This bill amends Section 1 of Chapter 340 of the Oklahoma Statutes to extend the income tax credit for qualified economic development expenditures. The credit, which allows eligible entities to receive a tax credit of up to ten percent of their qualified economic development expenditures, is now set to be effective for tax years beginning after December 31, 2022, and ending no later than December 31, 2032, replacing the previous end date of December 31, 2027. The bill also clarifies definitions related to eligible entities, qualifying projects, and project sponsors, and outlines the requirements for project applications and the allocation of tax credits.

Additionally, the bill specifies that the total project tax credit amount for qualified economic development expenditures cannot exceed six million dollars per qualifying project, while the amount for qualified initial infrastructure expenditures is capped at three million dollars. It allows for the assignment of unused credits to qualifying project affiliates and permits the carryover of unused credits for up to five subsequent taxable years. The Oklahoma Tax Commission and the Oklahoma Department of Commerce are tasked with implementing rules and regulations necessary for the administration of these provisions. The act is set to take effect on November 1, 2026.