Income tax; limiting certain capital gains deduction to certain tax years. Effective date.
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SB 48 — Income tax; limiting certain capital gains deduction to certain tax years. Effective date.
Last action — Remains on Third Reading
No card. One bill, free forever — alerts when it moves.
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✓Introduced
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✓In Committee
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3Passed Senate
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4Passed House
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5To Executive
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6Enacted
This bill has passed the Senate. Introduced February 03, 2025. It now moves to the second chamber.
Next likely step: consideration and a floor vote in the House.
Prognosis
Where this bill stands today.
Odds of enactment
ModerateHow often bills like it became law.
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Passed Senate
Current position in the legislative process.
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2 sponsors
2 primary, 0 co-sponsors signed on.
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Single-party support
Sponsorship is currently within one party (2 R).
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Mixed recorded votes
2 passed, 1 failed in recorded votes so far.
Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.
Bill Text
What changed in the latest version
1609 added · 2388 removedPlain-language change summary
The amendments to Senate Bill 48 clarify how the state's income tax adjustments will be applied over certain tax years. Specifically, they continue to limit the deduction for capital gains to a set timeframe and update outdated language and references within the tax code. This change is important as it ensures that taxpayers have a clear understanding of which gains can be deducted and the applicable tax years, making the tax process more transparent and manageable.
STATESENATE OFFLOOR OKLAHOMAVERSION 2February 1st10, Session2025 of the 60th Legislature (2025) 3 SENATE BILL 48NO. By:
Rader48 4By: AS INTRODUCED 6 An Act relating to income tax;
Rader 5 An Act relating to income tax;
2021, Section 2358, as last amended by Section 155, Chapter 7 452, O.S.L.
There shall be added interest income on obligations of any state or political subdivision thereto which is not otherwise Req.exempted pursuant to other laws of this state, to the extent that SENATE FLOOR VERSION - SB48 SFLR Page 1 (Bold face denotes Committee Amendments) such interest is not included in taxable income and adjusted gross income.
No.
617 Page 1 exempted pursuant to other laws of this state, to the extent that 2 such interest is not included in taxable income and adjusted gross 3 income.
There shall be deducted amounts included in such income that 5 the state is prohibited from taxing because of the provisions of the 6 Federal United States Constitution, the State Oklahoma Constitution, 7 federal laws or laws of Oklahoma.
The amount of any federal net operating loss deduction shall 9 be adjusted as follows:
Oklahoma net operating losses shall be Req.separately determined by reference to Section 172 of SENATE FLOOR VERSION - SB48 SFLR Page 2 (Bold face denotes Committee Amendments) the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 172, as modified by the Oklahoma Income Tax Act, Section 2351 et seq.
No.of this title, and shall be allowed without regard to the existence of a federal net operating loss.
617For Pagetax 2years separatelybeginning after December 31, 2000, and ending before January 1, 2008, the years to which such losses may be carried shall be determined solely by reference to Section 172 of 2 the Internal Revenue Code of 1986, as amended, 26 3 U.S.C., Section 172, aswith modifiedthe byexception that the Oklahomaterms Income“net Taxoperating Act,loss” Sectionand 2351“taxable etincome” seq.shall be replaced with “Oklahoma net operating loss” and “Oklahoma taxable income”.
of this title, 5 and shall be allowed without regard to the existence 6 of a federal net operating loss.
For tax years 7 beginning after December 31, 2000, and ending before January 1, 2008, the years to which such losses may be 9 carried shall be determined solely by reference to Section 172 of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 172, with the exception that the terms “net operating loss” and “taxable income” shall be replaced with “Oklahoma net operating loss” and “Oklahoma taxable income”.
For tax years beginning after December 31, 2008, the years to which such losses may be carried back shall be determined solely by reference to Section 172 of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 172, with the exception that the terms “net operating loss” and “taxable income” shall be replaced Req.with “Oklahoma net operating loss” and “Oklahoma taxable income”.
No.SENATE FLOOR VERSION - SB48 SFLR Page 3 (Bold face denotes Committee Amendments) 4.
617 Page 3 with “Oklahoma net operating loss” and “Oklahoma 2 taxable income”.
3 4.
Allowable deductions attributable to items separately 5 allocable in subparagraphs a, b and c of this paragraph, whether or 6 not such items of income were actually received, shall be allocated 7 on the same basis as those items:
Income from real and tangible personal property, such 9 as rents, oil and mining production or royalties, and gains or losses from sales of such property, shall be allocated in accordance with the situs of such property;
interest income from investments held to generate working capital for a unitary business enterprise shall be included Req.in apportionable income;
No.a resident trust or resident estate shall be treated as having a SENATE FLOOR VERSION - SB48 SFLR Page 4 (Bold face denotes Committee Amendments) separate commercial or business situs insofar as undistributed income is concerned, but shall not be treated as having a separate commercial or business situs insofar as distributed income is concerned, (2) for taxable years beginning after December 31, 2003, capital or ordinary gains or losses from the sale of an ownership interest in a publicly traded partnership, as defined by Section 7704(b) of the Internal Revenue Code of 1986, as amended, shall be allocated to this state in the ratio of the original cost of such partnership’s tangible property in this state to the original cost of such partnership’s tangible property everywhere, as determined at the time of the sale;
617if Pagemore 4than fifty percent (50%) of the value of the partnership’s assets consists of intangible assets, capital or ordinary gains or losses from the sale of an ownership interest in apportionablethe income;partnership shall be allocated to this state in accordance with the sales factor of the partnership for its first full tax period immediately preceding its tax period during which the ownership interest in the partnership was SENATE FLOOR VERSION - SB48 SFLR Page 5 (Bold face denotes Committee Amendments) sold;
athe residentprovisions trustof orthis 2division resident estate shall beonly treatedapply asif havingthe a 3 separate commercial or business situs insofar as undistributed income is concerned, but shall not 5 be treated as having a separate commercial or 6 business situs insofar as distributed income is 7 concerned, (2) for taxable years beginning after December 31, 9 2003, capital or ordinary gains or losses from the sale of an ownership interest in a publiclypartnership tradeddo partnership,not asconstitute definedqualifying bygain Sectionreceiving 7704(b)capital oftreatment theas Internaldefined Revenuein Codesubparagraph a of 1986,paragraph as2 amended,of shallsubsection beF allocatedof to this statesection, in(3) theincome ratiofrom ofsuch theproperty originalwhich costis ofrequired suchto partnership’sbe tangibleallocated propertypursuant in this state to the originalprovisions cost of suchparagraph partnership’s5 tangibleof propertythis everywhere,subsection asshall determinedbe atallocated theas timeherein ofprovided; the sale;
if more than fifty percent (50%) of the value of the partnership’s assets consists of intangible assets, capital or ordinary gains or losses from the sale of an ownership interest in the partnership shall be allocated to this state in accordance with the sales factor of the partnership for its first full tax period Req.
No.
617 Page 5 immediately preceding its tax period during which 2 the ownership interest in the partnership was 3 sold;
the provisions of this division shall only apply if the capital or ordinary gains or losses 5 from the sale of an ownership interest in a 6 partnership do not constitute qualifying gain 7 receiving capital treatment as defined in subparagraph a of paragraph 2 of subsection F of 9 this section, (3) income from such property which is required to be allocated pursuant to the provisions of paragraph 5 of this subsection shall be allocated as herein provided;
(1) sales having a situs without this state, shipped directly to a point from without the state to a Req.purchaser within the state, commonly known as interstate sales, SENATE FLOOR VERSION - SB48 SFLR Page 6 (Bold face denotes Committee Amendments) (2) sales of the product stored in public warehouses within the state pursuant to “in transit” tariffs, as prescribed and allowed by the Interstate Commerce Commission, to a purchaser within the state, (3) sales of the product stored in public warehouses within the state where the shipment to such warehouses is not covered by “in transit” tariffs, as prescribed and allowed by the Interstate Commerce Commission, to a purchaser within or without the state, the Oklahoma net income shall, at the option of the taxpayer, be that portion of the total net income of the taxpayer for federal income tax purposes derived from the manufacture and/or processing and sales everywhere as determined by the ratio of the sales defined in this section made to the purchaser within the state to the total sales everywhere.
No.
617 Page 6 purchaser within the state, commonly known as 2 interstate sales, 3 (2) sales of the product stored in public warehouses within the state pursuant to “in transit” 5 tariffs, as prescribed and allowed by the 6 Interstate Commerce Commission, to a purchaser 7 within the state, (3) sales of the product stored in public warehouses 9 within the state where the shipment to such warehouses is not covered by “in transit” tariffs, as prescribed and allowed by the Interstate Commerce Commission, to a purchaser within or without the state, the Oklahoma net income shall, at the option of the taxpayer, be that portion of the total net income of the taxpayer for federal income tax purposes derived from the manufacture and/or processing and sales everywhere as determined by the ratio of the sales defined in this section made to the purchaser within the state to the total sales everywhere.
Req.e.
No.In the case of insurance companies, Oklahoma taxable income shall be taxable income of the taxpayer for federal tax purposes, as adjusted for the adjustments SENATE FLOOR VERSION - SB48 SFLR Page 7 (Bold face denotes Committee Amendments) provided pursuant to the provisions of paragraphs 1 and 2 of this subsection, apportioned as follows:
617(1) Pageexcept 7as e.otherwise provided by division (2) of this subparagraph, taxable income of an insurance company for a taxable year shall be apportioned to this state by multiplying such income by a fraction, the numerator of which is the direct premiums written for insurance on property or risks in this state, and the denominator of which is the direct premiums written for insurance on property or risks everywhere.
InFor purposes of this subsection, the caseterm “direct premiums written” means the total amount of insurancedirect companies,premiums Oklahomawritten, assessments and annuity considerations as reported for the taxable 2year on the annual statement filed by the company with the Insurance Commissioner in the form approved by the National Association of Insurance Commissioners, or such other form as may be prescribed in lieu thereof, (2) if the principal source of premiums written by an insurance company consists of premiums for reinsurance accepted by it, the taxable income of such company shall be taxableapportioned to this state SENATE FLOOR VERSION - SB48 SFLR Page 8 (Bold face denotes Committee Amendments) by multiplying such income by a fraction, the numerator of which is the taxpayersum of (a) direct premiums written for 3insurance federalon taxproperty purposes,or asrisks adjustedin this state, plus (b) premiums written for reinsurance accepted in respect of property or risks in this state, and the adjustmentsdenominator providedof pursuantwhich tois the provisionssum of paragraphs(c) 1direct 5premiums andwritten 2for ofinsurance thison subsection,property apportionedor asrisks follows:everywhere, plus (d) premiums written for reinsurance accepted in respect of property or risks everywhere.
