Income tax; authorizing claim for child tax credit in the tax year certain stillborn birth certificates are issued. Effective date.
Summary
SB223 amends Oklahoma’s income tax credit statute to add a new child tax credit claim for certain stillbirths beginning in tax year 2026. Under the bill, a taxpayer may claim the existing child tax credit for a birth that resulted in a stillborn birth certificate, so long as the child otherwise would have been a member of the household. The credit may be claimed only in the tax year the stillbirth occurred, and it is calculated at 5% of the federal child tax credit amount that would have applied if the child had been a dependent. The bill also keeps the existing framework for other income tax credits and authorizes the Oklahoma Tax Commission to adopt rules to administer the new provision.
The measure updates Section 2357 of Title 68 and creates a new subsection specifically addressing stillbirth-related eligibility for the child tax credit. It does not create a new standalone credit; rather, it extends the existing child tax credit rules to a limited category of taxpayers with a qualifying stillborn birth certificate. The bill takes effect November 1, 2025, but the new tax treatment applies to tax year 2026 and later.
Impact
SB223 would change Oklahoma income tax law by expanding eligibility for the child tax credit to include taxpayers who receive a stillborn birth certificate under Title 63, Section 1-318.2, for the tax year in which the stillbirth occurred. This affects individual income taxpayers and the Oklahoma Tax Commission, which is given rulemaking authority to implement the provision. The bill amends 68 O.S. 2021, Section 2357, and may modestly reduce state income tax revenue by allowing additional credits in limited cases.
Sentiment
The available voting history shows clear support for the bill: the Senate passed SB223 on March 3, 2025 by a 10-0 vote, and the committee report recommended do pass. No committee transcript was provided, but the unanimous vote suggests the measure was broadly viewed favorably and without recorded opposition in the available materials.
Contention
No specific objections are documented in the provided materials. The main policy issue implicit in the bill is whether the child tax credit should extend to stillbirths, which raises questions about eligibility standards, administration, and the interaction between tax law and vital records law. Because the bill limits the credit to the year of the stillbirth and ties eligibility to an issued stillborn birth certificate, any contention would likely center on proof requirements, fiscal impact, and how the Oklahoma Tax Commission should implement the new rulemaking authority.