The proposed bill, known as the Childrens Promise Act, establishes a tax credit for individuals who contribute to eligible charitable organizations focused on child welfare in Oklahoma. The credit, applicable from tax year 2027, allows taxpayers to claim a credit equal to their monetary contribution, capped at 50% of their total income tax liability. However, contributions for which the credit is claimed cannot be deducted from taxable income, and the credit is non-refundable, meaning it cannot reduce tax liability below zero. Unused credits can be carried forward for up to five subsequent tax years.

Eligible charitable organizations must meet specific criteria, including being federally tax-exempt, headquartered in Oklahoma, and primarily serving child welfare purposes. They are required to submit written certification to the Oklahoma Tax Commission, which will verify their eligibility and maintain a list of approved organizations. The bill also includes provisions for penalties for false certification and mandates that organizations notify the Tax Commission of any changes affecting their eligibility. Additionally, the total amount of credits authorized will be limited to $15 million annually starting in tax year 2029, with adjustments made to ensure this cap is not exceeded. The act is set to take effect on November 1, 2026.