6For (1)purposes exceptof asthis otherwiseparagraph, providedpremiums bywritten divisionfor (2)reinsurance accepted in respect of 7property or risks in this subparagraph,state, taxablewhether incomeor ofnot anotherwise insurancedeterminable, may at the election of the company be determined on the basis of the proportion which premiums written for ainsurance taxableaccepted yearfrom shallcompanies becommercially apportioneddomiciled 9in toOklahoma this state bybears multiplyingto suchpremiums incomewritten byfor areinsurance fraction,accepted thefrom numeratorall ofsources, or alternatively in the proportion which isthe sum of the direct premiums written for insurance on property or risks in this state,state andby theeach denominatorceding ofcompany from which reinsurance is accepted bears to the sum of SENATE FLOOR VERSION - SB48 SFLR Page 9 (Bold face denotes Committee Amendments) the total direct premiums written forby insuranceeach onsuch propertyceding orcompany risksfor everywhere.the taxable year.
For5. purposes of this subsection, the term “direct premiums written” means the total amount of direct premiums written, assessments and annuity considerations as reported for the taxable year on the annual statement filed by the company with the Insurance Commissioner in the form approved by the National Association of Insurance Commissioners, or such other form as may be prescribed in lieu thereof, Req.
No.The net income or loss remaining after the separate allocation in paragraph 4 of this subsection, being that which is derived from a unitary business enterprise, shall be apportioned to this state on the basis of the arithmetical average of three factors consisting of property, payroll and sales or gross revenue enumerated as subparagraphs a, b and c of this paragraph.
617 Page 8 (2) if the principal source of premiums written by an 2 insurance company consists of premiums for 3 reinsurance accepted by it, the taxable income of such company shall be apportioned to this state 5 by multiplying such income by a fraction, the 6 numerator of which is the sum of (a) direct 7 premiums written for insurance on property or risks in this state, plus (b) premiums written 9 for reinsurance accepted in respect of property or risks in this state, and the denominator of which is the sum of (c) direct premiums written for insurance on property or risks everywhere, plus (d) premiums written for reinsurance accepted in respect of property or risks everywhere.
For purposes of this paragraph, premiums written for reinsurance accepted in respect of property or risks in this state, whether or not otherwise determinable, may at the election of the company be determined on the basis of the proportion which premiums written for insurance accepted from companies commercially domiciled in Oklahoma this state bears to premiums written for reinsurance accepted from all sources, or alternatively in Req.
Show all 301 changed lines (261 more)
No.
617 Page 9 the proportion which the sum of the direct 2 premiums written for insurance on property or 3 risks in this state by each ceding company from which reinsurance is accepted bears to the sum of 5 the total direct premiums written by each such 6 ceding company for the taxable year.
7 5.
The net income or loss remaining after the separate allocation in paragraph 4 of this subsection, being that which is 9 derived from a unitary business enterprise, shall be apportioned to this state on the basis of the arithmetical average of three factors consisting of property, payroll and sales or gross revenue enumerated as subparagraphs a, b and c of this paragraph.
Provided, for corporations whose property for purposes of the tax imposed by Section 2355 of this title has an initial investment cost equaling or exceeding Two Hundred Million Dollars ($200,000,000.00) and such investment is made on or after July 1, 1997, or for corporations which expand their property or Req.facilities in this state and such expansion has an investment cost equaling or exceeding Two Hundred Million Dollars ($200,000,000.00) over a period not to exceed three (3) years, and such expansion is commenced on or after January 1, 2000, the three factors shall be SENATE FLOOR VERSION - SB48 SFLR Page 10 (Bold face denotes Committee Amendments) apportioned with property and payroll, each comprising twenty-five percent (25%) of the apportionment factor and sales comprising fifty percent (50%) of the apportionment factor.
No.
617 Page 10 facilities in this state and such expansion has an investment cost 2 equaling or exceeding Two Hundred Million Dollars ($200,000,000.00) 3 over a period not to exceed three (3) years, and such expansion is commenced on or after January 1, 2000, the three factors shall be 5 apportioned with property and payroll, each comprising twenty-five 6 percent (25%) of the apportionment factor and sales comprising fifty 7 percent (50%) of the apportionment factor.
9 a.
The numerator of the fraction shall include a portion of the investment in transportation and other equipment having no fixed situs, such as rolling stock, buses, trucks and trailers, including machinery and equipment carried thereon, airplanes, salespersons’ Req.automobiles and other similar equipment, in the proportion that miles traveled in Oklahoma this state by such equipment bears to total miles traveled, SENATE FLOOR VERSION - SB48 SFLR Page 11 (Bold face denotes Committee Amendments) (2) Property owned by the taxpayer is valued at its original cost.
No.Property rented by the taxpayer is valued at eight times the net annual rental rate.
617Net Pageannual 11rental automobilesrate andis otherthe similarannual equipment,rental inrate paid by the 2taxpayer, proportionless thatany milesannual traveledrental inrate Oklahomareceived thisby 3the statetaxpayer from subrentals, (3) The average value of property shall be determined by suchaveraging equipmentthe bearsvalues toat totalthe milesbeginning traveled,and 5ending (2)of Propertythe ownedtax byperiod but the taxpayerOklahoma isTax valuedCommission atmay itsrequire 6the originalaveraging cost.of monthly values during the tax period if reasonably required to reflect properly the average value of the taxpayer’s property;
Property rented by the taxpayer 7 is valued at eight times the net annual rental rate.
Net annual rental rate is the annual 9 rental rate paid by the taxpayer, less any annual rental rate received by the taxpayer from subrentals, (3) The average value of property shall be determined by averaging the values at the beginning and ending of the tax period but the Oklahoma Tax Commission may require the averaging of monthly values during the tax period if reasonably required to reflect properly the average value of the taxpayer’s property;
“Compensation”, as used in this subsection, means Req.those paid-for services to the extent related to the unitary business but does not include officers’ salaries, wages and other compensation.
No.SENATE FLOOR VERSION - SB48 SFLR Page 12 (Bold face denotes Committee Amendments) (1) In the case of a transportation enterprise, the numerator of the fraction shall include a portion of such expenditure in connection with employees operating equipment over a fixed route, such as railroad employees, airline pilots, or bus drivers, in this state only a part of the time, in the proportion that mileage traveled in Oklahoma this state bears to total mileage traveled by such employees, (2) In any case the numerator of the fraction shall include a portion of such expenditures in connection with itinerant employees, such as traveling salespersons, in this state only a part of the time, in the proportion that time spent in Oklahoma this state bears to total time spent in furtherance of the enterprise by such employees;
617 Page 12 those paid-for services to the extent related to the 2 unitary business but does not include officers’ 3 salaries, wages and other compensation.
(1) In the case of a transportation enterprise, the 5 numerator of the fraction shall include a portion 6 of such expenditure in connection with employees 7 operating equipment over a fixed route, such as railroad employees, airline pilots, or bus 9 drivers, in this state only a part of the time, in the proportion that mileage traveled in Oklahoma this state bears to total mileage traveled by such employees, (2) In any case the numerator of the fraction shall include a portion of such expenditures in connection with itinerant employees, such as traveling salespersons, in this state only a part of the time, in the proportion that time spent in Oklahoma this state bears to total time spent in furtherance of the enterprise by such employees;
“Sales”, Req.as used in this subsection, does not include sales or gross revenue which are separately allocated in paragraph 4 of this subsection.
No.SENATE FLOOR VERSION - SB48 SFLR Page 13 (Bold face denotes Committee Amendments) (1) Sales of tangible personal property have a situs in this state if the property is delivered or shipped to a purchaser other than the United States government, within this state regardless of the FOB Freight on Board (FOB) point or other conditions of the sale;
617 Page 13 as used in this subsection, does not include sales or 2 gross revenue which are separately allocated in 3 paragraph 4 of this subsection.
(1) Sales of tangible personal property have a situs 5 in this state if the property is delivered or 6 shipped to a purchaser other than the United 7 States government, within this state regardless of the FOB Freight on Board (FOB) point or other 9 conditions of the sale;
(3) In the case of an airline, truck or bus enterprise or freight car, tank car, refrigerator car or other railroad equipment enterprise, the numerator of the fraction shall include a portion of revenue from interstate transportation in the Req.proportion that interstate mileage traveled in Oklahoma this state bears to total interstate mileage traveled.
No.SENATE FLOOR VERSION - SB48 SFLR Page 14 (Bold face denotes Committee Amendments) (4) In the case of an oil, gasoline or gas pipeline enterprise, the numerator of the fraction shall be either the total of traffic units of the enterprise within Oklahoma this state or the revenue allocated to Oklahoma this state based upon miles moved, at the option of the taxpayer, and the denominator of which shall be the total of traffic units of the enterprise or the revenue of the enterprise everywhere as appropriate to the numerator.
617 Page 14 proportion that interstate mileage traveled in 2 Oklahoma this state bears to total interstate 3 mileage traveled.
(4) In the case of an oil, gasoline or gas pipeline 5 enterprise, the numerator of the fraction shall 6 be either the total of traffic units of the 7 enterprise within Oklahoma this state or the revenue allocated to Oklahoma this state based 9 upon miles moved, at the option of the taxpayer, and the denominator of which shall be the total of traffic units of the enterprise or the revenue of the enterprise everywhere as appropriate to the numerator.
provided that Req.in respect to each corporation or business entity required by the Federal Communications Commission to keep its books and records in accordance with SENATE FLOOR VERSION - SB48 SFLR Page 15 (Bold face denotes Committee Amendments) a uniform system of accounts prescribed by such Commission, the intrastate net income shall be determined separately in the manner provided by such uniform system of accounts and only the interstate income shall be subject to allocation pursuant to the provisions of this subsection.
No.
617 Page 15 in respect to each corporation or business entity 2 required by the Federal Communications Commission 3 to keep its books and records in accordance with a uniform system of accounts prescribed by such 5 Commission, the intrastate net income shall be 6 determined separately in the manner provided by 7 such uniform system of accounts and only the interstate income shall be subject to allocation 9 pursuant to the provisions of this subsection.
or because of other reasons, the Tax Commission is empowered to permit, after a showing by taxpayer that an excessive portion of net income has been attributed to Oklahoma this state, or Req.require, when in its judgment an insufficient portion of net income has been attributed to Oklahoma this state, the elimination, substitution, or use of additional factors, or reduction or increase SENATE FLOOR VERSION - SB48 SFLR Page 16 (Bold face denotes Committee Amendments) in the weight of such prescribed factors.
No.Provided, however, that any such variance from such prescribed factors which has the effect of increasing the portion of net income attributable to Oklahoma this state must not be inherently arbitrary, and application of the recomputed final apportionment to the net income of the enterprise must attribute to Oklahoma this state only a reasonable portion thereof.
617 Page 16 require, when in its judgment an insufficient portion of net income 2 has been attributed to Oklahoma this state, the elimination, 3 substitution, or use of additional factors, or reduction or increase in the weight of such prescribed factors.
