Req. No. 7956 Page 1 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 2318 By: McBride
COMMITTEE SUBSTITUTE
[ scholarships – Oklahoma Equal Opportunity Education
Scholarship Act – higher education institution
foundations – tax credits -
emergency ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHO MA:
SECTION 1. AMENDATORY 68 O.S. 2021, Sectio n 2357.206, as
amended by Section 1, Chapter 49, O.S.L. 2022 (68 O.S. Su pp. 2022,
Section 2357.206), is amended to read as follows:
Section 2357.206 A. This act shall be known and may be c ited
as the "Oklahoma Equal Opportunity Education Scholarship Act".
B. 1. Except as provided in subsection G H of this section,
after August 26, 2011, there shall be allowed a credit for any
taxpayer who makes a contribution to an eligible scholarship -
granting organization.
Req. No. 7956 Page 2 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
The credit shall be equal to fifty percent (50%) of the total
amount of contributions made during a taxable year, not to exceed
One Thousand Dollars ($1,000.00) for single i ndividuals, Two
Thousand Dollars ($2,000.00) for married individu als filing jointly,
or One Hundred Thousand Dollars ($100,000.00) for any taxpayer which
is a legal business entity including limited and general
partnerships, corporations, subchapter S corp orations and limited
liability companies, plus any suspended cred its pursuant to
subparagraph d e of paragraph 2 of subsection I J of this section;
provided, if total credits claimed pursuant to this paragraph exceed
the cap amount established pursuant to paragraphs 1 and 2 of
subsection E F of this section, the credit shall be equal to the
taxpayer's proportionate share of the cap for the taxable year, as
determined pursuant to subsection I J of this section.
2. For any taxpayer who makes a contr ibution to an eligible
scholarship-granting organization and makes a written commitment to
contribute the same amount for an additional year, the credit for
the first year and the additio nal year shall be equal to seventy-
five percent (75%) of the total am ount of the contribution made
during a taxable year, not to e xceed the amounts established in
paragraph 1 of this subsection for the taxable year in which the
credit provided in this subs ection is claimed. The taxpayer shall
provide evidence of the writte n commitment to the Oklahoma Tax
Commission at the time of fi ling the refund claim.
Req. No. 7956 Page 3 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
3. The credits authorized pursuant to the provisions of this
subsection shall be allocable to the par tners, shareholders,
members, or other equity owners of a taxpayer that is authorized to
be treated as a partnership for purposes of federal income tax
reporting for the taxable year for which the tax credits authorized
by this subsection are claimed on th e applicable return, together
with required schedules, forms or reports of the partners,
shareholders, members, or other equity owner s of the taxpayer. Tax
credits which are allocated to such equity owners shall only be
limited in amount for the income ta x return of a natural person or
persons based upon the limitation of the total credit amount to the
entity from which the tax credits have been allocated and shall not
be limited to One Thousand Dollars ($1,000.00) for single
individuals or limited to Two Thousand Dollars ($2,000.00) for
married persons filing a joint return.
4. On or before April 30, 2024, and once every two (2) years
thereafter, such scholarship-granting organization and educational
improvement grant organization shall electronically submit to the
Oklahoma Tax Commission, the Governor, President Pro Tempore of the
Oklahoma State Senate, the Speaker of the Oklahoma House of
Representatives, and the chairs and vice chairs of the education
committees of the Senate and House of Repres entatives an audited
financial statement for the organization along with information
detailing the benefits, successes, or failures of the prog ram, and
Req. No. 7956 Page 4 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
make publicly available on its website the financial statement and
information submitted pursuant to this paragraph.
