SB 342 Summary

• Provides an income tax credit for individual Oklahoma employees commuting at least 2 miles each way to their workplace, effective for tax year 2026 and subsequent years.

• Credit is calculated by multiplying 240 by the miles commuted daily (capped at 40 miles maximum) and then multiplying that result by the standard mileage rate under the Internal Revenue Code of 1986, as amended.

• Miles commuted are measured as the shortest driving distance between the taxpayer's primary residence address and workplace address.

• Credit is refundable, meaning any excess amount above the taxpayer's tax liability will be refunded.

• Taxpayer must be employed and assigned to the same workplace and reside at the same primary residence for the entire tax year to qualify; credit must be claimed on a form prescribed by the Oklahoma Tax Commission including the workplace address.

• Act becomes effective November 1, 2025.