FOCUS 

Mike Miers, Jr., CPA, is an  Gotwals in Tulsa. He has  years and has served on  and currently serves on 

Brent Watson, CPA, is the principal at SALTA, PLLC, which he founded  Tulsa, Okla. An OSCPA  has served on the OSCPA’s    serves on the Oil & Gas 

 Oklahoma tax law

 Oklahoma tax laws. T

INCOME TAX • HB 1011 placed a limit on the net amount of itemized deductions allowed on an Oklahoma individual income tax return. Itemized deductions shall not exceed $17,000. An exception to this limit applies to itemized deductions for charitable contributions and medical expenses that are deductible for federal income tax purposes and those shall be excluded from the $17,000 limit. Tis change is effective Jan. 1, 2018.

• SB 893 amended the Oklahoma income tax credit allowed for the generation of electricity by zero-emission facilities to limit allowance of the credit for non-wind generation facilities, including water, sun and geothermal energy, to tax years ending no later than 2021. For tax years beginning on or after Jan. 1, 2019, the total amount of such credits shall be annually limited to $500,000 per year.

• HB 1034 amended and limited the Oklahoma income tax credit allowed for the use and consumption of coal in furnishing water, heat, light or power or for manufacturing. For tax years beginning on and after Jan. 1, 2018, the total amount of such coal credits shall be limited annually to $5,000,000 per year.

• HB 1036 amended and limited the Oklahoma income tax railroad reconstruction and repair credit. For tax years beginning on and after Jan. 1, 2018, the total amount of such credits shall be limited to $2,000,000 per year.

16 CPAFOCUS September/October 2018

hrough special sessions in 2017 and the regular session in 2018, the Oklahoma Legislature enacted changes in the

• SB 1585 enacted Oklahoma income tax credits intended to be an incentive for new motor vehicle manufacturing in the state. Oklahoma income tax credits will be allowed to qualified employers and qualified employees involved in motor vehicle manufacturing in Oklahoma. A qualified employer generally means an employer whose principal business activity involves motor vehicle manufacturing placed in operation after Nov. 1, 2018. A qualified employer shall be allowed Oklahoma income tax credits for tuition reimbursement and compensation paid to qualified employees. Qualified employees shall be allowed Oklahoma income tax credits of up to $5,000 annually for five years, with carryover for five years. Te total amount of credits allowed to qualified employers and to qualified employees will be limited annually to $3,000,000 and $2,000,000, respectively.

• HB 3715 enacted an allowance of installment payments of Oklahoma income tax for a taxpayer that elects to make installment payments of federal income tax on repatriated foreign income pursuant to the provisions of section 965(h) of the Internal Revenue Code.

• Te Oklahoma income tax legislation enacted in 2018 also included reauthorization of Oklahoma income tax checkoff refund contributions for the Oklahoma Pet Overpopulation Fund, Court Appointed Special Advocates and the Public Schools Classroom Support Revolving Fund, and enactment of an income tax checkoff refund contribution for an Oklahoma AIDS Care Revolving Fund.

Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32