Provided, however, that 5 any such variance from such prescribed factors which has the effect 6 of increasing the portion of net income attributable to Oklahoma 7 this state must not be inherently arbitrary, and application of the recomputed final apportionment to the net income of the enterprise 9 must attribute to Oklahoma this state only a reasonable portion thereof.
The exclusion provided by this paragraph Req.shall be taken in the taxable year when the investment is made.
No.In the event the total reduction in tax liability authorized by this paragraph exceeds One Million Dollars ($1,000,000.00) in any SENATE FLOOR VERSION - SB48 SFLR Page 17 (Bold face denotes Committee Amendments) calendar year, the Tax Commission shall permit any excess over One Million Dollars ($1,000,000.00) and shall factor such excess into the percentage for subsequent years.
617Any Pageamount 17of shallthe exemption permitted to be takenexcluded pursuant to the provisions of this paragraph but not used in any year may be carried forward as an exemption from income pursuant to the taxableprovisions of this paragraph for a period not exceeding six (6) years following the year whenin which the investment iswas originally made.
In 2 the event the total reduction in tax liability authorized by this 3 paragraph exceeds One Million Dollars ($1,000,000.00) in any calendar year, the Tax Commission shall permit any excess over One 5 Million Dollars ($1,000,000.00) and shall factor such excess into 6 the percentage for subsequent years.
Any amount of the exemption 7 permitted to be excluded pursuant to the provisions of this paragraph but not used in any year may be carried forward as an 9 exemption from income pursuant to the provisions of this paragraph for a period not exceeding six (6) years following the year in which the investment was originally made.
The term does not include a facility that provides only, and nothing more than, storage, cleaning, drying or transportation of agricultural commodities, and Req.b.
No.“Facility” means each part of the facility which is used in a process primarily for:
617(1) the processing of agricultural commodities, including receiving or storing agricultural SENATE FLOOR VERSION - SB48 SFLR Page 18 b.(Bold face denotes Committee Amendments) commodities, or the production of milk at a dairy operation, (2) transporting the agricultural commodities or product before, during or after the processing, or (3) packaging or otherwise preparing the product for sale or shipment.
“Facility” means each part of the facility which is 2 used in a process primarily for:
3 (1) the processing of agricultural commodities, including receiving or storing agricultural 5 commodities, or the production of milk at a dairy 6 operation, 7 (2) transporting the agricultural commodities or product before, during or after the processing, 9 or (3) packaging or otherwise preparing the product for sale or shipment.
Req.8.
No.In taxable years beginning after December 31, 1995, all qualified wages equal to the federal income tax credit set forth in 26 U.S.C.A., Section 45A, shall be deducted from taxable income.
617The deduction allowed pursuant to this paragraph shall only be SENATE FLOOR VERSION - SB48 SFLR Page 19 8.(Bold face denotes Committee Amendments) permitted for the tax years in which the federal tax credit pursuant to 26 U.S.C.A., Section 45A, is allowed.
InFor taxablepurposes yearsof beginningthis afterparagraph, December“qualified 31,wages” 1995,means allthose 2 qualified wages equalused to calculate the federal income tax credit setpursuant forthto in 3 26 U.S.C.A., Section 45A,45A. shall be deducted from taxable income.
The9. deduction allowed pursuant to this paragraph shall only be 5 permitted for the tax years in which the federal tax credit pursuant 6 to 26 U.S.C.A., Section 45A, is allowed.
For purposes of this 7 paragraph, “qualified wages” means those wages used to calculate the federal credit pursuant to 26 U.S.C.A., Section 45A.
9 9.
Req.11.
No.For taxable years beginning on or after January 1, 2019, there shall be subtracted from Oklahoma taxable income or adjusted gross income any item of income or gain, and there shall be added to Oklahoma taxable income or adjusted gross income any item of loss or SENATE FLOOR VERSION - SB48 SFLR Page 20 (Bold face denotes Committee Amendments) deduction that in the absence of an election pursuant to the provisions of the Pass-Through Entity Tax Equity Act of 2019 would be allocated to a member or to an indirect member of an electing pass-through entity pursuant to Section 2351 et seq.
617of Pagethis 20title, 11.if (i) the electing pass-through entity has accounted for such item in computing its Oklahoma net entity income or loss pursuant to the provisions of the Pass-Through Entity Tax Equity Act of 2019, and (ii) the total amount of tax attributable to any resulting Oklahoma net entity income has been paid.
For taxable years beginning on or after January 1, 2019, 2 there shall be subtracted from Oklahoma taxable income or adjusted 3 gross income any item of income or gain, and there shall be added to Oklahoma taxable income or adjusted gross income any item of loss or 5 deduction that in the absence of an election pursuant to the 6 provisions of the Pass-Through Entity Tax Equity Act of 2019 would 7 be allocated to a member or to an indirect member of an electing pass-through entity pursuant to Section 2351 et seq.
of this title, 9 if (i) the electing pass-through entity has accounted for such item in computing its Oklahoma net entity income or loss pursuant to the provisions of the Pass-Through Entity Tax Equity Act of 2019, and (ii) the total amount of tax attributable to any resulting Oklahoma net entity income has been paid.
The taxable income of any corporation shall be further adjusted to arrive at Oklahoma taxable income, except those Req.corporations electing treatment as provided in subchapter S of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 1361 et seq., and Section 2365 of this title, deductions pursuant to the provisions of the Accelerated Cost Recovery System as defined SENATE FLOOR VERSION - SB48 SFLR Page 21 (Bold face denotes Committee Amendments) provided and allowed in the Economic Recovery Tax Act of 1981, Public Law 97-34, 26 U.S.C., Section 168, for depreciation of assets placed into service after December 31, 1981, shall not be allowed in calculating Oklahoma taxable income.
No.Such corporations shall be allowed a deduction for depreciation of assets placed into service after December 31, 1981, in accordance with provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 1 et seq., in effect immediately prior to the enactment of the Accelerated Cost Recovery System.
617 Page 21 corporations electing treatment as provided in subchapter S of the 2 Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 1361 3 et seq., and Section 2365 of this title, deductions pursuant to the provisions of the Accelerated Cost Recovery System as defined 5 provided and allowed in the Economic Recovery Tax Act of 1981, 6 Public Law 97-34, 26 U.S.C., Section 168, for depreciation of assets 7 placed into service after December 31, 1981, shall not be allowed in calculating Oklahoma taxable income.
Such corporations shall be 9 allowed a deduction for depreciation of assets placed into service after December 31, 1981, in accordance with provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 1 et seq., in effect immediately prior to the enactment of the Accelerated Cost Recovery System.
For assets placed in service and held by a corporation in which accelerated cost recovery system the Accelerated Cost Recovery System was previously disallowed, an adjustment to taxable income is Req.required in the first taxable year beginning after December 31, 1982, to reconcile the basis of such assets to the basis allowed in the Internal Revenue Code of 1986, as amended.
No.The purpose of this adjustment is to equalize the basis and allowance for depreciation SENATE FLOOR VERSION - SB48 SFLR Page 22 (Bold face denotes Committee Amendments) accounts between that reported to the Internal Revenue Service and that reported to Oklahoma this state.
6172. Page 22 required in the first taxable year beginning after December 31, 2 1982, to reconcile the basis of such assets to the basis allowed in 3 the Internal Revenue Code of 1986, as amended.
TheFor purposetax ofyears thisbeginning adjustmenton isor toafter equalizeJanuary the1, basis2009, and allowanceending foron depreciationor 5before accountsDecember between31, that2009, reportedthere shall be added to theOklahoma taxable income any amount in excess of One Hundred Seventy- five Thousand Dollars ($175,000.00) which has been deducted as a small business expense under Internal Revenue ServiceCode andof 61986, thatas reportedamended, toSection Oklahoma179 thisas state.provided in the American Recovery and Reinvestment Act of 2009.
7 2.
For tax years beginning on or after January 1, 2009, and ending on or before December 31, 2009, there shall be added to 9 Oklahoma taxable income any amount in excess of One Hundred Seventy- five Thousand Dollars ($175,000.00) which has been deducted as a small business expense under Internal Revenue Code of 1986, as amended, Section 179 as provided in the American Recovery and Reinvestment Act of 2009.
Such exemption shall be allowed for a period not to exceed ten (10) years from the date of receipt of the first Req.royalty payment accruing from such transfer.
No.No exemption may be claimed for transfers of technology to qualified small businesses made prior to January 1, 1988.
617 Page 23 royalty payment accruing from such transfer.
No exemption may be 2 claimed for transfers of technology to qualified small businesses 3 made prior to January 1, 1988.
5SENATE FLOOR VERSION - SB48 SFLR Page 23 (Bold face denotes Committee Amendments) a.
“Qualified small business” means an entity, whether 6 organized as a corporation, partnership, or 7 proprietorship, organized for profit with its principal place of business located within this state 9 and which meets the following criteria:
and Req.d.
No.“Gross proceeds” means the total amount of consideration for the transfer of technology, whether the consideration is in money or otherwise.
617 Page 24 d.
“Gross proceeds” means the total amount of 2 consideration for the transfer of technology, whether 3 the consideration is in money or otherwise.
For taxable years beginning after December 31, 2005 tax 5 years 2006 through 2025, the taxable income of any corporation, 6SENATE FLOOR VERSION - SB48 SFLR Page 24 (Bold face denotes Committee Amendments) estate or trust, shall be further adjusted for qualifying gains 7 receiving capital treatment.
Such corporations, estates or trusts shall be allowed a deduction from Oklahoma taxable income for the 9 amount of qualifying gains receiving capital treatment earned by the corporation, estate or trust during the taxable year and included in the federal taxable income of such corporation, estate or trust.
(1) the sale of real property or tangible personal property located within Oklahoma this state that has been directly or indirectly owned by the corporation, estate or trust for a holding period of at least five (5) years prior to the date of the transaction from which such net capital gains arise, Req.(2) the sale of stock or on the sale of an ownership interest in an Oklahoma company, limited liability company, or partnership where such stock or ownership interest has been directly or indirectly owned by the corporation, estate or SENATE FLOOR VERSION - SB48 SFLR Page 25 (Bold face denotes Committee Amendments) trust for a holding period of at least three (3) years prior to the date of the transaction from which the net capital gains arise, or (3) the sale of real property, tangible personal property or intangible personal property located within Oklahoma this state as part of the sale of all or substantially all of the assets of an Oklahoma company, limited liability company, or partnership where such property has been directly or indirectly owned by such entity owned by the owners of such entity, and used in or derived from such entity for a period of at least three (3) years prior to the date of the transaction from which the net capital gains arise, b.
No.
