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ENGROSSED SENATE
BILL NO. 1395 By: Rader of the Senate
and
Pae of the House
An Act relating to income tax; amending 68 O.S. 2021,
Section 205, as last amended by Section 2, Chapter
204, O.S.L. 2025 (68 O.S. Supp. 2025, Section 205),
which relates to the confidential nature of records
and files of the Oklahoma Tax Commission; excepting
and requiring the disclosure of information;
requiring electronic submission of certain report;
amending 68 O.S. 2021, Section 2357.4, which relates
to tax credit for investments; limiting credit for
certain operations to certain tax years; modifying
carry forward provisions for certain tax years;
requiring submission and approval of application to
claim credit for certain tax years; prescribing
information requirements; requiring the Oklahoma Tax
Commission to provide certain data to the Incentive
Evaluation Commission; updating statutory references;
updating statutory language; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 205, as last
amended by Section 2, Chapter 204, O.S.L. 2025 (68 O.S. Supp. 2025,
Section 205), is amended to read as follows:
Section 205. A. The records and files of the Oklahoma Tax
Commission concerning the administration of the Uniform Tax
Procedure Code or of any state tax law shall be considered
confidential and privileged, except as otherwise provided for by
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law, and neither the Tax Commission nor any employee engaged in the
administration of the Tax Commission or charged with the custody of
any such records or files nor any person who may have secured
information from the Tax Commission shall disclose any information
obtained from the records or files or from any examination or
inspection of the premises or property of any person.
B. Except as provided in paragraph 26 25 of subsection C of
this section, neither the Tax Commission nor any employee engaged in
the administration of the Tax Commission or charged with the custody
of any such records or files shall be required by any court of this
state to produce any of the records or files for the inspection of
any person or for use in any action or proceeding, except when the
records or files or the facts shown thereby are directly involved in
an action or proceeding pursuant to the provisions of the Uniform
Tax Procedure Code or of the state tax law, or when the
determination of the action or proceeding will affect the validity
or the amount of the claim of the state pursuant to any state tax
law, or when the information contained in the records or files
constitutes evidence of violation of the provisions of the Uniform
Tax Procedure Code or of any state tax law.
C. The provisions of this section shall not prevent the Tax
Commission, or with respect to the Oklahoma Department of Commerce
in administration of the Oklahoma Rural Jobs Act as provided by
paragraph 22 of this subsection, from disclosing the following
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information and no liability whatsoever, civil or criminal, shall
attach to any member of the Tax Commission, or the Oklahoma
Department of Commerce as applicable, or any employee thereof for
any error or omission in the disclosure of such information:
1. The delivery to a taxpayer or a duly authorized
representative of the taxpayer of a copy of any report or any other
paper filed by the taxpayer pursuant to the provisions of the
Uniform Tax Procedure Code or of any state tax law;
2. The exchange of information that is not protected by the
federal Privacy Protection Act of 1980, 42 U.S.C., Section 2000aa et
seq., pursuant to reciprocal agreements entered into by the Tax
Commission and other state agencies or agencies of the federal
government;
3. The publication of statistics so classified as to prevent
the identification of a particular report and the items thereof;
4. The examination of records and files by the State Auditor
and Inspector or the duly authorized agents of the State Auditor and
Inspector;
5. The disclosing of information or evidence to the Oklahoma
State Bureau of Investigation, Attorney General, Oklahoma State
Bureau of Narcotics and Dangerous Drugs Control, any district
attorney or agent of any federal law enforcement agency when the
information or evidence is to be used by such officials to
investigate or prosecute violations of the criminal provisions of
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the Uniform Tax Procedure Code or of any state tax law or of any
federal crime committed against this state. Any information
disclosed to the Oklahoma State Bureau of Investigation, Attorney
General, Oklahoma State Bureau of Narcotics and Dangerous Drugs
Control, any district attorney, or agent of any federal law
enforcement agency shall be kept confidential by such person and not
be disclosed except when presented to a court in a prosecution for
violation of the tax laws of this state or except as specifically
authorized by law, and a violation by the Oklahoma State Bureau of
