Req. No. 10483 Page 1 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 1359 By: Olsen
AS INTRODUCED
An Act relating to revenue and taxation; creating
income tax credit; providing definitions; providing
eligibility for tax credit; providin g cap on amount
claimed by taxpayer per taxable year; providing
carryover; prohibiting credit from reducing liability
to less than zero; providing how taxpayer may claim
credit on separate returns; directing Oklahoma Tax
Commission to provide forms; provid ing procedure for
administering credit; providing annual cap; providing
for severability; 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 b e codified
in the Oklahoma Statutes as Section 2357.701 of Title 68, unless
there is created a duplication in numbering, reads as follows:
A. As used in this section:
1. "Commission" means the Oklahoma Tax Commission;
2. "Eligible dependent child " means a child who has not
attained the age of nineteen (19) years, otherwise qualif ies for
federal income tax purposes as a dependent of the taxpayer, and is a
natural child of both of the legally married parent filers.
3. "Taxpayer" means a legally married co uple.
Req. No. 10483 Page 2 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
B. For taxable years beginning after December 31, 202 5, there
shall be allowed against the tax imposed pursuant to Section 2355 of
Title 68 of the Oklahoma Statutes, for each eligible dependent child
residing with his or her parents, legally married to one another, a
credit in the following amounts:
1. For filers who have be en continuously legally married from
one (1) to five (5) years, Five Hundred Dollars ( $500.00);
2. For filers who have been continuously legally married from
five (5) to ten (10) years, One Thousand Dollars ( $1,000.00);
3. For filers who have been continuously legally married from
eleven (11) to fifteen (15) years, One Thousand Five Hundred
Dollars ($1,500.00);
4. For filers who have been continuously legally married for
sixteen (16) years or more, Two Thousand Dollars ($2,000.00);
C. A taxpayer shall not be allowed to claim a tax credit
authorized under this section in excess of Ten Thousand Dollars
($10,000.00) per taxable year.
D. Any tax credit claimed under this section but not used in
any taxable year may be carried forward for five (5) consecutive
years from the close of the tax year in which the credits were
earned.
E. The credit authorized pursuant to the provisions of this
section may not be used to reduce the tax l iability of the taxpayer
to less than zero (0). The credit authorized pursuan t to the
Req. No. 10483 Page 3 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
provisions of this section may not be assigned, transferred, or
sold.
F. A husband and wife who file separate returns for a taxable
year in which they could have filed a joint return may each claim
one-half (1/2) of the tax credit that would have been allowed for a
joint return.
G. A taxpayer shall pre -apply for credits with the Commission
on forms prescribed by the Commission. In the application to the
Commission, the taxpayer shall certify the number of eligible
dependent children residing in the taxpayer's household for more
than half of the taxable year and shall include a notarized
statement indicating the parents of the children were legally
married to one another in the taxable year and shall also certify
the number of years the couple has been continuously married.
H. Credits shall be awarded on a first -come-first served basis,
whether submitted electronically, hand -delivered, or by U.S. Mail.
I. Within thirty (30) days after the receipt of an application,
the Commission shall allocate c redits based on the dollar amount of
the tax credit as demonstrated in the application. However, if the
Commission cannot allocate the full amount of credits demonstrated
in the application due to the limit on the aggregate amount of
credits that may be awarded under this section in a calendar year,
the Commission shall so notify the applicant within thirty (30) days
Req. No. 10483 Page 4 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
with the amount of credits, if any, that may be allocated to th e
applicant in the calendar year.
J. The aggregate amount of tax credits that may be allocated by
the Commission under this section during a calendar year shall not
exceed Twenty-five Million Dollars ($25,000,000.00).
SECTION 2. If any one or more provision, section,
subsection, sentence, clause, phrase or word of this act or the
application thereof to any person or circumstance is found to be
unconstitutional, the same is hereby declared to be severable and
the balance shall remain eff ective notwithstanding such
unconstitutionality. The Legislature hereby decla res that it would
have passed each provision, section, subsection, sentence, clause,
phrase or word thereof, irrespective of the fact that any one or
more provision, section, sub section, sentence, clause, phrase or
word be declared unconstitutional.
SECTION 3. This act shall become effective January 1, 202 6.
60-1-10483 AO 01/03/25