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53	53	STATE OF OKLAHOMA
54	54
55	55	1st Session of the 60th Legislature (2025)
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57	57	SENATE BILL 256 By: Thompson
58	58
59	59
60	60
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63	63	AS INTRODUCED
64	64
65	65	An Act relating to income tax; defining terms;
66	66	providing credit for certain employer child care
67	67	expenditures; providing refundable cred it for
68	68	qualified child care worker; providing credit limit;
69	69	prohibiting refundability for certain credit;
70	70	allowing credit to be carried forward for certain
71	71	period; providing annual limit for certain tax years;
72	72	prescribing procedures to enforce annual limit ;
73	73	providing for codification; and providing an
74	74	effective date.
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79	79	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
80	80	SECTION 1. NEW LAW A new section of law to be codified
81	81	in the Oklahoma Statutes as Section 2357.27A of Title 68, unless
82	82	there is created a duplication in numbering, reads as follows:
83	83	A. As used in this section:
84	84	1. “Child” means an individual who is five (5) years of age or
85	85	younger;
86	86	2. “Child care expense” means the cost or tuition paid for
87	87	child care services from a licensed child care facility;
88	88	3. “Employee” means a person to wh om wages or other
89	89	compensation is paid by an employer;
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141	141	4. “Employer” means any sole proprietor or lawfully recognized
142	142	business entity engaged in lawful business activity;
143	143	5. “Licensed child care facility” means a person or entity
144	144	lawfully authorized to provide child care services in this state and
145	145	is enrolled in Oklahoma ’s Quality Rating and Improvement System
146	146	(QRIS); and
147	147	6. “Qualified child care worker” means a person employed for at
148	148	least eight (8) consecutive months during the calendar year
149	149	corresponding to the tax year for which the credit authorized by
150	150	this section is claimed and who:
151	151	a. performs classroom services for a licensed child care
152	152	facility,
153	153	b. is enrolled in Oklah oma’s Professional Development
154	154	Ladder (PDL), and
155	155	c. has earned a minimum of twelve (12) credit hours.
156	156	B. For tax years 2026 through 2030, there shall be allowed as a
157	157	credit against the tax imposed pursuant to Section 2355 of Title 68
158	158	of the Oklahoma Statu tes, an amount equal to:
159	159	1. Thirty percent (30%) of the amount expended by an employer
160	160	for an employee’s child care expenses;
161	161	2. Thirty percent (30%) of the amount expended by an employer
162	162	for the cost of operating or contracting to operate a child care
163	163	facility primarily used by dependents of the employees of the
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215	215	employer or group of employers, minus any payments made by the
216	216	employees to the employer for those child care services; or
217	217	3. Thirty percent (30%) of the amount expended by an employer
218	218	to contract with a child care facility to ensure a reservation for
219	219	its employees.
220	220	C. For tax years 2026 through 2030, there shall be allowed a
221	221	credit against the tax imposed pursuant to Section 2355 of Title 68
222	222	of the Oklahoma Statutes in the amount of One Thousan d Dollars
223	223	($1,000.00) for a qualified child care worker. The credit
224	224	authorized pursuant to this subsection shall be refundable.
225	225	D. The total credit amount claimed by an employer pursuant to
226	226	the provisions of subsection B of this section shall not exceed
227	227	Thirty Thousand Dollars ($30,000.00) for any tax year.
228	228	E. The credit authoriz ed pursuant to the provisions of
229	229	subsection B of this section shall not be used to reduce the income
230	230	tax liability of the taxpayer to less than zero (0).
231	231	F. If the amount of the credit allowed pursuant to subsection B
232	232	of this section exceeds the income tax liability, the amount of
233	233	credit not used in any tax year may be carried forward, in order, to
234	234	each of the five (5) subsequent tax years.
235	235	G. For tax year 2028 and subsequent ta x years, the total amount
236	236	of credits authorized pursuant to subsection B of th is section shall
237	237	be adjusted annually to limit the annual amount of credits to Five
238	238	Million Dollars ($5,000,000.00). The Oklahoma Tax Commission shall
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290	290	annually calculate and pub lish a percentage by which the credits
291	291	authorized by this section shall be reduced so the total amount of
292	292	credits used to offset tax does not exceed the annual limit. The
293	293	formula to be used for the percentage adjustment shall be Five
294	294	Million Dollars ($5,0 00,000.00) divided by the amount of credit
295	295	claimed in the second preceding tax year. In the event the total
296	296	tax credits authorized by this section exceed the annual limit in
297	297	any tax year, the Tax Commission shall permit any excess but shall
298	298	factor such excess into the percentage adjustment formula for
299	299	subsequent tax years.
300	300	H. For tax year 2028 and subsequent tax years, the total amount
301	301	of credits authorized pursuant to subsection B of this section shall
302	302	be adjusted annually to limit the annual amount of c redits to
303	303	Fourteen Million Dollars ($14,000,000.00). The Tax Commission shall
304	304	annually calculate and publish a percentage by which the credits
305	305	authorized by this section shall be reduced so the total amount of
306	306	credits used to offset tax does not exceed th e annual limit. The
307	307	formula to be used for the percentage adjustment shall be Fourteen
308	308	Million Dollars ($14,000,000.00) divided by the amount of credit
309	309	claimed in the second preceding tax year. In the event the total
310	310	tax credits authorized by this sectio n exceed the annual limit in
311	311	any tax year, the Tax Commission shall permit any excess but shall
312	312	factor such excess into the percentage adjustment formula for
313	313	subsequent tax years.
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365	365	SECTION 2. This act shall become effective November 1, 2025 .
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367	367	60-1-383 QD 12/30/2024 6:06:55 PM

Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB256 Compare Versions