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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
SENATE BILL 1471 By: Paxton
AS INTRODUCED
An Act relating to income tax credit; providing
income tax credit for certain qualifyi ng educational
expenses; limiting amount of credit claimed;
providing for carryover and specifying carryover
period; prohibiting itemized deductions of expenses
claimed as credit; defining terms; authorizing
Oklahoma Tax Commission to require certain
documentation; requiring promulgation of rules;
prohibiting requirement that certain schools or
organizations provide documents; requiring Tax
Commission to submit report by certain date ;
requiring cabinet secretary to submit report to
certain committee cha irs by within certain time
period; providing for codif ication; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.207 of Title 68, unless
there is created a duplication in numb ering, reads as follows:
A. For tax year 2023 and subsequent tax years, there shall be
allowed for any taxpayer a credit against the tax imp osed by Section
2355 of Title 68 of the Oklahoma Statutes for qualifying educati onal
expenses incurred during the tax year for any family with a child
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who is eligible to be enrolled in a public school in this state and
who qualifies as the t axpayer’s dependent for federal tax purposes.
B. The maximum education expenses tax credit all owable for each
taxable year including carryover credits allowed by sub section C of
this section, shall be Two Thousand Five Hundred Dollars
($2,500.00).
C. If the amount of the allowable credit pursuant t o subsection
A of this section exceeds the maximum allowable credit pursuant to
subsection B of this section, such excess may be carried over, in
order, to each of the two (2) subsequent taxable years.
D. Amounts claimed under this section shall not be itemized as
deductions for the same tax year when co mputing Oklahoma taxable
income.
E. As used in this section:
1. “Academic instruction” means instruction in reading,
writing, mathematics, science, histo ry, art, music, geography,
civics, economics, liter ature, philosophy, religion, foreign
languages, and related subjects;
2. “Close relatives” refers to a person’s children,
grandchildren, mother, father, brothers, sisters, aunts , or uncles
whether by blood, marriage, or adoption;
3. “Qualifying education al expenses” include:
a. tuition and fees for conc urrent enrollment as
described in Section 628.13 of Title 70 of the
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Oklahoma Statutes for a student who meets the
requirements set forth in subsection C of th at
section,
b. tuition and other instructional f ees charged by a
qualified school,
c. costs associated with activities at a qualified school
including the cost of fees, clothing, and equipment
required to participate in athletic teams, musical
groups, clubs, or similar school activities,
d. tuition and other instructional fees charged for
tutoring, private instruction, or remedial education
services for the purposes of ac ademic instruction and
not provided by a close relative,
e. costs associated with the pro vision of instruction by
other means in prekin dergarten through grade twelve
directed by the parent or guardian including the cost
of computer equipment, software, on line instruction,
cooperative educational programs, textbooks,
workbooks, curricula , and other written materials used
primarily for academic instruction, and
f. costs associated with act ivities comparable to those
defined in subparagraph c of this paragrap h for a
student being educated by other means in
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prekindergarten through grade twelve direc ted by the
parent or guardian; and
4. “Qualified school” means either a public elementary or
secondary school or a private educational program that can be used
to satisfy the state’s compulsory school attendance requirements.
SECTION 2. NEW LAW A new section of law to be codi fied
in the Oklahoma Statutes as Section 2357.208 of Title 68, unless
there is created a duplication in numb ering, reads as follows:
A. The Oklahoma Tax Commission may require the taxpayer to
submit with the tax return copies of such receipts or similar
financial documentation as may be neces sary to confirm the
taxpayer’s statement of the allowable credit.
B. The Tax Commission shall promulgate rules and develop tax
forms, directions, and worksheets as necessary to implement the
provisions of this act. The rules shall modify the state tax fo rms,
directions, and worksheets to provide a reasonably convenient way
for taxpayers to claim a credit under this act.
C. The Tax Commission shall not require any school or other
organization to provide documentation or otherwise act to verify
claims for a credit under this act.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.209 of Title 68, unless
there is created a duplication in numbering, reads as follows:
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A. The Oklahoma Tax Commission shal l determine the total amount
of credits claimed under this act on all state income tax returns
and the type and amount of expenses for the credits claimed for each
tax year and shall report the same to the cabinet secretary with
applicable authority. The report shall be submitted to the cabinet
secretary by the end of the calendar year following the tax year.
B. Within sixty (60) days prior to the start of each
legislative session, the cabinet secretary wi th applicable authority
shall present a report to the Chair of the Senate Finance Committee
and the Chair of the House Appropriations and Budget Committee
projecting the total dollar amount of credits expected to be claimed
under this act on returns for th e current tax year and the following
tax year as of the date of the report.
SECTION 4. This act shall become effective November 1, 2022.
58-2-3047 QD 1/20/2022 8:03:17 AM