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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
HOUSE BILL 2451 By: Schreiber
AS INTRODUCED
An Act relating to revenue and taxation; authorizing
income tax credit for certain qualified employer
child care expenses; defining terms; specifying
amount of tax credit; prescribing limit on credit
based on taxable year; imposing limit on total
credits per taxable year per employer; prohibiting
use of tax credit to reduce income ta x liability to
less than zero; provid ing for carryover; providing
for limit on total credits per fiscal year;
authorizing income tax credit for child care workers;
specifying credit amount; providing for
refundability; providing for sunset date; providing
for codification; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.1001 of Title 68, unless
there is created a duplication in numbering, re ads as follows:
A. As used in this section:
1. "Child" means an individual who is five (5) years of age or
less;
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2. "Child care and education provider " means a person who owns
or operates an eligible program;
3. "Child care expense" means the cost of l ocating safe and
dependable services for th e care of a minor child of an employee;
4. "Eligible program" means an applicable child care and early
childhood education program that has applied to participate in the
quality rating and improvement system and has been assigned a
quality scale rating;
5. "Eligible staff member " means an individual who is employed
with, or who is a self-employed individual providing child care and
early childhood education for, an eligible program for at least six
(6) months of the taxable year. Eligible staff member does not
include certificated teaching and administrative staff emplo yed by
programs established pursuant to applicable provisions of law;
6. "Employee" means a person to whom wages or other
compensation is paid by an employer;
7. "Employer" means any sole proprietor or lawfully recognized
business entity engaged in la wful business activity;
8. "Licensed child care facility" means a person or entity
lawfully authorized to p rovide child care services within the sta te
and which is enrolled in Oklahoma's Quality Rating and I mprovement
System (QRIS);
9. "Qualified child care worker" means a person employed for at
least eight (8) consecutive months during the calendar year
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corresponding to the income tax year for which the credit authorized
by this section is claimed and who performs clas sroom services for a
licensed child care facility and who is enrolled in O klahoma's
Professional Development Ladder (PDL); and
10. "Quality scale rating" means the rating of an eligible
program under the which is expressed in terms of steps.
B. For taxable years be ginning on or after January 1, 2024,
subject to the limitations prescribed by this subsection and
subsection D of this section, there shall be allowed as a credit
against the tax imposed pursuant to Section 2355 of Title 68 of the
Oklahoma Statutes, an amount equal to:
1. Thirty percent (30%) of the amount expended by an emplo yer
for assistance provided by the employer to an employee for the
employee's direct expenses of child care;
2. Thirty percent (30%) of the amount expended by an employer
for the cost of operating a child care f acility primarily used by
dependents of the employees of such employer, e xcluding any payments
made by the parent or guardian of such dependent such as tuition or
fees;
3. Fifty percent (50%) of the amount expended by the employer
to construct, either through new construction or rehabilitation of a
structure, located not more than two (2) miles from the site at
which employees perform primary work duties unless working remotely,
to provide child care services to the children of th e employees; or
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4. Fifty percent (5 0%) of the amount expended by the employer
to establish, construct, acquire or develop a child care facility in
conjunction with one or more other entities, whether for -profit
business entities, nonprofit entities or other lawfully organized
entities, to provide child care services.
C. The total credit amount which may be claimed by a n employer
pursuant to the provisions of this section shall not exceed:
1. Thirty Thousand Dollars ($30,000.00) for credit s claimed
pursuant to paragraph 1 or 2 of subsection B of this section for any
taxable year; or
2. Forty-five Thousand Dollars ($45,000.00) for c redits claimed
pursuant to paragraph 3 or 4 of subsection B of this section for any
taxable year.
D. The credits authorized pursuant to the provisions of this
section shall not be used to reduce the income tax liability of the
taxpayer to less than zero (0 ).
E. To the extent not used the credits authorized by this
section may be carrie d over, in order, to each of the succeeding
five (5) tax years.
F. The total amount of credits authorized to be used to reduce
income tax liabilities pursuant to the provisi ons of this section
shall not exceed Five Million Dollars ($5,000,000.00) each fisc al
year.
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SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.1002 of Title 68, unless
there is created a duplication in numberin g, reads as follows:
A. As used in this section:
1. "Child" means a person less than five (5) years of age;
2. "Licensed child care fac ility" means a person or entity
lawfully authorized to provide child care services with in the state
and which is enrolled in Oklahoma's Quality Rating and I mprovement
System (QRIS); and
3. "Qualified child care worker" means a person employed for at
least eight (8) consecutive months during t he calendar year
corresponding to the income tax year for which the credit authorized
by this section is claimed and who performs classroom services for a
licensed child care facility and who is enrolled in Oklahoma's
Professional Development Ladder (PDL) and have earned a minimum of
twelve (12) credit hours .
B. For taxable years beginning January 1, 2024, and ending not
later than December 31, 2025, there shall be allowe d a credit
against the tax imposed pursuant to S ection 2355 of Title 68 of the
Oklahoma Statutes in the amount of Five Hundred Dollars ($500.00)
for a qualified child care worker.
C. The credit authorized by this section shall be refundable.
The credit shall first be appli ed to income tax liability , if any,
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for the income tax year for which the credit is clai med and the
balance shall be refunded to the taxpayer.
D. The provisions of this section shall cease to have the force
and effect of law on January 1, 20 26.
SECTION 3. This act shall become effective November 1, 2023.
59-1-6868 MAH 01/19/23