An act relating to revenue and taxation, the official text

1                           STATE OF OKLAHOMA

2   2nd Session of the 60th Legislature (2026)

3 HOUSE BILL 3760           By: Turner

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5

6                           AS INTRODUCED

7   An Act relating to revenue and taxation; enacting the

    Law Enforcement Strategic Support Act; defining

8   terms; prescribing limit on tax credits; providing

    for income tax credits for certain contributions;

9   specifying credit amount; imposing duties on the

    Oklahoma Tax Commission with respect to

10  administration of tax credit; prescribing content and

    required information; providing process for

11  certification of law enforcement foundations;

    prescribing procedures for use of tax credits;

12  requiring annual reports; providing for

    confidentiality of information; requiring publication

13  of information by law enforcement foundations;

    requiring use of funds for certain expenditures;

14  prohibiting use of credit in connection with

    deduction or exemption; imposing limit on credit

15  amount with respect to income tax liability;

    providing for noncodification; providing for

16  codification; and providing an effective date.

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19

20 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

21  SECTION 1.     NEW LAW  A new section of law not to be

22 codified in the Oklahoma Statutes reads as follows:

23  This act shall be known and may be cited as the "Law Enforcement

24 Strategic Support Act".
1   SECTION 2.       NEW LAW  A new section of law to be codified

2 in the Oklahoma Statutes as Section 2357.331 of Title 68, unless

3 there is created a duplication in numbering, reads as follows:

4   A. As used in this section, the term:

5   1. "Law enforcement foundation" means any domestic nonprofit

6 corporation with the sole function of supporting one local law

7 enforcement unit through a formal relationship recognized by such

8 local law enforcement unit and which maintains nonprofit status

9 under Section 501(c)(3) of the Internal Revenue Code;

10  2. "Local law enforcement unit" means any agency, office, or

11 department of a county, municipality, or consolidated government of

12 this state whose primary functions include the enforcement of

13 criminal or traffic laws, preservation of public order, protection

14 of life and property, or the prevention, detection, or investigation

15 of crime. Such term shall include any sheriff's office in this

16 state. Such term shall not include any agency, office, or

17 department conducting similar functions for any court, state board,

18 state authority, state law enforcement division or department, or

19 railroad police;

20  3. "Qualified contributions" means the preapproved contribution

21 of funds by a taxpayer to a qualified law enforcement foundation

22 under the terms and conditions of this act;

23  4. "Qualified expenditures" means expenditures made by a

24 qualified law enforcement foundation:
1   a. (1) for salary supplements paid no more than twice

2   annually or training provided directly to law

3   enforcement officers employed by the local law

4   enforcement unit affiliated with such qualified

5   law enforcement foundation, or

6   (2) for the purchase, lease, maintenance, or

7   improvement of equipment to be used by such

8   officers, or

9   b. to cover any costs incurred by the local law

10  enforcement unit for the operation of an emergency

11  response team that combines law enforcement officers

12  and behavioral health specialists, provided that such

13  costs shall not include salaries or other regular

14  compensation; and

15  5. "Qualified law enforcement foundation" means any law

16 enforcement foundation that has been designated as the sole local

17 law enforcement foundation for a single local law enforcement unit

18 and has been certified and listed by the Commission pursuant to

19 subsection D of this section.

20  B. 1. The aggregate amount of tax credits allowed under this

21 act shall not exceed Seventy-five Million Dollars ($75,000,000.00)

22 per calendar year. Each qualified law enforcement foundation shall

23 be limited to accepting Three Million Dollars ($3,000,000.00) per

24 year of contributions made under this act.
1   2. Subject to the aggregate limit provided in paragraph 1 of

2 this subsection for taxable years beginning on or after January 1,

3 2027, and ending on or before December 31, 2031, each taxpayer shall

4 be allowed a credit against the tax imposed by Section 2355 of Title

5 68 of the Oklahoma Statutes for contributions made by the taxpayer

6 as follows:

7   a. in the case of a single individual or a head of

8              household, the actual amount of qualified

9              contributions made or Five Thousand Dollars

10             ($5,000.00) per tax year, whichever is less,

11  b. in the case of a married couple filing a joint return,

12             the actual amount of qualified contributions made or

13             Ten Thousand Dollars ($10,000.00) per tax year,

14             whichever is less,

15  c. anything to the contrary contained in subparagraph a

16             or b of this paragraph notwithstanding, in the case of

17             an individual taxpayer who is a member of a limited

18             liability company duly formed under state law, a

19             shareholder of a subchapter 'S' corporation, or a

20             partner in a partnership, the actual amount of

21             qualified contributions it made or Ten Thousand

22             Dollars ($10,000.00) per tax year, whichever is less;

23             provided, however, that tax credits pursuant to this

24             paragraph shall only be allowed for the portion of the
1   income on which such tax was actually paid by such