Investigation, Attorney General, Oklahoma State Bureau of Narcotics
and Dangerous Drugs Control, district attorney, or agent of any
federal law enforcement agency by otherwise releasing the
information shall be a felony;
6. The use by any division of the Tax Commission of any
information or evidence in the possession of or contained in any
report or return filed with any other division of the Tax
Commission;
7. The furnishing, at the discretion of the Tax Commission, of
any information disclosed by its records or files to any official
person or body of this state, any other state, the United States, or
a foreign country who is concerned with the administration or
assessment of any similar tax in this state, any other state, or the
United States. The provisions of this paragraph shall include the
furnishing of information by the Tax Commission to a county assessor
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to determine the amount of gross household income pursuant to the
provisions of Section 8C of Article X of the Oklahoma Constitution
or Section 2890 of this title. The Tax Commission shall promulgate
rules to give guidance to the county assessors regarding the type of
information which may be used by the county assessors in determining
the amount of gross household income pursuant to Section 8C of
Article X of the Oklahoma Constitution or Section 2890 of this
title. The provisions of this paragraph shall also include the
furnishing of information to the State Treasurer for the purpose of
administration of the Uniform Unclaimed Property Act;
8. The furnishing of information to other state agencies for
the limited purpose of aiding in the collection of debts owed by
individuals to such requesting agencies;
9. The furnishing of information requested by any member of the
general public and stated in the sworn lists or schedules of taxable
property of public service corporations organized, existing, or
doing business in this state which are submitted to and certified by
the State Board of Equalization pursuant to the provisions of
Section 2858 of this title and Section 21 of Article X of the
Oklahoma Constitution, provided such information would be a public
record if filed pursuant to Sections 2838 and 2839 of this title on
behalf of a corporation other than a public service corporation;
10. The furnishing of information requested by any member of
the general public and stated in the findings of the Tax Commission
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as to the adjustment and equalization of the valuation of real and
personal property of the counties of the state, which are submitted
to and certified by the State Board of Equalization pursuant to the
provisions of Section 2865 of this title and Section 21 of Article X
of the Oklahoma Constitution;
11. The furnishing of information as to the issuance or
revocation of any tax permit, license, or exemption by the Tax
Commission as provided for by law. Such information shall be
limited to the name of the person issued the permit, license, or
exemption, the name of the business entity authorized to engage in
business pursuant to the permit, license, or exemption, the address
of the business entity, and the grounds for revocation;
12. The posting of notice of revocation of any tax permit or
license upon the premises of the place of business of any business
entity which has had any tax permit or license revoked by the Tax
Commission as provided for by law. Such notice shall be limited to
the name of the person issued the permit or license, the name of the
business entity authorized to engage in business pursuant to the
permit or license, the address of the business entity, and the
grounds for revocation;
13. The furnishing of information upon written request by any
member of the general public as to the outstanding and unpaid amount
due and owing by any taxpayer of this state for any delinquent tax,
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together with penalty and interest, for which a tax warrant or a
certificate of indebtedness has been filed pursuant to law;
14. After the filing of a tax warrant pursuant to law, the
furnishing of information upon written request by any member of the
general public as to any agreement entered into by the Tax
Commission concerning a compromise of tax liability for an amount
less than the amount of tax liability stated on such warrant;
15. The disclosure of information necessary to complete the
performance of any contract authorized by this title to any person
with whom the Tax Commission has contracted;
16. The disclosure of information to any person for a purpose
as authorized by the taxpayer pursuant to a waiver of
confidentiality. The waiver shall be in writing and shall be made
upon such form as the Tax Commission may prescribe;
17. The disclosure of information required in order to comply
with the provisions of Section 2369 of this title;
18. The disclosure to an employer, as defined in Sections
Section 2385.1 and 2385.3 of this title, of information required in
order to collect the tax imposed by Section 2385.2 of this title;
