SECTION 710:50-15-91. Credit for employers incurring expenses for the provision of child care services

(a)   General Provisions. There shall be a non-refundable tax credit against the tax imposed by 68 O.S. § 2355 for employers incurring eligible expenses in the connection with providing child care services for children of their employees. The credit is based on the amount of eligible expenses incurred prior to January 1, 2014, and shall be twenty percent (20%) of the eligible expense subject to limits based on the type of expense. The credit is effective for tax years beginning after December 31, 2001.

(b)   Eligible expenses subject to the $3,100.00 cap. Eligible expenses subject to the $3,100.00 cap per employee-child are those amounts paid for the purchase of childcare services for children of employees at a facility licensed by the Department of Human Services and rated at least two stars.

(c)   Eligible expenses subject to the $50,000.00 cap. Eligible expenses subject to the $50,000.00 cap are those expenses associated with providing a child care center. These include expenses associated with planning, preparing, constructing, or expanding a child care center; equipment for a child care center; or maintenance and operating expenses of a child care center, including direct administrative and staff costs.

(d)   Eligible expenses subject to the $5,000.00 cap. Eligible expenses subject to the $5,000.00 cap are those expenses for fees and grants to child care resource and referral organizations doing business within Oklahoma.

(e)   Credit is in lieu of expense deduction. The credit for employers incurring expenses for the provision of child care services shall be in lieu of a deduction of eligible expenses used in computing Oklahoma taxable income. If the credit is claimed or generated, then none of the expenses on which the credit is based shall be allowed as deduction in calculating Oklahoma taxable income.

(f)   Carryforward allowed. Credits generated but not used are allowed to be carried forward four (4) years following the year generated.

(g)   Tax credit moratorium. No credit may be claimed for any expenditure occurring during the period of July 1, 2010 through June 30, 2012, for which the credit would otherwise be allowable. This credit may be claimed for tax year 2012 and subsequent tax years, for eligible expenditures occurring on or after July 1, 2012.

[Source: Added at 20 Ok Reg 2165, eff 6-26-03; Amended at 28 Ok Reg 18, eff 8-9-10 (emergency); Amended at 28 Ok Reg 935, eff 6-1-11; Amended at 31 Ok Reg 2427, eff 9-12-14]