OK
Oklahoma House Bill HB2451

Oklahoma 2024 Regular Session

Oklahoma House Bill HB2451 Compare Versions

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28-ENGROSSED HOUSE
29-BILL NO. 2451 By: Schreiber, Blancett,
30-Ranson, and Hefner of the
31-House
29+HOUSE OF REPRESENTATIVES - FLOOR VERSION
30+
31+STATE OF OKLAHOMA
32+
33+1st Session of the 59th Legislature (2023)
34+
35+COMMITTEE SUBSTITUTE
36+FOR
37+HOUSE BILL NO. 2451 By: Schreiber and Blancett of
38+the House
3239
3340 and
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3542 Montgomery of the Senate
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46+
47+COMMITTEE SUBSTITUTE
3948
4049 [revenue – taxation – income tax – employer – child
4150 care – credits – carryover – workers – amount –
4251 refundability – sunset date – codification –
4352 effective date]
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4857 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
4958 SECTION 1. NEW LAW A new section of law to be codified
5059 in the Oklahoma Statutes as Section 2357.231 of Title 68, unless
5160 there is created a duplication in numbering, reads as follows:
5261 A. As used in this section:
5362 1. "Child" means an individual who is five (5) years of age or
5463 less;
55-2. "Child care and education prov ider" means a person who owns
56-or operates an eligibl e program;
57-3. "Child care expense" means the cost of locating safe and
58-dependable services for th e care of a minor child of an employee;
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91+2. "Child care and education prov ider" means a person who owns
92+or operates an eligibl e program;
93+3. "Child care expense" means the cost of locating safe and
94+dependable services for th e care of a minor child of an employee;
8595 4. "Eligible program" means an applicable child care and early
8696 childhood education program that has applied to participate in the
8797 quality rating and improvement system and has been assigned a
8898 quality scale rating;
8999 5. "Eligible staff member " means an individual who is employed
90100 with, or who is a self-employed individual providing child care and
91101 early childhood education for, an eligible program for at least six
92102 (6) months of the taxable year . Eligible staff member does not
93103 include certificated teaching and administrative staff employed by
94104 programs established pursuant to applicable provisions of law;
95105 6. "Employee" means a person to whom wages or other
96106 compensation is paid by an employer;
97107 7. "Employer" means any sole proprietor or lawfully recognized
98108 business entity engaged in lawful business activity;
99109 8. "Licensed child care facility" means a person or entity
100110 lawfully authorized to provide child care services within the state
101111 and which is enrolled in Oklahoma's Quality Rating and I mprovement
102112 System (QRIS);
103113 9. "Qualified child care worker" means a person employed for at
104114 least eight (8) consecutive months during the calen dar year
105-corresponding to the income tax year for which the credit authorized
106-by this section is claimed and who performs clas sroom services for a
107-licensed child care facility and who is enrolled in O klahoma's
108-Professional Development Ladder (PDL); and
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142+corresponding to the income tax year for which the credit authorized
143+by this section is claimed and who performs clas sroom services for a
144+licensed child care facility and who is enrolled in O klahoma's
145+Professional Development Ladder (PDL); and
135146 10. "Quality scale rating" means the rating of an eligible
136147 program under which the rating is expressed in terms of stars.
137148 B. For taxable years be ginning on or after January 1, 2024, and
138149 ending not later tha n December 31, 2028, subject to the limitations
139150 prescribed by this subsection and subsection D of this section,
140151 there shall be allowed as a credit against the tax imposed pursuant
141152 to Section 2355 of Title 68 of the Oklahoma Statutes, an amount
142153 equal to:
143154 1. Thirty percent (30%) of the amount expended by an e mployer
144155 for assistance provided by the employer to an employee for the
145156 employee's direct expenses of child care;
146157 2. Thirty percent (30%) of the amount expended by an employer
147158 for the cost of operating a child care facility primarily used by
148159 dependents of the employees of such employer, e xcluding any payments
149160 made by the parent or guardian of such dependent such as tuition or
150161 fees;
151162 3. Fifty percent (50%) of the amount expended by the employer
152163 to construct, either through new construction or rehabilitation of a
153164 structure, located not more than two (2) miles from the site at
154-which employees perform primary work duties unless working remotely,
155-to provide child care services to the children of th e employees; or
156-4. Fifty percent (5 0%) of the amount expended by the employer
