HB1219 Summary

• Creates a tax credit for individual taxpayers in Oklahoma who make voluntary cash contributions to qualifying charitable organizations that assist low-income residents, effective for taxable years beginning after December 31, 2011.

• Tax credit equals the amount of donation exceeding 2% of the taxpayer's gross income and exceeding charitable contributions deducted in their "baseline year" (2010 or first year of deduction, whichever applies).

• Maximum annual credit capped at $200 for single individuals/heads of household, $300 for married couples filing jointly in 2011, and $400 for married couples in 2012 and subsequent years.

• Qualifying charitable organizations must be 501(c)(3) exempt entities spending at least 50% of their budget on services to temporary assistance or low-income residents of Oklahoma, including cash assistance, medical care, child care, food, clothing, shelter, and job training.

• Unused credits may be carried forward for up to five consecutive tax years; credits are non-transferable, and the Oklahoma Tax Commission may promulgate rules for claiming the credit.