OK HB1359

Creates an income tax credit for legally married couples with eligible dependent children under age 19 for taxable years beginning after December 31, 2025, with credit amounts ranging from $500 to $2,000 per child based on years of continuous marriage (1-5 years through 16+ years).

Limits total annual credits claimed by any taxpayer to $10,000 per taxable year, with unused credits allowed to carry forward for five consecutive years.

Credits are awarded on a first-come-first-served basis through pre-application with the Oklahoma Tax Commission, with a statewide annual cap of $25,000,000 in total credits.

Allows married couples filing separate returns to each claim one-half of the joint credit amount, and prohibits credits from reducing tax liability below zero or being assigned, transferred, or sold.

Becomes effective January 1, 2026, with standard severability clause included.