House Bill 2451 would offer employers that help their employees with child care bills with a tax credit score for up to $45,000 a 12 months. (Photo by Kraken Images through Unsplash)
OKLAHOMA CITY – Employers that help their employees with child care bills can be eligible for a tax credit score if House Bill 2451 passes.
HB 2451, by state Rep. Suzanne Schreiber, D-Tulsa, was certainly one of a handful of payments authorized by the House Appropriations and Budget Finance – Revenue and Taxation Subcommittee on Monday.
Schreiber’s bill would offer a tax credit score for 30% of the quantity expended by employers for help they offered staff for child care. Employers that present a child care facility for staff additionally would obtain a 30% tax credit score for associated expenditures. Credits claimed for such expenditures can be capped at $30,000 a 12 months per employer.
An employer creating a brand new child care facility for staff would obtain a tax credit score for 50% of development prices, whether or not that be on new development or refurbishment of an current construction positioned no more than 2 miles from the work web site.
Employers that companion with different companies or nonprofit organizations to assemble or purchase a child care facility additionally would obtain a tax credit score for 50% of the quantity expended on the venture.
Tax credit for improvement of a brand new child care facility can be capped at $45,000 a 12 months per employer.
Tax credit allowed below HB 2451 couldn’t be used to scale back revenue tax legal responsibility for a enterprise to lower than zero.
A handful of payments to tackle Oklahoma’s child care scarcity failed to move final session, when a number of research confirmed that 55% of all Oklahomans and 68% of rural Oklahomans dwell in a child care “desert” with out sufficient child care alternatives within the space, forcing dad and mom out of the workforce.
An interim examine requested by state Sen. Jessica Garvin, R-Duncan, accomplished final fall revealed there have been barely greater than 113,000 child care slots out there within the state although there have been 436,212 kids below the age of 12 years with dad and mom that want to work.
The committee additionally authorized HB 2695 by state Rep. Gerrid Kendrix, R-Altus, which might eradicate the franchise tax, at present levied on the fee of $1.25 per $1,000 of capital employed in or apportioned to a enterprise’s outpost in Oklahoma.
The state collected $53.5 million from the franchise tax in FY 2021, accounting for roughly 0.5% of whole state tax income.
HB 2138 by state Rep. Kevin McDugle, R-Broken Arrow, would offer a three-year exemption from revenue tax for graduates of certified faculties and commerce faculties.
HB 2285 by state Rep. Mark Lepak, R-Claremore, would create a flat revenue tax fee of 4.5%.
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