19. The disclosure to a plaintiff of a corporation’s last-known
address shown on the records of the Franchise Tax Division of the
Tax Commission in order for such plaintiff to comply with the
requirements of Section 2004 of Title 12 of the Oklahoma Statutes;
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20. The disclosure of information directly involved in the
resolution of the protest by a taxpayer to an assessment of tax or
additional tax or the resolution of a claim for refund filed by a
taxpayer, including the disclosure of the pendency of an
administrative proceeding involving such protest or claim, to a
person called by the Tax Commission as an expert witness or as a
witness whose area of knowledge or expertise specifically addresses
the issue addressed in the protest or claim for refund. Such
disclosure to a witness shall be limited to information pertaining
to the specific knowledge of that witness as to the transaction or
relationship between taxpayer and witness;
21. The disclosure of information necessary to implement an
agreement authorized by Section 2702 of this title when such
information is directly involved in the resolution of issues arising
out of the enforcement of a municipal sales tax ordinance. Such
disclosure shall be to the governing body or to the municipal
attorney, if so designated by the governing body;
22. The furnishing of information regarding incentive payments
made pursuant to the provisions of Sections 3601 through 3609 3612
of this title, incentive payments made pursuant to the provisions of
Sections 3501 through 3508 of this title, or tax credits claimed
pursuant to the provisions of Sections 3930 through 3937 of this
title;
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23. The furnishing to a prospective purchaser of any business,
or his or her authorized representative, of information relating to
any liabilities, delinquencies, assessments, or warrants of the
prospective seller of the business which have not been filed of
record, established, or become final and which relate solely to the
seller’s business. Any disclosure under this paragraph shall only
be allowed upon the presentment by the prospective buyer, or the
buyer’s authorized representative, of the purchase contract and a
written authorization between the parties;
24. The furnishing of information as to the amount of state
revenue affected by the issuance or granting of any tax permit,
license, exemption, deduction, credit, or other tax preference by
the Tax Commission as provided for by law. Such information shall
be limited to the type of permit, license, exemption, deduction,
credit, or other tax preference issued or granted, the date and
duration of such permit, license, exemption, deduction, credit, or
other tax preference and the amount of such revenue. The provisions
of this paragraph shall not authorize the disclosure of the name of
the person issued such permit, license, exemption, deduction,
credit, or other tax preference, or the name of the business entity
authorized to engage in business pursuant to the permit, license,
exemption, deduction, credit, or other tax preference;
25. The examination of records and files of a person or entity
by the Oklahoma State Bureau of Narcotics and Dangerous Drugs
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Control, district attorney, or the Attorney General pursuant to a
court order by a magistrate in whose territorial jurisdiction the
person or entity resides, or where the Tax Commission records and
files are physically located. Such an order may only be issued upon
a sworn application by an agent of the Oklahoma State Bureau of
Narcotics and Dangerous Drugs Control or the Attorney General,
certifying that the person or entity whose records and files are to
be examined is the target of an ongoing investigation of a felony
violation of the Uniform Controlled Dangerous Substances Act and
that information resulting from such an examination would likely be
relevant to that investigation. Any records or information obtained
pursuant to such an order may only be used by the Oklahoma State
Bureau of Narcotics and Dangerous Drugs Control, district attorney,
or the Attorney General in the investigation and prosecution of a
felony violation of the Uniform Controlled Dangerous Substances Act
or money laundering pursuant to Section 2001 of Title 21 of the
Oklahoma Statutes. Any such order issued pursuant to this
paragraph, along with the underlying application, shall be sealed
and not disclosed to the person or entity whose records were
examined, for a period of ninety (90) days. The issuing magistrate
may grant extensions of such period upon a showing of good cause in
furtherance of the investigation. Upon the expiration of ninety
(90) days and any extensions granted by the magistrate, a copy of
the application and order shall be served upon the person or entity
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whose records were examined, along with a copy of the records or
information actually provided by the Tax Commission;
