ok-1129: Oklahoma Tax Commission — Income

Summary

Several proposed amendments to the existing rules have been made to implement recent legislation. The proposed amendment to Section 710:50-1-7 increases the charge for copying income tax returns. This increase is intended to cover the expenses associated with locating, printing, and mailing these documents. The proposed amendments to Sections 710:50-3-47, 710:50-19-4 and 710:50-21-4 correct internal cross references and implement the provisions of HB 3559 which relates to the pass-through entity tax election. Beginning in tax year 2024, a qualifying entity may make the election on their Oklahoma income tax return. [68:2355.1P-4] The proposed amendment to Section 710:50-15-52 clarifies current law that out-of-state income includes income from real or tangible personal property or business income outside of Oklahoma. [68:2358(A)(4)] The proposed amendment to Section 710:50-15-62 updates the corporate income tax rate, which was reduced to 4% beginning with tax year 2022. [68:2355(E)] The proposed amendment to Section 710:50-15-81 implements the provisions of HB 3051, relating to the income tax credit for investments in qualified clean burning motor vehicle fuel property, which provides for a reallocation of tax credits if one or two of the categories hit the $10 million cap and clarifies the treatment of leased equipment, and clarifies the maximum amount of the credit is based on the weight of the vehicle. [68 O.S. § 2357.22] The proposed amendment to Section 710:50-15-109 implements the provisions of HB 4072, relating to the income tax credit for qualified employers and employees of the aerospace sector, amending the definitions of “aerospace sector” and "qualified employee", and providing that a qualified employee may claim the credit for five nonconsecutive tax years. [68:2357.301,2357.304] The proposed amendment to Section 710:50-15-118, relating to the income tax credit for nonrecurring adoption expenses, clarifies the amount of the credit is 10% of nonrecurring adoption expenses, not to exceed $2,000 ($4,000 for a married filing joint return) per calendar year. [68:2357.601] The proposed promulgation of new Section 710:50-15-34, new Part 9 in Subchapter 15, amendment to Section 710:50-11-5, and revocation of Section 710:50-15-119, relating to the Oklahoma Parental Choice Tax Credit, implement the provisions of HB 3388 which amended definitions and qualifications, exempted the payments from offset, realigned the private school credit caps to a fiscal year, and timelines for implementation. [68:205.2(F), 70:28-101] Other sections may be amended to clarify policy, improve readability, correct scrivener’s 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.