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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
COMMITTEE SUBSTITUTE
FOR
SENATE BILL 1063 By: Garvin
COMMITTEE SUBSTITUTE
An Act relating to income tax; creating the Childcare
Receives Investment from Business (CRIB) Act;
providing short title; defining terms; providing
credit for certain expenditures of a childcare
facility; providing credit for businesses for
providing certain childcare service benefit s;
limiting certain credit; requiring certain bene fits
for eligibility; allowing certain credit to be
carried forward for certain period; authorizing
additional credit for small businesses; requiring the
Oklahoma Tax Commission to provide certain report;
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 2357.27A of Title 68, unless
there is created a duplication in numb ering, reads as follows:
A. This act shall be know n and may be cited as the “Childcare
Receives Investment from Business (CRIB) Act ”.
B. As used in this section:
1. “Business” means any Oklahoma corporati on, limited liability
company, partnership , or other legal entity ;
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2. “Childcare employee” means a full-time or part-time employee
primarily responsible for duties at an entity primarily engaged in
the business of providing childcare services or employed by a
business with an on-site childcare facility ;
3. “Childcare facility” means a licensed childcare facility
with an average daily enrollment for a tax year of no less than six
(6) children who are twelve (1 2) years of age or less ;
4. “Eligible expenses” means expenditures to start a new
childcare facility, either by an entity primarily engaged in th e
business of providing childcare services or a business creating an
on-site childcare facility , for the first five (5) years of
operation, including:
a. costs of a facility and location,
b. licensing requirements,
c. fire, safety, and health code training , approval, and
compliance,
d. equipment and supplies, inc luding consumables and
entertainment for children,
e. childcare director training and credential ing,
f. childcare employee training, credentialing, and
licensing,
g. background checks,
h. insurance,
i. advertising,
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j. transportation, and
k. other expenses required or approved by the Department
of Human Services; and
5. “Small business” means an entity as defined by 13 CFR Part
121.
C. For tax years 2024 through 2029, there shall be allowed a
credit against the tax imposed by Section 2355 of Title 68 of the
Oklahoma Statutes for eligible expenses incurred by entities
primarily engaged in the b usiness of providing childcare services,
businesses creating an on -site childcare facility for use b y
employees, or the public in the amount of thirty percent (30%) of
documented eligible expenses.
D. For tax years 2024 through 2029, there shall be allowed a
credit against the tax imposed by Section 2355 of Title 68 of the
Oklahoma Statutes for businesses offering the following childcare
benefits to employees :
1. Fifteen percent (15%) of documented eligible expenses and
wages paid for childcare employees . An additional credit of five
percent (5%) shall be authorized for the first year of operation of
the facility;
2. A tax credit of t en percent (10%) of payments made by a
business to a childcare facility for employee childcare services;
and
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3. A tax credit of fifteen percent (15%) of payments made by a
business to an employee for childcare costs . The credit authorized
by this paragraph shall not exceed Five Thousand Dollars ($5,000.00)
for each employee. A business shall make available an equivalent
payment for childcare costs to every employee to be eligible for the
credit provided in this paragraph.
E. If the amount of the credit allowed pursuant to this section
exceeds the income tax liability, the amount of credit not used in
any tax year may be ca rried forward, in order, to each of five (5)
subsequent tax years.
F. A small business shall be allowed an additional credit equal
to ten percent (10%) of the credit earned pursuant to this section.
G. The Oklahoma Tax Commission shall provide an annual report
to the Department of Human Services detailing the n umber of
businesses that claim credit pursu ant to this section for each tax
year.
SECTION 2. This act shall become effective November 1, 2023.
59-1-1898 QD 3/1/2023 5:13:45 PM