{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2358.6a","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2358.6A","heading":"Expensing for qualified property and qualified","body":"improvement property.\n\nA. As used in this section:\n\n1. \"Internal Revenue Code\" means Title 26 of the United States\n\nCode also known as the federal Internal Revenue Code of 1986, as\n\namended;\n\n2. \"Tax Cuts and Jobs Act\" means Public Law No. 115-97 (115th\n\nCongress Public Law 97);\n\n3. \"Qualified property\" shall have the same meaning as in\n\nInternal Revenue Code Section 168(k) as the Code existed on January\n\n1, 2021, and shall apply to property placed in service after\n\nDecember 31, 2021;\n\n4. \"Qualified improvement property\" shall have the same meaning\n\nas in Internal Revenue Code Section 168(e)(6) as the Code existed on\n\nJanuary 1, 2021, and shall apply to property placed in service after\n\nDecember 31, 2021; and\n\n5. \"Full expensing\" or \"one hundred percent (100%) bonus\n\ndepreciation\" means a method for taxpayers to recover costs for\n\ncertain expenditures in research and experimentation and depreciable\n\nbusiness assets by immediately deducting the full cost of such\n\nexpenditures in the tax year in which the cost is incurred or the\n\nproperty is placed in service.\n\nB. Taxpayers shall have the option for immediate and full\n\nexpensing for qualified property and qualified improvement property\n\nas follows:\n\n1. For purposes of computing income tax for taxable years\n\nbeginning after December 31, 2021, the cost of expenditures for\n\nbusiness assets that are qualified property or qualified improvement\n\nproperty covered under Section 168 of the Internal Revenue Code\n\nshall be eligible for one hundred percent (100%) bonus depreciation\n\nand may be deducted as an expense incurred by the taxpayer during\n\nthe taxable year during which the property is placed in service,\n\nnotwithstanding any changes to federal law related to amortization\n\nof cost recovery beginning on or after January 1, 2023, and shall\n\npermanently remain fully and immediately deductible as an expense in\n\nthe tax year in which the property is placed in service for purposes\n\nof calculating the taxpayer's income;\n\n2. If a taxpayer elects immediate and full expensing of\n\nqualified property or qualified improvement property, any\n\ndepreciation calculated and claimed pursuant to this section shall\n\nin no event be a duplication of any depreciation or bonus\n\ndepreciation allowed or permitted on the federal income tax return\n\nof the taxpayer. For income tax returns filed on or after January\n\n1, 2023, federal taxable income shall be increased by the amount of\n\ndepreciation received under the Internal Revenue Code for the\n\nqualified property or qualified improvement property for which the\n\nelection has been made to immediately and fully expense the asset on\n\nthe Oklahoma income tax return for the year in which the property\n\nwas placed in service. A taxpayer filing a return for which federal\n\ntaxable income is not increased as provided for in this section\n\nprior to October 1, 2023, shall file an amended return reflecting\n\nsuch increase not later than June 30, 2024. The Tax Commission\n\nshall not assess penalties or interest with respect to the failure\n\nto reflect such increase if a correct amended return is filed as\n\nrequired herein; and\n\n3. The taxpayer's decision to recover investment costs through\n\nimmediate expensing in the year the investment cost is incurred, or\n\namortized over an amortization schedule, is irrevocable unless\n\nspecifically allowed for by the Oklahoma Tax Commission.\n\nC. 1. To conform to Section 179 of the Internal Revenue Code,\n\ntaxpayers shall be allowed to immediately deduct as an expense the\n\ncost of certain depreciable business assets in the tax year in which\n\nthe property is placed in service.\n\n2. For purposes of computing income tax for taxable years\n\nbeginning after December 31, 2021, taxpayers may elect to treat the\n\ncost of any Section 179 of the Internal Revenue Code property as an\nof the Internal Revenue Code,\n\ntaxpayers shall be allowed to immediately deduct as an expense the\n\ncost of certain depreciable business assets in the tax year in which\n\nthe property is placed in service.\n\n2. For purposes of computing income tax for taxable years\n\nbeginning after December 31, 2021, taxpayers may elect to treat the\n\ncost of any Section 179 of the Internal Revenue Code property as an\n\nexpense which is not chargeable to the capital account. Any cost so\n\ntreated shall be allowed as a deduction for the taxable year in\n\nwhich the Section 179 Internal Revenue Code property is placed in\n\nservice.\n\nD. The Oklahoma Tax Commission shall, within sixty (60) days of\n\nthe effective date of this act, promulgate rules for implementation\n\nof this act which shall conform to the Internal Revenue Code of 1986\n\nand must be consistent with the Internal Revenue Service's rules.\n\nThe provisions of this section shall supersede to the extent of any\n\ninconsistency with any administrative rule.","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"9c145fe1852b29aace166aaae0cfc3e968455d13ba699ba53be1fa637d18afb3","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2358.6","next":"us-ok/okla.-stat.-tit.-68-68-2358.7"},"notice":"GroundRules: Original legal text. Not legal advice."}