This bill introduces a new section to the Oklahoma Statutes that provides tax credits related to child care expenses for employers and qualified child care workers. Specifically, it allows employers to claim a credit for a percentage of their expenditures on child care services for employees, including costs associated with operating a child care facility, contracting with child care providers, and constructing child care facilities near the workplace. For tax years 2026 through 2030, the bill establishes a credit limit of $30,000 per employer and specifies that the credits cannot reduce tax liability below zero. Additionally, any unused credits can be carried forward for up to five subsequent tax years.

The bill also offers a refundable credit of $1,000 for qualified child care workers who meet specific employment and educational criteria. Furthermore, it sets an annual limit on the total amount of credits that can be claimed, starting at $5 million for tax year 2028 and increasing to $14 million in subsequent years. The Oklahoma Tax Commission is tasked with calculating and publishing the necessary adjustments to ensure that the total credits do not exceed these annual limits. The act is set to take effect on November 1, 2025.