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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
SENATE BILL 1996 By: Rosino
AS INTRODUCED
An Act relating to income tax; creating the
Children’s Promise Act; providing short title;
defining term; providing tax credit for contribution
to eligible charitable organization; limiting amount
of credit; prohibiting certain contributions from
being deducted from taxable income; prohibiting
refundability; authorizing credit to be carried
forward to certain tax years; requiring credit to be
claimed on certain form; requiring eligible
charitable organization to submit certification to
the Oklahoma Tax Commission; prescribing requirements
of certification; providing for penalty of perjury;
requiring eligible charitable organization to notify
the Tax Commission of certain changes; requiring the
Tax Commission to review submitted certifications and
determine eligibility; requiring the Tax Commission
to notify certain organizations of determination;
authorizing the Tax Commission to request
recertification; authorizing allocation of credit
earned by certain entities; prescribing procedures
for allocation; providing exception on certain credit
limitations for allocated credit; providing annual
limit for certain tax years; prescribing procedures
to enforce annual limit; providing for
noncodification; providing for codification; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows:
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This act shall be known and may be cited as the “Children’s
Promise Act”.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.701 of Title 68, unless
there is created a duplication in numbering, reads as follows:
A. As used in this section, “eligible charitable organization”
means an organization that:
1. Is exempt from federal income taxation under 26 U.S.C.,
Section 501(c)(3);
2. Is organized under the laws of this state;
3. Is headquartered in this state;
4. Has a primary mission to provide services for one or more of
the following:
a. the prevention and diversion of children from custody
with the Department of Human Services,
b. the safety, care, and well-being of children in
custody with the Department of Human Services,
c. the express purpose of creating permanency for
children through adoption,
d. the prevention of abuse, neglect, abandonment,
exploitation, or trafficking of children,
e. the provision of assistance related to carrying a
pregnancy to term, preventing abortion, and promoting
healthy childbirth,
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f. the provision of marriage preparation and marriage
counseling services that encourage a permanent, life-
long union between man and wife,
g. the provision of classes to public school students
that promote respect for and observance of historical
and traditional fundamental values, or
h. the provision of workforce development services to
children sixteen (16) years of age and older under the
custody or care of the Department of Human Services;
and
5. Has submitted written certification to the Oklahoma Tax
Commission as required by this section and verified by the Tax
Commission to meet all the requirements of an eligible charitable
organization.
B. For tax year 2027 and subsequent tax years, there shall be
allowed a credit against the income tax imposed by Section 2355 of
Title 68 of the Oklahoma Statutes for any taxpayer who elects to
make a monetary contribution to an eligible charitable organization.
The amount of the credit shall be equal to the monetary contribution
to the eligible charitable organization during the tax year, not to
exceed fifty percent (50%) of the total income tax liability of the
taxpayer for the tax year. Provided, if the credit is being claimed
by an individual taxpayer filing as married filing separately, the
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credit shall equal to one-half of the monetary contribution made
during the tax year.
C. Contributions made by a taxpayer for which a credit is
claimed pursuant to this section shall not be used as a deduction
from taxable income or adjusted gross income to arrive at Oklahoma
taxable income or Oklahoma adjusted gross income.
D. The credit authorized pursuant to the provisions of this
section shall not be used to reduce the income tax liability of the
taxpayer to less than zero (0).
E. If the amount of the credit allowed pursuant to this section
exceeds the income tax liability, the amount of credit not used in
any tax year may be carried forward, in order, to each of the five
(5) subsequent tax years.
F. Taxpayers shall claim the credit authorized by this section
on a form prescribed by the Tax Commission and shall provide the
name of the eligible charitable organizations to which the
contributions were made, including the amount contributed to each
organization.
G. An eligible charitable organization shall submit written
certification to the Tax Commission which shall contain the
following:
1. A statement that the organization meets all the requirements
to be considered an eligible charitable organization;
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2. Verification of the status of the organization under 26
U.S.C., Section 501(c)(3);
3. A statement that the organization does not provide, pay for,
refer for, promote, or provide coverage of medication or surgical
abortions and does not financially support or legally partner or
affiliate with any other entity that provides, pays for, refers for,
promotes, or provides coverage of abortions; and
4. A statement that the organization:
a. maintains in this state a primary physical office or
presence and that at least fifty percent (50%) of the
clients of the organization claim to be residents of
this state,
b. regularly answers a dedicated phone number,
c. in the prior tax year, did not receive more than fifty
percent (50%) of total revenue from government grants
and funding, and
d. in the prior tax year, expended one hundred percent
(100%) of any contributions received, for which a
credit was claimed pursuant to this section, to serve
residents of this state.
H. The written certification required by subsection G of this
section shall be signed by an officer of the organization under
penalty of perjury.
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I. An eligible charitable organization shall notify the Tax
Commission within sixty (60) days of any change that may affect the
eligibility of the organization pursuant to this section.
J. The Tax Commission shall review each written certification
to determine if the organization meets all the requirements to be an
eligible charitable organization as provided by this section and
notify the organization of the determination. The Tax Commission
may periodically request a written recertification of an eligible
charitable organization no more than once every one hundred twenty
(120) days.
K. The Tax Commission shall publish a list of eligible
charitable organizations on the website of the Tax Commission.
L. The credits authorized pursuant to the provisions of this
section shall be allocable to the partners, shareholders, members,
or other equity owners of a taxpayer that is authorized to be
treated as a partnership for purposes of federal income tax
reporting for the taxable year for which the tax credits authorized
by this section are claimed on the applicable return, together with
required schedules, forms, or reports of the partners, shareholders,
members, or other equity owners of the taxpayer. Tax credits which
are allocated to such equity owners shall only be limited in amount
for the income tax return of a natural person or persons based upon
the limitation of the total credit amount to the entity from which
the tax credits have been allocated and shall not be subject to the
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limitations on individual taxpayers provided in subsection B of this
section.
M. For tax year 2029 and subsequent tax years, the total amount
of credits authorized pursuant to this section shall be adjusted
annually to limit the annual amount of credits to Fifteen Million
Dollars ($15,000,000.00). The Tax Commission shall annually
calculate and publish a percentage by which the credits authorized
by this section shall be reduced so the total amount of credits used
to offset tax does not exceed the annual limit. The formula to be
used for the percentage adjustment shall be Fifteen Million Dollars
($15,000,000.00) divided by the amount of credit claimed in the
second preceding tax year. In the event the total tax credits
authorized by this section exceed the annual limit in any tax year,
the Tax Commission shall permit any excess but shall factor such
excess into the percentage adjustment formula for subsequent tax
years.
SECTION 3. This act shall become effective November 1, 2026.
60-2-2984 QD 1/15/2026 9:40:58 AM