OK
Oklahoma House Bill HB2645

Oklahoma 2025 Regular Session

Oklahoma House Bill HB2645 Compare Versions

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28-STATE OF OKLAHOMA
29-
30-1st Session of the 60th Legislature (2025)
31-
32-COMMITTEE SUBSTITUTE
33-FOR ENGROSSED
34-HOUSE BILL 2645 By: Hilbert of the House
28+ENGROSSED HOUSE
29+BILL NO. 2645 By: Hilbert of the House
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3631 and
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3833 Paxton of the Senate
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42-COMMITTEE SUBSTITUTE
4337
4438 [ revenue – taxation – medicine – terms – credit –
45-limitations – time period – Oklahoma Tax Commission –
46-estimate – circumstances – codification – effective
47-date ]
39+limitations – time period – Oklahoma Tax Commission
40+– estimate – circumstances – codification –
41+effective date ]
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5246 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
5347 SECTION 1. NEW LAW A new section of law to be codified
5448 in the Oklahoma Statutes as Section 2357.410 of Title 68, unless
5549 there is created a duplication in numbering, reads as follows:
56-A. Except as provided in subsection F of this sectio n, for tax
57-year 2026 and subsequent tax years, there shall be allowed a credit
58-against the tax imposed pursuant to Section 2355 of Title 68 of the
59-Oklahoma Statutes on taxable income from compensation directly
60-related to the practice of medicine or osteopathic medicine by a
61-qualifying doctor in a rural area of th is state.
50+A. Except as provided in subsection F of this section, for
51+taxable years beginning after December 31, 2025, there shall be
52+allowed a credit against the tax imposed pursuant to Section 2355 of
53+Title 68 of the Oklahoma Statutes on taxable income fr om
54+compensation directly related to the practice of medicine or
55+osteopathic medicine by a qualifying doctor in a rural area of the
56+state.
6257 B. For purposes of this section:
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89-1. “Qualifying doctor” means a medical doctor or osteopathic
84+1. "Qualifying doctor" means a medical doctor or osteopathic
9085 physician:
9186 a. who is licensed in this state by the State Board of
9287 Medical Licensure and Supervision or the State Board
9388 of Osteopathic Examiners either on or after the
9489 effective date of this act or at any time within the
9590 period two (2) years prior to the effective date of
9691 this act, but not earlier than January 1, 2024,
9792 b. who has graduated from a college of medicine or
9893 osteopathic medicine located in this state or has
9994 completed his or her residency in this state, and
10095 c. whose primary residence is located within the same
10196 county as the rural area where the compensation
102-qualifying for credit under thi s paragraph was earned.
103-For purposes of this subparagraph, the qualifyi ng
104-doctor must maintain the primary residence either
105-within the county for the entire taxable year for
106-which the credit otherwise authorized by this section
107-is claimed; and
108-2. “Rural area” means any municipality or unincorporated
109-location in this state wh ich:
110-a. has a population not exceeding twenty -five thousand
111-(25,000) as determined by the most recent Federal
112-Decennial Census, and
97+qualifying for credit under this paragraph was earned
98+or whose primary residence is located within the
99+jurisdiction of a federally recognized tribe and is
100+directly employed by a tribally owned or operated
101+health facility or federal Indian Health Service
102+facility. For purposes of this subparagraph, the
103+qualifying doctor must maintain the primary residence
104+either within the county or within the jurisdiction of
105+the federally recognized tribe for the entire taxable
106+year for which the credit otherwise authorized by this
107+section is claimed; and
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134+2. "Rural area" means any municipality or unincorporated
135+location in Oklahoma which:
136+a. has a population not exceeding twenty -five thousand
137+(25,000) as determined by the most recent Federal
138+Decennial Census, and
139139 b. is at least twenty-five (25) miles from the boundary
140-of the nearest municipality in this state with a
140+of the nearest municipality in Oklahoma with a
141141 population exceeding twenty -five thousand (25,000) as
142142 determined by the most recent Federal Decennial
143143 Census.
144144 C. The amount of the credit provided by this section claimed by
145-a taxpayer in any tax year shall not exceed Twenty Thousand Dollars
146-($20,000.00).
145+a taxpayer in any tax year shall not exceed Twenty -five Thousand
146+Dollars ($25,000.00).
147147 D. The credit authorized by this section shall not be used to
148148 reduce the tax liability of the taxpayer to less than zero (0).
149149 E. Except as provided in subsection F of this section, a
150150 qualifying doctor who first claims the credit provided by this
151151 section shall be allowed the credit for up to four (4) subsequent
152-taxable years so long as he or she qualifies pursuant to the
153-provisions of this section.
154-F. For tax year 2028 and subsequent tax years, the total amount
155-of credits authorized by this section shall not exceed One Mil lion
156-Dollars ($1,000,000.00). The Oklahoma Tax Commission shall annually
157-calculate and publish a percentage by wh ich the credits authorized
158-by this section shall be reduced so the tot al amount of credits used
159-to offset tax does not exceed the annual limit . The formula to be
160-used for the percentage adjustment shall be One Million Dollars
161-($1,000,000.00) divided by the amount of credit claimed in the
162-second preceding tax year. In the event the total tax credits
152+taxable years so long as he or she qualifies pursuant to su bsection
153+B of this section.
154+F. 1. Annually the Oklahoma Tax Commission shall calculate and
155+publish an estimate of the cumulative total credits claimed due to
156+the provisions of this section.
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189-authorized by this section exceed the annual limit in any tax year,
190-the Tax Commission shall permit any excess but shall factor such
191-excess into the percentage adjustment formula for subsequent tax
192-years.
183+2. The credit provided by this section shall not be allowed for
184+any taxable year following a year when the Oklahoma Tax Commission
185+calculates an estimate under the provisions of paragraph 1 of this
186+subsection in excess of One Million Dollars ($1,000,000.00).
193187 SECTION 2. This act shall become effective January 1, 2026.
188+Passed the House of Representatives the 25th day of March, 2025.
194189
195-60-1-2039 QD 4/23/2025 4:14:48 PM
190+
191+
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193+ Presiding Officer of the House
194+ of Representatives
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198+Passed the Senate the ____ day of __________, 2025.
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