Bill > SB52

This bill modifies Oklahoma's Earned Income Tax Credit (EITC) by updating its calculation and application for tax years. Specifically, the bill extends the existing 5% state EITC calculation, which is based on the federal EITC, to cover tax years 2002 through 2025, using the same requirements that were in effect for the 2020 income tax year. The credit will continue to be calculated as 5% of the federal EITC, and for qualifying tax years, if the credit exceeds the taxpayer's state income tax liability, the excess amount will be refunded to the taxpayer. The bill also clarifies that the credit cannot be paid in advance and must be prorated based on the ratio of the taxpayer's Oklahoma adjusted gross income to their federal adjusted gross income. The bill will become effective on November 1, 2025, providing continued tax relief for eligible low to moderate-income workers in Oklahoma by maintaining their state EITC benefits.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb52&Session=2600