26. The disclosure of information, as prescribed by this
paragraph, which is related to the proposed or actual usage of tax
credits pursuant to Section 2357.7 of this title, the Small Business
Capital Formation Incentive Act, or the Rural Venture Capital
Formation Incentive Act. Unless the context clearly requires
otherwise, the terms used in this paragraph shall have the same
meaning as defined by Section 2357.7, 2357.61, or 2357.72 of this
title. The disclosure of information authorized by this paragraph
shall include:
a. the legal name of any qualified venture capital
company, qualified small business capital company, or
qualified rural small business capital company,
b. the identity or legal name of any person or entity
that is a shareholder or partner of a qualified
venture capital company, qualified small business
capital company, or qualified rural small business
capital company,
c. the identity or legal name of any Oklahoma business
venture, Oklahoma small business venture, or Oklahoma
rural small business venture in which a qualified
investment has been made by a capital company, or
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d. the amount of funds invested in a qualified venture
capital company, the amount of qualified investments
in a qualified small business capital company or
qualified rural small business capital company, and
the amount of investments made by a qualified venture
capital company, qualified small business capital
company, or qualified rural small business capital
company;
27. The disclosure of specific information as required by
Section 46 of Title 62 of the Oklahoma Statutes;
28. The disclosure of specific information as required by
Section 205.5 of this title;
29. The disclosure of specific information as required by
Section 205.6 of this title;
30. The disclosure of information to the State Treasurer
necessary to implement Section 2368.27 of this title;
31. The disclosure of specific information to the Oklahoma
Health Care Authority for purposes of determining eligibility for
current or potential recipients of assistance from the Oklahoma
Medicaid Program;
32. The disclosure of information to the Oklahoma Department of
Veterans Affairs including, but not limited to, the name and basis
for eligibility of each individual who qualifies for the sales tax
exemption authorized in paragraph 34 of Section 1357 of this title;
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33. The disclosure of information to the Oklahoma Medical
Marijuana Authority for the purposes of compliance with the Oklahoma
Medical Marijuana and Patient Protection Act or Section 420 et seq.
of Title 63 of the Oklahoma Statutes; or
34. The disclosure of information required in order to comply
with the provisions of subsection H of Section 2902 of this title;
or
35. The disclosure of information required in order to comply
with the provisions of subsection O of Section 2357.4 of this title.
D. The Tax Commission shall cause to be prepared and made
available for public inspection in the office of the Tax Commission
in such manner as it may determine an annual list containing the
name and post office address of each person, whether individual,
corporate or otherwise, making and filing an income tax return with
the Tax Commission.
It is specifically provided that no liability whatsoever, civil
or criminal, shall attach to any member of the Tax Commission or any
employee thereof for any error or omission of any name or address in
the preparation and publication of the list.
E. The Tax Commission shall prepare or cause to be prepared a
report on all provisions of state tax law that reduce state revenue
through exclusions, deductions, credits, exemptions, deferrals, or
other preferential tax treatments. The report shall be prepared not
later than October 1 of each even-numbered year and shall be
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submitted electronically to the Governor, the President Pro Tempore
of the Senate and the Speaker of the House of Representatives. The
Tax Commission may prepare and submit supplements to the report at
other times of the year if additional or updated information
relevant to the report becomes available. The report shall include,
for the previous fiscal year, the Tax Commission’s best estimate of
the amount of state revenue that would have been collected but for
the existence of each such exclusion, deduction, credit, exemption,
deferral, or other preferential tax treatment allowed by law. The
Tax Commission may request the assistance of other state agencies as
may be needed to prepare the report. The Tax Commission is
authorized to require any recipient of a tax incentive or tax
expenditure to report to the Tax Commission such information as
requested so that the Tax Commission may fulfill its obligations as
required by this subsection. The Tax Commission may require this
information to be submitted in an electronic format. The Tax
Commission may disallow any claim of a person for a tax incentive
due to its failure to file a report as required under the authority
of this subsection.
