Small business incubators; requiring submission of certain information to the Oklahoma Commerce Department to qualify for certain income tax exemption. Effective date.

New tax reporting for Oklahoma incubator businesses

The law takes effect November 1, 2025, with new reporting rules for tax years 2026 and later. After their first tax year receiving the incubator income tax exemption, business tenants must report information to keep qualifying. They must use a form set by the Oklahoma Department of Commerce. Reports must list employment levels, full-time equivalents, the ratio of part-time to full-time employees, and interns employed. They must also list subcontractor payments and their purposes, estimated yearly gross revenue, and estimated yearly property and service costs. Reports must identify other state or local financial aid, incentives, tax credits, or exemptions. They must also state how much taxable income was exempted under this tax break in the previous tax year.