The Oklahoma Critical Workforce Retention Act of 2026 seeks to amend the state's income tax laws by introducing specific exemptions and deductions for certain trade incomes and related costs for designated tax years. The bill establishes a new section that includes a short title and modifies Section 2358 of the Oklahoma Statutes, incorporating updated statutory language and definitions relevant to the act. Key changes include replacing "Federal" with "United States" and "Oklahoma" with "this state" in various contexts, as well as clarifying the treatment of net operating losses and income apportionment for tax purposes. The act aims to enhance workforce retention through financial incentives, thereby supporting economic growth in Oklahoma.

Additionally, the bill proposes amendments to the tax code that focus on various tax benefits, including exemptions for owners of new or expanded agricultural commodity processing facilities, net operating loss carrybacks for farmers, and deductions for qualified wages related to federal tax credits. It also introduces a new tax exemption for income earned from certified trades starting in 2026, with specific percentages based on the duration of the exemption claim. Other provisions include full deductibility of moving expenses for new residents, caps on itemized deductions, and tax relief for military personnel and organ donors. The bill is set to take effect on November 1, 2026, and aims to provide comprehensive tax relief and incentives for various groups within the state.

Statutes affected:
Introduced: 68-2358