Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB1063 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. H. A. to ENGR. S. B. NO. 1063 Page 1 1
	3	+	SB1063 HFLR Page 1
	4	+	BOLD FACE denotes Committee Amendments. 1
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28		-	ENGROSSED HOUSE AMENDME NT
29		-	TO
30		-	ENGROSSED SENATE BILL NO . 1063 By: Garvin of the Senate
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 59th Legi slature (2023)
	34	+
	35	+	COMMITTEE SUBSTITUTE
	36	+	FOR ENGROSSED
	37	+	SENATE BILL NO. 1063 By: Garvin of the Senate
31	38
32	39		and
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34		-	Lawson of the House
35		-
36		-
37		-
38		-	[ income tax - credit - report - effective date ]
	41	+	Lawson, Boles, Schreiber,
	42	+	Pae, and Baker of the House
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	47	+	COMMITTEE SUBSTITUTE
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44		-	AUTHOR: Add the following House Coauthor s: Boles, Schreiber, Pae,
45		-	Baker, and Hill
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47		-
48		-	AMENDMENT NO. 1. Strike the stricken title, enacting clause, and
49		-	entire bill and insert:
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51		-
52		-
53		-
54		-	"[ income tax - credit - report - effective date ]
	49	+	[ income tax - credit - report - effective date ]
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60	55		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
61	56		SECTION 1. NEW LAW A new section of law to be codified
62	57		in the Oklahoma Statutes as Section 2357.231 of Title 68, unless
63	58		there is created a duplication in number ing, reads as follows:
64	59		A. As used in this section:
65	60		1. "Child" means an individual who is five (5) years of age or
66	61		less;
	62	+	2. "Child care and education prov ider" means a person who owns
	63	+	or operates an eligible program;
	64	+	3. "Child care expense" means the cost of locating safe and
	65	+	dependable services for th e care of a minor child of an employee;
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68		-	ENGR. H. A. to ENGR. S. B. NO. 1063 Page 2 1
	67	+	SB1063 HFLR Page 2
	68	+	BOLD FACE denotes Committee Amendments. 1
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93		-	2. "Child care and education prov ider" means a person who owns
94		-	or operates an eligible program;
95		-	3. "Child care expense" means the cost of locating safe and
96		-	dependable services for th e care of a minor child of an employee;
97	93		4. "Eligible program" means an applicable child care and early
98	94		childhood education program that has applied to participate in the
99	95		quality rating and improvement syst em and has been assigned a
100	96		quality scale rating;
101	97		5. "Eligible staff member" means an individual who is employed
102	98		with, or who is a self-employed individual providing child care and
103	99		early childhood education for, an eligible program for at least six
104	100		(6) months of the taxable year. Eligible staff member does not
105	101		include certificated teaching and administrative staff employed by
106	102		programs established pursuant to applicable provisions of law;
107	103		6. "Employee" means a person to whom wages or other
108	104		compensation is paid by an employer;
109	105		7. "Employer" means any sole proprietor or lawfully recognized
110	106		business entity engaged in lawful business activity;
111	107		8. "Licensed child care facility" means a person or entity
112	108		lawfully authorized to provide child care services within the state
113	109		and which is enrolled in Oklahoma's Quality Rating and Improvement
114	110		System (QRIS);
115	111		9. "Qualified child care worker" means a person employed for at
116	112		least eight (8) consecutive months during the calendar year
	113	+	corresponding to the income tax year fo r which the credit authorized
	114	+	by this section is claimed and who performs classroom services for a
	115	+	licensed child care facility and who is enrolled in O klahoma's
	116	+	Professional Development Ladder (PDL); and
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118		-	ENGR. H. A. to ENGR. S. B. NO. 1063 Page 3 1
	118	+	SB1063 HFLR Page 3
	119	+	BOLD FACE denotes Committee Amendments. 1
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143		-	corresponding to the income tax year fo r which the credit authorized
144		-	by this section is claimed and who performs classroom services for a
145		-	licensed child care facility and who is enrolled in Oklahoma's
146		-	Professional Development Ladder (PDL); and
147	144		10. "Quality scale rating" means the rating of an e ligible
148	145		program under which the rating is expressed in terms of stars.
