ok-2337: Oklahoma Tax Commission — Income

Summary

As part of the Tax Commission's ongoing review of its rules, numerous proposed amendments to existing rules have been developed to implement recent legislation. All legislative references are to the First Regular Session of the 60th Legislature (2025) unless otherwise indicated. The proposed amendment to Section 710:50-1-7 establishes a fee for obtaining certified copies of Oklahoma income tax returns and removes the certified mail option. The proposed amendment to Section 710:50-3-41 is necessary to conform to the layout of Oklahoma individual income tax returns. The proposed amendment to Section 710:50:15-36 clarifies that Parental Choice Tax Credit payments are exempt from Oklahoma taxable income when these payments are included in federal taxable income. [70:28-101] The proposed amendment to Section 710:50:15-53 updates a statutory citation. The proposed amendment to Section 710:50-15-62 clarifies the corporate income tax rate for investments made on or after January 1, 2022 [68:2355(E)]. The proposed amendment to Section 710:50:15-83 removes the reference to a sunsetted credit [68:54003]. The proposed revocation of Section 710:50-15-91 is necessary due to the repeal of the income tax credit for employers incurring expenses for the provision of childcare services [68:2357.26]. The proposed revocation of Section 710:50-15-92 is necessary due to the sunset of the income tax credit for manufacturers of advanced wind turbines and services [68:2357.32B]. The proposed revocation of Section 710:50-15-104 is necessary due to the sunset of the income tax credit for construction of energy-efficient residential property [68:2357.46]. The proposed revocation of Section 710:50-15-105 is necessary due to the repeal of the income tax credit for research and development [68:54006]. The proposed amendment to Section 710:50-15-109 implements the provisions of SB 287, which extends the sunset date for aerospace sector income tax credits from tax year 2025 to tax year 2031 [68:2357.302 – 2357.304]. The proposed revocation of Section 710:50-15-111 is necessary due to the repeal of the wire transfer fee credit [68:2357.401]. The proposed amendment to Section 710:50-15-113 implements the provisions of SB 301, which amended the independent biomedical research institute income tax credit and the cancer research center income tax credit [68:2357.45]. The proposed amendment to Section 710:50-15-118 implements the provisions of HB 2610, which amended the income tax credit for nonrecurring adoption expenses [68:2357.601]. The proposed amendment to Section 710:50-15-120 clarifies that only expenses incurred in the taxable year are eligible for the tax credit for that taxable year [68:2357.801]. The proposed promulgation of Section 710:50-15-121 implements the provisions of HB 3351 [2024] which created a new income tax credit for a faculty preceptor who conducts a preceptorship rotation. [68:2357.409] The proposed amendments to Sections 710:50-15-171 through 710:50-15-175, relating to the Parental Choice Tax Credit Act, implement the provisions of SB 684 requiring that a school must be in Oklahoma, providing that the amount of the credit is net of scholarships and discounts, setting timelines for applications, reallocation, and credit payments, and creating priority status for prior credit recipients. Additional proposed changes clarify the homeschool expenses eligible for the credit and processes for tuition adjustments and school transfers [70:28-101]. The proposed promulgation of Section 710:50-15-176 implements the provisions of HB 1279, which establishes an expedited protest process for taxpayers whose applications for Parental Choice Tax Credits have been denied [68:221]. The proposed amendment to Section 710:50-17-51 provides guidance to taxpayers who choose to elect out of the net operating loss carryback and provide clarity in how NCTI is treated for Oklahoma purposes to maintain conformity with federal law. [68:2358]. The proposed amendment to Section 710:50-23-1 removes a reference to an Oklahoma estate tax form. The proposed amendment to Section 710:50-25-1 removes a reference to a line number on OTC Form 513. Other sections may be amended to clarify policy, improve readability, correct clerical errors, remove obsolete language, update or correct citations, update contact information, and ensure accurate internal cross-references, which do not change the interpretation or intent of the rules.

The agency’s own summary, as published.