C. 1. Except as provided in subsection G H of this section,
after August 26, 201 1, there shall be allowed a credit for any
taxpayer who makes a con tribution to an eligible educational
improvement grant organization. Except as otherwise provided by
paragraph 2 of this subsection, the credit shall be equal to fifty
percent (50%) of the total amount of contributions made during a
taxable year, not to exceed One Thousand Dollars ($1,000.00) for
single individuals, Two Thousand Dollars ($2,000.00) for married
individuals filing jointly, or One Hundred Thousand Dollars
($100,000.00) for any taxpayer which is a legal business entity
including limited and ge neral partnerships, corporations, subchapter
S corporations and limited liability companies, plus any suspended
credits pursuant to subparagraph d e of paragraph 2 of subsection I
J of this section; provided, if total credits claimed pu rsuant to
this paragraph exceed the cap amount established pursuant to
paragraphs 3 and 4 of subsection E F of this section, the credit
shall be equal to the taxpayer's proportionate share of the cap for
the taxable year, as determined pursuant to subsection I J of this
section.
2. For any taxpayer who makes a contribution to an eligible
educational improvement grant organization and makes a written
commitment to contribute the same amount for an additional year, the
Req. No. 7956 Page 5 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
credit for the first year and the additional year shall be equal to
seventy-five percent (75%) of the total amount of the contribution
made during a taxable year, not to exceed the cap amount established
in paragraphs 3 and 4 of subsection E F of this section for the
taxable year in which the credit provided in this paragraph is
claimed; provided, if total credits claimed pursuant to this
paragraph exceed the cap established pursuant to paragraphs 3 and 4
of subsection E F of this section, the credit shall be equal to the
taxpayer's proportionate share of the cap for the taxable year, as
determined pursuant to subsection I J of this section. The taxpayer
shall provide evidence of the written commitment to the Oklahoma Tax
Commission at the time of filing the ref und claim.
3. The credits authorized pursuant to the provisions of this
subsection shall be allocable to the partners, shareholders,
members, or other equity owners of a taxpayer that is authorized to
be treated as a partnership for purposes of federal inc ome tax
reporting for the taxable yea r for which the tax credits authorized
by this subsection are claimed on the applicable return, together
with required schedules, forms, or reports of the partners,
shareholders, members, or other equity owners of the tax payer. Tax
credits which are allocat ed to such equity owners shall only be
limited in amount for the income tax return of a natural person or
persons based upon the limitation of the total credit amount to the
entity from which the tax credits have been a llocated and shall not
Req. No. 7956 Page 6 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
be limited to One Thousand Dollars ($1,000.00) for single
individuals or limited to Two Thousand Dollars ($2,000.00) for
married persons filing a joint return.
D. 1. For contributions made on or after January 1, 2022 ,
there shall be allowe d a credit for any taxpayer w ho makes a
contribution to an eligible public school foundation or public
school district. Except as otherwise p rovided by paragraph 2 of
this subsection, the credit shall be equal to fifty percent (50%) of
the total amount of contributions made during a taxable year, not to
exceed One Thousand Dollars ($1,000.00) for single individuals, Two
Thousand Dollars ($2,000.00) for married individuals filing jointly,
or One Hundred Thousand Dollars ($100,000.00) for any taxpayer which
is a legal business entity including limited and general
partnerships, corporations, subchapter S corporations and limited
liability companies; provided, if total credits claimed pursuant to
this paragraph exceed the cap amount established pursuant to
paragraph 4 of subsection E F of this section, the credit shall be
equal to the taxpayer's proportionate share of the cap for the
taxable year, as determined pursuant to subsection I J of this
section.
2. Except as otherwise provided by paragraph 1 of this
subsection, for any taxpayer w ho makes a contribution to an eligible
public school foundation or public school district and makes a
written commitment to contribute the same amount for an additional
Req. No. 7956 Page 7 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
year, the credit for the first year and the additional year shall be
equal to seventy-five percent (75%) of the total amount of the
contribution made during a taxable year, not to exceed the cap
amount established in paragraph 4 of subsection E F of this section
for the taxable year in which the credit provided in this paragraph
is claimed. The tax payer shall provide evidence of the written
commitment to the Oklahoma Tax Commission at the time of filing the
refund claim; provided, if total credits claimed pursuant to this
paragraph exceed the cap amount established pursuant to paragraph 4
of subsection E F of this section, the credit shall be equal to the
taxpayer's proportionate share of the cap for the t axable year, as
determined pursuant to subsection I J of this section.