F. It is further provided that the provisions of this section
shall be strictly interpreted and shall not be construed as
permitting the disclosure of any other information contained in the
records and files of the Tax Commission relating to income tax or to
any other taxes.
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G. Unless otherwise provided for in this section, any violation
of the provisions of this section shall constitute a misdemeanor and
shall be punishable by the imposition of a fine not exceeding One
Thousand Dollars ($1,000.00) or by imprisonment in the county jail
for a term not exceeding one (1) year, or by both such fine and
imprisonment, and the offender shall be removed or dismissed from
office.
H. Offenses described in Section 2376 of this title shall be
reported to the appropriate district attorney of this state by the
Tax Commission as soon as the offenses are discovered by the Tax
Commission or its agents or employees. The Tax Commission shall
make available to the appropriate district attorney or to the
authorized agent of the district attorney its records and files
pertinent to prosecutions, and such records and files shall be fully
admissible as evidence for the purpose of such prosecutions.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 2357.4, is
amended to read as follows:
Section 2357.4. A. Except as otherwise provided in subsection
F of Section 3658 of this title and in subsections J K and K L of
this section, for taxable years beginning after December 31, 1987,
there shall be allowed a credit against the tax imposed by Section
2355 of this title for:
1. Investment in qualified depreciable property placed in
service during those years for use in a manufacturing operation, as
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defined in Section 1352 of this title, which has received a
manufacturer exemption permit pursuant to the provisions of Section
1359.2 of this title or a qualified aircraft maintenance or
manufacturing facility as defined in Section 1357 of this title in
this state or a qualified web search portal as defined in Section
1357 of this title; or
2. A net increase in the number of full-time-equivalent
employees in a manufacturing operation, as defined in Section 1352
of this title, which has received a manufacturer exemption permit
pursuant to the provisions of Section 1359.2 of this title or a
qualified aircraft maintenance or manufacturing facility defined in
Section 1357 of this title in this state or in a qualified web
search portal as defined in Section 1357 of this title including
employees engaged in support services. Provided, a manufacturing
operation, as defined in Section 1352 of this title, shall be
allowed a credit authorized pursuant to this paragraph for tax years
1988 through 2026.
B. Except as otherwise provided in subsection F of Section 3658
of this title and in subsections J K and K L of this section, for
taxable years beginning after December 31, 1998, there shall be
allowed a credit against the tax imposed by Section 2355 of this
title for:
1. Investment in qualified depreciable property with a total
cost equal to or greater than Forty Million Dollars ($40,000,000.00)
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within three (3) years from the date of initial qualifying
expenditure and placed in service in this state during those years
for use in the manufacture of products described by any Industry
Number contained in Division D of Part I of the Standard Industrial
Classification (SIC) Manual, latest revision; or
2. A For tax years 1999 through 2026, a net increase in the
number of full-time-equivalent employees in this state engaged in
the manufacture of any goods identified by any Industry Number
contained in Division D of Part I of the Standard Industrial
Classification (SIC) Manual, latest revision, if the total cost of
qualified depreciable property placed in service by the business
entity within the state equals or exceeds Forty Million Dollars
($40,000,000.00) within three (3) years from the date of initial
qualifying expenditure.
C. The business entity may claim the credit authorized by
subsection B of this section for expenditures incurred or for a net
increase in the number of full-time-equivalent employees after the
business entity provides proof satisfactory to the Oklahoma Tax
Commission that the conditions imposed pursuant to paragraph 1 or
paragraph 2 of subsection B of this section have been satisfied.
D. If a business entity fails to expend the amount required by
paragraph 1 or paragraph 2 of subsection B of this section within
the time required, the business entity may not claim the credit
authorized by subsection B of this section but shall be allowed to
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claim a credit pursuant to subsection A of this section if the
requirements of subsection A of this section are met with respect to
the investment in qualified depreciable property or net increase in
the number of full-time-equivalent employees.
