Governor Kevin Stitt this week signed legislation that lowers income taxes on individuals and businesses as well as increases investment in education.
House Bill 2962 cuts individual income tax rates by 0.25%, lowering the top rate from 5% to 4.75% and House Bills 2960 and 2963 reduce the corporate income tax from 6% to 4%.
Both tax changes are effective Jan. 1, 2022.
“I am proud to sign legislation that lowers taxes and lets hardworking Oklahomans keep more of their money,” said Gov. Stitt. “I’ve pledged to make Oklahoma a Top Ten state for business and making our business taxes among the lowest in the nation is another tool that will help us continue to recruit and retain companies.”
Stitt also signed Senate Bill 1080, which makes improvements to the Equal Opportunity Scholarship Act that provides tax credits to donors who voluntarily contribute funds to support education, including public school foundations.
SB 1080 raises the amount of tax credits available for the program to $50 million, with $25 million for public schools and $25 million for private schools. The grants can be used by families for scholarships to private schools and by public schools for innovative programs or classroom support.
“Over the past year, it’s become even more clear that education is not one-size-fits-all,” Stitt said. “Parents and students across Oklahoma want more options, and this program helps create more opportunities for kids to attend the school that best fits their needs.”
The legislation signed today is part of a comprehensive budget agreement announced last week. The remaining pieces of budget legislation are being reviewed and await the governor’s signature.