3. The credits authorized pursuant to the provisions of this
subsection shall be allocable to the partners, shareholders,
members, or other equity owners of a taxpayer that is authorized to
be treated as a partnership for purposes of federal income tax
reporting for the taxable year for which the tax credits authorized
by this subsection are claimed on the applicable return, together
with required schedules, forms, or reports of the partner s,
shareholders, members, or other equity owners of the taxpayer. Tax
credits which are allocated to such equity owners shall only be
limited in amount for the income tax return of a natural person or
persons based upon the limitation of the total credit a mount to the
entity from which the tax credits have been allocated and shall not
Req. No. 7956 Page 8 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
be limited to One Thousand Dollars ( $1,000.00) for single
individuals or limited to Two Thousand Dollars ($2,000.00) for
married persons filing a joint return.
4. On or before April 30, 2024, and once every four (4) years
thereafter, such eligible public school foundation and public school
district shall submit to the Oklahoma Tax Commission, the Governor,
President Pro Tempore of the Oklahoma State Senate, and the Speaker
of the Oklahoma House of Representatives an audited financial
statement for the organization along with information detai ling the
benefits, successes, or failures of the pr ograms.
E. 1. For contributions made on or after January 1, 2024,
there shall be allowe d a credit for any t axpayer who makes a
contribution to an eligible higher education institution foundation.
Except as otherwise p rovided by paragraph 2 of this subsection, the
credit shall be equal to fifty percent (50%) of the total amount of
contributions made during a taxable year, not to exceed One Thousand
Dollars ($1,000.00) for single individuals, Two Thousand Dollars
($2,000.00) for married individuals filing jointly, or One Hundred
Thousand Dollars ($100,000.00) for any taxpayer which is a legal
business entity including limited and general partnerships,
corporations, subchapter S corporations , and limited liability
companies; provided, if total credits claimed pursuant to this
paragraph exceed the cap amount established pursuant to paragraph 4
of subsection F of this section, the credit shall be equal to the
Req. No. 7956 Page 9 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
taxpayer's proportionate share of the cap for the taxable year, as
determined pursuant to subsection J of this section.
2. Except as otherwise provided by paragraph 1 of this
subsection, for any taxpayer w ho makes a contribution to an eligible
higher education inst itution foundation and makes a written
commitment to contribute the same amount for an additional year, the
credit for the first year and the additional year shall be equal to
seventy-five percent (75%) of the total amount of the contribution
made during a taxable year, not to exceed the cap amoun t established
in paragraph 4 of subsection F of this section for the taxable year
in which the credit provided in this paragraph is claimed. The
taxpayer shall provide evidence of the written commitment to the
Oklahoma Tax Commission at the time of filing the refund claim;
provided, if total credits claimed pursuant to this paragraph exceed
the cap amount established pursuant to paragraph 4 of subsection F
of this section, the credit shall be equal to the taxpayer's
proportionate share of the cap for the t axable year, as determined
pursuant to subsection J of this section.
3. The credits authorized pursuant to the provisions of this
subsection shall be allocable to the partners, shareholders,
members, or other equity owners of a taxpayer that is authorized to
be treated as a partnership for purposes of federal income tax
reporting for the taxable year for which the tax credits authorized
by this subsection are claimed on the applicable return, together
Req. No. 7956 Page 10 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
with required schedules, forms, or reports of the partner s,
shareholders, members, or other equity owners of the taxpayer. Tax
credits which are allocated to such equity owners shall only be
limited in amount for the income tax return of a natural person or
persons based upon the limitation of the total credit a mount to the
entity from which the tax credits have been allocated and shall not
be limited to One Thousand Dollars ($1,000.00) for single
individuals or limited to Two Thousand Dollars ($2,000.00) for
married persons filing a joint return.