149	146		B. For taxable years be ginning on or after January 1, 2024, and
150	147		ending not later tha n December 31, 2028, subject to the limitations
151	148		prescribed by this subsection and subsection D of this section,
152	149		there shall be allowed as a credit against the tax imposed pursuant
153	150		to Section 2355 of Title 68 of the Oklahoma Statutes, an amount
154	151		equal to:
155	152		1. Thirty percent (30%) of the amount expended by an employer
156	153		for assistance provided by the employer to an employee for the
157	154		employee's direct expenses of child car e;
158	155		2. Thirty percent (30%) of the amount expended by an employer
159	156		for the cost of operating a child care facility primarily used by
160	157		dependents of the employees of such empl oyer, excluding any payments
161	158		made by the parent or guardian of such dependent such as tuition or
162	159		fees;
163	160		3. Fifty percent (50%) of the amount expended by the employer
164	161		to construct, either through new construction or rehabilitation of a
165	162		structure, located not more than two (2) miles from the site at
	163	+	which employees perform primary work duties unless working remotely,
	164	+	to provide child care services to the children of th e employees; or
	165	+	4. Fifty percent (5 0%) of the amount expended by the employer
	166	+	to establish, construct, acquire or develop a child care facility in
	167	+	conjunction with one or more other entities, whether for -profit
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167		-	ENGR. H. A. to ENGR. S. B. NO. 1063 Page 4 1
	169	+	SB1063 HFLR Page 4
	170	+	BOLD FACE denotes Committee Amendments. 1
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192		-	which employees perform primary work duties unless working remotely,
193		-	to provide child care services to the children of the employees; or
194		-	4. Fifty percent (50%) 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
197	195		business entities, nonprofit entities or other lawfully organized
198	196		entities, to provide child care services.
199	197		C. The total credit amount which may be claimed by an employer
200	198		pursuant to the provisions of this section shall not exceed:
201	199		1. Thirty Thousand Dollars ($30,000.00) for credits claimed
202	200		pursuant to paragraph 1 or 2 of subsection B of this section for any
203	201		taxable year; or
204	202		2. Forty-five Thousand Dollars ($45,000.00) for credits claimed
205	203		pursuant to paragraph 3 or 4 of subsection B of this section for any
206	204		taxable year.
207	205		D. The credits authorized pursuant to the provisions of this
208	206		section shall not be used to reduce the income tax liability of the
209	207		taxpayer to less than zero (0).
210	208		E. To the extent not used the credits authorized by this
211	209		section may be carrie d over, in order, to each of the succeeding
212	210		five (5) tax years.
213	211		F. For the tax year beginning Ja nuary 1, 2026, and each tax
214	212		year thereafter, the total amou nt of credits authorized by this
215	213		section used to offset tax sha ll be adjusted annually to limit the
	214	+	annual amount of credits to Five Million Dollars ($5,000,000.00).
	215	+	The Tax Commission shall annual ly calculate and publish by the first
	216	+	day of the affected y ear a percentage by which the credits
	217	+	authorized by this sectio n shall be reduced so the total amount of
	218	+	credits used to offset tax does not exceed Five Million Doll ars
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217		-	ENGR. H. A. to ENGR. S. B. NO. 1063 Page 5 1
	220	+	SB1063 HFLR Page 5
	221	+	BOLD FACE denotes Committee Amendments. 1
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242		-	annual amount of credits to Five Million Dollars ($5,000,000 .00).
243		-	The Tax Commission shall annual ly calculate and publish by the first
244		-	day of the affected y ear a percentage by which the credits
245		-	authorized by this sectio n shall be reduced so the total amount of
246		-	credits used to offset tax does not exceed Five Million Dollars
247	246		($5,000,000.00) per year. The formula to be used for the percentage
248	247		adjustment shall be Five Million Dollars ($5,000,000.00) divided by
249	248		the credits claimed in the second preceding year.
250	249		G. In the event the total tax credits authorized by this
251	250		section exceed Five Million Dollars ($5 ,000,000.00) in any calendar
252	251		year, the Tax Commission shall p ermit any excess over Five Million
253	252		Dollars ($5,000,000.00) bu t shall factor such excess into the
254	253		percentage adjustment formula for subsequent years.
255	254		H. The provisions of this section shall cease to have the force
256	255		and effect of law on January 1, 20 29.
