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ENGROSSED HOUSE
BILL NO. 1848 By: Schreiber, Tedford, Hefner,
Deck, and Munson of the
House
and
Thompson of the Senate
[ revenue – taxation – credit – childcare – zero –
carryover – authorization – codification –
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 numbering, reads as follows:
A. As used in this section:
1. "Child" means a person who is five (5) years of age or less;
2. "Childcare and education provider" means a person who owns
or operates an eligible program;
3. "Childcare expense" means the cost of locating safe and
dependable services for the care of a minor child of an employee;
4. "Eligible program" means an applicable childcare and early
childhood education program that has applied to participate in the
quality rating and improvement system and has been assigned a
quality scale rating;
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5. "Eligible staff member" means a person who is employed with,
or who is a self-employed person providing childcare and early
childhood education for, an eligible program for at least six (6)
months of the taxable year. Eligible staff member d oes 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 sol e proprietor or lawfully recognized
business entity engaged in lawful business activity;
8. "Licensed childcare facility" means a person or entity
lawfully authorized to provide childcare services within the state
and which is enrolled in Oklahoma's Quali ty Rating and Improvement
System (QRIS);
9. "Qualified childcare 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 cla imed and who performs classroom services for a
licensed childcare facility and who is enrolled in Oklahoma's
Professional Development Ladder (PDL); and
10. "Quality scale rating" means the rating of an eligible
program under which the rating is expressed in terms of stars.
B. For taxable years beginning on or after January 1, 2026, and
ending not later than December 31, 2030, subject to the limitations
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prescribed by this subsection and subsection D of this section,
there shall be allowed as a credit again st 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 o f childcare;
2. Thirty percent (30%) of the amount expended by an employer
for the cost of operating or contracting to operate a childcare
facility primarily used by dependents of the employees of such
employer or group of employees in the area, excluding any payments
made by the parent or guardian of such dependent such as tuition or
fees; or
3. Thirty percent (30%) of the amount expended by an employer
to contract with a childcare facility to reserving spots for its
employees.
C. The total credit amoun t which may be claimed by an employer
pursuant to the provisions of this section shall not exceed Thirty
Thousand Dollars ($30,000.00) for credits claimed pursuant to
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).
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E. To the extent not used the credits authorized by this
section may be carried over, in order, to each of the succeeding
five (5) tax years.
F. The total amount of credits authorized to be used to reduce
income tax liabilities pursuant to the provisions of this section
shall not exceed Five Million Dollars ($5,000,000.00) each fiscal
year.
G. The provisions of this section shall ce ase to have the force
and effect of law on January 1, 2031.
SECTION 2. This act shall become effective January 1, 2026.
Passed the House of Representatives the 12th day of March, 2025.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2025.
Presiding Officer of the Senate