Income tax credit; providing tax credit for contributions to charitable organizations. Effective date.

SB 826 creates Oklahoma income tax credits for donations to specific charitable organizations. Taxpayers can claim a credit of up to $400 (single/head of household) or $800 (married filing jointly) for contributions to organizations serving low-income households, people with chronic illnesses/disabilities, or up to $500/$1,000 for foster care-focused organizations. Credits cannot reduce tax liability below zero, must be claimed on a state form, and cannot be used if federal deductions for the same donations are claimed. Organizations must provide written certification to the Tax Commission verifying they meet eligibility requirements, including spending at least 50% of their budget on qualifying services. The credit is non-refundable but can be carried forward for up to five years if unused in a tax year.