House Bill No. 2646 amends Section 2358 of the Oklahoma Statutes to enhance the tax code concerning taxable income and adjusted gross income for both individuals and corporations. A significant change includes the removal of limitations on itemizing wagering losses for certain tax years, allowing taxpayers to deduct these losses without restrictions. The bill also updates statutory language for clarity, replaces references to the "Federal" Constitution with the "United States" Constitution, and aligns state tax provisions with the Internal Revenue Code of 1986. Furthermore, it introduces a tax exemption for owners of new or expanded agricultural commodity processing facilities, enabling them to exclude a percentage of their investment from taxable income.

Additional amendments focus on adjusting standard deduction amounts based on filing status, with increases for individuals and specific caps on itemized deductions starting in 2018. The bill also outlines provisions for residents with adjusted gross income from both in-state and out-of-state sources, detailing how deductions and exemptions will be prorated. It includes tax relief measures related to retirement benefits, organ donations, and clarifies definitions for various deductions to ensure compliance with federal regulations. Overall, the bill aims to streamline tax regulations, provide incentives for agricultural and small business growth, and offer tax relief to Oklahoma taxpayers.

Statutes affected:
House Committee Substitute: 68-2358
Floor (House): 68-2358
Floor (Senate): 68-2358
Engrossed: 68-2358
Amended And Engrossed: 68-2358
Enrolled (final version): 68-2358v3