OK SB1385

Creates the "Oklahoma Critical Workforce Retention Act of 2026" providing income tax exemptions for workers in certified trades including aircraft mechanics, plumbers, ironworkers, HVAC technicians, welders, heavy equipment operators, and electricians

Establishes a graduated income exemption schedule starting at 20% for years 1-4, increasing to 50% at year 5, then varying between 25-80% through year 20, and settling at 50% for year 21 and beyond

Allows workers in certified trades to deduct the cost of tools and certification/training fees related to their trade from taxable income

Requires individuals to be actively employed in the certified trade for the entire tax year and hold a required state license or certification to qualify for the exemption

Effective date is November 1, 2026