Bill > SB367

This bill modifies the Oklahoma earned income tax credit (EITC) provisions by adjusting the calculation and applicability of the state tax credit. Specifically, the bill establishes that for tax years 2022 through 2025, the state EITC will be calculated using the same requirements that were in effect for the 2020 federal income tax year, while maintaining a constant five percent credit rate. For tax years 2002 through 2021 and tax year 2026 and subsequent years, the credit will be five percent of the federal earned income tax credit for the applicable tax year. The bill clarifies that this credit cannot be paid in advance and will be refundable if it exceeds the taxpayer's state income tax liability. The maximum credit will continue to be prorated based on the ratio of Oklahoma adjusted gross income to federal adjusted gross income. The bill will become effective on November 1, 2025, and amends an existing section of Oklahoma tax law (68 O.S. 2357.43) to implement these changes.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb367&Session=2600