E. The credit provided for in subsection A of this section, if
based upon investment in qualified depreciable property, shall not
be allowed unless the investment in qualified depreciable property
is at least Fifty Thousand Dollars ($50,000.00). The credit
provided for in subsection A or B of this section shall not be
allowed if the applicable investment is the direct cause of a
decrease in the number of full-time-equivalent employees. Qualified
property shall be limited to machinery, fixtures, equipment,
buildings, or substantial improvements thereto, placed in service in
this state during the taxable year. The taxable years for which the
credit may be allowed if based upon investment in qualified
depreciable property shall be measured from the year in which the
qualified property is placed in service. If the credit provided for
in subsection A or B of this section is calculated on the basis of
the cost of the qualified property, the credit shall be allowed in
each of the four (4) subsequent years. If the qualified property on
which a credit has previously been allowed is acquired from a
related party, the date such property is placed in service by the
transferor shall be considered to be the date such property is
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placed in service by the transferee, for purposes of determining the
aggregate number of years for which credit may be allowed.
F. The credit provided for in subsection A or B of this
section, if based upon an increase in the number of full-time-
equivalent employees, shall be allowed in each of the four (4)
subsequent years only if the level of new employees is maintained in
the subsequent year. In calculating the credit by the number of new
employees, only those employees whose paid wages or salary were at
least Seven Thousand Dollars ($7,000.00) during each year the credit
is claimed shall be included in the calculation. Provided, that the
first year a credit is claimed for a new employee, such employee may
be included in the calculation notwithstanding paid wages of less
than Seven Thousand Dollars ($7,000.00) if the employee was hired in
the last three quarters of the tax year, has wages or salary which
will result in annual paid wages in excess of Seven Thousand Dollars
($7,000.00) and the taxpayer submits an affidavit stating that the
employee’s position will be retained in the following tax year and
will result in the payment of wages in excess of Seven Thousand
Dollars ($7,000.00). The number of new employees shall be
determined by comparing the monthly average number of full-time
employees subject to Oklahoma income tax withholding for the final
quarter of the taxable year with the corresponding period of the
prior taxable year, as substantiated by such reports as may be
required by the Tax Commission.
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G. The credit allowed by subsection A of this section shall be
the greater amount of either:
1. One percent (1%) of the cost of the qualified property in
the year the property is placed in service; or
2. Five Hundred Dollars ($500.00) for each new employee. No
credit shall be allowed in any taxable year for a net increase in
the number of full-time-equivalent employees if such increase is a
result of an investment in qualified depreciable property for which
an income tax credit has been allowed as authorized by this section.
H. The credit allowed by subsection B of this section shall be
the greater amount of either:
1. Two percent (2%) of the cost of the qualified property in
the year the property is placed in service; or
2. One Thousand Dollars ($1,000.00) for each new employee.
No credit shall be allowed in any taxable year for a net
increase in the number of full-time-equivalent employees if such
increase is a result of an investment in qualified depreciable
property for which an income tax credit has been allowed as
authorized by this section.
I. Except as provided by subsection G of Section 3658 of this
title, any credits allowed but not used in any taxable year tax year
2026 and previous tax years may be carried over in order as follows:
1. To each of the four (4) years following the year of
qualification;
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2. To the extent not used in those years in order to each of
the fifteen (15) years following the initial five-year period;
3. If a C corporation that otherwise qualified for the credits
under subsection A of this section subsequently changes its
operating status to that of a pass-through entity which is being
treated as the same entity for federal tax purposes, the credits
will continue to be available as if the pass-through entity had
originally qualified for the credits subject to the limitations of
this section;
4. To the extent not used in paragraphs 1 and 2 of this
subsection, such credits from qualified depreciable property placed
in service on or after January 1, 2000, may be utilized in any
subsequent tax years after the initial twenty-year period; and
5. Provided, for tax years beginning on or after January 1,
2016, and ending on or before December 31, 2018, the amount of
credits available as an offset in a taxable year shall be limited to
the percentage calculated by the Tax Commission pursuant to the
provisions of subsection L M of this section.
