Income tax; authorizing claim for child tax credit in the year certain stillborn birth certificates are issued. Effective date.
Summary
SB1409 amends Oklahoma’s income tax credit statute to update statutory references and, most notably, expand eligibility for the state child tax credit in a limited circumstance involving stillbirth. Beginning with tax year 2027, a taxpayer may claim the child tax credit for a birth that results in a stillbirth certificate issued under Oklahoma law, if the child otherwise would have been part of the taxpayer’s household. The credit may be claimed only in the tax year in which the stillbirth occurred.
The bill sets the amount of this credit at 5% of the federal child tax credit that would have applied if the child had been a qualifying dependent and household member. It also preserves the existing framework for other income tax credits in Section 2357, including the credit for taxes paid to another state and the current child care/child tax credit provisions, while authorizing the Oklahoma Tax Commission to adopt rules to administer the new stillbirth-related credit.
Impact
SB1409 would amend 68 O.S. 2021, Section 2357, which governs credits against Oklahoma income tax, by adding a new eligibility category tied to stillbirth certificates and by directing the Tax Commission to promulgate implementing rules. The practical effect is to create a narrowly tailored state tax benefit for affected taxpayers, while leaving the broader income tax structure unchanged. The bill would apply beginning in tax year 2027 and would take effect November 1, 2026.
Sentiment
The available legislative record shows little direct debate or recorded vote activity, so overall sentiment cannot be measured from committee testimony or floor discussion. Based on the bill’s subject matter and its referral through Revenue and Taxation and then Appropriations, the measure appears to have been treated as a technical tax policy change with a compassionate family-policy component rather than a controversial tax overhaul. The caption and text suggest a generally supportive intent to provide relief in a sensitive circumstance.
Contention
The main policy issue is the scope and administration of the new credit for stillbirths. Potential points of contention include whether a stillborn birth should qualify for a child tax credit, how the Tax Commission should verify eligibility, and whether the credit should be limited to the tax year of the stillbirth. Another possible issue is fiscal impact, since the bill creates a new credit that reduces state revenue, though the credit is relatively small at 5% of the federal child tax credit. No specific opposition or competing viewpoints are documented in the provided materials.