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1 STATE OF OKLAHOMA
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2 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 281 By: Deevers
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6 AS INTRODUCED
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7 An Act relating to income tax; creating the Making
7 Adoption Affordable Again Act; providing short title;
8 stating intent; defining terms; providing credit for
8 donations and in-kind contributions to adoption
9 funding organizations; stipulating credit amount;
9 making credit refundable; providing annual credit
10 limit; prescribing procedure to enforce limit;
10 requiring the Oklahoma Tax Commission to prescribe
11 application form for certification; providing
11 compliance requirements; requiring the Commission to
12 send notice of noncompliance; authorizing the
12 Commission to revoke certification; amending Section
13 1, Chapter 341, O.S.L. 2022 (68 O.S. Supp. 2024,
13 Section 2357.601), which relates to credit for
14 nonrecurring adoption expenses; modifying credit
14 amount and taxpayer limitation for certain tax years;
15 clarifying statutory language; providing for
15 noncodification; providing for codification;
16 providing an effective date; and declaring an
16 emergency.
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19 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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20 SECTION 1. NEW LAW A new section of law not to be
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21 codified in the Oklahoma Statutes reads as follows:
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22 This act shall be known and may be cited as the "Make Adoption
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23 Affordable Again Act".
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1 SECTION 2. NEW LAW A new section of law not to be
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2 codified in the Oklahoma Statutes reads as follows:
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3 A. The Legislature hereby finds that:
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4 1. Stable and loving families are foundational to the well-
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5 being of children and the moral fabric of this state;
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6 2. Adoption provides a critical pathway for children without
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7 families to achieve stability and to flourish;
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8 3. The financial burden of adoption remains a significant
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9 obstacle for Oklahoma families;
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10 4. Churches and private organizations are uniquely positioned
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11 to play a vital role in facilitating and funding adoptions,
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12 consistent with historical and community practices; and
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13 5. This state has a compelling interest in minimizing
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14 government intervention in private and religious adoption
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15 initiatives while promoting community-driven solutions.
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16 B. Therefore, it is the intent of the Legislature to:
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17 1. Increase adoptions in Oklahoma by reducing financial
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18 barriers for adoptive families;
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19 2. Promote and prioritize private and faith-based organizations
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20 as partners in facilitating adoption funding;
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21 3. Ensure financial support for adoption while respecting
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22 principles of religious freedom and minimizing state involvement;
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23 and
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1 4. Provide clear, enforceable legal standards to protect the
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2 program from constitutional challenges and administrative overreach.
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3 SECTION 3. NEW LAW A new section of law to be codified
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4 in the Oklahoma Statutes as Section 2357.415 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:
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7 1. "Adoption funding organization" means a church or an
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8 organization exempt from federal income tax pursuant to Section
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9 501(c)(3) of the Internal Revenue Code of 1986, as amended, and
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10 certified by the Oklahoma Tax Commission to manage and distribute
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11 adoption funds pursuant to subsection F of this section;
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12 2. "Qualified adoption expenses" means adoption fees, legal
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13 fees, counseling costs required to adopt, costs for pre-adoption
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14 home studies, travel costs required to adopt, and required post-
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15 placement service fees; and
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16 3. "In-kind contribution" means the value of nonmonetary
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17 donations of goods and services directly to the supporting adoption
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18 services of an adoption funding organization, as determined by the
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19 Oklahoma Tax Commission.
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20 B. For tax year 2026 and subsequent tax years, there shall be
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21 allowed a credit against the tax imposed pursuant to Section 2355 of
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22 Title 68 of the Oklahoma Statutes equal to the amount donated to an
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23 adoption funding organization to support adoption services and the
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24 amount of in-kind contributions.
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Req. No. 1547 Page 3
1 C. Credit claimed pursuant to subsection B of this section
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2 shall not exceed Ten Thousand Dollars ($10,000.00) for individual
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3 taxpayers and Fifty Thousand Dollars ($50,000.00) for any taxpayer
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4 that is a business entity formed under the laws of any state,
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5 including limited and general partnerships, corporations, and
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6 limited liability companies.
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7 D. If the credit allowed pursuant to subsection B this section
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8 exceeds the tax imposed by Section 2355 of Title 68 of the Oklahoma
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9 Statutes, the excess amount shall be refunded to the taxpayer.
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10 E. For tax year 2028 and subsequent tax years, the total amount
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11 of credits authorized pursuant to subsection B of this section shall
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12 be adjusted annually to limit the annual amount of credits to Ten
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13 Million Dollars ($10,000,000.00). The Oklahoma Tax Commission shall
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14 annually calculate and publish a percentage by which the credits
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15 authorized by this section shall be reduced so the total amount of
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16 credits used to offset tax does not exceed the annual limit. The
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17 formula to be used for the percentage adjustment shall be Ten
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18 Million Dollars ($10,000,000.00) divided by the amount of credit
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19 claimed in the second preceding tax year. In the event the total
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20 tax credits authorized by this section exceed the annual limit in
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21 any tax year, the Tax Commission shall permit any excess but shall
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22 factor such excess into the percentage adjustment formula for
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23 subsequent tax years.
