Bill > SB826

This bill establishes a new income tax credit in Oklahoma for contributions to qualifying charitable organizations that serve specific populations, including low-income households, individuals with chronic illnesses, and foster youth. The bill defines key terms such as "low-income residents" (households earning less than 150% of the federal poverty level), "qualified individuals" (primarily focusing on foster children and young adults), and "qualifying charitable organizations" (501(c)(3) nonprofits or community action agencies that spend at least 50% of their budget serving targeted populations). For tax years beginning in 2026, taxpayers can claim a tax credit for contributions to such organizations, with limits of $400 for single filers and $800 for joint filers for general charitable organizations, and $500 for single filers and $1,000 for joint filers for foster care charitable organizations. The credit cannot reduce tax liability below zero and can be carried forward for up to five subsequent tax years. Importantly, taxpayers cannot claim this credit if they also claim a federal charitable deduction for the same contribution. Charitable organizations must provide detailed certification to the Oklahoma Tax Commission, including financial data and a statement that they do not provide or support abortion services. The Department of Human Services will maintain a public list of qualifying organizations, and the bill becomes effective on November 1, 2025.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb826&Session=2600