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 1996 By: Rosino
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6 AS INTRODUCED
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7 An Act relating to income tax; creating the
7 Children's Promise Act; providing short title;
8 defining term; providing tax credit for contribution
8 to eligible charitable organization; limiting amount
9 of credit; prohibiting certain contributions from
9 being deducted from taxable income; prohibiting
10 refundability; authorizing credit to be carried
10 forward to certain tax years; requiring credit to be
11 claimed on certain form; requiring eligible
11 charitable organization to submit certification to
12 the Oklahoma Tax Commission; prescribing requirements
12 of certification; providing for penalty of perjury;
13 requiring eligible charitable organization to notify
13 the Tax Commission of certain changes; requiring the
14 Tax Commission to review submitted certifications and
14 determine eligibility; requiring the Tax Commission
15 to notify certain organizations of determination;
15 authorizing the Tax Commission to request
16 recertification; authorizing allocation of credit
16 earned by certain entities; prescribing procedures
17 for allocation; providing exception on certain credit
17 limitations for allocated credit; providing annual
18 limit for certain tax years; prescribing procedures
18 to enforce annual limit; providing for
19 noncodification; providing for codification; and
19 providing an effective date.
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22 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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23 SECTION 1. NEW LAW A new section of law not to be
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24 codified in the Oklahoma Statutes reads as follows:
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1 This act shall be known and may be cited as the "Children's
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2 Promise Act".
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3 SECTION 2. NEW LAW A new section of law to be codified
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4 in the Oklahoma Statutes as Section 2357.701 of Title 68, unless
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5 there is created a duplication in numbering, reads as follows:
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6 A. As used in this section, "eligible charitable organization"
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7 means an organization that:
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8 1. Is exempt from federal income taxation under 26 U.S.C.,
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9 Section 501(c)(3);
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10 2. Is organized under the laws of this state;
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11 3. Is headquartered in this state;
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12 4. Has a primary mission to provide services for one or more of
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13 the following:
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14 a. the prevention and diversion of children from custody
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15 with the Department of Human Services,
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16 b. the safety, care, and well-being of children in
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17 custody with the Department of Human Services,
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18 c. the express purpose of creating permanency for
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19 children through adoption,
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20 d. the prevention of abuse, neglect, abandonment,
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21 exploitation, or trafficking of children,
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22 e. the provision of assistance related to carrying a
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23 pregnancy to term, preventing abortion, and promoting
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24 healthy childbirth,
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1 f. the provision of marriage preparation and marriage
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2 counseling services that encourage a permanent, life-
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3 long union between man and wife,
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4 g. the provision of classes to public school students
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5 that promote respect for and observance of historical
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6 and traditional fundamental values, or
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7 h. the provision of workforce development services to
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8 children sixteen (16) years of age and older under the
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9 custody or care of the Department of Human Services;
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10 and
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11 5. Has submitted written certification to the Oklahoma Tax
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12 Commission as required by this section and verified by the Tax
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13 Commission to meet all the requirements of an eligible charitable
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14 organization.
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15 B. For tax year 2027 and subsequent tax years, there shall be
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16 allowed a credit against the income tax imposed by Section 2355 of
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17 Title 68 of the Oklahoma Statutes for any taxpayer who elects to
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18 make a monetary contribution to an eligible charitable organization.
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19 The amount of the credit shall be equal to the monetary contribution
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20 to the eligible charitable organization during the tax year, not to
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21 exceed fifty percent (50%) of the total income tax liability of the
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22 taxpayer for the tax year. Provided, if the credit is being claimed
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23 by an individual taxpayer filing as married filing separately, the
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1 credit shall equal to one-half of the monetary contribution made
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2 during the tax year.
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3 C. Contributions made by a taxpayer for which a credit is
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4 claimed pursuant to this section shall not be used as a deduction
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5 from taxable income or adjusted gross income to arrive at Oklahoma
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6 taxable income or Oklahoma adjusted gross income.
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7 D. The credit authorized pursuant to the provisions of this
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8 section shall not be used to reduce the income tax liability of the
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9 taxpayer to less than zero (0).