617 Page 25 (2) the sale of stock or on the sale of an ownership 2 interest in an Oklahoma company, limited 3 liability company, or partnership where such stock or ownership interest has been directly or 5 indirectly owned by the corporation, estate or 6 trust for a holding period of at least three (3) 7 years prior to the date of the transaction from which the net capital gains arise, or 9 (3) the sale of real property, tangible personal property or intangible personal property located within Oklahoma this state as part of the sale of all or substantially all of the assets of an Oklahoma company, limited liability company, or partnership where such property has been directly or indirectly owned by such entity owned by the owners of such entity, and used in or derived from such entity for a period of at least three (3) years prior to the date of the transaction from which the net capital gains arise, b.
The holding period shall include any additional period when the property was held by another individual or entity, if such additional period is included in the taxpayer’s holding period for the Req.asset pursuant to the Internal Revenue Code of 1986, as amended, c.
No.“Oklahoma company”, “limited liability company”, or “partnership” means an entity whose primary headquarters have been located in Oklahoma this state SENATE FLOOR VERSION - SB48 SFLR Page 26 (Bold face denotes Committee Amendments) for at least three (3) uninterrupted years prior to the date of the transaction from which the net capital gains arise, d.
617 Page 26 asset pursuant to the Internal Revenue Code of 1986, 2 as amended, 3 c.
“Oklahoma company”, “limited liability company”, or “partnership” means an entity whose primary 5 headquarters have been located in Oklahoma this state 6 for at least three (3) uninterrupted years prior to 7 the date of the transaction from which the net capital gains arise, 9 d.
(1) With respect to sales of real property or tangible personal property located within Oklahoma this state, the deduction described in this subsection shall not apply unless the pass- through entity that makes the sale has held the property for not less than five (5) uninterrupted years prior to the date of the transaction that created the capital gain, and each pass-through entity included in the chain of ownership has been a member, partner, or shareholder of the Req.pass-through entity in the tier immediately below it for an uninterrupted period of not less than five (5) years.
No.(2) With respect to sales of stock or ownership interest in or sales of all or substantially all SENATE FLOOR VERSION - SB48 SFLR Page 27 (Bold face denotes Committee Amendments) of the assets of an Oklahoma company, limited liability company, or partnership, the deduction described in this subsection shall not apply unless the pass-through entity that makes the sale has held the stock or ownership interest or the assets for not less than three (3) uninterrupted years prior to the date of the transaction that created the capital gain, and each pass-through entity included in the chain of ownership has been a member, partner or shareholder of the pass-through entity in the tier immediately below it for an uninterrupted period of not less than three (3) years.
617 Page 27 pass-through entity in the tier immediately below 2 it for an uninterrupted period of not less than 3 five (5) years.
(2) With respect to sales of stock or ownership 5 interest in or sales of all or substantially all 6 of the assets of an Oklahoma company, limited 7 liability company, or partnership, the deduction described in this subsection shall not apply 9 unless the pass-through entity that makes the sale has held the stock or ownership interest or the assets for not less than three (3) uninterrupted years prior to the date of the transaction that created the capital gain, and each pass-through entity included in the chain of ownership has been a member, partner or shareholder of the pass-through entity in the tier immediately below it for an uninterrupted period of not less than three (3) years.
In the case of individuals, there shall be added or deducted, as the case may be, the difference necessary to allow personal exemptions of One Thousand Dollars Req.($1,000.00) in lieu of the personal exemptions allowed by the Internal Revenue Code of 1986, as amended.
No.b.
617There Pageshall 28be ($1,000.00)allowed inan lieuadditional exemption of theOne personalThousand exemptionsDollars allowed($1,000.00) 2for byeach thetaxpayer Internalor Revenuespouse Codewho is blind at the close of 1986,the astax amended.year.
3For b.SENATE FLOOR VERSION - SB48 SFLR Page 28 (Bold face denotes Committee Amendments) purposes of this subparagraph, an individual is blind only if the central visual acuity of the individual does not exceed 20/200 in the better eye with correcting lenses, or if the visual acuity of the individual is greater than 20/200, but is accompanied by a limitation in the fields of vision such that the widest diameter of the visual field subtends an angle no greater than twenty (20) degrees.
There shall be allowed an additional exemption of One Thousand Dollars ($1,000.00) for each taxpayer or 5 spouse who is blind at the close of the tax year.
For 6 purposes of this subparagraph, an individual is blind 7 only if the central visual acuity of the individual does not exceed 20/200 in the better eye with 9 correcting lenses, or if the visual acuity of the individual is greater than 20/200, but is accompanied by a limitation in the fields of vision such that the widest diameter of the visual field subtends an angle no greater than twenty (20) degrees.
(1) Twenty-five Thousand Dollars ($25,000.00) if married and filing jointly, Req.(2) Twelve Thousand Five Hundred Dollars ($12,500.00) if married and filing separately, (3) Fifteen Thousand Dollars ($15,000.00) if single, and (4) Nineteen Thousand Dollars ($19,000.00) if a qualifying head of household.
No.SENATE FLOOR VERSION - SB48 SFLR Page 29 (Bold face denotes Committee Amendments) Provided, for taxable years beginning after December 31, 1999, amounts included in the calculation of federal adjusted gross income pursuant to the conversion of a traditional individual retirement account to a Roth individual retirement account shall be excluded from federal adjusted gross income for purposes of the income thresholds provided in this subparagraph.
617 Page 29 (2) Twelve Thousand Five Hundred Dollars ($12,500.00) 2 if married and filing separately, 3 (3) Fifteen Thousand Dollars ($15,000.00) if single, and 5 (4) Nineteen Thousand Dollars ($19,000.00) if a 6 qualifying head of household.
7 Provided, for taxable years beginning after December 31, 1999, amounts included in the calculation of 9 federal adjusted gross income pursuant to the conversion of a traditional individual retirement account to a Roth individual retirement account shall be excluded from federal adjusted gross income for purposes of the income thresholds provided in this subparagraph.
For taxable years beginning on or before December 31, 2005, in the case of individuals who use the standard deduction in determining taxable income, there shall be added or deducted, as the case may be, the difference necessary to allow a standard deduction in lieu of the standard deduction allowed by the Internal Revenue Code of 1986, as amended, in an amount equal to the larger of fifteen percent (15%) of the Oklahoma adjusted gross income or One Thousand Dollars ($1,000.00), but not to exceed Two Thousand Dollars Req.($2,000.00), except that in the case of a married individual filing a separate return such deduction shall be the larger of fifteen percent (15%) of such Oklahoma adjusted gross income or Five Hundred Dollars ($500.00), but not to exceed the maximum amount of One Thousand Dollars ($1,000.00).
No.SENATE FLOOR VERSION - SB48 SFLR Page 30 (Bold face denotes Committee Amendments) b.
617For Pagetaxable 30years ($2,000.00),beginning excepton thator after January 1, 2006, and before January 1, 2007, in the case of aindividuals marriedwho 2use individualthe filingstandard adeduction separatein returndetermining suchtaxable deductionincome, 3there shall be theadded largeror ofdeducted, fifteenas percentthe (15%)case ofmay suchbe, Oklahomathe adjusteddifference grossnecessary incometo orallow Fivea Hundredstandard Dollarsdeduction 5in ($500.00),lieu butof notthe tostandard exceeddeduction allowed by the maximumInternal amountRevenue Code of One1986, 6as Thousandamended, Dollarsin ($1,000.00).an amount equal to:
7 b.
For taxable years beginning on or after January 1, 2006, and before January 1, 2007, in the case of 9 individuals who use the standard deduction in determining taxable income, there shall be added or deducted, as the case may be, the difference necessary to allow a standard deduction in lieu of the standard deduction allowed by the Internal Revenue Code of 1986, as amended, in an amount equal to:
For the taxable year beginning on January 1, 2007, and ending December 31, 2007, in the case of individuals who use the standard deduction in determining taxable income, there shall be added or deducted, as the case may be, the difference necessary to allow a standard Req.deduction in lieu of the standard deduction allowed by the Internal Revenue Code of 1986, as amended, in an amount equal to:
No.(1) Five Thousand Five Hundred Dollars ($5,500.00), if the filing status is married filing joint or qualifying widow, or SENATE FLOOR VERSION - SB48 SFLR Page 31 (Bold face denotes Committee Amendments) (2) Four Thousand One Hundred Twenty-five Dollars ($4,125.00) for a head of household, or (3) Two Thousand Seven Hundred Fifty Dollars ($2,750.00), if the filing status is single or married filing separate.
617 Page 31 deduction in lieu of the standard deduction allowed by 2 the Internal Revenue Code of 1986, as amended, in an 3 amount equal to:
(1) Five Thousand Five Hundred Dollars ($5,500.00), 5 if the filing status is married filing joint or 6 qualifying widow, or 7 (2) Four Thousand One Hundred Twenty-five Dollars ($4,125.00) for a head of household, or 9 (3) Two Thousand Seven Hundred Fifty Dollars ($2,750.00), if the filing status is single or married filing separate.
(1) Six Thousand Five Hundred Dollars ($6,500.00), if the filing status is married filing joint or qualifying widow, (2) Four Thousand Eight Hundred Seventy-five Dollars ($4,875.00) for a head of household, or Req.(3) Three Thousand Two Hundred Fifty Dollars ($3,250.00), if the filing status is single or married filing separate.
No.
617 Page 32 (3) Three Thousand Two Hundred Fifty Dollars 2 ($3,250.00), if the filing status is single or 3 married filing separate.
For the taxable year beginning on January 1, 2009, and 5 ending December 31, 2009, in the case of individuals 6 who use the standard deduction in determining taxable 7SENATE FLOOR VERSION - SB48 SFLR Page 32 (Bold face denotes Committee Amendments) income, there shall be added or deducted, as the case may be, the difference necessary to allow a standard 9 deduction in lieu of the standard deduction allowed by the Internal Revenue Code of 1986, as amended, in an amount equal to:
Req.f.
No.For taxable years beginning on or after January 1, 2010, and ending on December 31, 2016, in the case of individuals who use the standard deduction in determining taxable income, there shall be added or deducted, as the case may be, the difference necessary to allow a standard deduction equal to the standard deduction allowed by the Internal Revenue Code of SENATE FLOOR VERSION - SB48 SFLR Page 33 (Bold face denotes Committee Amendments) 1986, as amended, based upon the amount and filing status prescribed by such Code for purposes of filing federal individual income tax returns.
617 Page 33 f.
For taxable years beginning on or after January 1, 2 2010, and ending on December 31, 2016, in the case of 3 individuals who use the standard deduction in determining taxable income, there shall be added or 5 deducted, as the case may be, the difference necessary 6 to allow a standard deduction equal to the standard 7 deduction allowed by the Internal Revenue Code of 1986, as amended, based upon the amount and filing 9 status prescribed by such Code for purposes of filing federal individual income tax returns.
(1) Six Thousand Three Hundred Fifty Dollars ($6,350.00) for single or married filing separately, (2) Twelve Thousand Seven Hundred Dollars ($12,700.00) for married filing jointly or qualifying widower with dependent child, and Req.(3) Nine Thousand Three Hundred Fifty Dollars ($9,350.00) for head of household.
