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53	53	STATE OF OKLAHOMA
54	54
55	55	1st Session of the 60th Legislature (2025)
56	56
57	57	SENATE BILL 816 By: Boren
58	58
59	59
60	60
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62	62	AS INTRODUCED
63	63
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 credit 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 Tit le 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 whom 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 fo r 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 Oklahoma ’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 Statutes , an amount equal to:
159	159	1. Thirty percent (30%) of the amount expended by an em ployer
160	160	for an employee’s child care expenses;
161	161	2. Fifty percent (50%) 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;
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; or
220	220	4. Thirty percent (30%) of the amount expended by the employer
221	221	to construct, either through new construction or rehabilitation of a
222	222	structure, a facility located not more than two (2) mi les from the
223	223	site at which employees perform primary work duties unless working
224	224	remotely, to provide child care services to the children of the
225	225	employees.
226	226	C. For tax years 2026 through 2030, there shall be allowed a
227	227	credit against the tax imposed pursuant to Section 2355 of Title 68
228	228	of the Oklahoma Statutes in the amount of One Tho usand Dollars
229	229	($1,000.00) for a qualified child care worker. The credit
230	230	authorized pursuant to this subsection shall be refundable.
231	231	D. The total credit amount claimed by an emp loyer pursuant to
232	232	the provisions of subsection B of this section shall not exceed
233	233	Thirty Thousand Dollars ($30,000.00) for any tax year.
234	234	E. The credit authorized pursuant to the provisions of
235	235	subsection B of this section shall not be used to reduce the in come
236	236	tax liability of the taxpayer to less than zero (0).
237	237	F. If the amount of the credit allowed pursuant to subsection B
238	238	of this section exceeds the income tax liability, the amount of
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290	290	credit not used in any tax year may be carried forward, in order, to
291	291	each of the five (5) subsequent tax years.
292	292	G. For tax year 2028 and subsequent tax years, the total amount
293	293	of credits authorized pursuant to subsection B of this section shall
294	294	be adjusted annually to limit the annual amount of credits to Five
295	295	Million Dollars ($5,000,000.00). The Oklahoma Tax Commission shall
296	296	annually calculate and publish a percentage by which the credits
297	297	authorized by this section shall be reduced so the total amount of
298	298	credits used to offset tax does not exceed the annual limit. The
299	299	formula to be used for the percentage adjustment shall be Five
300	300	Million Dollars ($5,000,000.00) divided by the amount of credit
301	301	claimed in the second preceding tax year. In the event the total
302	302	tax credits authorized by this section exceed the annual limit in
303	303	any tax year, the Tax Commission shall permit any excess but shall
304	304	factor such excess into the percentage adjustment formula for
305	305	subsequent tax years.
306	306	H. For tax year 2028 and subsequent tax years, the total amount
307	307	of credits authorized pursuant to subse ction B of this section shall
308	308	be adjusted annually to limit the annual amount of credits to
309	309	Fourteen Million Dollars ($14,000,000.00). The Tax Commission shall
310	310	annually calculate and publish a percentage by which the credits
311	311	authorized by this section sha ll be reduced so the total amount of
312	312	credits used to offset tax does not excee d the annual limit. The
313	313	formula to be used for the percentage adjustment shall be Fourteen
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365	365	Million Dollars ($14,000,000.00) divided by the amount of credit
366	366	claimed in the second preceding tax year. In the event the total
367	367	tax credits authorized by this section exceed the annual limit in
368	368	any tax year, the Tax Commission shall permit any excess but shall
369	369	factor such excess into the percentage adjustment formula for
370	370	subsequent tax years.
371	371	SECTION 2. This act shall become effective November 1, 2025.
372	372
373	373	60-1-1058 QD 1/16/2025 12:22:02 AM

Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB816 Compare Versions