OK HB2645

Establishes an income tax credit of up to $20,000 per tax year for qualifying doctors earning compensation from practicing medicine or osteopathic medicine in rural Oklahoma areas, effective for tax year 2026 and subsequent years.

Defines "qualifying doctor" as a medical doctor or osteopathic physician licensed in Oklahoma on or after January 1, 2024, who graduated from or completed residency at an in-state medical school and maintains their primary residence in the same county as the rural practice area for the entire tax year.

Defines "rural area" as any municipality or unincorporated location with a population not exceeding 25,000 and located at least 25 miles from the nearest municipality with a population exceeding 25,000.

Permits qualified doctors to claim the credit for up to five consecutive tax years (the initial year plus four subsequent years) if they continue to meet eligibility requirements.

Caps total annual credits at $1,000,000 starting in tax year 2028, with the Oklahoma Tax Commission calculating annual percentage reductions to stay within the limit using a formula based on credits claimed in the second preceding tax year.