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1 F. The Oklahoma Tax Commission shall prescribe an application
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2 for organizations to be certified as an adoption funding
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3 organization based on the following criteria:
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4 1. Status as an organization exempt from federal income tax
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5 pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986,
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6 as amended;
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7 2. Sufficient evidence, as determined by the Commission, that
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8 the organization provides essential services that lead to decreed
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9 adoptions; and
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10 3. Written commitment from the organization to adhere to all
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11 compliance and reporting requirements prescribed by this section and
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12 the Commission.
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13 G. To maintain compliance as a certified adoption funding
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14 organization in a subsequent tax year, the organization shall:
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15 1. Have expended at least fifty percent (50%) of funds donated
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16 in the preceding tax year for adoption services to those services;
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17 2. Except as provided for in paragraph 3 of this subsection,
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18 have expended all funds donated for adoption services in the second
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19 preceding tax year for adoption services to those services;
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20 3. If the requirements of paragraph 2 of this subsection are
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21 not met, have allocated all remaining funds donated for adoption
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22 services from the second preceding tax year to another adoption
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23 funding organization or shall have been expended on adoption
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1 education campaigns in this state by the end of the preceding tax
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2 year;
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3 4. Have expended no more than twenty percent (20%) of funds
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4 donated for adoption services on compensation for employees of the
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5 organization; and
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6 5. Electronically submit an annual report for each preceding
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7 tax year, which shall contain:
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8 a. funds donated for adoption services,
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9 b. amount expended on adoption services,
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10 c. compensation expenditures for employees who engage in
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11 adoption services,
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12 d. any fund transfers to other adoption funding
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13 organizations, and
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14 e. expenditures on adoption education campaigns.
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15 H. The Commission shall electronically send a notice of
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16 noncompliance to any adoption funding organization that is
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17 noncompliant with the provisions of this section or the rules
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18 prescribed by the Commission pursuant to this section. If the
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19 adoption funding organization fails to come into compliance within
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20 ninety (90) days of the delivery of the notice of noncompliance, the
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21 Commission may revoke certification.
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22 SECTION 4. AMENDATORY Section 1, Chapter 341, O.S.L.
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23 2022 (68 O.S. Supp. 2024, Section 2357.601), is amended to read as
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24 follows:
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1 Section 2357.601. A. As used in this section, "nonrecurring
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2 adoption expenses" means adoption fees, court costs, medical
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3 expenses, attorney fees, and expenses which are directly related to
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4 the legal process of adoption of a child including, but not limited
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5 to, costs relating to the adoption study, health and psychological
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6 examinations, transportation, and reasonable costs of lodging and
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7 food for the child or adoptive parents which are incurred to
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8 complete the adoption process and are not reimbursed by other
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9 sources. The term nonrecurring adoption expenses shall not include
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10 attorney fees incurred for the purpose of litigating a contested
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11 adoption, from and after the point of the initiation of the contest,
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12 costs associated with physical remodeling, renovation, and
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13 alteration of the adoptive parents' home or property, except for a
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14 special needs child as authorized by the court.
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15 B. For taxable years beginning on or after January 1, 2023,
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16 there shall be allowed a credit against the tax imposed pursuant to
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17 Section 2355 of Title 68 of the Oklahoma Statutes this title for
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18 nonrecurring adoption expenses paid by a resident individual
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19 taxpayer in connection with:
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20 1. The adoption of a minor; or
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21 2. A proposed adoption of a minor which did not result in a
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22 decreed adoption.
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23 C. The For tax years 2023 through 2025, the amount of the tax
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24 credit authorized by this section shall be equal to ten percent
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Req. No. 1547 Page 7
1 (10%) of the qualified expenses but the credit amount shall not
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2 exceed Two Thousand Dollars ($2,000.00) per calendar tax year with
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3 respect to single filing status or married filing separate income
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4 tax returns and shall not exceed Four Thousand Dollars ($4,000.00)
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5 per calendar tax year with respect to married filing joint return
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6 filing status. For tax years 2023 through 2025, the amount of the
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7 tax credit authorized by this section shall be equal to one hundred
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8 percent (100%) of the qualified expenses but the credit amount shall
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9 not exceed Ten Thousand Dollars ($10,000.00) per tax year.
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10 D. The Oklahoma Tax Commission shall promulgate rules to
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11 implement the provisions of this section which shall contain a
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12 specific list of nonrecurring adoption expenses which may be
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13 presumed to qualify for the tax credit. The Tax Commission shall
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14 prescribe necessary requirements for verification.
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15 SECTION 5. This act shall become effective July 1, 2025.
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16 SECTION 6. It being immediately necessary for the preservation
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17 of the public peace, health or safety, an emergency is hereby
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18 declared to exist, by reason whereof this act shall take effect and
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19 be in full force from and after its passage and approval.
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21 60-1-1547 QD 12/30/2024 10:55:58 PM
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Req. No. 1547 Page 8Every fact on this page links to its source, starting with the official bill record.