OK SB573

Amends 74 O.S. 2021, Section 5078 to modify the state income tax exemption for small business incubator tenants, allowing up to 10 years of exemption from state income tax on income earned from incubator activities.

For tax years ending before January 1, 2020, tenants must have at least 75% of gross sales from their principal business activity sold to out-of-state buyers, federal government, or in-state buyers reselling products/services out-of-state to qualify for years 6-10 of the exemption.

Starting with tax year 2026 and subsequent years, tenants must submit an annual information form prescribed by the Oklahoma Department of Commerce to continue qualifying for the exemption, including employment levels, intern employment, subcontractor payments, gross revenues, property and service costs, and other state assistance received.

The Oklahoma Tax Commission shall promulgate rules to implement the provisions of this section.

Effective date is November 1, 2025.