Bill Text For HB2502 - Engrossed

 1|ENGROSSED HOUSE                                                        |
  |BILL NO. 2502                        By: McCall and Hasenbeck of the   |
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 3|                                         and                           |
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 4|                                         Montgomery of the Senate      |
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 7|       An Act relating to revenue and taxation; providing              |
  |       for income tax credit for certain classroom teachers            |
 8|       based upon purchase of eligible classroom items and             |
  |       teacher certification fees; defining terms; providing           |
 9|       for amount of tax credit; restricting use of credits            |
  |       to reduce tax liability below certain amount;                   |
10|       providing for carryover; specifying ability to use              |
  |       credit on joint income tax returns; providing for               |
11|       codification; and providing an effective date.                  |
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14|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:                  |
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15|    SECTION 1.     NEW LAW     A new section of law to be codified     |
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16|in the Oklahoma Statutes as Section 2357.501 of Title 68, unless       |
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17|there is created a duplication in numbering, reads as follows:         |
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18|    A.  As used in this section:                                       |
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19|    1.  "Classroom teacher" means a person certified by the State      |
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20|Department of Education who at the time of the expenditure for an      |
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21|eligible classroom item was actively engaged in performing classroom   |
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22|instruction or who reasonably anticipates being engaged in             |
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23|performing classroom instruction in any grade from pre-kindergarten    |
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24|through twelfth grade in any common school of the state;               |
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arsid11368792 ENGR. H. B. NO. 2502                                 Page 1
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 1|    2.  "Eligible classroom item" means paper, pencils, pens,          |
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 2|erasers, safety scissors, glue, glue sticks, adhesive tapes,           |
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 3|crayons, colored pencils, colored markers, construction paper,         |
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 4|poster board, arts and crafts supplies, notebooks, rulers,             |
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 5|protractors, and similar supplies used and useful in a classroom for   |
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 6|providing instruction to students, but excludes any single item of     |
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 7|tangible personal property with a retail sales price in excess of      |
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 8|One Hundred Dollars ($100.00); and                                     |
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 9|    3.  "Eligible teacher certification fee" means a fee imposed       |
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10|pursuant to the provisions of Title 70 of the Oklahoma Statutes or     |
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11|an administrative rule of the State Department of Education required   |
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12|to be paid in order to obtain or maintain the ability to provide       |
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13|classroom instruction in a public school of this state.                |
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14|    B.  For taxable years beginning on or after January 1, 2020,       |
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15|there shall be allowed as a credit against the tax imposed pursuant    |
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16|to Section 2355 of Title 68 of the Oklahoma Statutes in the maximum    |
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17|amount of One Thousand Dollars ($1,000.00) for eligible classroom      |
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18|items purchased by a classroom teacher and eligible teacher            |
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19|certification fees.                                                    |
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20|    C.  In order to claim the tax credit authorized by this section,   |
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21|the taxpayer shall retain a copy of the receipt or receipts for        |
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22|purchases of tangible personal property as described in subsection A   |
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23|of this section and proof of payment for eligible teacher              |
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24|certification fees and shall, if required by the Oklahoma Tax          |
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arsid11368792 ENGR. H. B. NO. 2502                                 Page 2
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 1|Commission, attach either a copy of the receipt or provide such        |
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 2|statement as the Tax Commission may require regarding the              |
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 3|eligibility of the expenditures for the tax credit as part of the      |
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 4|applicable income tax return.                                          |
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 5|    D.  The credit authorized by this section may not be used to       |
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 6|reduce the tax liability to less than zero (0).                        |
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 7|    E.  To the extent not used, the credit authorized by this          |
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 8|section may be carried over, in order, to each of the five (5)         |
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 9|subsequent taxable years.                                              |
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10|    F.  The credit authorized by this section may be claimed by each   |
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11|person for purposes of filing a joint income tax return.  The          |
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12|maximum amount of income tax credit allowable shall not exceed Two     |
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13|Thousand Dollars ($2,000.00) on a joint income tax return.             |
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14|    SECTION 2.  This act shall become effective January 1, 2020.       |
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15|    Passed the House of Representatives the 11th day of March, 2019.   |
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  |                                     Presiding Officer of the House    |
18|                                                 of Representatives    |
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  |    Passed the Senate the ___ day of __________, 2019.                 |
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22|                                    Presiding Officer of the Senate    |
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arsid11368792 ENGR. H. B. NO. 2502                                 Page 3
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