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SENATE FLOOR VERSION
March 3, 2025
SENATE BILL NO. 223 By: Nice
An Act relating to income tax; amending 68 O.S. 2021,
Section 2357, which relates to credits against income
tax; updating statutory references; authorizing claim
for child tax credit in the tax year for which
certain stillborn birth certificates are issued;
prescribing calculation of credit amount; authorizing
the Oklahoma Tax Commission to promulgate rules; and
providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357, is
amended to read as follows:
Section 2357. A. The withheld taxes and estimated taxes paid
shall be allowed as credits as provided by law.
B. 1. There shall be al lowed as a credit against the tax
imposed by Section 2355 of this title the amount of tax paid another
state by a resident individual, as defined in paragraph 4 of Section
2353 of this title, upon income rece ived as compensation for
personal services in su ch other state; provided, such credit shall
not be allowed with respect to any income specified in Section 114
of Title 4 of the United States Code, 4 U.S.C., Section 114, upon
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which a state is prohibited from imposing an income tax. The credit
shall not exceed such proportion of the tax payable under Section
2355 of this title as the compensation for personal services subject
to tax in the other state and also taxable under Section 2355 of
this title bears to the Oklahoma adjusted gross income as defined in
paragraph 13 of Section 2353 of this title.
2. For tax years beginning after December 31, 2007, there shall
be allowed to a resident individual or part -year resident individual
or nonresident individual member of the Armed Forces as a credit
against the tax imposed by Section 2355 of this title twenty percent
(20%) of the credit for child care expenses allowed under the
Internal Revenue Code of the United States 1986, as amended, or five
percent (5%) of the child tax credit allowed under the Internal
Revenue Code of 1986, as amended, whichever amount is greater.
Neither credit authorized by this paragraph shall exceed the tax
imposed by Section 2355 of this title. The maximum child care
credit allowable on the Oklahoma income tax return shall be prorat ed
on the ratio that Oklahoma adjusted gross income bears to the
federal adjusted gross income. The credit authorized by this
paragraph shall not be claimed by any taxpayer if the federal
adjusted gross income reflected on the Oklahoma return for the
taxpayer is in excess of One Hundred Thousand Dollars ($100,000.00).
C. For tax year 2026 and subsequent tax years , a taxpayer may
claim the child tax credit allowed pursuant to paragraph 2 of
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subsection B of this section for each birth that a certificate of
birth resulting in stillbirth has been issued pursuant to Section 1-
318.2 of Title 63 of the Oklahoma Statutes , if the child otherwise
would have been a member of the household of the taxpayer. The
taxpayer may claim the credit only in the tax year in whi ch the
stillbirth occurred. The credit authorized pursuant to this
subsection shall be five percent (5%) of the child tax credit that
would be allowed under the Internal Revenue Code of 1986, as
amended, if the child were a dependent and a member of the
household. The Oklahoma Tax Commission may promulgate rules to
enforce the provisions of this subsection.
SECTION 2. This act shall become effective November 1, 2025.
COMMITTEE REPORT BY: COM MITTEE ON REVENUE AND TAXATION
March 3, 2025 - DO PASS