Oklahoma governor signs bills to slash income tax rates

May 21, 2021 GMT

OKLAHOMA CITY (AP) — Oklahoma Gov. Kevin Stitt signed a package of bills on Friday to cut the corporate and top individual income tax rates and to restore the refundability of the earned income tax credit.

The bills were part of a budget agreement announced with Republican legislative leaders last week.

Restoring the refundability of the earned income tax credit aims to help low-income Oklahomans.

According to a House analysis of the bills, the tax cuts are expected to cost the state about $330 million in revenue each year once fully implemented.

“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 said in a statement.

The new rates will take effect Jan. 1.

Stitt also signed a bill to increase to the amount of tax credits available for contributions to private and public schools from $5 million to $50 million.