4. On or before April 30, 2026, and once every four (4) years
thereafter, each eligible higher education institution foundation
shall submit to the Oklahoma Tax Commission, the Governor, President
Pro Tempore of the Oklahoma State Senate, and the Speaker of the
Oklahoma House of Representatives an audited financial statement for
the foundation along with information detailing the benefits,
successes, or failures of the progr am.
F. Except as otherwise provided pursuant to subsection I J of
this section:
1. The total credits authorized pu rsuant to subsection B of
this section for all taxpayers for tax years 2017 through 2021 shall
not exceed Three Million Five Hundred Thousand Dollars
($3,500,000.00) annually;
2. The total credits authorized pursuant to subsection B of
this section for all taxpayers for tax years 2022 and subsequent tax
Req. No. 7956 Page 11 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
years shall not exceed Twenty-five Million Dollars ($25,000,000.00)
annually;
3. The total credits authorized pursuant to subsection C of
this section for all taxpayers for tax years 2017 through 2021 shall
not exceed One Million Five Hundred Thousand Dollars ($1,500,000.00)
annually;
4. The total credits authorized pursuant to subsection s C and D
of this section for all taxpayers for tax year 2022 and subsequent
tax years shall not exceed Twenty-five Million Dollars
($25,000,000.00) annually. In Except as otherwise provided pursuant
to subparagraph c of paragraph 2 of subsection J of this section, in
addition to the cap amount prescribed by this paragraph, the credit
amount shall also be limited to Two Hundred Thousand Dollars
($200,000.00) of credits per public scho ol district annually; and
5. The total credits authorized pursuant to subsection E of
this section for all taxpayers for tax year 2024 and subsequent tax
years shall not exceed Twenty -five Million Dollars ($25,000,000.00)
annually. Except as otherwise pr ovided pursuant to subparagraph d
of paragraph 2 of subsection J of this section, in addition to the
cap amount prescribed by th is paragraph, the credit amount shall
also be limited to Six Million Dollars ($6,000,000.00) of credits
per public higher education institution annually; and
Req. No. 7956 Page 12 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
6. The cap on total credits provided for in this subsection
shall be allocated by the Tax Commission as provided i n subsection I
J of this section.
F. G. For credits claimed for eligible contributions made
during tax year 2014 and thereafter, a credit shall not be allowed
by the Oklahoma Tax Commission for contributions made to a
scholarship-granting organization or an educational improvement
grant organization if that organization's percentage of funds
actually awarded is less than ninety percent (90%). For purposes of
this section, the "percentage of funds actually awarded" shall be
determined by dividing the total amount of funds actually awarded as
educational scholarships or educational improvement grants over the
most recent twenty-four (24) months by the total amount available to
award as educational scholarships or educational improvement grants
over the most recent twenty-four (24) months.
G. H. Any tax credits which are earned by a taxpayer pursuant
to this section during the time period beginning August 26, 2011,
through December 31, 2012, may not be claimed for any period prior
to the taxable year beginning J anuary 1, 2013. No credits which
accrue during the ti me period beginning August 26, 2011, through
December 31, 2012, may be used to file an amended tax return for any
taxable year prior to the taxable year beginning January 1, 2013.
