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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
COMMITTEE SUBSTITUTE
FOR ENGROSSED
HOUSE BILL 2645 By: Hilbert of the House
and
Paxton of the Senate
COMMITTEE SUBSTITUTE
[ revenue – taxation – medicine – terms – credit –
limitations – time period – Oklahoma Tax Commission –
estimate – circumstances – codification – effective
date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codifi ed
in the Oklahoma Statutes as Section 2357.410 of Title 68, unless
there is created a duplication in numbering, r eads as follows:
A. Except as provided in subsection F of this sectio n, for tax
year 2026 and subsequent tax years, there shall be allowed a credit
against the tax imposed pursuant to Section 2355 of Title 68 of the
Oklahoma Statutes on taxable income from compensation directly
related to the practice of medicine or osteopathic medicine by a
qualifying doctor in a rural area of th is state.
B. For purposes of this section:
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1. “Qualifying doctor” means a medical doctor or osteopathic
physician:
a. who is licensed in this state by the State Board of
Medical Licensure and Supe rvision or the State Board
of Osteopathic Examiners either on or after t he
effective date of this act or at any time within the
period two (2) years prior to the effective date of
this act, but not earlier than January 1, 2024,
b. who has graduated from a college of medicine or
osteopathic medicine located in this state or has
completed his or her residency in this state, and
c. whose primary residence is located within the same
county as the rural area where the compensation
qualifying for credit under thi s paragraph was earned.
For purposes of this subparagraph, the qualifyi ng
doctor must maintain the primary residence either
within the county for the entire taxable year for
which the credit otherwise authorized by this section
is claimed; and
2. “Rural area” means any municipality or unincorporated
location in this state wh ich:
a. has a population not exceeding twenty -five thousand
(25,000) as determined by the most recent Federal
Decennial Census, and
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b. is at least twenty-five (25) miles from the bound ary
of the nearest municipality in this state with a
population exceeding twenty-five thousand (25,000) as
determined by the most recent Federal Decennial
Census.
C. The amount of the credit provided by this section claimed by
a taxpayer in any tax year shall not exceed Twenty Thousand Dollars
($20,000.00).
D. The credit authorized by this section shall not be used to
reduce the tax liability of the taxpayer to less than zero (0).
E. Except as provided in subsection F of this section, a
qualifying doctor who first claims the credit provided by this
section shall be allowed t he credit for up to four (4) subsequent
taxable years so long as he or she qualifies pursuant to the
provisions of this section.
F. For tax year 2028 and subsequent tax years, the total amount
of credits authorized by this section shall not exceed One Mil lion
Dollars ($1,000,000.00). The Oklahoma Tax Commission shall annually
calculate and publish a percentage by wh ich the credits authorized
by this section shall be reduced so the tot al amount of credits used
to offset tax does not exceed the annual limit . The formula to be
used for the percentage adjustment shall be One Million Dollars
($1,000,000.00) divided by the amount of credit claimed in the
second preceding tax year. In the event the total tax credits
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authorized by this section exceed the annual limit in any tax year,
the Tax Commission shall permit any excess but shall factor such
excess into the percentage adjustment formula for subsequent tax
years.
SECTION 2. This act shall become effective January 1, 2026.
60-1-2039 QD 4/23/2025 4:14:48 PM