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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
HOUSE BILL 2948 By: McCall
AS INTRODUCED
An Act relating to revenue and taxation; providing
for deduction from taxable income computed pursuant
to Oklahoma Income Tax Code for corporations;
specifying amount of deduction; specifying taxable
years for which deduction is authorized; prescribing
procedures for election; providing certain ex ceptions
related to subsidiaries; providing for codification;
and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codi fied
in the Oklahoma Statutes as Section 2358. CE-1 of Title 68, unless
there is created a duplication in numbering, r eads as follows:
For taxable years beginning on or after January 1, 2024, based
upon an election as authorized by Section 2 of this act, there shall
be deducted from the Oklahoma taxable income amount for any
corporation subject to the levy of inco me tax imposed pursuant to
Section 2355 of Title 68 of the Oklahoma Statutes or from the amount
of income subject to the levy of tax imposed purs uant to Section
2370 of Title 68 of the Oklahoma Statutes the following amounts:
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1. Twenty percent (20%) of the total Oklahoma taxable income
amount for a taxable year beginning after December 31, 2023, and
before January 1, 2025;
2. Forty percent (40%) of the total Oklahoma taxable income
amount for a taxable year beginning after December 31, 2024, and
before January 1, 2026;
3. Sixty percent (60%) of the total Oklahoma taxable income
amount for a taxable year beginning after December 31, 2025, and
before January 1, 202 7;
4. Eighty percent (80%) of the total Oklahoma taxable income
amount for a taxable year beginning after December 31, 2026, and
before January 1, 202 8; and
5. One hundred percent (100%) of the total Oklahoma taxable
income amount for any taxable year beginning on or after January 1,
2028.
SECTION 2. NEW LAW A new secti on of law to be codified
in the Oklahoma Statutes as Section 2358.CE-2 of Title 68, unless
there is created a dup lication in numbering, reads as follows:
A. Not later than June 30, 202 4, for entities in existence as
of the effective date of this act, and not later than sixty (60)
days after the formation of a n entity subject to taxation pursuant
to Section 2355 of Title 68 of the Oklahoma Statutes or subject to
taxation pursuant to Section 2370 of Title 68 of the Oklahoma
Statutes which occurs after the effect ive date of this act, a
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taxpayer shall make an election, wh ich shall be irrevocable, on such
form as may be prescribed for such purpose by the Oklahoma Tax
Commission, and except as otherwise provided by this section, to
reduce taxable income as required pursuant to Section 1 of this act .
B. The irrevocable election authorized by subsection A of this
section shall be binding upon any subsidiary entity of the taxpayer
making such election unles s otherwise provided by this section.
C. The irrevocable election othe rwise prescribed by subsection
A of this section shall not be binding with respect to an entity
which was a subsidiary of an entity making such election during any
period of time the former subs idiary was not acquired by any other
entity.
D. If a former subsidiary of an entity making an ele ction
pursuant to subsection A of this section is acquired by another
entity, the entity having acquired such former subsidi ary shall be
authorized to make an irrevocable election which is b inding upon the
former subsidiary of the previous entity.
SECTION 3. This act shall become effective January 1, 2024.
59-2-9785 MAH 12/14/23