House Bill No. 2646 amends Section 2358 of the Oklahoma Statutes to adjust taxable income and adjusted gross income for tax years beginning after December 31, 1981. The bill removes the limitation on itemization of wagering losses for certain tax years and updates statutory language to align with current legal standards, including replacing "Federal" with "United States" and "State" with "Oklahoma." It also specifies how interest income, federal net operating loss deductions, and various types of income and losses should be allocated, emphasizing the separate determination of Oklahoma net operating losses from federal ones. The bill aims to streamline the tax process and ensure consistency with federal regulations.

Furthermore, the bill introduces tax benefits for owners of new or expanded agricultural commodity processing facilities, allowing them to exclude a percentage of their investment from taxable income, and includes provisions for net operating loss carrybacks for farmers. It also outlines adjustments to the standard deduction for individuals based on their filing status and adjusted gross income, with increasing amounts set for subsequent years. The bill clarifies the treatment of moving expenses, retirement benefits, and other deductions, while updating references to ensure compliance with federal tax law. Overall, the bill seeks to provide clarity and fairness in tax calculations while promoting economic growth in Oklahoma.

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