The following credits are available on your Oklahoma return:
Natural Disaster Tax Credit
You may be able to claim this credit if
- your primary residence was damaged or destroyed in a natural disaster and a Presidential Major Disaster Declaration was issued and
- the primary residence was rebuilt or repaired within 36 months of the disaster
- The credit is the difference between the ad valorem property tax in the tax year prior to the damage or destruction and the tax paid the first year after the property is rebuilt or repaired.
Volunteer Firefighter Credit
Complete and sign Council on Firefighter Training's form and send with state return. If you qualify for this credit, you can receive a credit in the amount of $200 or $400.
Credit for Property Tax Relief
You may be able to claim a property tax credit if you are age 65 or older or totally disabled and claim the Head of Household status, You must also be a resident of and domiciled in the state during the entire preceding calendar year. The gross household income for the year cannot exceed $12,000. The credit may not exceed $200.
Sales Tax Relief Credit
You must be an Oklahoma resident for the entire year and your total gross household income cannot exceed $20,000 unless:
- You can claim an exemption for your dependent
- You are 65 years of age or older by 12/31/2022
- You have a physical disability (handicap to employment)
Income cannot exceed $50,000 if one of the above exceptions apply.
Credit for Contributions to a Scholarship-Granting Organization
Credit for contributions made to an eligible scholarship-granting organization. The credit is limited to 50% of the contribution amount, not to exceed $1,000 ($2,000 MFJ return).
Wire Transfer Fee Credit
The wire transfer fee services that was established in a prior year but was not used due to limitations this credit may be carried over. This credit can be carried over no more than five years.
Credit for Taxes Paid to Another State
A resident Oklahoma taxpayer who receives income for personal services performed in another state must report the full amount of such income on their Oklahoma return. If the other state taxes this same income as well, the resident may qualify for this credit. A part-year resident who receives income from personal services performed in another state while an Oklahoma resident must report the full amount of such income. If another state taxes this income, the part-year resident may qualify for this credit. See Form 511-TX.
*Note: The program will automatically calculate this credit for your Resident Oklahoma return when you add the Nonresident return for the other state return to your account. For Part-Year Oklahoma returns that have income taxed in Oklahoma and another state, you will need to manually enter the required information asked of you within your Oklahoma Part-Year return.
Oklahoma Investment or New Jobs Credit
Must have a manufacturer’s exemption permit to qualify for this credit. Credit is based on either an investment in depreciated property of at least $50,000 or an addition of full-time employees engaged in manufacturing, processing or aircraft maintenance.
Credit for Tourism Development and Enterprise Zone Incentive Leverage Act Credit
Credit that was established in a prior year but was not used due to limitations, may be carried over. This credit can be carried over no more than 10 years.
Credit for Qualified Rehabilitation Expenditures
This credit is equal to the amount on the federal rehabilitation investment credit allowed under the Internal Revenue Code, Sec. 47. The credit allowed but not used will have a 10-year carryover.
Credit for Electricity Generated by Zero-Emission Facilities
This credit is generated at $0.0050 per kilowatt-hour, can be claimed within a 10-year period from the date the facility is placed in operation. Any credit not used will have a 10-year carryover.
Credit for Financial Institutions Making Loans under the Rural Economic Development Loan Act
Credit that was established in a prior year but was not used due to limitations, may be carried over. This credit can be carried over no more than 5 years.
Credit for Manufacturers of Small Wind Turbines
Credit that was established in a prior year but was not used due to limitations, may be carried over. This credit can be carried over no more than 10 years.
Credit for Railroad Modernization
This credit is 50% for any qualified railroad reconstruction and/or replacement expenditures. Limited to $5,000 and the number of miles on the railroad track owned or leased at the end of the taxable year.
Credit for Biomedical Research Contribution
The credit is limited to 50% of the contribution amount, not to exceed $1,000 ($2,000 MFJ return).
Credit for Employees in the Vehicle Manufacturing Industry
This credit establishes a $5,000 credit for a qualified employee who has a degree in engineering and is employed in Oklahoma or contracting in the state with a qualified employer. This credit is allowed each year up to the first 5 years.
Credit for Employers in the Vehicle Manufacturing Industry
This credit is 50% of the amount reimbursed for tuition, but may not exceed 50% of the current average annual amount paid for enrollment in a qualified program. This credit may not also exceed $12,500 annually for each qualified employee.
Credit for Cancer Research Contribution
The credit is limited to 50% of the contribution amount, not to exceed $1,000 ($2,000 MFJ return).
Oklahoma Capital Investment Board Tax Credit
Provide the tax credit certificate received by the capital investment board. The credit will provide the face amount of the tax credit for which the credit may be claimed.
Credit for Contributions to an Educational Improvement Grant Organization
The credit is limited to 50% of the contribution amount, not to exceed $1,000 ($2,000 MFJ return).
Credit for Affordable Housing
This credit is equal to the federal low-income housing tax credits for qualified projects. Any credit allowed, but not used, will have a 2 year carryover provision provided credits earned prior to January 1, 2019, which was allowed, but was not used, will have a 5 year carryover provision.
Credit for Employees in the Aerospace Sector (Form 564)
$5,000 credit for a qualified employee who has a degree in engineering and/or a qualified employer whose business activity is in the aerospace sector. This credit can be carried over no more than 5 years.
Credit for Employees in the Aerospace Sector
Establishes credits for tuition reimbursement and for compensation paid to qualified employees. This credit is 50% of the amount reimbursed but may not exceed 50% of the average annual amount paid for enrollment in a qualified program.
Research and Development New Jobs Credit*
Was established in a prior year and is allowed in each of the eighth subsequent years if the level of new employees is maintained. Any credit unused can be carried no more than 4 years.
Child Care/Child Tax Credit*
You may qualify for the Child Care Credit or the Child Tax Credit if your Federal Adjusted Gross Income is $100,000 or less. The Oklahoma credit is the greater of 20% of the credit for child care expenses or 5% of the child tax credit.
Earned Income Credit
A credit equal to 5% of the earned income credit allowed on your federal return.
Credit for Qualified Software or Cybersecurity Employees
This new credit has been added starting in tax year 2020. Must provide Oklahoma form 566.
For a list of all available credits for Oklahoma see Form 511-CR