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
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2 2nd Session of the 60th Legislature (2026)
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3 SENATE BILL 1388 By: Nice
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6 AS INTRODUCED
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7 An Act relating to income tax; amending 68 O.S. 2021,
7 Section 2357, which relates to credits against tax;
8 limiting tax credit allowed for certain federal tax
8 credit claimed to certain tax years; updating
9 statutory language; providing credit for certain
9 child care expenses; prescribing credit amount;
10 requiring the prorating of credit; making credit
10 refundable; providing credit for certain qualifying
11 children to certain taxpayers; prescribing credit
11 amount; requiring the inclusion of spousal income for
12 certain filing status; requiring the prorating of
12 credit; making credit refundable; providing for
13 codification; and providing an effective date.
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16 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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17 SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357, is
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18 amended to read as follows:
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19 Section 2357. A. The withheld taxes and estimated taxes paid
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20 shall be allowed as credits as provided by law.
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21 B. 1. There shall be allowed as a credit against the tax
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22 imposed by Section 2355 of this title the amount of tax paid another
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23 state by a resident individual, as defined in paragraph 4 of Section
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24 2353 of this title, upon income received as compensation for
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Req. No. 2659 Page 1
1 personal services in such other state; provided, such credit shall
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2 not be allowed with respect to any income specified in Section 114
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3 of Title 4 of the United States Code, 4 U.S.C., Section 114, upon
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4 which a state is prohibited from imposing an income tax. The credit
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5 shall not exceed such proportion of the tax payable under Section
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6 2355 of this title as the compensation for personal services subject
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7 to tax in the other state and also taxable under Section 2355 of
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8 this title bears to the Oklahoma adjusted gross income as defined in
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9 paragraph 13 of Section 2353 of this title.
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10 2. For tax years beginning after December 31, 2007 2008 through
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11 2026, there shall be allowed to a resident individual or part-year
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12 resident individual or nonresident individual member of the Armed
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13 Forces of the United States as a credit against the tax imposed by
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14 Section 2355 of this title twenty percent (20%) of the credit for
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15 child care expenses allowed under the Internal Revenue Code of the
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16 United States 1986, as amended, or five percent (5%) of the child
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17 tax credit allowed under the Internal Revenue Code of 1986, as
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18 amended, whichever amount is greater. Neither credit authorized by
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19 this paragraph shall exceed the tax imposed by Section 2355 of this
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20 title. The maximum child care credit allowable on the Oklahoma
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21 income tax return shall be prorated on the ratio that Oklahoma
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22 adjusted gross income bears to the federal adjusted gross income.
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23 The credit authorized by this paragraph shall not be claimed by any
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24 taxpayer if the federal adjusted gross income reflected on the
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Req. No. 2659 Page 2
1 Oklahoma return for the taxpayer is in excess of One Hundred
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2 Thousand Dollars ($100,000.00).
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3 3. For tax year 2027 and subsequent tax years, there shall be
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4 allowed to a resident individual or part-year resident individual or
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5 nonresident individual member of the Armed Forces of the United
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6 States as a credit against the tax imposed by Section 2355 of this
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7 title twenty percent (20%) of the credit for child care expenses
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8 allowed under 26 U.S.C., Section 21. The maximum child care credit
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9 allowable on the Oklahoma income tax return shall be prorated on the
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10 ratio that Oklahoma adjusted gross income bears to the federal
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11 adjusted gross income. If the credit allowed pursuant to this
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12 paragraph exceeds the tax imposed by Section 2355 of this title, the
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13 excess amount shall be refunded to the taxpayer.
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14 SECTION 2. NEW LAW A new section of law to be codified
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15 in the Oklahoma Statutes as Section 2357.410 of Title 68, unless
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16 there is created a duplication in numbering, reads as follows:
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17 A. For tax year 2027 and subsequent tax years, there shall be
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18 allowed against the tax imposed by Section 2355 of Title 68 of the
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19 Oklahoma Statutes, a credit for a resident individual or part-year
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20 resident individual or nonresident individual member of the Armed
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21 Forces of the United States who has a qualifying child as described
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22 under 26 U.S.C., Section 152(c) who has not attained the age of
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23 nineteen (19) years during the tax year.
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1 B. The credit allowed shall be equal to Five Hundred Dollars
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2 ($500.00) per child for individual taxpayers with an adjusted gross
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3 income of Seventy Thousand Dollars ($70,000.00) or less. For every
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4 additional Ten Dollars ($10.00) of adjusted gross income above
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5 Seventy Thousand Dollars ($70,000.00), the credit shall be reduced
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6 by fifteen cents ($0.15). Taxpayers with an adjusted gross income
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7 above One Hundred Thousand Dollars ($100,000.00) shall not be
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8 eligible for the credit authorized by this section.
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9 C. For taxpayers filing married filing separately, the adjusted
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10 gross income of the taxpayer and the taxpayer's spouse shall be
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11 included for the purposes of the income thresholds and the
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12 calculation of the credit amount, as provided in subsection B of
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13 this section.
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14 D. The maximum credit allowable, as provided in subsection B of
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15 this section, shall be prorated on the ratio that Oklahoma adjusted
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16 gross income bears to the federal adjusted gross income of the
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17 taxpayer.
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18 E. If the credit exceeds the tax imposed by Section 2355 of
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19 Title 68 of the Oklahoma Statutes, the excess amount shall be
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20 refunded to the taxpayer.
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21 SECTION 3. This act shall become effective November 1, 2026.
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23 60-2-2659 QD 12/30/2025 10:06:22 PM
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Req. No. 2659 Page 4Every fact on this page links to its source, starting with the official bill record.