Bill > HB2229

This bill modifies Oklahoma's earned income tax credit (EITC) by increasing the state-level credit from 5% to 10% of the federal earned income tax credit, starting with tax years beginning on or after January 1, 2026. The earned income tax credit is a refundable tax credit designed to provide financial support to low to moderate-income working individuals and families. Under the proposed changes, if a taxpayer's EITC exceeds their state income tax liability, the excess amount will be refunded to the taxpayer. The credit will continue to be prorated based on the ratio of the taxpayer's Oklahoma adjusted gross income to their federal adjusted gross income. The bill specifically notes that the credit cannot be paid in advance, and it will become effective on November 1, 2025. This change aims to provide additional financial support to working Oklahomans by expanding the state's existing earned income tax credit.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb2229&Session=2600