Tax Expenditures

Tax expenditures are subsidies and other tax breaks usually created to achieve a specific purpose. They’re called expenditures because they amount to government spending through the tax code.

Under a provision of Oklahoma law passed in 1996, the Oklahoma Tax Commission is tasked with preparing a biannual report that provides the Commission’s “best estimate of the amount of state revenue that would have been collected but for the existence of each exclusion, deduction, credit, exemption, deferral, or other preferential tax treatment allowed by law for the previous fiscal year.”  The most recent Tax Expenditure Report was released in October 2018; the next one is due October 2020.