Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1 STATE OF OKLAHOMA
1
2 1st Session of the 60th Legislature (2025)
2
3 SENATE BILL 104 By: Coleman
3
4
4
5
5
6 AS INTRODUCED
6
7 An Act relating to income tax; defining terms;
7 providing credit for certain employer child care
8 expenditures; providing refundable credit for
8 qualified child care worker; providing credit limit;
9 prohibiting refundability for certain credit;
9 allowing credit to be carried forward for certain
10 period; providing annual limit for certain tax years;
10 prescribing procedures to enforce annual limit;
11 providing for codification; and providing an
11 effective date.
12
12
13
13
14
14
15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
15
16 SECTION 1. NEW LAW A new section of law to be codified
16
17 in the Oklahoma Statutes as Section 2357.27A of Title 68, unless
17
18 there is created a duplication in numbering, reads as follows:
18
19 A. As used in this section:
19
20 1. "Child" means an individual who is five (5) years of age or
20
21 younger;
21
22 2. "Child care expense" means the cost or tuition paid for
22
23 child care services from a licensed child care facility;
23
24
24
Req. No. 881 Page 1
1 3. "Employee" means a person to whom wages or other
1
2 compensation is paid by an employer;
2
3 4. "Employer" means any sole proprietor or lawfully recognized
3
4 business entity engaged in lawful business activity;
4
5 5. "Licensed child care facility" means a person or entity
5
6 lawfully authorized to provide child care services in this state and
6
7 is enrolled in Oklahoma's Quality Rating and Improvement System
7
8 (QRIS); and
8
9 6. "Qualified child care worker" means a person employed for at
9
10 least eight (8) consecutive months during the calendar year
10
11 corresponding to the tax year for which the credit authorized by
11
12 this section is claimed and who:
12
13 a. performs classroom services for a licensed child care
13
14 facility,
14
15 b. is enrolled in Oklahoma's Professional Development
15
16 Ladder (PDL), and
16
17 c. has earned a minimum of twelve (12) credit hours.
17
18 B. For tax years 2026 through 2030, there shall be allowed as a
18
19 credit against the tax imposed pursuant to Section 2355 of Title 68
19
20 of the Oklahoma Statutes, an amount equal to:
20
21 1. Thirty percent (30%) of the amount expended by an employer
21
22 for an employee's child care expenses;
22
23 2. Thirty percent (30%) of the amount expended by an employer
23
24 for the cost of operating or contracting to operate a child care
24
Req. No. 881 Page 2
1 facility primarily used by dependents of the employees of the
1
2 employer or group of employers, minus any payments made by the
2
3 employees to the employer for those child care services; or
3
4 3. Thirty percent (30%) of the amount expended by an employer
4
5 to contract with a child care facility to ensure a reservation for
5
6 its employees.
6
7 C. For tax years 2026 through 2030, there shall be allowed a
7
8 credit against the tax imposed pursuant to Section 2355 of Title 68
8
9 of the Oklahoma Statutes in the amount of One Thousand Dollars
9
10 ($1,000.00) for a qualified child care worker. The credit
10
11 authorized pursuant to this subsection shall be refundable.
11
12 D. The total credit amount claimed by an employer pursuant to
12
13 the provisions of subsection B of this section shall not exceed
13
14 Thirty Thousand Dollars ($30,000.00) for any tax year.
14
15 E. The credit authorized pursuant to the provisions of
15
16 subsection B of this section shall not be used to reduce the income
16
17 tax liability of the taxpayer to less than zero (0).
17
18 F. If the amount of the credit allowed pursuant to subsection B
18
19 of this section exceeds the income tax liability, the amount of
19
20 credit not used in any tax year may be carried forward, in order, to
20
21 each of the five (5) subsequent tax years.
21
22 G. For tax year 2028 and subsequent tax years, the total amount
22
23 of credits authorized pursuant to subsection B of this section shall
23
24 be adjusted annually to limit the annual amount of credits to Five
24
Req. No. 881 Page 3
1 Million Dollars ($5,000,000.00). The Oklahoma Tax Commission shall
1
2 annually calculate and publish a percentage by which the credits
2
3 authorized by this section shall be reduced so the total amount of
3
4 credits used to offset tax does not exceed the annual limit. The
4
5 formula to be used for the percentage adjustment shall be Five
5
6 Million Dollars ($5,000,000.00) divided by the amount of credit
6
7 claimed in the second preceding tax year. In the event the total
7
8 tax credits authorized by this section exceed the annual limit in
8
9 any tax year, the Tax Commission shall permit any excess but shall
9
10 factor such excess into the percentage adjustment formula for
10
11 subsequent tax years.
11
12 H. For tax year 2028 and subsequent tax years, the total amount
12
13 of credits authorized pursuant to subsection B of this section shall
13
14 be adjusted annually to limit the annual amount of credits to
14
15 Fourteen Million Dollars ($14,000,000.00). The Tax Commission shall
15
16 annually calculate and publish a percentage by which the credits
16
17 authorized by this section shall be reduced so the total amount of
17
18 credits used to offset tax does not exceed the annual limit. The
18
19 formula to be used for the percentage adjustment shall be Fourteen
19
20 Million Dollars ($14,000,000.00) divided by the amount of credit
20
21 claimed in the second preceding tax year. In the event the total
21
22 tax credits authorized by this section exceed the annual limit in
22
23 any tax year, the Tax Commission shall permit any excess but shall
23
24
24
Req. No. 881 Page 4
1 factor such excess into the percentage adjustment formula for
1
2 subsequent tax years.
2
3 SECTION 2. This act shall become effective November 1, 2025.
3
4
4
5 60-1-881 QD 12/20/2024 7:01:57 PM
5
6
6
7
7
8
8
9
9
10
10
11
11
12
12
13
13
14
14
15
15
16
16
17
17
18
18
19
19
20
20
21
21
22
22
23
23
24
24
Req. No. 881 Page 5Every fact on this page links to its source, starting with the official bill record.