No.3.
617 Page 34 (3) Nine Thousand Three Hundred Fifty Dollars 2 ($9,350.00) for head of household.
3 3.
In the case of resident and part-year resident individuals having adjusted gross income from sources 5 both within and without the state, the itemized or 6 standard deductions and personal exemptions shall be 7 reduced to an amount which is the same portion of the total thereof as Oklahoma adjusted gross income is of 9SENATE FLOOR VERSION - SB48 SFLR Page 34 (Bold face denotes Committee Amendments) adjusted gross income.
For purposes of this subparagraph, charitable Req.contributions and medical expenses deductible for federal income tax purposes shall be excluded from the amount of Seventeen Thousand Dollars ($17,000.00) as specified by this subparagraph.
No.4.
617A Pageresident 35individual contributionswith anda medicalphysical expensesdisability deductibleconstituting fora 2substantial federalhandicap incometo taxemployment purposesmay shalldeduct befrom excludedOklahoma fromadjusted thegross 3income amountsuch ofexpenditures Seventeento Thousandmodify Dollarsa ($17,000.00)motor vehicle, home or workplace as specifiedare bynecessary thisto subparagraph.compensate for his or SENATE FLOOR VERSION - SB48 SFLR Page 35 (Bold face denotes Committee Amendments) her handicap.
5 4.
A resident individual with a physical disability 6 constituting a substantial handicap to employment may deduct from 7 Oklahoma adjusted gross income such expenditures to modify a motor vehicle, home or workplace as are necessary to compensate for his or 9 her handicap.
Req.b.
No.On or after July 1, 2010, one hundred percent (100%) of the income received by any person from the United States as salary or compensation in any form, other than retirement benefits, as a member of any component of the Armed Forces of the United States shall be deducted from taxable income.
617c. Page 36 b.
OnWhenever orthe afterfiling Julyof 1,a 2010,timely oneincome hundredtax percentreturn (100%)by 2a member of the incomeArmed receivedForces byof any person from the United 3 States asis salarySENATE orFLOOR compensationVERSION in- anySB48 form,SFLR otherPage than36 retirement(Bold benefits,face asdenotes aCommittee memberAmendments) ofmade anyimpracticable componentor 5impossible of theaccomplishment Armedby Forcesreason ofof: the United States shall be 6 deducted from taxable income.
7 c.
Whenever the filing of a timely income tax return by a member of the Armed Forces of the United States is 9 made impracticable or impossible of accomplishment by reason of:
(a) Such individual shall return to the United States if the extension is granted pursuant Req.to subparagraph a division 1 of this paragraph subparagraph, return to the State of Oklahoma this state if the extension is granted pursuant to subparagraph b division 2 of this paragraph subparagraph or be discharged from such hospital if the extension is granted pursuant to SENATE FLOOR VERSION - SB48 SFLR Page 37 (Bold face denotes Committee Amendments) subparagraph c division 3 of this paragraph subparagraph, or (b) An executor, administrator, or conservator of the estate of the taxpayer is appointed, whichever event occurs the earliest.
No.
617 Page 37 to subparagraph a division 1 of this 2 paragraph subparagraph, return to the State 3 of Oklahoma this state if the extension is granted pursuant to subparagraph b division 5 2 of this paragraph subparagraph or be 6 discharged from such hospital if the 7 extension is granted pursuant to subparagraph c division 3 of this paragraph 9 subparagraph, or (b) An executor, administrator, or conservator of the estate of the taxpayer is appointed, whichever event occurs the earliest.
Before July 1, 2010, the salary or any other form of compensation, received from the United States by a member of any component of the Armed Forces of the United States, shall be deducted from taxable income during the time in which the person is Req.detained by the enemy in a conflict, is a prisoner of war or is missing in action and not deceased;
No.provided, after July 1, 2010, all such salary or compensation shall be subject to the deduction as provided pursuant to paragraph 5 of this subsection.
6177. Page 38 detained by the enemy in a conflict, is a prisoner of war or is 2 missing in action and not deceased;
provided, after July 1, 2010, 3 all such salary or compensation shall be subject to the deduction as provided pursuant to paragraph 5 of this subsection.
5 7.
An individual taxpayer, whether resident or 6 nonresident, may deduct an amount equal to the federal 7SENATE FLOOR VERSION - SB48 SFLR Page 38 (Bold face denotes Committee Amendments) income taxes paid by the taxpayer during the taxable year.
9 b.
In determining the amount of deduction for federal income taxes for tax year 2001, the amount of the deduction shall not be adjusted by the amount of any accelerated ten Req.percent (10%) tax rate bracket credit or advanced refund of the credit received during the tax year provided pursuant to the federal Economic Growth and Tax Relief Reconciliation Act of 2001, P.L.
617107- Page16, 39and percentthe (10%) tax rate bracket credit or advanced 2 refund of thesuch credit receivedshall duringnot thebe taxsubject year 3 provided pursuant to thetaxation. federal Economic Growth and Tax Relief Reconciliation Act of 2001, P.L.
No.SENATE FLOOR VERSION - SB48 SFLR Page 39 (Bold face denotes Committee Amendments) d.
107-The 5provisions 16,of andthis theparagraph advancedshall refundapply ofto suchall credittaxable shallyears notending 6after beDecember subject31, to1978, taxation.and beginning before January 1, 2006.
7 d.
The provisions of this paragraph shall apply to all taxable years ending after December 31, 1978, and 9 beginning before January 1, 2006.
of Title 19 of the Oklahoma Statutes, the The Uniform Retirement System for Justices and Judges, the Oklahoma Wildlife Conservation Department Retirement Fund, the Oklahoma Employment Security Commission Retirement Plan, or the employee retirement systems created by municipalities pursuant to Section 48- Req.101 et seq.
No.of Title 11 of the Oklahoma Statutes shall be exempt from taxable income.
6179. Page 40 101 et seq.
ofIn Titletaxable 11years ofbeginning theafter OklahomaDecember Statutes3l, 1984, Social Security benefits received by an individual shall be exempt 2 from taxable income.income, to the extent such benefits are included in the federal adjusted gross income pursuant to the provisions of Section SENATE FLOOR VERSION - SB48 SFLR Page 40 (Bold face denotes Committee Amendments) 86 of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 86.
310. 9.
In taxable years beginning after December 3l, 1984, Social Security benefits received by an individual shall be exempt from 5 taxable income, to the extent such benefits are included in the 6 federal adjusted gross income pursuant to the provisions of Section 7 86 of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 86.
9 10.
Req.11.
No.In taxable years beginning after December 31, 1995, contributions made to and interest received from a medical savings account established pursuant to Sections 2621 through 2623 of Title 63 of the Oklahoma Statutes shall be exempt from taxable income.
61712. Page 41 11.
InFor taxable years beginning after December 31, 1995,1996, 2the contributionsOklahoma madeadjusted togross andincome interestof receivedany fromindividual taxpayer who is a medicalswine savingsor 3poultry accountproducer establishedmay pursuantbe tofurther Sectionsadjusted 2621for throughthe 2623deduction ofSENATE TitleFLOOR 63VERSION of- SB48 SFLR Page 41 (Bold face denotes Committee Amendments) for depreciation allowed for new construction or expansion costs which may be computed using the Oklahomasame Statutesdepreciation method elected for federal income tax purposes except that the useful life shall be exemptseven from(7) taxableyears income.for purposes of this paragraph.
5 12.
For taxable years beginning after December 31, 1996, the 6 Oklahoma adjusted gross income of any individual taxpayer who is a 7 swine or poultry producer may be further adjusted for the deduction for depreciation allowed for new construction or expansion costs 9 which may be computed using the same depreciation method elected for federal income tax purposes except that the useful life shall be seven (7) years for purposes of this paragraph.
In taxable years beginning before January 1, 2005, retirement benefits not to exceed the amounts specified in this paragraph, which are received by an individual sixty-five (65) years of age or older and whose Oklahoma adjusted gross income is Twenty-five Thousand Dollars ($25,000.00) or less if the filing status is single, head of household, or married filing separate, or Fifty Thousand Dollars ($50,000.00) or Req.less if the filing status is married filing joint or qualifying widow, shall be exempt from taxable income.
No.In taxable years beginning after December 31, 2004, retirement benefits not to exceed the amounts specified in this paragraph, which are received by an individual whose Oklahoma adjusted gross income is SENATE FLOOR VERSION - SB48 SFLR Page 42 (Bold face denotes Committee Amendments) less than the qualifying amount specified in this paragraph, shall be exempt from taxable income.
617b. Page 42 less if the filing status is married filing joint or 2 qualifying widow, shall be exempt from taxable income.
3 In taxable years beginning after December 31, 2004, retirement benefits not to exceed the amounts 5 specified in this paragraph, which are received by an 6 individual whose Oklahoma adjusted gross income is 7 less than the qualifying amount specified in this paragraph, shall be exempt from taxable income.
9 b.
(1) in taxable years beginning after December 31, 2004, and prior to January 1, 2007, the qualifying amount shall be Thirty-seven Thousand Five Hundred Dollars ($37,500.00) or less if the filing status is single, head of household, or married filing separate, or Seventy-five Thousand Dollars ($75,000.00) or less if the filing status is married filing jointly or qualifying widow, (2) in the taxable year beginning January 1, 2007, the qualifying amount shall be Fifty Thousand Dollars ($50,000.00) or less if the filing status is single, head of household, or married filing separate, or One Hundred Thousand Dollars Req.($100,000.00) or less if the filing status is married filing jointly or qualifying widow, (3) in the taxable year beginning January 1, 2008, the qualifying amount shall be Sixty-two Thousand Five Hundred Dollars ($62,500.00) or less if the filing status is single, head of household, or married filing separate, or One Hundred Twenty- SENATE FLOOR VERSION - SB48 SFLR Page 43 (Bold face denotes Committee Amendments) five Thousand Dollars ($125,000.00) or less if the filing status is married filing jointly or qualifying widow, (4) in the taxable year beginning January 1, 2009, the qualifying amount shall be One Hundred Thousand Dollars ($100,000.00) or less if the filing status is single, head of household, or married filing separate, or Two Hundred Thousand Dollars ($200,000.00) or less if the filing status is married filing jointly or qualifying widow, and (5) in the taxable year beginning January 1, 2010, and subsequent taxable years, there shall be no limitation upon the qualifying amount.
No.
