Revenue and taxation; income tax credit; childcare expenses; childcare services; definitions; effective date.

2026 Regular Session Introduced by Suzanne Schreiber and 1 co-sponsor

HB 1848 creates a time-limited 30% tax credit for employers who aid employees with childcare costs or contract/run facilities, with caps up to $5M statewide and $30k per employer.

Placed on General Order

Summary of HB 1848 (2026) – Oklahoma

Purpose and intent

HB 1848 proposes a new targeted income tax credit designed to support employers who assist their employees with childcare costs and arrangements. The bill aims to expand access to dependable childcare by providing a refundable or nonrefundable tax credit (subject to limitations) to reduce the net cost of childcare for working families. The credits are available for taxable years 2026 through 2030 and are capped in total annual impact and per-employer limits to control fiscal outlay.

Key provisions and changes

Credit structure and eligible activities (for tax years 2026–2030):

The credit equals 30% of: 1) An employer’s direct expenses to help an employee with childcare costs. 2) The cost of operating or contracting to operate a childcare facility primarily used by the employer’s employees’ dependents (excluding payments made by parents/guardians such as tuition or fees). 3) The cost for contracting with a childcare facility to reserve spots for the employer’s employees.

Definitions (Section A):

“Child” = age 5 or younger.
“Childcare and education provider,” “eligible program,” “licensed childcare facility,” and related terms are defined, tying eligibility to Oklahoma’s Quality Rating and Improvement System (QRIS) and the Professional Development Ladder (PDL).
“Qualified childcare worker” is a staff member employed at least 8 consecutive months in the year and enrolled in the PDL (excluding certificated teaching/administrative staff in certain programs).

Credit cap and limitations:

Individual employer credit per tax year cannot exceed $30,000 (subsection C).
The aggregate amount of credits used to reduce income tax liability statewide cannot exceed $5,000,000 per fiscal year.
Credits cannot reduce the taxpayer’s income tax liability below zero (nonrefundable to zero).
Any unused credits may be carried forward for up to five subsequent tax years (subsection E).

Term and sunset:

The program is limited to 2026–2030 for eligibility, with a sunset provision: the credit authority ceases January 1, 2031 (subsection G).

Effective date:

The act becomes effective January 1, 2026.

Affected parties and affected activity

Employers: Businesses and self-employed individuals offering childcare assistance or operating/contracting childcare facilities for employees’ dependents. They would claim a 30% credit on eligible childcare-related expenditures or arrangements, subject to the $30,000 per-year cap.

Employees and families: Indirect beneficiaries through reduced childcare costs and enhanced access to care, potentially improving workforce participation and productivity.

Childcare providers and programs: Licensed facilities enrolled in QRIS and programs with staff enrolled in the PDL would be eligible to participate, aligning provider quality with the tax credit framework.

Procedural and timeline aspects

Legislative timeline: Enacted as part of a committee-substitute package; introduced in 2025 with approvals through Appropriations and Economic Development committees, and effective date set for 2026.

** fiscal controls:** Annual statewide credit cap ($5 million) and per-employer cap ($30,000) to manage cost; carryover provisions allow unused credits to be used over five years.

Overall, HB 1848 creates a targeted, time-bound tax credit to incentivize employers to support childcare costs and capacity, linking benefits to quality-rated QRIS-driven programs.