157-to establish, construct, acquire or develop a child care facility in
158-conjunction with one or more other entities, whether for -profit
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192+which employees perform primary work duties unless working remotely,
193+to provide child care services to the children of th e employees; or
194+4. Fifty percent (5 0%) of the amount expended by the employer
195+to establish, construct, acquire or develop a child care facility in
196+conjunction with one or more other entities, whether for -profit
185197 business entities, nonprofit entities or other lawfully organized
186198 entities, to provide child care services.
187199 C. The total credit amount which may be claimed by a n employer
188200 pursuant to the provisions of this section shall not exceed:
189201 1. Thirty Thousand Dollars ($30,000.00) for credits claimed
190202 pursuant to paragraph 1 or 2 of subsection B of this section for any
191203 taxable year; or
192204 2. Forty-five Thousand Dollars ($45,000.00) for credits claimed
193205 pursuant to paragraph 3 or 4 of subsection B of this section for any
194206 taxable year.
195207 D. The credits authorized pursuant to the provisions of this
196208 section shall not be used to red uce the income tax liability of the
197209 taxpayer to less than zero (0).
198210 E. To the extent not used the credits authorized by this
199211 section may be carrie d over, in order, to each of the succeeding
200212 five (5) tax years.
201213 F. The total amount of credits authorized to be used to reduce
202214 income tax liabilities pursuant to the provisions of this section
203-shall not exceed Five Million Dollars ($5,000,000.00) each fisc al
204-year.
205-G. The provisions of this section shall cease to have the force
206-and effect of law on January 1, 20 29.
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242+shall not exceed Five Million Dollars ($5,000,000.00) each fisc al
243+year.
244+G. The provisions of this section shall cease to have the force
245+and effect of law on January 1, 20 29.
233246 SECTION 2. NEW LAW A new section of law to be codified
234247 in the Oklahoma Statutes as Section 2357.232 of Title 68, unless
235248 there is created a duplication in numberin g, reads as follows:
236249 A. As used in this section:
237250 1. "Child" means a person less than five (5) years of age;
238251 2. "Licensed child care fac ility" means a person or entity
239252 lawfully authorized to provide child care servic es within the state
240253 and which is enrolled in Oklaho ma's Quality Rating and I mprovement
241254 System (QRIS); and
242255 3. "Qualified child care worker" means a person employed for at
243256 least eight (8) consecutive months during the calendar year
244257 corresponding to the income tax year for which the credit authorized
245258 by this section is claimed and who performs classroom services for a
246259 licensed child care facility and who is enrolled in Oklahoma 's
247-Professional Development Ladder (PDL) and has earned a minimum of
260+Professional Development Ladder (PDL) and have earned a minimum of
248261 twelve (12) credit hours.
249262 B. For taxable years beginning January 1, 2024, and ending not
250263 later than December 31, 2028, there shall be allowed a credit
251264 against the tax imposed pursuant to S ection 2355 of Title 68 of the
252-Oklahoma Statutes in the amount of Five Hundred Dollars ($500.00)
253-for a qualified child care worker.
254-C. The credit authorized by this section shall be refundable.
255-The credit shall first be applied to income tax liability , if any,
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292+Oklahoma Statutes in the amount of Five Hundred Dollars ($500.00)
293+for a qualified child care worker.
294+C. The credit authorized by this section shall be refundable.
295+The credit shall first be appli ed to income tax liability , if any,
282296 for the income tax year for which the credit is clai med and the
283297 balance shall be refunded to the taxpayer.
284298 D. The total amount of credits authorized to be used to reduce
285299 income tax liabilities pursuant to the provisions of this section
286300 shall not exceed Seven Million Dollars ($7,000,000.00) each fisc al
287301 year.
288302 E. The provisions of this section shall cease to have the force
289303 and effect of law on January 1, 20 29.
290304 SECTION 3. This act shall become effective November 1, 2023.
291-Passed the House of Representatives the 21st day of March, 2023.
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296- Presiding Officer of the House
297- of Representatives
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301-Passed the Senate the ___ day of __________, 2023.
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306- Presiding Officer of the Senate
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306+COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET , dated
307+03/02/2023 - DO PASS, As Amended and Coauthored.