Bill > SB1388

This bill amends Oklahoma's income tax law to create new tax credits for child care expenses and qualifying children. For tax years 2008-2026, the bill maintains existing provisions allowing a credit of 20% of federal child care expenses or 5% of the federal child tax credit, whichever is greater, with restrictions based on income. Starting in 2027, the bill introduces a more comprehensive child care credit that is fully refundable, meaning taxpayers can receive the credit even if it exceeds their tax liability. Additionally, the bill establishes a new child tax credit for resident or non-resident Armed Forces members with qualifying children under 19 years old. This new credit provides $500 per child for individuals with adjusted gross income of $70,000 or less, with the credit gradually reducing for incomes between $70,000 and $100,000, and becoming unavailable for those earning over $100,000. For married couples filing separately, both spouses' incomes will be considered when calculating the credit. Both credits will be prorated based on the ratio of Oklahoma to federal adjusted gross income, and the child tax credit will be fully refundable. The bill is set to become effective on November 1, 2026.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb1388&Session=2600