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28	28	STATE OF OKLAHOMA
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30	30	1st Session of the 60th Legislature (2025)
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32	32	HOUSE BILL 1359 By: Olsen
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38	38	AS INTRODUCED
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40	40	An Act relating to revenue and taxation; creating
41	41	income tax credit; providing definitions; providing
42	42	eligibility for tax credit; providin g cap on amount
43	43	claimed by taxpayer per taxable year; providing
44	44	carryover; prohibiting credit from reducing liability
45	45	to less than zero; providing how taxpayer may claim
46	46	credit on separate returns; directing Oklahoma Tax
47	47	Commission to provide forms; provid ing procedure for
48	48	administering credit; providing annual cap; providing
49	49	for severability; and providing an effective date .
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54	54	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
55	55	SECTION 1. NEW LAW A new section of law to b e codified
56	56	in the Oklahoma Statutes as Section 2357.701 of Title 68, unless
57	57	there is created a duplication in numbering, reads as follows:
58	58	A. As used in this section:
59	59	1. "Commission" means the Oklahoma Tax Commission;
60	60	2. "Eligible dependent child " means a child who has not
61	61	attained the age of nineteen (19) years, otherwise qualif ies for
62	62	federal income tax purposes as a dependent of the taxpayer, and is a
63	63	natural child of both of the legally married parent filers.
64	64	3. "Taxpayer" means a legally married co uple.
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91	91	B. For taxable years beginning after December 31, 202 5, there
92	92	shall be allowed against the tax imposed pursuant to Section 2355 of
93	93	Title 68 of the Oklahoma Statutes, for each eligible dependent child
94	94	residing with his or her parents, legally married to one another, a
95	95	credit in the following amounts:
96	96	1. For filers who have be en continuously legally married from
97	97	one (1) to five (5) years, Five Hundred Dollars ( $500.00);
98	98	2. For filers who have been continuously legally married from
99	99	five (5) to ten (10) years, One Thousand Dollars ( $1,000.00);
100	100	3. For filers who have been continuously legally married from
101	101	eleven (11) to fifteen (15) years, One Thousand Five Hundred
102	102	Dollars ($1,500.00);
103	103	4. For filers who have been continuously legally married for
104	104	sixteen (16) years or more, Two Thousand Dollars ($2,000.00);
105	105	C. A taxpayer shall not be allowed to claim a tax credit
106	106	authorized under this section in excess of Ten Thousand Dollars
107	107	($10,000.00) per taxable year.
108	108	D. Any tax credit claimed under this section but not used in
109	109	any taxable year may be carried forward for five (5) consecutive
110	110	years from the close of the tax year in which the credits were
111	111	earned.
112	112	E. The credit authorized pursuant to the provisions of this
113	113	section may not be used to reduce the tax l iability of the taxpayer
114	114	to less than zero (0). The credit authorized pursuan t to the
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141	141	provisions of this section may not be assigned, transferred, or
142	142	sold.
143	143	F. A husband and wife who file separate returns for a taxable
144	144	year in which they could have filed a joint return may each claim
145	145	one-half (1/2) of the tax credit that would have been allowed for a
146	146	joint return.
147	147	G. A taxpayer shall pre -apply for credits with the Commission
148	148	on forms prescribed by the Commission. In the application to the
149	149	Commission, the taxpayer shall certify the number of eligible
150	150	dependent children residing in the taxpayer's household for more
151	151	than half of the taxable year and shall include a notarized
152	152	statement indicating the parents of the children were legally
153	153	married to one another in the taxable year and shall also certify
154	154	the number of years the couple has been continuously married.
155	155	H. Credits shall be awarded on a first -come-first served basis,
156	156	whether submitted electronically, hand -delivered, or by U.S. Mail.
157	157	I. Within thirty (30) days after the receipt of an application,
158	158	the Commission shall allocate c redits based on the dollar amount of
159	159	the tax credit as demonstrated in the application. However, if the
160	160	Commission cannot allocate the full amount of credits demonstrated
161	161	in the application due to the limit on the aggregate amount of
162	162	credits that may be awarded under this section in a calendar year,
163	163	the Commission shall so notify the applicant within thirty (30) days
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190	190	with the amount of credits, if any, that may be allocated to th e
191	191	applicant in the calendar year.
192	192	J. The aggregate amount of tax credits that may be allocated by
193	193	the Commission under this section during a calendar year shall not
194	194	exceed Twenty-five Million Dollars ($25,000,000.00).
195	195	SECTION 2. If any one or more provision, section,
196	196	subsection, sentence, clause, phrase or word of this act or the
197	197	application thereof to any person or circumstance is found to be
198	198	unconstitutional, the same is hereby declared to be severable and
199	199	the balance shall remain eff ective notwithstanding such
200	200	unconstitutionality. The Legislature hereby decla res that it would
201	201	have passed each provision, section, subsection, sentence, clause,
202	202	phrase or word thereof, irrespective of the fact that any one or
203	203	more provision, section, sub section, sentence, clause, phrase or
204	204	word be declared unconstitutional.
205	205	SECTION 3. This act shall become effective January 1, 202 6.
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207	207	60-1-10483 AO 01/03/25

Oklahoma 2025 Regular Session

Oklahoma House Bill HB1359 Compare Versions