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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
SENATE BILL 826 By: Stewart
AS INTRODUCED
An Act relating to income tax credit; defining terms;
providing tax credit for contributions to qualifying
charitable organization that provides services to
low-income households, individuals with a chronic
illness, or physically disabled individuals ;
providing credit for contributions to qualifying
foster care charitable organization; prescribing
credit amount; prohibiting refundability; authorizing
the carry forward of credit; prohibiting claims if
certain deduction is claimed; requiring claims to be
made on a form prescribed by the Oklahoma Tax
Commission; requiring written certification from
charitable organization; requiring the Tax Commission
to make certain determination upon review and provide
notification; authorizing the Tax Commission to
request recertification; requiring the Department of
Human Services to make available a certain list;
providing for codification; and providing a n
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKL AHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.417 of Title 68, unless
there is created a duplicat ion in numbering, reads as follows:
A. As used in this section:
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1. “Individuals who have a chronic illness or physical
disability” means individuals whose primary diagnosis is a severe
physical condition that may require ongoing medical or surgical
intervention;
2. “Low-income residents” means persons whose household income
is less than one hundred fifty percent (150%) of the federal poverty
level;
3. “Qualified individual ” means any of the following:
a. a foster child in the foster care program of the
Department of Human Services or a federally recognized
Indian tribe with whom the Department has a contract,
b. a person who is participating in a program established
pursuant to the Successful Adulthood Act, Section 1 -9-
107 of Title 10A of the Oklahoma St atutes, and
c. a person who is twenty-six (26) years of age or less,
and whose reason for leaving the foster care program
of the Department of Human Services or a federally
recognized Indian tribe with whom the Department has a
contract is any of the follo wing:
(1) reaching adulthood,
(2) adoption or legal guardianship after reaching
fifteen (15) years of age, or
(3) reunification with biological parents after
reaching fourteen (14) years of age;
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4. “Qualifying charitable organization ” means a charitable
organization that is exempt from federal income taxation pursuant to
26 U.S.C., Section 501(c)(3) or is a designated community action
agency that receives community services block grant program monies
pursuant to 42 U.S.C., Section 9901. The organization shall spend
at least fifty percent (50%) of its budget on services to residents
of this state who receive benefits from the Temporary Assistance for
Needy Families Program to low -income residents of this state and
their households or to individuals who have a chronic illness or
physical disability and who are residents of this state. Taxpayers
choosing to make donations through an umbrella charitable
organization that collects donations on behalf of member charities
shall designate that the donation be dire cted to a member charitable
organization that would qualify under this section on a stand -alone
basis. Qualifying charitable organization shall not include any
entity that provides, pays for, or provides coverage of abortions or
that financially supports any other entity that provides, pays for,
or provides coverage of abortions;
5. “Qualifying foster care charitable organization ” means an
organization that is exempt from federal income taxation pursuant to
26 U.S.C., Section 501(c)(3) or is a designated community action
agency that receives community services block grant program monies
pursuant to 42 U.S.C., Section 9901 , and that each operating year
provides services to at least two hundred (200) qualified
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individuals in this state and spends at least fi fty percent (50%) of
its budget on services to qualified individuals in this s tate; and
6. “Services” means:
a. for a qualifying charitable organization, cash
assistance, medical care, child care, food, clothing,
shelter, job placement, and job training s ervices or
any other assistance that is reasonably necessary to
meet immediate basic needs and that is provided and
used in this state, and
b. for a qualifying foster care charitable organization,
cash assistance, medical care, behavioral health
services, child care, food, including snacks at the
qualifying foster care charitable or ganization’s
foster youth events, clothing, shelter, job placement
services, job training services, character education
programs, workforce development programs, secondary
education student retention programs, housing or
financial literacy services or any other assistance
that is reasonably necessary to meet basic needs or
provide normalcy and that is provided and used in this
state. For the purposes of this subparagraph,
“normalcy” means the condition of experiencing a
typical childhood by participating i n activities that
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are age or developmentally -appropriate, as the term is
defined in 42 U.S.C. , Section 675.
B. For tax year 2026 and subsequent tax years, there shall be
allowed as a credit against the tax imposed pursuant to Section 2355
of Title 68 of the Oklahoma Statutes, an amount equal to
contributions by a taxpayer to a qualifying charitable organization,
other than contributions to a qualifying foster care charitable
organization, not to exceed:
1. Four Hundred Dollars ($400.00) for those filing a s single,
head of household, or married filing separately; and
2. Eight Hundred Dollars ($800.00) for those married filing
jointly.
C. For tax year 2026 and subsequent tax year s, there shall be
allowed as a credit against the tax imposed pursuant to Section 2355
of Title 68 of the Oklahoma Statutes, an amount equal to
contributions by a taxpayer to a qualifying foster care charitable
organization, not to exceed:
1. Five Hundred Dollars ($500.00) for those filing as single,
head of household, or married f iling separately; and
2. One Thousand Dollars ($1,000.00) for those married filing
jointly.
D. The credit authorized pursuant to the provisions of
subsections B and C of this s ection shall not be used to reduce the
income tax liability of the taxpayer to less than zero (0).
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E. If the amount of the credit allowed pursuant to subsections
B and C of this section exceeds the income tax liability, the amount
of credit not used in an y tax year may be carried forward, in order,
to each of the five (5) subsequen t tax years.
F. The credit authorized by this section shall not be claimed
if the taxpayer claims a deduction allowed pursuant to 26 U.S.C.,
Section 170, for the contributions t o a qualifying charitable
organization or to a qualifying foster care charitable organization.
G. Taxpayers claiming credit authorized by this section shall
provide the name of the qualifying charitable organization or the
qualifying foster care charitabl e organization and the amount of the
contribution on a form prescribed by the Oklahoma Tax Commission.
H. A qualifying charitable organization or a qualifying foster
care charitable organization shall provide the Tax Commission a
written certification tha t it meets all criteria to be considered a
qualifying charitable organization or a qualifying foster care
charitable organization. The organization shall also notify the Tax
Commission of any changes that may affect the qualifications under
this section. The written certification of the organization shall
be signed by an officer o f the organization under penalty of
perjury. The written certification shall include the following:
1. Verification of the status of the organization pursuant to
26 U.S.C., Section 501(c)(3), or verification that the organization
is a designated community action agency that receives community
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services block grant program monies pursuant to 42 U.S.C., Section
9901;
2. Financial data indicating the budget of the organization for
the prior tax year and the amount of that budget spent on services
to residents of this state who either:
a. receive benefits from the Temporary Assistance for
Needy Families Program,
b. are low-income residents, or
c. are individuals who have a chronic il lness or physical
disability;
3. A statement that the organization plans to continue spending
at least fifty percent (50%) of the budget of the organization on
services to residents of this state who receive benefits from the
Temporary Assistance for Need y Families Program, who are low -income
residents or who are individuals who ha ve a chronic illness or
physical disability; and
4. A statement that the organization does not provide, pay for
or provide coverage of abortions and does not financially support
any other entity that provides, pays for or provides coverage of
abortions.
I. The Tax Commission shall review each written certification,
determine whether the organization meets all the criteria to be
considered a qualifying charitable organization or a qualifying
foster care charitable organization, and notify the organization of
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its determination. The Tax Commission may also periodically request
recertification from the organization. The Department shall compile
and make available to the public a li st of the qualifying charitable
organizations and qualifying foster care charitable organizations.
SECTION 2. This act shall become effective November 1, 2025.
60-1-310 QD 1/16/2025 12:52:57 AM