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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
SENATE BILL 291 By: Pugh
AS INTRODUCED
An Act relating to income tax credit; amending 62
O.S. 2021, Section 34.103, which relates to the
Oklahoma State Finance Act; prescribing d uties for
the State Board of Equalization; providing tax
credit; requiring the Oklahoma Tax Commission to
calculate credit amount upon certain certification by
the Board; prescribing calculation for credit amount;
requiring the Commission to publish credit amount
within certain period; eliminating tax credit under
certain declaration of revenue failure; providing for
codification; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 34.103, is
amended to read as follows:
Section 34.103. A. In addition to any other duties prescribed
by law, at the meeting required by Section 23 of Article X of the
Oklahoma Constitution to be held in February of 2017, and at the
February meeting of the State Board of Equalization each y ear
thereafter, the State Board of Equalization shall certify:
1. For the revenue derived from the tax levied on oil pursuant
to Section 1001 of Title 68 of the Oklahoma Statute s, which would
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otherwise be apportioned to the General Revenue Fund, the average
annual amount of actual revenue apportioned to the General Revenue
Fund for the immediately preceding five (5) complete fiscal years.
For any year after the first year during which a deposit to the
Revenue Stabilization Fund is made, the amount of any deposit to the
Revenue Stabilization Fund shall be disregarded for purposes of this
paragraph and the average shall be computed using the total amount
of revenue that was availab le to be apportioned to the General
Revenue Fund for the applicable period of time;
2. For the revenue derived from the tax levied on natural gas
pursuant to Section 1001 of Title 68 of the Oklahoma Statutes, which
would otherwise be apportioned to the Ge neral Revenue Fund, the
average annual amount of actual revenue apportioned to the General
Revenue Fund for the previous five (5) fiscal years. For any year
after the first year during which a deposit to the Revenue
Stabilization Fund is made, the amount of any deposit to the Revenue
Stabilization Fund shall be disregarded for purposes of this
paragraph and the average shall be computed using the total amount
of revenue that was available to be apportioned to the General
Revenue Fund for the applicable per iod of time; and
3. For the revenue derived from the corporate income tax lev ied
pursuant to Section 2355 of Title 68 the Oklahoma Statutes, which
would otherwise be apportioned to the General Revenue Fund, the
average annual amount of actual revenue appo rtioned to the General
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Revenue Fund for the previous five (5) fiscal years. For any year
after the first year during which a deposit to the Revenue
Stabilization Fund is made, the amount of any deposit to the Revenue
Stabilization Fund shall be disregarde d for purposes of this
paragraph and the average shall be computed using the t otal amount
of revenue that was available to be apportioned to the General
Revenue Fund for the applicable period of time.
B. If the amount of revenue available for apportionmen t to the
General Revenue Fund for the next ensuing fiscal year exceeds the
amounts certified pursuant to paragraph 1 or 2 of subsection A of
this section, with respect to each such revenue source, one hundred
percent (100%) of such amount in excess of the separately computed
five-year average, which would otherwise be apportioned to the
General Revenue Fund, shall be deposited to the credit of the
Revenue Stabilization Fund.
C. If the amount of revenue available for apportionment to the
General Revenue Fund for the next ensuing fiscal year exceeds the
amount certified pursuant to paragraph 3 of subsection A of this
section:
1. Twenty-five percent (25%) of such amount in excess of the
five-year average, which would otherwise be apportioned to the
General Revenue Fund, shall be deposited to the credit of the
Constitutional Reserve Fun d unless such deposit would exceed the
maximum balance permitted pursuant to Section 23 of Article X of the
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Oklahoma Constitution and in such case the amount in excess of the
maximum balance shall be deposited to the credit of the Revenue
Stabilization Fund; and
2. Seventy-five percent (75%) of such amount in excess of the
five-year average, which would otherwise be apportioned to the
General Revenue Fund, shall be deposited to t he credit of the
Revenue Stabilization Fund, together with any amount required for
deposit pursuant to the provisions of paragraph 1 of this
subsection.
D. In addition to any other duties prescribed by law, at the
meeting required by Section 23 of Article X of the Oklahoma
Constitution to be held in February of 2026, and at the February
meeting of the State Board of Equalization each year thereafter, the
State Board of Equalization shall certify:
1. The percentage growth of the amounts available for
appropriation, pursuant to paragraph 1 of Section 23 of Article X of
the Oklahoma Constitution, for the ensuing fiscal year from the
current fiscal year, as certified by the Board during the previous
February meeting; and
2. If the percentage growth certified pursuant to paragraph 1
of this subsection exceeds ten percent (10%), the Board shall
certify the amount of revenues exceeding five (5) percentage points
of the growth certified for calculating the amount of tax credit
provided in Section 2 of this act.
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SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.207 of Title 68, unless
there is created a duplication in numbering, reads as follows:
A. For calendar years where the State Board of Equ alization
certifies an amount pursuant to paragraph 2 of subsection D of
Section 34.103 of Title 62 of the Oklahoma Statutes, for the
corresponding tax year, there shall be allowed a refundable credit
against the tax imposed pursuant to Section 2355 of Tit le 68 of the
Oklahoma Statutes in an amount, rounded to the nearest whole doll ar,
to be calculated by the Oklahoma Tax Commission by taking the amount
certified by the Board pursuant to paragraph 2 of subsection D of
Section 34.103 of Title 62 of the Oklah oma Statutes and dividing by
the summation of the following:
1. The number of individual, married filing separate, surviving
spouse, and head of household state personal income tax returns
filed in the second preceding tax year, multiplied by the number o ne
and five thousandths (1.005); and
2. The number of married filing jointly state personal income
tax returns filed in the second preceding tax year, multiplied by
the number two and one hundredth s (2.01).
B. The credit amount calculated by the Commissi on as provided
in subsection A of this section shall be doubled for those married
filing jointly.
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C. Within forty-five (45) days of the Board certifying an
amount pursuant to paragraph 2 of subsection D of Section 34.103 of
Title 62 of the Oklahoma Statut es, the Commission shall publish on
its website the amount of tax credit calcu lated pursuant to
subsection A of this section.
D. If a revenue failure is declared pursuant to the provisions
of Section 34.49 of Title 62 of the Oklahoma Statutes prior to
November 1 of the calendar year corresponding to the tax year in
which a tax credit is provided pursuant to this section, the tax
credit shall not be provided for that tax year.
SECTION 3. This act shall become effective November 1, 2025.
60-1-431 QD 12/30/2024 11:21:14 PM