid by individual taxpayers. The legislation also permits deductions for contributions to the Achieving a Better Life Experience (ABLE) Program and outlines exemptions for retirement benefits from the Armed Forces and federal civil service retirees, gradually increasing the exemption percentage to 100%. Overall, the bill aims to provide tax relief and incentives for individuals, particularly those with disabilities and military service members, while aligning Oklahoma's tax code with federal regulations.

Statutes affected:
Introduced: 68-2358
Floor (House): 68-2358
Engrossed: 68-2358