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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 1063 By: Garvin
AS INTRODUCED
An Act relating to income tax credit; providing
credit for certain expenses incurred p roviding child
care services for employees; limiti ng credit
allowance to certain entities; providing amount of
credit; prohibiting credit for e xpenses for which the
entity receives certain credits or incentives;
providing for carry over of credit; defining term;
providing exception to certain eligible expense;
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 co dified
in the Oklahoma Statutes as Section 2357.27A of Title 68, unless
there is created a duplication in numb ering, reads as follows:
A. For tax year 2024 and subsequent tax y ears there shall be
allowed a credit against the tax imposed by S ection 2355 of Title 68
of the Oklahoma Statutes for eligible expenses incurred providing
child care services for employee s by entities not primarily engaged
in the business of providing child care services.
B. Eligible expenses qualifying for credit pursuant to this
section shall be limited to entities providing on-site child care
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services for their employees or in partnership with other entities
not primarily engaged in the business of providing child care
services in the operation of a facility to provide child care
services to the entities ’ employees or on-site at one of the partner
entities’ buildings.
C. The credit authorized by this section shall be twenty
percent (20%) of the amount of eligible exp enses. The credit shall
not be allowed for any expenses for which the entity claims or
receives a federal or state income tax credit or incentive.
D. Any credits allowed but not used in any tax year may be
carried over in order to each of the four (4) tax years following
the year of qualification.
E. As used in this section, “eligible expenses” means
expenditures made as a direct result of providing child care
services and shall be limited to the following:
1. Rent paid for the facility where the child care services are
provided, or, for child care services provided on-site, a portion of
rent that is based upon the proportion of the square feet dedicated
to providing child care services in relation to the entity’s
buildings’ total square feet for each location where child care
services are provided ;
2. For a facility where child care services are provided that
is owned by the entity, or buildings owned by the entity, an
eligible expense for the square feet dedicated to pr oviding child
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care services shall be Thirteen Dollars ($13.00) per square foot.
Provided, for entities that partner with other entities to provide
child care services pursuant to subsection B of this section and own
the building where the chil d care services are provided, the
facility where child care services are provided or the square feet
of the buildings where dedicated to providing child care services
shall not be considered an eligible e xpense pursuant to this
paragraph if the partner entities pay rent for the use of the
facilities or the square feet of the buildings dedicated to
providing child care services;
3. Wages paid to employees for providing child cares services;
4. Tangible personal property purchased to provide child care
services; or
5. Payments made pursuant to a contract or agreement with an
entity, whose primary purpose is to provide child care services, for
providing child care services.
SECTION 2. This act shall become effective November 1, 2023.
59-1-1556 QD 1/19/2023 1:18:37 PM