257	256		SECTION 2. NEW LAW A new section of law t o be codified
258	257		in the Oklahoma Statutes as Section 2357.232 of Title 68, unless
259	258		there is created a duplication in numberin g, reads as follows:
260	259		A. As used in this section:
261	260		1. "Child" means a person less than five (5) years of age;
262	261		2. "Licensed child care facility" means a person or entity
263	262		lawfully authorized to provide child care servic es within the state
264	263		and which is enrolled in Oklaho ma's Quality Rating and I mprovement
265	264		System (QRIS); and
	265	+	3. "Qualified child care worker" means a person employed for at
	266	+	least eight (8) consecutive months during the calendar year
	267	+	corresponding to the income tax year for which the credit authorized
	268	+	by this section is claimed and who performs classroom services for a
	269	+	licensed child care facility and who is enrolled in Oklahoma 's
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267		-	ENGR. H. A. to ENGR. S. B. NO. 1063 Page 6 1
	271	+	SB1063 HFLR Page 6
	272	+	BOLD FACE denotes Committee Amendments. 1
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292		-	3. "Qualified child care worker" means a person employed for at
293		-	least eight (8) consecutive months during the calendar year
294		-	corresponding to the income tax year for which the credit authorized
295		-	by this section is claimed and who performs classroom services for a
296		-	licensed child care facility and who is enrolled in Oklahoma 's
297	297		Professional Development Ladder (PDL) and has earned a minimum of
298	298		twelve (12) credit hours.
299	299		B. For taxable years beginning January 1, 2024, and ending not
300	300		later than December 31, 2028, there shall be allowed a credit
301	301		against the tax imposed pursuant to Section 2355 of Title 68 of the
302	302		Oklahoma Statutes in the amount of Five Hundred Dollars ($500.00)
303	303		for a qualified child care worker.
304	304		C. The credit authorized by this section shall be refundable.
305	305		The credit shall first be applied to income tax liability , if any,
306	306		for the income tax year for which the credit is clai med and the
307	307		balance shall be refunded to the taxpayer.
308	308		D. For the tax year beginning January 1, 2026, and each tax
309	309		year thereafter, the total amount of credits authorized by this
310	310		section used to offset tax shall be adjuste d annually to limit the
311	311		annual amount of credits to Seven Million Dollars ($7,000,000.00).
312	312		The Tax Commission shall annually calculate and publish by the first
313	313		day of the affected year a percentage by which the credits
314	314		authorized by this section shall be r educed so the total amount of
315	315		credits used to offset tax does not exceed Seven Million Dollars
	316	+	($7,000,000.00) per year. The formula to be used for the percentage
	317	+	adjustment shall be Seven Million Dollars ($7,000,000.00) divided by
	318	+	the credits claimed in t he second preceding year.
	319	+	E. In the event the total tax credits authorized by this
	320	+	section exceed Seven Million Dollars ($7,000,000.00) in any calendar
316	321
317		-	ENGR. H. A. to ENGR. S. B. NO. 1063 Page 7 1
	322	+	SB1063 HFLR Page 7
	323	+	BOLD FACE denotes Committee Amendments. 1
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342		-	($7,000,000.00) per year. The formula to be used for the percentage
343		-	adjustment shall be Seven Million Dollars ($7,000,000.00) divided by
344		-	the credits claimed in t he second preceding year.
345		-	E. In the event the total tax credits aut horized by this
346		-	section exceed Seven Million Dollars ($7,000,000.00) in any calendar
347	348		year, the Tax Commission shall permit any excess over Seven Million
348	349		Dollars ($7,000,000.00) but shall fa ctor such excess into the
349	350		percentage adjustment formula for subsequent years.
350	351		F. The provisions of this section shall cease to have the force
351	352		and effect of law on January 1, 2029.
352		-	SECTION 3. This act shall become effective November 1, 2023."
353		-	Passed the House of Representatives the 27th day of April, 2023.
	353	+	SECTION 3. This act shall become effective November 1, 2023.
354	354
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357		-
358		-
359		-	Presiding Officer of the House of
360		-	Representatives
361		-
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363		-	Passed the Senate the ____ day of _______ ___, 2023.
