OK HB2745

Amends Oklahoma's banking privilege tax (68 O.S. 2021, Section 2370) to allow financial institutions organized under state law with main offices in Oklahoma to deduct net interest income from qualified agricultural real estate loans, agricultural operating loans, and single-family residence loans in rural areas (towns under 5,000 population)

Deduction applies to interest earned on eligible loans made between January 1, 2025 and January 1, 2028, effective for tax year 2025 and subsequent years

Caps deductions based on institution size: $500,000 maximum over three years for institutions with Oklahoma deposits exceeding $750 million; $250,000 maximum over three years for smaller institutions

Beginning in tax year 2027, total annual deductions statewide are capped at $5 million, with the Oklahoma Tax Commission required to calculate and publish percentage adjustments to stay within the cap

Effective date is November 1, 2025; passed the Oklahoma House of Representatives on March 25, 2025