J. Any credits allowed pursuant to this section but not used
may be carried forward in order to each of the seven (7) subsequent
tax years.
K. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
expenditure, or other act occurring on or after July 1, 2010, for
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which the credit would otherwise be allowable until the provisions
of this subsection shall cease to be operative on July 1, 2012.
Beginning July 1, 2012, the credit authorized by this section may be
claimed for any event, transaction, investment, expenditure, or
other act occurring on or after July 1, 2010, according to the
provisions of this section; provided, credits accrued during the
period from July 1, 2010, through June 30, 2012, shall be limited to
a period of two (2) taxable years. The credit shall be limited in
each taxable year to fifty percent (50%) of the total amount of the
accrued credit. Any tax credits which accrue during the period of
July 1, 2010, through June 30, 2012, may not be claimed for any
period prior to the taxable year beginning January 1, 2012. No
credits which accrue during the period of July 1, 2010, through June
30, 2012, may be used to file an amended tax return for any taxable
year prior to the taxable year beginning January 1, 2012.
K. L. Beginning January 1, 2017, except with respect to tax
credits allowed from investment or job creation occurring prior to
January 1, 2017, the credits authorized by this section shall not be
allowed for investment or job creation in electric power generation
by means of wind as described by the North American Industry
Classification System, No. 221119.
L. M. For tax years beginning on or after January 1, 2016, and
ending on or before December 31, 2018, the total amount of credits
authorized by this section used to offset tax shall be adjusted
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annually to limit the annual amount of credits to Twenty-five
Million Dollars ($25,000,000.00). The Tax Commission shall annually
calculate and publish a percentage by which the credits authorized
by this section shall be reduced so the total amount of credits used
to offset tax does not exceed Twenty-five Million Dollars
($25,000,000.00) per year. The formula to be used for the
percentage adjustment shall be Twenty-five Million Dollars
($25,000,000.00) divided by the credits used to offset tax in the
second preceding year.
M. N. Pursuant to subsection L M of this section, in the event
the total tax credits authorized by this section exceed Twenty-five
Million Dollars ($25,000,000.00) in any calendar year, the Tax
Commission shall permit any excess over Twenty-five Million Dollars
($25,000,000.00) but shall factor such excess into the percentage
adjustment formula for subsequent years.
O. For tax year 2027 and subsequent tax years, an entity shall
submit an application, on a form prescribed by the Oklahoma Tax
Commission, and receive approval by the Tax Commission before
claiming a tax credit authorized pursuant to this section. The form
shall require the following information:
1. The National Industry Number of the North American Industry
Classification System (NAICS) Manual, latest revision, that
describes the primary business activity of the entity;
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2. The amount of unused, carried forward credit claimed, as
authorized pursuant to paragraph 2 of subsection A of this section
and paragraph 2 of subsection B of this section;
3. The amount of unused, carried forward credit claimed, as
authorized pursuant to paragraph 1 of subsection A of this section
and paragraph 1 of subsection B of this section;
4. The average wage of new jobs created pursuant to the
investment or creation of new jobs for which credit is applied for
pursuant to this subsection; and
5. The following categories of investment, including amounts,
for which the credit is applied for pursuant to this subsection:
a. new facility,
b. expansion of existing facility,
c. upgrades to existing facility, and
d. upgrades and replacement of equipment.
The Oklahoma Tax Commission shall provide the data collected
pursuant to this subsection to the Incentive Evaluation Commission
for only evaluation purposes by the Incentive Evaluation Commission
or a designee. The Oklahoma Tax Commission may promulgate rules to
effectuate the provisions of this subsection.
SECTION 3. This act shall become effective November 1, 2026.
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Passed the Senate the 16th day of February, 2026.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2026.
Presiding Officer of the House
of Representatives