HB 2745 Summary

• Amends Oklahoma banking privilege tax (4% of taxable income for banks and credit unions) to add tax deductions for qualified agricultural loans and single-family residence loans beginning tax year 2025.

• Allows deductions for net interest income from: qualified agricultural real estate loans, agricultural operating loans, and single-family residence loans made after December 31, 2024, and before January 1, 2028.

• Establishes annual caps on deductions: institutions with over $750 million in Oklahoma deposits limited to $500,000 per institution; smaller institutions limited to $250,000 per institution over a three-year period.

• Starting tax year 2027, total deductions statewide capped at $5 million annually, with Oklahoma Tax Commission calculating annual percentage adjustments to ensure cap compliance.

• Act becomes effective November 1, 2025.