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10 E. If the amount of the credit allowed pursuant to this section
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11 exceeds the income tax liability, the amount of credit not used in
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12 any tax year may be carried forward, in order, to each of the five
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13 (5) subsequent tax years.
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14 F. Taxpayers shall claim the credit authorized by this section
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15 on a form prescribed by the Tax Commission and shall provide the
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16 name of the eligible charitable organizations to which the
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17 contributions were made, including the amount contributed to each
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18 organization.
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19 G. An eligible charitable organization shall submit written
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20 certification to the Tax Commission which shall contain the
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21 following:
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22 1. A statement that the organization meets all the requirements
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23 to be considered an eligible charitable organization;
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1 2. Verification of the status of the organization under 26
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2 U.S.C., Section 501(c)(3);
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3 3. A statement that the organization does not provide, pay for,
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4 refer for, promote, or provide coverage of medication or surgical
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5 abortions and does not financially support or legally partner or
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6 affiliate with any other entity that provides, pays for, refers for,
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7 promotes, or provides coverage of abortions; and
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8 4. A statement that the organization:
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9 a. maintains in this state a primary physical office or
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10 presence and that at least fifty percent (50%) of the
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11 clients of the organization claim to be residents of
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12 this state,
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13 b. regularly answers a dedicated phone number,
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14 c. in the prior tax year, did not receive more than fifty
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15 percent (50%) of total revenue from government grants
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16 and funding, and
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17 d. in the prior tax year, expended one hundred percent
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18 (100%) of any contributions received, for which a
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19 credit was claimed pursuant to this section, to serve
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20 residents of this state.
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21 H. The written certification required by subsection G of this
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22 section shall be signed by an officer of the organization under
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23 penalty of perjury.
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1 I. An eligible charitable organization shall notify the Tax
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2 Commission within sixty (60) days of any change that may affect the
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3 eligibility of the organization pursuant to this section.
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4 J. The Tax Commission shall review each written certification
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5 to determine if the organization meets all the requirements to be an
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6 eligible charitable organization as provided by this section and
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7 notify the organization of the determination. The Tax Commission
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8 may periodically request a written recertification of an eligible
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9 charitable organization no more than once every one hundred twenty
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10 (120) days.
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11 K. The Tax Commission shall publish a list of eligible
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12 charitable organizations on the website of the Tax Commission.
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13 L. The credits authorized pursuant to the provisions of this
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14 section shall be allocable to the partners, shareholders, members,
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15 or other equity owners of a taxpayer that is authorized to be
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16 treated as a partnership for purposes of federal income tax
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17 reporting for the taxable year for which the tax credits authorized
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18 by this section are claimed on the applicable return, together with
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19 required schedules, forms, or reports of the partners, shareholders,
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20 members, or other equity owners of the taxpayer. Tax credits which
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21 are allocated to such equity owners shall only be limited in amount
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22 for the income tax return of a natural person or persons based upon
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23 the limitation of the total credit amount to the entity from which
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24 the tax credits have been allocated and shall not be subject to the
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1 limitations on individual taxpayers provided in subsection B of this
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2 section.
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3 M. For tax year 2029 and subsequent tax years, the total amount
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4 of credits authorized pursuant to this section shall be adjusted
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5 annually to limit the annual amount of credits to Fifteen Million
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6 Dollars ($15,000,000.00). The Tax Commission shall annually
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7 calculate and publish a percentage by which the credits authorized
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8 by this section shall be reduced so the total amount of credits used
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9 to offset tax does not exceed the annual limit. The formula to be
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10 used for the percentage adjustment shall be Fifteen Million Dollars
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11 ($15,000,000.00) divided by the amount of credit claimed in the
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12 second preceding tax year. In the event the total tax credits
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13 authorized by this section exceed the annual limit in any tax year,
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14 the Tax Commission shall permit any excess but shall factor such
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15 excess into the percentage adjustment formula for subsequent tax
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16 years.
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17 SECTION 3. This act shall become effective November 1, 2026.
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19 60-2-2984 QD 1/15/2026 9:40:58 AM
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Req. No. 2984 Page 7Every fact on this page links to its source, starting with the official bill record.