Bill > SB1385

This bill creates the Oklahoma Critical Workforce Retention Act of 2026, which provides tax incentives and exemptions for individuals working in specific certified trades. The bill introduces a graduated tax exemption for income earned in certified trades, starting with a 20% exemption in the first four tax years and increasing to as much as 80% in the twentieth tax year. Certified trades are defined as professions requiring specific technical skills and licensure, including aircraft mechanics, plumbers, ironworkers, HVAC technicians, welders, heavy equipment operators, and electricians. In addition to the income exemption, the bill allows individuals in these trades to deduct costs related to tools, certifications, and training fees from their taxable income. The tax provisions will take effect on November 1, 2026, and are designed to encourage workforce development and retention in critical technical professions by providing financial incentives to workers in these fields. The bill amends existing Oklahoma tax law to incorporate these new provisions, offering a structured approach to supporting skilled trades through targeted tax benefits.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb1385&Session=2600