617 Page 43 ($100,000.00) or less if the filing status is 2 married filing jointly or qualifying widow, 3 (3) in the taxable year beginning January 1, 2008, the qualifying amount shall be Sixty-two Thousand 5 Five Hundred Dollars ($62,500.00) or less if the 6 filing status is single, head of household, or 7 married filing separate, or One Hundred Twenty- five Thousand Dollars ($125,000.00) or less if 9 the filing status is married filing jointly or qualifying widow, (4) in the taxable year beginning January 1, 2009, the qualifying amount shall be One Hundred Thousand Dollars ($100,000.00) or less if the filing status is single, head of household, or married filing separate, or Two Hundred Thousand Dollars ($200,000.00) or less if the filing status is married filing jointly or qualifying widow, and (5) in the taxable year beginning January 1, 2010, and subsequent taxable years, there shall be no limitation upon the qualifying amount.
Req.(1) an employee pension benefit plan which satisfies the requirements of Section 401 of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 401, (2) an eligible deferred compensation plan that satisfies the requirements of Section 457 of the SENATE FLOOR VERSION - SB48 SFLR Page 44 (Bold face denotes Committee Amendments) Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 457, (3) an individual retirement account, annuity or trust or simplified employee pension that satisfies the requirements of Section 408 of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 408, (4) an employee annuity subject to the provisions of Section 403(a) or (b) of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 403(a) or (b), (5) United States Retirement Bonds which satisfy the requirements of Section 86 of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 86, or (6) lump-sum distributions from a retirement plan which satisfies the requirements of Section 402(e) of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 402(e).
No.d.
617The Pageamount 44 (1) an employee pension benefit plan which satisfies 2 the requirements of Section 401 of the Internalexemption 3provided Revenueby Codethis ofparagraph 1986,shall asbe amended,limited 26to U.S.C.,Five SectionThousand 401,Five 5Hundred (2)Dollars an($5,500.00) eligiblefor deferred compensation plan that 6 satisfies the requirements2004 oftax Sectionyear, 457Seven ofThousand theFive 7Hundred InternalDollars Revenue($7,500.00) Codefor of 1986, as amended, 26 U.S.C., Section 457, 9 (3) an individual retirement account, annuity or trust or simplified employee pension that satisfies the requirements2005 oftax Sectionyear 408and ofTen theThousand InternalDollars Revenue($10,000.00) Codefor of 1986, as amended, 26 U.S.C., Section 408, (4) an employee annuity subject to the provisionstax ofyear SectionSENATE 403(a)FLOOR orVERSION (b)- ofSB48 theSFLR InternalPage Revenue45 Code(Bold offace 1986,denotes asCommittee amended,Amendments) 262006 U.S.C.,and Sectionfor 403(a)all orsubsequent (b),tax (5)years. United States Retirement Bonds which satisfy the requirements of Section 86 of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 86, or (6) lump-sum distributions from a retirement plan which satisfies the requirements of Section Req.
No.Any individual who claims the exemption provided for in paragraph 8 of this subsection shall not be permitted to claim a combined total exemption pursuant to this paragraph and paragraph 8 of this subsection in an amount exceeding Five Thousand Five Hundred Dollars ($5,500.00) for the 2004 tax year, Seven Thousand Five Hundred Dollars ($7,500.00) for the 2005 tax year and Ten Thousand Dollars ($10,000.00) for the 2006 tax year and all subsequent tax years.
617 Page 45 402(e) of the Internal Revenue Code of 1986, as 2 amended, 26 U.S.C., Section 402(e).
3 d.
The amount of the exemption provided by this paragraph shall be limited to Five Thousand Five Hundred Dollars 5 ($5,500.00) for the 2004 tax year, Seven Thousand Five 6 Hundred Dollars ($7,500.00) for the 2005 tax year and 7 Ten Thousand Dollars ($10,000.00) for the tax year 2006 and for all subsequent tax years.
Any individual 9 who claims the exemption provided for in paragraph 8 of this subsection shall not be permitted to claim a combined total exemption pursuant to this paragraph and paragraph 8 of this subsection in an amount exceeding Five Thousand Five Hundred Dollars ($5,500.00) for the 2004 tax year, Seven Thousand Five Hundred Dollars ($7,500.00) for the 2005 tax year and Ten Thousand Dollars ($10,000.00) for the 2006 tax year and all subsequent tax years.
In taxable years beginning after December 31, 1999, for an individual engaged in production agriculture who has filed a Schedule F form with the taxpayer’s federal income tax return for such taxable year, there shall be excluded from taxable income any amount which was included as federal taxable income or federal adjusted gross income and which consists of the discharge of an Req.obligation by a creditor of the taxpayer incurred to finance the production of agricultural products.
No.15.
617In Pagetaxable 46years obligationbeginning byDecember a31, creditor2000, an amount equal to one hundred percent (100%) of the taxpayeramount incurredof toany financescholarship or stipend received from participation in the 2Oklahoma productionPolice Corps Program, as established in Section 2-140.3 of agriculturalTitle products.47 of the Oklahoma Statutes shall be exempt from taxable income.
3SENATE 15.FLOOR VERSION - SB48 SFLR Page 46 (Bold face denotes Committee Amendments) 16.
In taxable years beginning December 31, 2000, an amount equal to one hundred percent (100%) of the amount of any scholarship 5 or stipend received from participation in the Oklahoma Police Corps 6 Program, as established in Section 2-140.3 of Title 47 of the 7 Oklahoma Statutes shall be exempt from taxable income.
16.
In taxable years beginning after December 31, 2001, 9 and before January 1, 2005, there shall be allowed a deduction in the amount of contributions to accounts established pursuant to the Oklahoma College Savings Plan Act.
The maximum annual deduction shall equal the amount of contributions to all such accounts plus any contributions to such accounts by the taxpayer for prior taxable years after December 31, 2004, which were not deducted, but in no Req.event shall the deduction for each tax year exceed Ten Thousand Dollars ($10,000.00) for each individual taxpayer or Twenty Thousand Dollars ($20,000.00) for taxpayers filing a joint return.
No.Any amount of a contribution that is not deducted by the taxpayer in the year for which the contribution is made may be carried forward as a deduction from income for the SENATE FLOOR VERSION - SB48 SFLR Page 47 (Bold face denotes Committee Amendments) succeeding five (5) years.
617For Pagetaxable 47years eventbeginning shallafter theDecember deduction31, 2005, deductions may be taken for eachcontributions taxand yearrollovers exceedmade Tenduring 2a Thousandtaxable Dollarsyear ($10,000.00)and forup eachto individualApril 315 taxpayerof orthe Twentysucceeding Thousandyear, Dollarsor ($20,000.00)the fordue taxpayersdate filingof a jointtaxpayer’s return.state income tax return, excluding extensions, whichever is later.
Any amount of a 5 contribution that is not deducted by the taxpayer in 6 the year for which the contribution is made may be 7 carried forward as a deduction from income for the succeeding five (5) years.
For taxable years 9 beginning after December 31, 2005, deductions may be taken for contributions and rollovers made during a taxable year and up to April 15 of the succeeding year, or the due date of a taxpayer’s state income tax return, excluding extensions, whichever is later.
(1) for a taxpayer who qualified for the five-year carryforward election and who takes a rollover or nonqualified withdrawal during that period, the tax deduction otherwise available pursuant to subparagraph b of this paragraph shall be reduced Req.by the amount which is equal to the rollover or nonqualified withdrawal, and (2) for a taxpayer who elects to take a rollover or nonqualified withdrawal within the same tax year in which a contribution was made to the taxpayer’s account, the tax deduction otherwise available pursuant to subparagraph b of this SENATE FLOOR VERSION - SB48 SFLR Page 48 (Bold face denotes Committee Amendments) paragraph shall be reduced by the amount of the contribution which is equal to the rollover or nonqualified withdrawal.
No.
617 Page 48 by the amount which is equal to the rollover or 2 nonqualified withdrawal, and 3 (2) for a taxpayer who elects to take a rollover or nonqualified withdrawal within the same tax year 5 in which a contribution was made to the 6 taxpayer’s account, the tax deduction otherwise 7 available pursuant to subparagraph b of this paragraph shall be reduced by the amount of the 9 contribution which is equal to the rollover or nonqualified withdrawal.
Req.(1) “non-qualified withdrawal” means a withdrawal from an Oklahoma College Savings Plan account other than one of the following:
No.(a) a qualified withdrawal, (b) a withdrawal made as a result of the death or disability of the designated beneficiary of an account, SENATE FLOOR VERSION - SB48 SFLR Page 49 (Bold face denotes Committee Amendments) (c) a withdrawal that is made on the account of a scholarship or the allowance or payment described in Section 135(d)(1)(B) or (C) or by the Internal Revenue Code of 1986, as amended, received by the designated beneficiary to the extent the amount of the refund does not exceed the amount of the scholarship, allowance, or payment, or (d) a rollover or change of designated beneficiary as permitted by subsection F of Section 3970.7 of Title 70 of the Oklahoma Statutes, and (2) “rollover” means the transfer of funds from the Oklahoma College Savings Plan to any other plan under Section 529 of the Internal Revenue Code of 1986, as amended.
61717. Page 49 (1) “non-qualified withdrawal” means a withdrawal 2 from an Oklahoma College Savings Plan account 3 other than one of the following:
(a)For atax qualifiedyears withdrawal,2006 5through (b)2021, aretirement withdrawalbenefits madereceived asby aan resultindividual offrom theany deathcomponent 6 or disability of the designatedArmed beneficiaryForces 7 of an account, (c) a withdrawal that is made on the accountUnited ofStates 9 a scholarship or the allowance or payment described in Sectionan 135(d)(1)(B)amount ornot (C) or by the Internal Revenue Code of 1986, as amended, received by the designated beneficiary to theexceed extent the amountgreater of theseventy- refundfive doespercent not(75%) exceed the amount of thesuch scholarship,benefits allowance, or payment,Ten orThousand (d)Dollars a($10,000.00) rollovershall orbe changeexempt offrom designatedtaxable beneficiaryincome asbut permittedin byno subsectioncase Fless ofthan Section 3970.7 of Title 70 of the Oklahomaamount Statutes, and (2) “rollover” means the transfer of funds from the Oklahomaexemption Collegeprovided Savingsby Planparagraph to13 any other plan under Section 529 of thethis Internalsubsection. Revenue Code of 1986, as amended.
Req.For tax year 2022 and subsequent tax years, retirement SENATE FLOOR VERSION - SB48 SFLR Page 50 (Bold face denotes Committee Amendments) benefits received by an individual from any component of the Armed Forces of the United States shall be exempt from taxable income.
No.
617 Page 50 17.
For tax years 2006 through 2021, retirement benefits 2 received by an individual from any component of the Armed Forces of 3 the United States in an amount not to exceed the greater of seventy- five percent (75%) of such benefits or Ten Thousand Dollars 5 ($10,000.00) shall be exempt from taxable income but in no case less 6 than the amount of the exemption provided by paragraph 13 of this 7 subsection.
For tax year 2022 and subsequent tax years, retirement benefits received by an individual from any component of the Armed 9 Forces of the United States shall be exempt from taxable income.
in the taxable year beginning January 1, 2009, sixty percent (60%) of such benefits shall be exempt, Req.d.
