Bill > SB1996

This bill, known as the "Children's Promise Act," creates a new income tax credit for individuals and entities in Oklahoma who make monetary contributions to specific charitable organizations. These "eligible charitable organizations" must be federally tax-exempt, organized and headquartered in Oklahoma, and primarily focus on services related to child welfare, adoption, preventing child abuse and trafficking, supporting pregnancy and childbirth, marriage counseling, promoting traditional values in schools, or workforce development for children in state custody. To qualify, these organizations must certify to the Oklahoma Tax Commission (OTC) that they meet these criteria, do not engage in abortion-related activities, and have a significant presence and client base in Oklahoma, among other requirements. Taxpayers can claim a credit equal to their contribution, up to 50% of their total tax liability, but this credit cannot be refunded and cannot reduce their tax to zero; any unused credit can be carried forward for up to five years. Contributions eligible for this credit cannot also be deducted from taxable income. The OTC will review certifications, maintain a list of eligible organizations, and can request recertification. For businesses structured as partnerships or similar entities, the credit can be allocated to their owners, with certain limitations adjusted for these allocations. Starting in tax year 2029, there will be an annual cap of $15 million on the total amount of these credits, with the OTC adjusting the credit amount annually to stay within this limit. The bill also includes provisions for organizations to notify the OTC of changes affecting their eligibility and specifies an effective date of November 1, 2026.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb1996&Session=2600