364		-
365		-
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369		-	Presiding Officer of the Senate
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397		-	ENGROSSED SENATE
398		-	BILL NO. 1063 By: Garvin of the Senate
399		-
400		-	and
401		-
402		-	Lawson of the House
403		-
404		-
405		-
406		-
407		-	[ income tax - credit - report - effective date ]
408		-
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412		-
413		-	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
414		-	SECTION 4. NEW LAW A new section of law to be codified
415		-	in the Oklahoma Statutes as Section 2357.27A of Title 68, unless
416		-	there is created a duplication in numb ering, reads as follows:
417		-	A. This act shall be know n and may be cited as the “Childcare
418		-	Receives Investment from Business (CRIB) Act”.
419		-	B. As used in this section:
420		-	1. “Business” means any Oklahoma corporation, limited liability
421		-	company, partnership , or other legal entity ;
422		-	2. “Childcare employee” means a full-time or part-time employee
423		-	primarily responsible for duties at an entity primarily engaged in
424		-	the business of providing childcare serv ices or employed by a
425		-	business with an on-site childcare facility ;
426		-	3. “Childcare facility” means a licensed childcare facility
427		-	with an average daily enrollment for a tax year of no less than six
428		-	(6) children who are twelve (1 2) years of age or less ;
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455		-	4. “Eligible expenses” means expenditures to start a new
456		-	childcare facility, either by an entity primarily engaged in th e
457		-	business of providing childcare services or a busines s creating an
458		-	on-site childcare facility, for the first five (5) years of
459		-	operation, including:
460		-	a. costs of a facility and location,
461		-	b. licensing requirements,
462		-	c. fire, safety, and health code training , approval, and
463		-	compliance,
464		-	d. equipment and supplies, including consumables and
465		-	entertainment for children,
466		-	e. childcare director training and credentialing,
467		-	f. childcare employee training, credentialing, and
468		-	licensing,
469		-	g. background checks,
470		-	h. insurance,
471		-	i. advertising,
472		-	j. transportation, and
473		-	k. other expenses required or approved by the Department
474		-	of Human Services; and
475		-	5. “Small business” means an entity as defined by 13 CFR Part
476		-	121.
477		-	C. For tax years 2024 through 2029, there shall be allowed a
478		-	credit against the tax imposed by Section 2355 of Title 68 of the
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505		-	Oklahoma Statutes for eligible expenses incurred by entities
506		-	primarily engaged in the business of providing childcare services,
507		-	businesses creating an on -site childcare facility for use b y
508		-	employees, or the public in the amount of thirty percent (30%) of
509		-	documented eligible expenses.
510		-	D. For tax years 2024 through 2029, there shall be allowed a
511		-	credit against the tax imposed by Section 2355 of Title 68 of the
512		-	Oklahoma Statutes for businesses offering the following childcare
513		-	benefits to employees :
514		-	1. Fifteen percent (15%) of documented eligible expenses and
515		-	wages paid for childcare emp loyees. An additional credit of five
516		-	percent (5%) shall be authorized for the first year of operation of
517		-	the facility;
518		-	2. A tax credit of t en percent (10%) of payments made by a
519		-	business to a childcare facility for employee childcare services;
520		-	and
521		-	3. A tax credit of fifteen percent (15%) of payments made by a
522		-	business to an employee for childcare costs . The credit authorized
523		-	by this paragraph shall not exceed Five Thousand Dollars ($5,000.00)
524		-	for each employee. A business shall make available an equivalent
525		-	payment for childcare costs to every employee to be eligible for the
526		-	credit provided in this paragraph.
527		-	E. If the amount of the credit allowed pursuant to this section
528		-	exceeds the income tax liability, the amount of credit not used in
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555		-	any tax year may be carried forward, in order, to each of five (5)
556		-	subsequent tax years.
557		-	F. A small business shall be allowed an additional credit equal
558		-	to ten percent (10%) of the credit earned pursuant to this section.
559		-	G. The Oklahoma Tax Commission shall provide an annual report
560		-	to the Department of Human Services detailing the n umber of
561		-	businesses that claim credit pursu ant to this section for each tax
562		-	year.
563		-	SECTION 5. This act shall become effective November 1, 2023.
564		-	Passed the Senate the 21st day of March, 2023.
565		-
566		-
567		-
568		-	Presiding Officer of the Senate
569		-
570		-
571		-	Passed the House of Representatives the ____ day of __________,
572		-	2023.
573		-
574		-
575		-
576		-	Presiding Officer of the House
577		-	of Representatives
578		-
579		-
	355	+	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET , dated
	356	+	04/20/2023 - DO PASS, As Amended and Coauthored.