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ENGROSSED HOUSE AMENDME NT
TO
ENGROSSED SENATE BILL NO . 1063 By: Garvin of the Senate
and
Lawson of the House
[ income tax - credit - report - effective date ]
AUTHOR: Add the following House Coauthor s: Boles, Schreiber, Pae,
Baker, and Hill
AMENDMENT NO. 1. Strike the stricken title, enacting clause, and
entire bill and insert:
"[ income tax - credit - report - 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 2357.231 of Title 68, unless
there is created a duplication in number ing, reads 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 prov ider" means a person who owns
or operates an eligible program;
3. "Child care expense" means the cost of locating 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 syst em 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 employed 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 lawful business activity;
8. "Licensed child care facility" means a person or entity
lawfully authorized to provide child care services within the state
and which is enrolled in Oklahoma's Quality Rating and Improvement
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 fo r 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
10. "Quality scale rating" means the rating of an e ligible
program under which the rating is expressed in terms of stars.
B. For taxable years be ginning on or after January 1, 2024, and
ending not later tha n December 31, 2028, 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 employer
for assistance provided by the employer to an employee for the
employee's direct expenses of child car e;
2. Thirty percent (30%) of the amount expended by an employer
for the cost of operating a child care facility primarily used by
dependents of the employees of such empl oyer, excluding 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
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which employees perform primary work duties unless working remotely,
to provide child care services to the children of the employees; or
4. Fifty percent (50%) 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 an employer
pursuant to the provisions of this section shall not exceed:
1. Thirty Thousand Dollars ($30,000.00) for credits 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 credits 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. For the tax year beginning Ja nuary 1, 2026, and each tax
year thereafter, the total amou nt of credits authorized by this
section used to offset tax sha ll be adjusted annually to limit the
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annual amount of credits to Five Million Dollars ($5,000,000 .00).
The Tax Commission shall annual ly calculate and publish by the first
day of the affected y ear a percentage by which the credits
authorized by this sectio n shall be reduced so the total amount of
credits used to offset tax does not exceed Five Million Dollars
($5,000,000.00) per year. The formula to be used for the percentage
adjustment shall be Five Million Dollars ($5,000,000.00) divided by
the credits claimed in the second preceding year.
G. In the event the total tax credits authorized by this
section exceed Five Million Dollars ($5 ,000,000.00) in any calendar
year, the Tax Commission shall p ermit any excess over Five Million
Dollars ($5,000,000.00) bu t shall factor such excess into the
percentage adjustment formula for subsequent years.
H. The provisions of this section shall cease to have the force
and effect of law on January 1, 20 29.
SECTION 2. NEW LAW A new section of law t o be codified
in the Oklahoma Statutes as Section 2357.232 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 facility" means a person or entity
lawfully authorized to provide child care services within the state
and which is enrolled in Oklaho ma's Quality Rating and I mprovement
System (QRIS); and
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3. "Qualified child care worker" means a person employed for at
least eight (8) consecutive months during the 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 has earned a minimum of
twelve (12) credit hours.
B. For taxable years beginning January 1, 2024, and ending not
later than December 31, 2028, there shall be allowed a credit
against the tax imposed pursuant to Section 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 applied to income tax liability , if any,
for the income tax year for which the credit is claimed and the
balance shall be refunded to the taxpayer.
D. For the tax year beginning January 1, 2026, and each tax
year thereafter, the total amount of credits authorized by this
section used to offset tax shall be adjuste d annually to limit the
annual amount of credits to Seven Million Dollars ($7,000,000.00).
The Tax Commission shall annually calculate and publish by the first
day of the affected year a percentage by which the credits
authorized by this section shall be r educed so the total amount of
credits used to offset tax does not exc eed Seven Million Dollars
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($7,000,000.00) per year. The formula to be used for the percentage
adjustment shall be Seven Million Dollars ($7,000,000.00) divided by
the credits claimed in t he second preceding year.
E. In the event the total tax credits aut horized by this
section exceed Seven Million Dollars ($7,000,000.00) in any calendar
year, the Tax Commission shall permit any excess over Seven Million
Dollars ($7,000,000.00) but shall fa ctor such excess into th e
percentage adjustment formula for subsequ ent years.
F. The provisions of this section shall cease to have the force
and effect of law on January 1, 2029.
SECTION 3. This act shall become effective November 1, 2023."
Passed the House of Representatives the 27th day of April, 2023.
Presiding Officer of the House of
Representatives
Passed the Senate the ____ day of _______ ___, 2023.
Presiding Officer of the Senate
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ENGROSSED SENATE
BILL NO. 1063 By: Garvin of the Senate
and
Lawson of the House
[ income tax - credit - report - effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 4. 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 corporation, limited liability
company, partnership , or other legal entity ;
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 serv ices 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 ;
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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 busines s 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, including consumables and
entertainment for children,
e. childcare director training and credentialing,
f. childcare employee training, credentialing, and
licensing,
g. background checks,
h. insurance,
i. advertising,
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
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Oklahoma Statutes for eligible expenses incurred by entities
primarily engaged in the business 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 emp loyees. 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
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
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any tax year may be carried 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 5. This act shall become effective November 1, 2023.
Passed the Senate the 21st day of March, 2023.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2023.
Presiding Officer of the House
of Representatives