No.in the taxable year beginning January 1, 2010, eighty percent (80%) of such benefits shall be exempt, and e.
617in Pagethe 51taxable d.year beginning January 1, 2011, and subsequent taxable years, one hundred percent (100%) of such benefits shall be exempt.
in19. the taxable year beginning January 1, 2010, eighty 2 percent (80%) of such benefits shall be exempt, and 3 e.
in the taxable year beginning January 1, 2011, and subsequent taxable years, one hundred percent (100%) 5 of such benefits shall be exempt.
6 19.
For taxable years beginning after December 31, 2007, a 7 resident individual may deduct up to Ten Thousand Dollars ($10,000.00) from Oklahoma adjusted gross 9SENATE FLOOR VERSION - SB48 SFLR Page 51 (Bold face denotes Committee Amendments) income if the individual, or the dependent of the individual, while living, donates one or more human organs of the individual to another human being for human organ transplantation.
The Oklahoma Tax Commission shall promulgate rules to implement the provisions of this paragraph which shall contain a specific list of expenses which may be Req.presumed to qualify for the deduction.
No.The Tax Commission shall prescribe necessary requirements for verification.
617 Page 52 presumed to qualify for the deduction.
The Tax 2 Commission shall prescribe necessary requirements for 3 verification.
For taxable years beginning after December 31, 2009, there 5 shall be exempt from taxable income any amount received by the 6 beneficiary of the death benefit for an emergency medical technician 7 or a registered emergency medical responder provided by Section 1- 2505.1 of Title 63 of the Oklahoma Statutes.
9SENATE FLOOR VERSION - SB48 SFLR Page 52 (Bold face denotes Committee Amendments) 21.
If the amount of state Req.and local taxes deducted on the federal return is limited, taxable income on the state return shall be increased only by the amount actually deducted after any such limitations are applied.
No.
617 Page 53 and local taxes deducted on the federal return is limited, taxable 2 income on the state return shall be increased only by the amount 3 actually deducted after any such limitations are applied.
For taxable years beginning after December 31, 2020, each 5 taxpayer shall be allowed a deduction for contributions to accounts 6 established pursuant to the Achieving a Better Life Experience 7 (ABLE) Program program as established in Section 4001.1 et seq.
For any tax year, the deduction 9SENATE FLOOR VERSION - SB48 SFLR Page 53 (Bold face denotes Committee Amendments) provided for in this paragraph shall not exceed Ten Thousand Dollars ($10,000.00) for an individual taxpayer or Twenty Thousand Dollars ($20,000.00) for taxpayers filing a joint return.
For taxable years beginning after December 31, 2004 tax years 2005 through 2025, a deduction from the Oklahoma adjusted gross income of any individual taxpayer shall be allowed for qualifying gains receiving capital treatment that are included in Req.the federal adjusted gross income of such individual taxpayer during the taxable year.
No.2.
617 Page 54 the federal adjusted gross income of such individual taxpayer during 2 the taxable year.
3 2.
“qualifying gains receiving capital treatment” means 5 the amount of net capital gains, as defined in Section 6 1222(11) of the Internal Revenue Code of 1986, as 7 amended, included in an individual taxpayer’s federal income tax return that result from:
9SENATE FLOOR VERSION - SB48 SFLR Page 54 (Bold face denotes Committee Amendments) (1) the sale of real property or tangible personal property located within Oklahoma this state that has been directly or indirectly owned by the individual taxpayer for a holding period of at least five (5) years prior to the date of the transaction from which such net capital gains arise, (2) the sale of stock or the sale of a direct or indirect ownership interest in an Oklahoma company, limited liability company, or partnership where such stock or ownership interest has been directly or indirectly owned by the individual taxpayer for a holding period of at least two (2) years prior to the date of the transaction from which the net capital gains arise, or Req.(3) the sale of real property, tangible personal property or intangible personal property located within Oklahoma this state as part of the sale of all or substantially all of the assets of an Oklahoma company, limited liability company, or partnership or an Oklahoma proprietorship business enterprise where such property has been directly or indirectly owned by such entity or SENATE FLOOR VERSION - SB48 SFLR Page 55 (Bold face denotes Committee Amendments) business enterprise or owned by the owners of such entity or business enterprise for a period of at least two (2) years prior to the date of the transaction from which the net capital gains arise, b.
No.
617 Page 55 (3) the sale of real property, tangible personal 2 property or intangible personal property located 3 within Oklahoma this state as part of the sale of all or substantially all of the assets of an 5 Oklahoma company, limited liability company, or 6 partnership or an Oklahoma proprietorship 7 business enterprise where such property has been directly or indirectly owned by such entity or 9 business enterprise or owned by the owners of such entity or business enterprise for a period of at least two (2) years prior to the date of the transaction from which the net capital gains arise, b.
“Oklahoma company,” “limited liability company,” or “partnership” means an entity whose primary headquarters have been located in Oklahoma this state for at least three (3) uninterrupted years prior to Req.the date of the transaction from which the net capital gains arise, d.
No.“direct” means the individual taxpayer directly owns the asset, e.
617“indirect” Pagemeans 56 the dateindividual taxpayer owns an interest in a pass-through entity (or chain of thepass- transactionthrough fromentities) whichthat sells the netasset capitalthat 2gives rise to the qualifying gains arise,receiving 3capital d.treatment.
“direct”SENATE meansFLOOR VERSION - SB48 SFLR Page 56 (Bold face denotes Committee Amendments) (1) With respect to sales of real property or tangible personal property located within Oklahoma this state, the individualdeduction taxpayerdescribed directlyin ownsthis subsection shall not apply unless the asset,pass- 5through e.entity that makes the sale has held the property for not less than five (5) uninterrupted years prior to the date of the transaction that created the capital gain, and each pass-through entity included in the chain of ownership has been a member, partner, or shareholder of the pass-through entity in the tier immediately below it for an uninterrupted period of not less than five (5) years.
“indirect”(2) meansWith therespect individualto taxpayersales ownsof anstock 6or ownership interest in aor pass-throughsales entityof (orall chainor substantially all of pass-the 7assets throughof entities)an thatOklahoma sellscompany, limited liability company, partnership or Oklahoma proprietorship business enterprise, the assetdeduction described in this subsection shall not apply unless the pass-through entity that givesmakes risethe sale has held the stock or ownership interest for not less than two (2) uninterrupted years prior to the qualifyingdate gainsof receivingthe transaction that created the capital treatment.gain, and each pass-through entity SENATE FLOOR VERSION - SB48 SFLR Page 57 (Bold face denotes Committee Amendments) included in the chain of ownership has been a member, partner or shareholder of the pass- through entity in the tier immediately below it for an uninterrupted period of not less than two (2) years.
9 (1) With respect to sales of real property or tangible personal property located within Oklahoma this state, the deduction described in this subsection shall not apply unless the pass- through entity that makes the sale has held the property for not less than five (5) uninterrupted years prior to the date of the transaction that created the capital gain, and each pass-through entity included in the chain of ownership has been a member, partner, or shareholder of the pass-through entity in the tier immediately below it for an uninterrupted period of not less than five (5) years.
(2) With respect to sales of stock or ownership interest in or sales of all or substantially all of the assets of an Oklahoma company, limited Req.
No.
617 Page 57 liability company, partnership or Oklahoma 2 proprietorship business enterprise, the deduction 3 described in this subsection shall not apply unless the pass-through entity that makes the 5 sale has held the stock or ownership interest for 6 not less than two (2) uninterrupted years prior 7 to the date of the transaction that created the capital gain, and each pass-through entity 9 included in the chain of ownership has been a member, partner or shareholder of the pass- through entity in the tier immediately below it for an uninterrupted period of not less than two (2) years.
“Oklahoma proprietorship business enterprise” means a business enterprise whose income and expenses have been reported on Schedule C or F of an individual taxpayer’s federal income tax return, or any similar successor schedule published by the Internal Revenue Service and whose primary headquarters have been located in Oklahoma this state for at least three (3) Req.uninterrupted years prior to the date of the transaction from which the net capital gains arise.
No.G.
617 Page 58 uninterrupted years prior to the date of the 2 transaction from which the net capital gains arise.
3 G.
For purposes of computing its Oklahoma taxable income under this section, the dividends-paid deduction otherwise allowed 5 by federal law in computing net income of a real estate investment 6 trust that is subject to federal income tax shall be added back in 7 computing the tax imposed by this state under this title if the real estate investment trust is a captive real estate investment trust.
9SENATE FLOOR VERSION - SB48 SFLR Page 58 (Bold face denotes Committee Amendments) 2.
Req.(1) treated as an association taxable as a corporation under the Internal Revenue Code of 1986, as amended, and (2) not exempt from federal income tax pursuant to the provisions of Section 501(a) of the Internal Revenue Code of 1986, as amended.
No.The term shall not include a real estate investment trust that is intended to be regularly traded on an SENATE FLOOR VERSION - SB48 SFLR Page 59 (Bold face denotes Committee Amendments) established securities market, and that satisfies the requirements of Section 856(a)(5) and (6) of the U.S.
617 Page 59 (1) treated as an association taxable as a 2 corporation under the Internal Revenue Code of 3 1986, as amended, and (2) not exempt from federal income tax pursuant to 5 the provisions of Section 501(a) of the Internal 6 Revenue Code of 1986, as amended.
7 The term shall not include a real estate investment trust that is intended to be regularly traded on an 9 established securities market, and that satisfies the requirements of Section 856(a)(5) and (6) of the U.S.
(1) any real estate investment trust as defined in paragraph a of this subsection other than a “captive real estate investment trust” captive real estate investment trust, (2) any qualified real estate investment trust subsidiary under Section 856(i) of the Internal Revenue Code of 1986, as amended, other than a qualified REIT subsidiary of a “captive real Req.estate investment trust” captive real estate investment trust, (3) any Listed Australian Property Trust listed Australian property trust (meaning an Australian unit trust registered as a “Managed Investment Scheme” “managed investment scheme” under the Australian Corporations Act 2001 in which the principal class of units is listed on a recognized stock exchange in Australia and is SENATE FLOOR VERSION - SB48 SFLR Page 60 (Bold face denotes Committee Amendments) regularly traded on an established securities market), or an entity organized as a trust, provided that a Listed Australian Property Trust listed Australian property trust owns or controls, directly or indirectly, seventy-five percent (75%) or more of the voting power or value of the beneficial interests or shares of such trust, or (4) any Qualified Foreign Entity qualified foreign entity, meaning a corporation, trust, association or partnership organized outside the laws of the United States and which satisfies the following criteria:
No.(a) at least seventy-five percent (75%) of the entity’s total asset value at the close of its taxable year is represented by real estate assets, as defined in Section 856(c)(5)(B) of the Internal Revenue Code of 1986, as amended, thereby including shares or certificates of beneficial interest in any real estate investment trust, cash and cash equivalents, and U.S.
