Bill > HB2988

This bill establishes the "Oklahoma Harmful Woody Species Removal Tax Credit Act" to incentivize landowners to implement conservation practices, such as removing invasive woody plants, improving soil health, or enhancing water efficiency, while maintaining agricultural productivity. Qualified taxpayers, defined as individuals implementing these practices on land in Oklahoma, can receive an income tax credit. The amount of the credit varies based on the number of practices implemented per acre, with annual limits on the total credit amount per taxpayer. The Oklahoma Conservation Commission will issue tax credit certificates to eligible taxpayers after they submit an application detailing their practices. Taxpayers can only receive one certificate per year and must submit it with their tax return. There's an annual cap on the total value of credit certificates issued statewide, with a waitlist system for exceeding this limit. If a taxpayer receives other financial assistance for the practice, the credit amount will be reduced. The credit cannot reduce a taxpayer's liability below zero, but any unused credit can be carried forward for two years. The Conservation Commission will maintain a database to track the credit's effectiveness and provide information to the Oklahoma Tax Commission. This act will become effective on November 1, 2026, and the tax credit will be available for income tax years beginning on or after January 1, 2027, and before January 1, 2031.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb2988&Session=2600