OK SB573

Tenants of small business incubators receive state income tax exemption for up to 10 years on income earned from incubator activities, including pass-through income to partners, S-corp shareholders, and LLC members

Beginning tax year 2026, tenants must submit annual information to the Oklahoma Department of Commerce to continue qualifying for the exemption after their first year

Required reporting includes employment levels (full-time equivalent and part-time ratios), interns employed, subcontractor payments, estimated gross revenues, estimated annual costs, other state/local incentives received, and prior year exempted income

For tax years before January 1, 2020, tenants seeking the exemption in years 6-10 had to make at least 75% of gross sales to out-of-state buyers, the federal government, or for resale to out-of-state customers

Effective date: November 1, 2025