SB60 Summary: Income Tax Adjustments and Apportionment Factors

• Sales Factor Apportionment Change: For tax year 2026 and subsequent years, businesses must apportion income to Oklahoma solely based on the sales factor, eliminating the previous three-factor apportionment method (property, payroll, and sales) used through tax year 2025.

• Transition for Large Investments: Tax year 2025 retains the three-factor apportionment for corporations with $200 million or more in property investment made after July 1, 1997, or expansions of $200 million or more commenced after January 1, 2000.

• Technical Corrections: Updates terminology throughout the Oklahoma Income Tax Act by replacing "Oklahoma" with "this state" for consistency and corrects references to federal tax code provisions.

• Qualified Capital Gains Deduction: Allows corporations, estates, and trusts to deduct qualifying capital gains from sales of Oklahoma real property, tangible personal property, or ownership interests in Oklahoma businesses meeting specific holding period requirements.

• Effective Date: The act becomes effective November 1, 2025.