SB 104 Summary

• Creates employer income tax credit equal to 30% of child care expenses paid for employees, costs to operate or contract for child care facilities, or reservation fees at child care facilities for tax years 2026-2030.

• Provides refundable $1,000 income tax credit for qualified child care workers employed at least 8 consecutive months and enrolled in Oklahoma's Professional Development Ladder with minimum 12 credit hours earned.

• Limits total employer credit claims to $30,000 per tax year with unused credits carried forward up to 5 subsequent years; credit cannot reduce tax liability below zero.

• Establishes annual credit caps starting in 2028: $5,000,000 for employer child care credits and $14,000,000 total, with Oklahoma Tax Commission adjusting credits by published percentage if limits exceeded.

• Effective November 1, 2025; requires child care facilities to be licensed and enrolled in Oklahoma's Quality Rating and Improvement System (QRIS).