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Oklahoma Legislature· SB 1776Referred to Appropriations

An act relating to income tax, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1                            STATE OF OKLAHOMA

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2                  2nd Session of the 60th Legislature (2026)

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3 SENATE BILL 1776           By: Pugh
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6                            AS INTRODUCED

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7   An Act relating to income tax; providing tax credit

7   for teachers attaining certain years of service with

8   a school district; prescribing credit amount and

8   requirements; providing exception for certain

9   eligibility requirement; authorizing the Oklahoma Tax

9   Commission to conduct audit to determine eligibility;

10  requiring the recapture of credit if a taxpayer

10  becomes ineligible; making the credit refundable;

11  providing for codification; and providing an

11  effective date.

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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15  SECTION 1.      NEW LAW  A new section of law to be codified

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16 in the Oklahoma Statutes as Section 2357.49 of Title 68, unless
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17 there is created a duplication in numbering, reads as follows:
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18  A. For tax year 2027 and subsequent tax years, there shall be

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19 allowed against the tax imposed by Section 2355 of Title 68 of the
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20 Oklahoma Statutes, a credit for any individual who is certified to
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21 teach in this state and has begun teaching an eighth consecutive
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22 year in a school district in this state during the tax year. The
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23 credit allowed shall be in the amount of Ten Thousand Dollars
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24 ($10,000.00).
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    Req. No. 2193                                              Page 1
1   B. Any taxpayer claiming the credit authorized by this section

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2 shall continue to teach in the same school district for the
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3 remainder of the eighth year, plus three (3) more consecutive years,
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4 to remain eligible for the credit. Provided, if the taxpayer became
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5 unemployed due to a reduction in force by the school district,
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6 death, or a documented medical hardship, the taxpayer shall remain
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7 eligible. The Commission may conduct an audit to verify the
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8 eligibility of a taxpayer that has claimed the credit authorized
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9 pursuant to this section. The Commission shall recapture the
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10 credits otherwise authorized by the provisions of this section if an
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11 audit conducted shows that the taxpayer became ineligible.
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12  C. If the credit exceeds the tax imposed by Section 2355 of

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13 Title 68 of the Oklahoma Statutes, the excess amount shall be
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14 refunded to the taxpayer.
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15  SECTION 2. This act shall become effective November 1, 2026.

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17  60-2-2193      QD         1/14/2026 4:40:05 PM

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    Req. No. 2193                                              Page 2
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