617Government Pagesecurities, 60SENATE estateFLOOR investmentVERSION trust”- captiveSB48 realSFLR estatePage 261 investment(Bold trust,face 3denotes (3)Committee anyAmendments) Listed(b) Australianthe Propertyentity Trustreceives listeda Australiandividend-paid propertydeduction trustcomparable (meaningto anSection Australian561 5of unitthe trustInternal registeredRevenue Code of 1986, as aamended, “Managedor Investmentis 6exempt Scheme”from “managedentity investmentlevel scheme”tax, under(c) the 7entity Australianis Corporationsrequired Actto 2001distribute inat whichleast theeighty-five principalpercent class(85%) of unitsits istaxable listedincome, onas acomputed 9in recognizedthe stockjurisdiction exchange in Australiawhich andit is regularlyorganized, tradedto onthe anholders establishedof securitiesits market),shares or ancertificates entityof organizedbeneficial asinterest aon trust,an providedannual thatbasis, a(d) Listednot Australianmore Propertythan Trustten listedpercent Australian(10%) propertyof trustthe ownsvoting power or controls,value directlyin orsuch indirectly,entity seventy-fiveis percentheld (75%)directly or moreindirectly ofor theconstructively votingby powera single entity or valueindividual, ofor the beneficialshares interests or sharesbeneficial interests of such trust,entity orare (4)regularly anytraded Qualifiedon Foreignan Entityestablished qualifiedsecurities foreignmarket, entity,and meaning(e) athe corporation,entity trust,is association or partnership organized outsidein thea lawscountry ofwhich thehas Uniteda Statestax andtreaty whichwith satisfies the followingUnited criteria:States.
(a)3. at least seventy-five percent (75%) of the entity’s total asset value at the close of Req.
No.For purposes of this subsection, the constructive ownership rules of Section 318(a) of the Internal Revenue Code, as modified by Section 856(d)(5) of the Internal Revenue Code of 1986, as amended, shall apply in determining the ownership of stock, assets, or net profits of any person.
617SENATE PageFLOOR 61VERSION its- taxableSB48 yearSFLR isPage represented62 by(Bold realface 2denotes estateCommittee assets,Amendments) as4. defined in Section 3 856(c)(5)(B) of the Internal Revenue Code of 1986, as amended, thereby including shares 5 or certificates of beneficial interest in 6 any real estate investment trust, cash and 7 cash equivalents, and U.S.
Government securities, 9 (b) the entity receives a dividend-paid deduction comparable to Section 561 of the Internal Revenue Code of 1986, as amended, or is exempt from entity level tax, (c) the entity is required to distribute at least eighty-five percent (85%) of its taxable income, as computed in the jurisdiction in which it is organized, to the holders of its shares or certificates of beneficial interest on an annual basis, (d) not more than ten percent (10%) of the voting power or value in such entity is held directly or indirectly or constructively by a single entity or individual, or the shares or beneficial interests of such entity are Req.
No.
617 Page 62 regularly traded on an established 2 securities market, and 3 (e) the entity is organized in a country which has a tax treaty with the United States.
5 3.
For purposes of this subsection, the constructive ownership 6 rules of Section 318(a) of the Internal Revenue Code, as modified by 7 Section 856(d)(5) of the Internal Revenue Code of 1986, as amended, shall apply in determining the ownership of stock, assets, or net 9 profits of any person.
4.
Req.COMMITTEE REPORT BY:
No.COMMITTEE ON REVENUE AND TAXATION February 10, 2025 - DO PASS SENATE FLOOR VERSION - SB48 SFLR Page 63 (Bold face denotes Committee Amendments)
617 Page 63 1 60-1-617 QD 1/19/2025 5:37:13 AM 3 4 5 6 7 8 9 Req.
No.
617 Page 64
Show all 301 changed rows (261 more)
Action History
-
Remains on Third Reading
-
Placed on Third Reading
-
Motion to reconsider vote adopted: Ayes: 30 Nays: 12
-
Notice served to reconsider vote on measure Rader
-
Measure failed: Ayes: 21 Nays: 25
-
Title stricken
-
General Order, Amended
-
Coauthored by Representative Caldwell (Chad) (principal House author)
-
Placed on General Order
-
Reported Do Pass Revenue and Taxation committee; CR filed
-
Second Reading referred to Revenue and Taxation
-
Authored by Senator Rader
-
First Reading
Sponsors
- Dave Rader · Primary
- Chad Caldwell · Primary
Sponsorship breakdown
Export CSV (upgrade) →2 sponsors · 0 co-sponsors · 149 not signed on · 28 voted No
Sponsors (2)
- Dave Rader Republican
- Chad Caldwell Republican
Co-sponsors (0)
None.
Not signed on (149)
149 members have not signed on to this bill.
Show all 149 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Democrat | 8 | 0 | 0 | 0 |
| Republican | 22 | 12 | 0 | 5 |
| Total | 30 | 12 | 0 | 5 |
| % of votes cast | 64% | 26% | 0% | 11% |
How each member voted (47)
| Member | Party | Vote |
|---|---|---|
| Carri Hicks | Democrat | Yea |
| Jo Anna Dossett | Democrat | Yea |
| Julia Kirt | Democrat | Yea |
| Mark Mann | Democrat | Yea |
| Mary B. Boren | Democrat | Yea |
| Michael Brooks | Democrat | Yea |
| Nikki Nice | Democrat | Yea |
| Regina Goodwin | Democrat | Yea |
| Aaron Reinhardt | Republican | Yea |
| Adam Pugh | Republican | Yea |
| Ally Seifried | Republican | Yea |
| Avery Frix | Republican | Yea |
| Bill Coleman | Republican | Yea |
| Brenda Stanley | Republican | Yea |
| Brent Howard | Republican | Not Voting |
| Brian Guthrie | Republican | Nay |
| Casey Murdock | Republican | Not Voting |
| Christi Gillespie | Republican | Yea |
| Chuck Hall | Republican | Yea |
| Dana Prieto | Republican | Yea |
| Darcy Jech | Republican | Yea |
| Dave Rader | Republican | Yea |
| David Bullard | Republican | Nay |
| District 24 | Republican | Yea |
| Dusty Deevers | Republican | Nay |
| George Burns | Republican | Not Voting |
| Grant Green | Republican | Yea |
| Jack Stewart | Republican | Nay |
| Jerry Alvord | Republican | Nay |
| John Haste | Republican | Yea |
| Jonathan Wingard | Republican | Not Voting |
| Julie Daniels | Republican | Yea |
| Julie McIntosh | Republican | Nay |
| Kelly Hines | Republican | Yea |
| Kendal Sacchieri | Republican | Nay |
| Kristen Thompson | Republican | Yea |
| Lisa Standridge | Republican | Nay |
| Lonnie Paxton | Republican | Yea |
| Micheal Bergstrom | Republican | Nay |
| Paul Rosino | Republican | Yea |
| Randy Grellner | Republican | Not Voting |
| Roland Pederson | Republican | Nay |
| Shane Jett | Republican | Nay |
| Spencer Kern | Republican | Yea |
| Todd Gollihare | Republican | Yea |
| Tom Woods | Republican | Yea |
| Warren Hamilton | Republican | Nay |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Republican | 20 | 18 | 0 | 1 |
| Democrat | 1 | 7 | 0 | 0 |
| Total | 21 | 25 | 0 | 1 |
| % of votes cast | 45% | 53% | 0% | 2% |
How each member voted (47)
| Member | Party | Vote |
|---|---|---|
| Carri Hicks | Democrat | Nay |
| Jo Anna Dossett | Democrat | Yea |
| Julia Kirt | Democrat | Nay |
| Mark Mann | Democrat | Nay |
| Mary B. Boren | Democrat | Nay |
| Michael Brooks | Democrat | Nay |
| Nikki Nice | Democrat | Nay |
| Regina Goodwin | Democrat | Nay |
| Aaron Reinhardt | Republican | Yea |
| Adam Pugh | Republican | Nay |
| Ally Seifried | Republican | Yea |
| Avery Frix | Republican | Yea |
| Bill Coleman | Republican | Yea |
| Brenda Stanley | Republican | Yea |
| Brent Howard | Republican | Nay |
| Brian Guthrie | Republican | Nay |
| Casey Murdock | Republican | Nay |
| Christi Gillespie | Republican | Yea |
| Chuck Hall | Republican | Yea |
| Dana Prieto | Republican | Nay |
| Darcy Jech | Republican | Yea |
| Dave Rader | Republican | Yea |
| David Bullard | Republican | Not Voting |
| District 24 | Republican | Yea |
| Dusty Deevers | Republican | Nay |
| George Burns | Republican | Nay |
| Grant Green | Republican | Nay |
| Jack Stewart | Republican | Yea |
| Jerry Alvord | Republican | Yea |
| John Haste | Republican | Yea |
| Jonathan Wingard | Republican | Yea |
| Julie Daniels | Republican | Yea |
| Julie McIntosh | Republican | Nay |
| Kelly Hines | Republican | Yea |
| Kendal Sacchieri | Republican | Nay |
| Kristen Thompson | Republican | Yea |
| Lisa Standridge | Republican | Nay |
| Lonnie Paxton | Republican | Yea |
| Micheal Bergstrom | Republican | Nay |
| Paul Rosino | Republican | Nay |
| Randy Grellner | Republican | Nay |
| Roland Pederson | Republican | Nay |
| Shane Jett | Republican | Nay |
| Spencer Kern | Republican | Yea |
| Todd Gollihare | Republican | Yea |
| Tom Woods | Republican | Nay |
| Warren Hamilton | Republican | Nay |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Republican | 4 | 4 | 0 | 0 |
| Democrat | 2 | 0 | 0 | 0 |
| Total | 6 | 4 | 0 | 0 |
| % of votes cast | 60% | 40% | 0% | 0% |
How each member voted (10)
| Member | Party | Vote |
|---|---|---|
| Julia Kirt | Democrat | Yea |
| Mark Mann | Democrat | Yea |
| Brent Howard | Republican | Yea |
| Christi Gillespie | Republican | Yea |
| Dave Rader | Republican | Yea |
| Dusty Deevers | Republican | Nay |
| Kendal Sacchieri | Republican | Nay |
| Shane Jett | Republican | Nay |
| Todd Gollihare | Republican | Yea |
| Warren Hamilton | Republican | Nay |
Subjects
Frequently asked questions
- Who sponsors SB 48?
- SB 48 is sponsored by Dave Rader (Republican) and Chad Caldwell (Republican).
- What is the current status of SB 48?
- This bill has passed the Senate. Introduced February 03, 2025. It now moves to the second chamber.
- Where can I track SB 48?
- Track SB 48 free on One Click Politics — get push/email alerts when it moves.
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