2   member of the limited liability company, shareholder

3   of a subchapter S corporation, or partner in a

4   partnership, or

5   d. a corporation or other entity not provided for in

6   subparagraphs a through c of this paragraph shall be

7   allowed a credit against the tax imposed by this act,

8   for qualified contributions in an amount not to exceed

9   the actual amount of qualified contributions made or

10  seventy-five percent (75%) of such corporation's or

11  other entity's income tax liability, whichever is

12  less.

13  3. Nothing in this act shall be construed to limit the ability

14 of a local law enforcement unit to receive gifts, grants, and other

15 benefits from any source allowed by law; provided, however, that no

16 local law enforcement unit shall, under this section, accept or

17 receive more than Three Million Dollars ($3,000,000.00) in

18 contributions in any calendar year.

19  C. The Commission shall establish a page on the Commission's

20 website for the purpose of implementing this section. Such page

21 shall contain, at a minimum:

22  1. The application and requirements to be certified as a

23 qualified law enforcement foundation;

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1   2. The current list of all qualified law enforcement

2 foundations and their affiliate law enforcement units;

3   3. The total amount of tax credits remaining and available for

4 preapproval for each year;

5   4. A web-based method for taxpayers seeking the preapproval

6 status for contributions; and

7   5. The information received by the Commission from each

8 qualified law enforcement foundation pursuant to paragraph 1 of

9 subsection G except for division (4) of subparagraph b of paragraph

10 1 of subsection G of this section.

11  D. Any valid law enforcement foundation as a qualified law

12 enforcement foundation shall be certified by the Commission

13 following the Commission's receipt of a properly completed

14 application and after the Commission has confirmed that a single

15 local law enforcement unit has validly designated the applicant as

16 its sole law enforcement foundation. Such application shall be

17 prescribed by the Commission and shall include an agreement by the

18 applicant to fully comply with the terms and conditions of this

19 section.

20  E. 1. Prior to making a contribution to any qualified law

21 enforcement foundation, the taxpayer shall electronically notify the

22 Commission, in a manner specified by the Commission, of the total

23 amount of contribution that such taxpayer intends to make to such

24 qualified law enforcement foundation.
1   2. Within thirty (30) days after receiving a request for

2 preapproval of contributions, the Commission shall preapprove, deny,

3 or prorate requested amounts on a first come, first served basis and

4 shall provide notice to such taxpayer and the qualified law

5 enforcement foundation of such preapproval, denial, or proration.

6 Such notices shall not require any signed release or notarized

7 approval by the taxpayer. The preapproval of contributions by the

8 Commission shall be based solely on the availability of tax credits

9 subject to the limits established under paragraph 1 of subsection B

10 of this section.

11  3. Within sixty (60) days after receiving the preapproval

12 notice issued by the Commission pursuant to paragraph 2 of this

13 subsection, the taxpayer shall contribute the preapproved amount to

14 the qualified law enforcement foundation or such preapproved

15 contribution amount shall expire.

16  The Commission shall not include such expired amounts in

17 determining the remaining amount available under the aggregate limit

18 for the respective calendar year.

19  F. 1. Each qualified law enforcement foundation shall issue to

20 each contributor a letter of confirmation of contribution, which

21 shall include the taxpayer's name, address, tax identification

22 number, the amount of the qualified contribution, the date of the

23 qualified contribution, and the total amount of the credit allowed

24 to the taxpayer.
1   2. In order for a taxpayer to claim the tax credit allowed

2 under this section, all such applicable letters as provided for in

3 paragraph 1 of this subsection shall be attached to the taxpayer's

4 tax return.

5   When the taxpayer files an electronic return such confirmation

6 shall only be required to be electronically attached to the return

7 if the Internal Revenue Service allows such attachments to be

8 affixed and transmitted to the Commission. In any such event, the

9 taxpayer shall maintain such confirmation and such confirmation

10 shall only be made available to the Commission upon request.

11  3. The Commission shall allow tax credits for any preapproved

12 contributions made to a local law enforcement foundation at the time

13 the contributions were made if such foundation was a qualified law

14 enforcement foundation at the time of the Commission's preapproval

15 of the contributions and the taxpayer has otherwise complied with

16 this section.