H. I. As used in this section:
Req. No. 7956 Page 13 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1. "Eligible student" means a child of scho ol age who is
lawfully present in the United States and who is a member of a
household in which the total annual income during the preceding tax
year does not exceed an amount equal to three hundred percent (300%)
of the income standard used to qualify for a free or reduced-price
school lunch or who, during the immediately preceding school year,
attended or, by virtu e of the location of such student's place of
residence, was eligible to attend a public school in thi s state
which has been identified for scho ol improvement as determined by
the State Board of Education pursuant to the requirements of the No
Child Left Behind Act of 2001, P.L. No. 107-110. Once a student has
received an educational scholarship, as defin ed in paragraph 3 of
this subsection, the student and any siblings who are members of the
same household shall remain eligible until they graduate from hig h
school or reach twenty-one (21) years of age, whichever occurs
first;
2. "Eligible special needs s tudent" means a child who has been
provided services under an Individualized Family Service Plan
through the SoonerStart program and during transition was evaluated
and determined to be eligible for school district services, a child
of school age who has atten ded public school in our state wi th an
individualized education program pursuant to the Individuals With
Disabilities Education Act, 20 U.S.C.A., Section 1400 et seq., or a
child who has been diagnosed by a clinical professional as having a
Req. No. 7956 Page 14 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
significant disability that will affect learning and who has been
approved by the board of a scholarship-granting organization;
3. "Educational scholarships" means:
a. scholarships to an eligible student of up to Five
Thousand Dollars ($5,000.00) or eighty percent (80%)
of the statewide annual average per-pupil expenditure
as determined by the National Center for Education
Statistics, U.S. Department of Education, whichever is
greater, to cover all or part of the tuition, fees,
and transportation costs of a qualified schoo l which
is accredited by the St ate Board of Education or an
accrediting association approved by the Board pursuant
to Section 3-104 of Title 70 of the Oklahoma Statutes,
b. scholarships to an eligible student of up to Five
Thousand Dollars ($5,000.00) or e ighty percent (80%)
of the statewide annual average per-pupil expenditure
as determined by the National Center for Education
Statistics, U.S. Department of Education, whichever is
greater, to cover the educational costs of a qualified
school which does not charge tuition, which enrolls
special populations of students, and which is
accredited by the State Board of Education or an
accrediting association approved by the Board pursuant
Req. No. 7956 Page 15 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
to Section 3-104 of Title 70 of the Oklahoma Statutes,
or
c. scholarships to an eligible special needs stu dent of
up to Twenty-five Thousand Dollars ($25,000.00) to
cover all or part of the tuition, fees, and
transportation costs of a qualified school for
eligible special needs students which is accredited by
the State Board of Edu cation or an accrediting
association approved by the Board pursuant to Section
3-104 of Title 70 of the Oklahoma Statutes, or
d. scholarships to an eligible public higher education
institution student to cover all or part of the
tuition and fees for undergraduate courses at an
institution authorized by the Oklahoma State Regents
for Higher Education;
4. "Low-income eligible student" means an eligible student or
eligible special needs student who qualifies for a free or reduced-
price lunch;
5. "Qualified school" means an early childhood, elementary, or
secondary private school in this state including schools which
provide special educational programs for three-year-olds or
prekindergarten educational programs for four-year-olds, which:
Req. No. 7956 Page 16 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
a. is accredited by the State Board of Education or an
accrediting association approved by the Board pursuant
to Section 3-104 of Title 70 of the Oklahoma Statutes,
b. is in compliance with all applicable health and safety
laws and codes,
c. has a stated policy against discrimina tion in
admissions on the basis of race, color, national
origin, or disability, and
d. ensures academic accountability to parents and
guardians of students through regular progress
reports;
6. "Qualified school for eligible spe cial needs students" means
an early childhood, elementary, or secondary private school in a
county in this state including schools which provide special
educational programs for three-year-olds or prekindergarten
educational programs for four-year-olds;
7. "Scholarship-granting organization" means an organization
which:
a. is a nonprofit entity exempt from taxation pursuant to
the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3),
b. distributes periodic scholarship payments as checks
made out to an eligible student's or eligible special
Req. No. 7956 Page 17 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
needs student's parent or guardian and mailed to the
qualified school where the student is enrolled,
c. spends no more than ten percent (10%) of its annual
revenue on expenditures other than educational
scholarships as defined in paragraph 3 of this
subsection,
d. spends each year a portion of its expenditures on
