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 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 256 By: Thompson
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6 AS INTRODUCED
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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.
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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15 SECTION 1. NEW LAW A new section of law to be codified
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16 in the Oklahoma Statutes as Section 2357.27A of Title 68, unless
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17 there is created a duplication in numbering, reads as follows:
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18 A. As used in this section:
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19 1. "Child" means an individual who is five (5) years of age or
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20 younger;
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21 2. "Child care expense" means the cost or tuition paid for
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22 child care services from a licensed child care facility;
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23 3. "Employee" means a person to whom wages or other
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24 compensation is paid by an employer;
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1 4. "Employer" means any sole proprietor or lawfully recognized
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2 business entity engaged in lawful business activity;
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3 5. "Licensed child care facility" means a person or entity
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4 lawfully authorized to provide child care services in this state and
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5 is enrolled in Oklahoma's Quality Rating and Improvement System
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6 (QRIS); and
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7 6. "Qualified child care worker" means a person employed for at
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8 least eight (8) consecutive months during the calendar year
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9 corresponding to the tax year for which the credit authorized by
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10 this section is claimed and who:
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11 a. performs classroom services for a licensed child care
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12 facility,
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13 b. is enrolled in Oklahoma's Professional Development
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14 Ladder (PDL), and
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15 c. has earned a minimum of twelve (12) credit hours.
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16 B. For tax years 2026 through 2030, there shall be allowed as a
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17 credit against the tax imposed pursuant to Section 2355 of Title 68
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18 of the Oklahoma Statutes, an amount equal to:
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19 1. Thirty percent (30%) of the amount expended by an employer
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20 for an employee's child care expenses;
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21 2. Thirty percent (30%) of the amount expended by an employer
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22 for the cost of operating or contracting to operate a child care
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23 facility primarily used by dependents of the employees of the
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1 employer or group of employers, minus any payments made by the
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2 employees to the employer for those child care services; or
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3 3. Thirty percent (30%) of the amount expended by an employer
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4 to contract with a child care facility to ensure a reservation for
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5 its employees.
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6 C. For tax years 2026 through 2030, there shall be allowed a
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7 credit against the tax imposed pursuant to Section 2355 of Title 68
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8 of the Oklahoma Statutes in the amount of One Thousand Dollars
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9 ($1,000.00) for a qualified child care worker. The credit
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10 authorized pursuant to this subsection shall be refundable.
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11 D. The total credit amount claimed by an employer pursuant to
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12 the provisions of subsection B of this section shall not exceed
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13 Thirty Thousand Dollars ($30,000.00) for any tax year.
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14 E. The credit authorized pursuant to the provisions of
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15 subsection B of this section shall not be used to reduce the income
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16 tax liability of the taxpayer to less than zero (0).
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17 F. If the amount of the credit allowed pursuant to subsection B
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18 of this section exceeds the income tax liability, the amount of
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19 credit not used in any tax year may be carried forward, in order, to
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20 each of the five (5) subsequent tax years.
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21 G. For tax year 2028 and subsequent tax years, the total amount
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22 of credits authorized pursuant to subsection B of this section shall
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23 be adjusted annually to limit the annual amount of credits to Five
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24 Million Dollars ($5,000,000.00). The Oklahoma Tax Commission shall
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1 annually calculate and publish a percentage by which the credits
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2 authorized by this section shall be reduced so the total amount of
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3 credits used to offset tax does not exceed the annual limit. The
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4 formula to be used for the percentage adjustment shall be Five
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5 Million Dollars ($5,000,000.00) divided by the amount of credit
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6 claimed in the second preceding tax year. In the event the total
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7 tax credits authorized by this section exceed the annual limit in
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8 any tax year, the Tax Commission shall permit any excess but shall
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9 factor such excess into the percentage adjustment formula for
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10 subsequent tax years.
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11 H. For tax year 2028 and subsequent tax years, the total amount
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12 of credits authorized pursuant to subsection B of this section shall
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13 be adjusted annually to limit the annual amount of credits to
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14 Fourteen Million Dollars ($14,000,000.00). The Tax Commission shall
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15 annually calculate and publish a percentage by which the credits
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16 authorized by this section shall be reduced so the total amount of
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17 credits used to offset tax does not exceed the annual limit. The
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18 formula to be used for the percentage adjustment shall be Fourteen
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19 Million Dollars ($14,000,000.00) divided by the amount of credit
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20 claimed in the second preceding tax year. In the event the total
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21 tax credits authorized by this section exceed the annual limit in
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22 any tax year, the Tax Commission shall permit any excess but shall
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23 factor such excess into the percentage adjustment formula for
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24 subsequent tax years.
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1 SECTION 2. This act shall become effective November 1, 2025.
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3 60-1-383 QD 12/30/2024 6:06:55 PM
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Req. No. 383 Page 5Every fact on this page links to its source, starting with the official bill record.