Bill > SB1398

This bill, known as the Children's Promise Act, creates a new income tax credit for individuals and entities in Oklahoma who contribute to specific charitable organizations that focus on child welfare, family support, and the prevention of child abuse and neglect. To qualify, these charitable organizations must be federally recognized as tax-exempt under Section 501(c)(3) of the U.S. tax code, be organized and headquartered in Oklahoma, and primarily serve Oklahomans. The credit will be equal to 50% of the monetary contribution, up to 50% of the taxpayer's total income tax liability, with a reduced percentage for those filing married filing separately. Importantly, these contributions cannot also be deducted from taxable income, and the credit cannot reduce a taxpayer's liability below zero, though any unused credit can be carried forward for up to five years. Charitable organizations must certify their eligibility to the Oklahoma Tax Commission, which will verify their status and maintain a public list. The bill also establishes an annual statewide limit of $5 million for these credits starting in tax year 2029, with the Tax Commission responsible for adjusting the credit amount to stay within this limit. The act is set to become effective on November 1, 2026.