17  G. 1. Each qualified law enforcement foundation shall annually

18 submit to the Commission:

19  a. a complete copy of its IRS Form 990 and other

20                applicable attachments, or for any qualified law

21                enforcement foundation that is not required by federal

22                law to file an IRS Form 990, such foundation shall

23                submit to the Commission equivalent information on a

24                form prescribed by the Commission, and
1   b. a report detailing the contributions received during

2   the calendar year pursuant to this section on a date

3   determined by, and on a form provided by, the

4   Commission which shall include:

5   (1) the total number and dollar value of individual

6   contributions and tax credits approved.

7   Individual contributions shall include

8   contributions made by those filing income tax

9   returns as a single individual or head of

10  household and those filing joint returns,

11  (2) the total number and dollar value of corporate

12  contributions and tax credits approved,

13  (3) the total number and dollar value of all

14  qualified expenditures made, and

15  (4) a list of contributors, including the dollar

16  value of each contribution and the dollar value

17  of each approved tax credit.

18  2. Except for the information published in accordance with

19 subsection C or H of this section, all information or reports

20 relative to this section that were provided by qualified law

21 enforcement foundations to the Commission shall be confidential

22 taxpayer information, governed by Section 205 of this title, whether

23 such information relates to the contributor or the qualified law

24 enforcement foundation.
1   H. Each qualified law enforcement foundation shall publish on

2 its website a copy of its affiliated local law enforcement unit's

3 prior year's annual budget containing the total amount of funds

4 received from its local governing body. If a qualified law

5 enforcement foundation does not maintain a public website, such

6 information shall be otherwise made available by the qualified law

7 enforcement foundation to the public upon request.

8   I. 1. A taxpayer shall not be allowed to designate or direct

9 the taxpayer's qualified contributions to any particular purpose or

10 for the direct benefit of any particular individual.

11  2. A taxpayer that operates, owns, is affiliated with, or is a

12 subsidiary of an association, organization, or other entity that

13 contracts directly with a qualified law enforcement foundation or

14 the local law enforcement unit that is affiliated with a qualified

15 law enforcement foundation shall not be eligible for tax credits

16 allowed under this section for contributions made to such qualified

17 law enforcement foundation.

18  3. In soliciting contributions, no person shall represent or

19 direct that, in exchange for making qualified contributions to any

20 qualified law enforcement foundation, a taxpayer shall receive any

21 direct or particular benefit. The status as a qualified law

22 enforcement foundation shall be revoked for any law enforcement

23 foundation determined to be in violation of this paragraph and shall

24 not be renewed for at least two (2) years.
1   J. 1. Qualified contributions shall only be used for qualified

2 expenditures. Each qualified law enforcement foundation shall

3 maintain accurate and current records of all expenditures of

4 qualified contributions and provide such records to the Commission

5 upon his or her request.

6   2. A qualified law enforcement foundation that fails to comply

7 with any of the requirements under this section shall be given

8 written notice by the Commission of such failure to comply by

9 certified mail and shall have ninety (90) days from the receipt of

10 such notice to correct all deficiencies.

11  3. Upon failure to correct all deficiencies within ninety (90)

12 days, the Commission shall revoke the law enforcement foundation's

13 status as a qualified law enforcement foundation and such entity

14 shall be immediately removed from the Commission's list of qualified

15 law enforcement foundations. All applications for preapproval of

16 tax credits for contributions to such law enforcement foundation

17 under this section made on or after the date of such removal shall

18 be rejected.

19  4. Each law enforcement foundation that has had its status

20 revoked and has been delisted pursuant to this section, shall

21 immediately cease all expenditures of funds received relative to

22 this section, and shall transfer all of such funds that are not yet

23 expended, to a properly operating qualified law enforcement

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1 foundation within thirty (30) calendar days of its removal from the

2 Commission's list of qualified law enforcement foundations.

3   K. 1. No credit shall be allowed under this section to a

4 taxpayer for any amount of qualified contributions that were

5 utilized as deductions or exemptions from taxable income.

6   2. In no event shall the total amount of the tax credit under

7 this section for a taxable year exceed the taxpayer's income tax

8 liability. Any unused tax credit shall be allowed the taxpayer

9 against the succeeding five (5) years' tax liability. No such

10 credit shall be allowed the taxpayer against prior years' tax

11 liability.

12  L. The Commission shall promulgate rules and regulations

13 necessary to implement and administer the provisions of this

14 section.

15  SECTION 3. This act shall become effective November 1, 2026.

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17  60-2-15724  MAH  01/11/26

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