OklahomaHB 4072Oklahoma 2026 Regular SessionHouseWALLET

Public Finance; creating the Taxpayer Endowment Trust Fund Act; creating the Taxpayer Endowment Trust Fund; effective date; emergency.

Sponsored By: Trey Caldwell (Republican)

Signed by Governor

Senate Committee

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 0 costs, 2 mixed.

Automatic income tax cut triggers

Starting December 2026, the State Board of Equalization runs yearly tests to see if income tax rates must drop. The Board makes a preliminary decision in December and a final one in February. If total collections beat the base year plus the cost threshold, rates are reduced. Lower rates take effect January 1 after the February certification. For the test tied to 2027, revenues for the first 5.5 months must be at least 95% of the February 2026 estimate and no revenue failure can be declared.

25% of excess taxes to endowment

The state now sends 25% of oil, natural gas, and corporate income tax revenue above the five‑year average into the Taxpayer Endowment Trust. For natural gas, this 25% deposit begins July 1, 2025. For oil and gas, 75% of the excess now goes to the Revenue Stabilization Fund (down from 100%). These rules apply only to amounts above the moving five‑year average, and other required apportionments still apply.

Public funds can invest 5%

Public funds, including the new endowment, may invest up to 5% of their rolling three‑year assets in approved Invest in Oklahoma venture and growth funds. Participation is optional.

Taxpayer endowment rules and payouts

The law creates the Taxpayer Endowment Trust Fund to support long‑term state revenue. The Invest in Oklahoma Board runs the fund under a prudent‑investor standard and may hire outside managers under a Board‑approved process. The State Treasurer provides up to two full‑time staff and may be repaid from the fund. The Board must adopt a written investment policy by July 1 each year and post an annual report by November 1. No money can be appropriated until the fund’s year‑end value tops $1 billion or 10 years have passed after the first deposit. After that, yearly distributable earnings are capped at 4% of the five‑year average fund value, as set by the Board. By November 30 the Board reports the amount for certification, and the certified sum is deposited to General Revenue on July 1.

Sponsors & Cosponsors

Sponsor

Trey Caldwell
Republican • House

Cosponsors

Chuck Hall
Republican • Senate
John Haste
Republican • Senate
John Kane
Republican • House

Roll Call Votes

All Roll Calls

Yes: 89 • No: 51

Senate vote • 4/16/2026

THIRD READING

Yes: 0 • No: 18

House vote • 4/14/2026

Top_of_Page

Yes: 68 • No: 25

House vote • 4/13/2026

DO PASS

Yes: 21 • No: 2

Senate vote • 4/13/2026