An act relating to revenue and taxation, the official text

1                   STATE OF OKLAHOMA

2   1st Session of the 60th Legislature (2025)

3 HOUSE BILL 2229                 By: Munson

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                                AS INTRODUCED

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    An Act relating to revenue and taxation; amending 68

8   O.S. 2021, Section 2357.43, which relates to earned

    income tax credits; modifying credit percentage; and

9   providing an effective date.

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12 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

13  SECTION 1.      AMENDATORY  68 O.S. 2021, Section 2357.43, is

14 amended to read as follows:

15  Section 2357.43. For tax years beginning on or after January 1,

16 2022 2026, there shall be allowed to a resident individual or a

17 part-year resident individual as a credit against the tax imposed by

18 Section 2355 of this title five percent (5%) ten percent (10%) of

19 the earned income tax credit allowed under Section 32 of the

20 Internal Revenue Code of the United States, 26 U.S.C., Section 32,

21 which for the taxable year beginning January 1, 2022, and the

22 taxable year beginning each January 1 thereafter shall be computed

23 using the same requirements, other than the five percent (5%) amount

24 to compute the credit as prescribed by this section which shall

    Req. No. 11080                                                  Page 1
1 remain constant, in effect for computation of the earned income tax

2 credit for federal income tax purposes for the 2020 income tax year.

3 However, this credit shall not be paid in advance pursuant to the

4 provisions of Section 3507 of the Internal Revenue Code. For tax

5 years which begin on or after January 1, 2022 2026, if the credit

6 exceeds the tax imposed by Section 2355 of this title, the excess

7 amount shall be refunded to the taxpayer. The maximum earned income

8 tax credit allowable on the Oklahoma income tax return shall be

9 prorated on the ratio that Oklahoma adjusted gross income bears to

10 the federal adjusted gross income.

11  SECTION 2. This act shall become effective November 1, 2025.

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13  60-1-11080      AO  12/20/24

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    Req. No. 11080                                                 Page 2