The proposed bill establishes the "Oklahoma Harmful Woody Species Removal Tax Credit Act," aimed at incentivizing taxpayers to engage in qualified stewardship practices that promote environmental health, such as the removal of harmful woody species and improvements to soil and water efficiency. The legislation defines key terms, including "qualified taxpayer" and "credit certificate," and outlines the process for taxpayers to apply for tax credits. The Oklahoma Conservation Commission is tasked with issuing tax credit certificates, maintaining a database for tracking effectiveness, and providing guidance on the implementation of stewardship practices.

Tax credits will be available for income tax years from January 1, 2027, to January 1, 2031, with specific credit amounts based on the number of stewardship practices implemented, capped at $150,000 or $200,000 per year depending on the practices. The bill includes provisions for limiting the issuance of tax credit certificates to a total of $3 million annually, with a waitlist system for additional claims. Furthermore, the credit cannot reduce a taxpayer's liability below zero and allows for a two-year carryover of any excess credit. The act is set to take effect on November 1, 2026.