educational scholarships for low-income eligible
students, as defined in paragraph 4 of this
subsection, in an amount equal to or greater than t he
percentage of low-income eligible students in the
state,
e. ensures that scholarships are portable during the
school year and can be used at any qualified school
that accepts the eligible student or at any qualified
school for special needs students tha t accepts the
eligible special needs student,
f. registers with the Oklahoma Tax Commission as a
scholarship-granting organization, and
g. has policies in place to:
(1) carry out criminal background checks on all
employees and board members to ensure that no
individual is involved with the organization who
Req. No. 7956 Page 18 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
might reasonably pose a risk to the appropriate
use of contributed funds, and
(2) maintain full and accurate records with respect
to the receipt of contributions and expenditures
of those contributions an d supply such records
and any other documentation required by the Tax
Commission to demonstrate financial
accountability;
8. "Annual revenue" means the total amount or value of
contributions received by an organization from taxpayers awarded
credits during the organization's fiscal year and all amounts earned
from interest or investments;
9. "Public school" means public schools as defined in Section
1-106 of Title 70 of the Oklahoma Statutes;
10. "Eligible public school district" means any public school ;
11. "Early childhood education program" means a special
educational program for eligible special need s students who are
three (3) years of age or a prekindergarten educational program
provided to children who are at least four (4) years of age but not
more than five (5) years of age on or before September 1;
12. "Innovative educational program" means an advanced academic
or academic improvement program that is not part of the regular
coursework of a public school but that enhances the curriculum or
Req. No. 7956 Page 19 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
academic program of the school or provides early childhood education
programs to students;
13. "Educational improvement grant" means a grant to an
eligible public school to implement an innovative educational
program for students including the ability for multiple public
schools to make an application and be awarded a grant to jointly
provide an innovative edu cational program;
14. "Educational improvement grant organization" means an
organization which:
a. is a nonprofit entity exempt from taxation pursuant to
the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3), and
b. contributes at least ninety percent (90%) of its
annual receipts as grants to eligible schools for
innovative educational programs. For purposes of this
subparagraph, an educational improvement grant
organization contributes its annual cash receipts when
it expends or otherwise irrevocably encumbers those
funds for expenditure during the then current fiscal
year of the organization or during the next succeeding
fiscal year of the organization; and
15. "Eligible public school foundation" means a nonprofit
entity formed pursuant to the laws of this state and is exempt from
federal income taxation pursuant to either Section 501(c)(3) or
Req. No. 7956 Page 20 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Section 509(a) of the Internal Revenue Co de of 1986, as amended.
Each public school foundation must shall be approved by the local
board of education prior to accepting qualifying donations;
16. "Eligible public higher education institution stude nt"
means a student who is enrolled in a public higher education
institution in the state, who is lawfully present in the United
States, and who is a member of a household in which the total annual
income during the preceding tax year does not exceed an amount equal
to three hundred percent (300%) of the income standard used to
qualify for a free or reduced-price school lunch; and
17. "Eligible higher education in stitution foundation" means a
nonprofit entity formed pursuant to the l aws of this state that is
exempt from federal income taxation pursuant to either Section 501
(c)(3) or Section 509(a) of the Internal Revenue Code of 1986, as
amended, and is formed for the primary purpose of supporting a
public higher education instit ution. Each public higher education
institution foundatio n shall be approved by the governing board of
the higher education institution prior to ac cepting qualifying
donations.
I. J. Total credits authorized by this section shall be
allocated as follows:
1. By January 10 of the y ear immediately following each
calendar year, a scholarship-granting organization, an educational
improvement grant organization, an eligible public school
Req. No. 7956 Page 21 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
foundation, or a public school district, or an eligible higher
education institution foundation which accepts contributions
pursuant to this section shall provide electronically to the Tax
Commission information on each contribution accepted during such
taxable year. At least once each taxable year, the entity making
the report shall notify each contributor that Oklahoma law provides
for a total, statewide cap on the amount of i ncome tax credits
allowed annually;
2. a. If the Tax Commission determines the total combined
credits claimed for contributions made to scholarship-
granting organizations during the most recently
completed calendar year by all taxpayers are in excess
of the statewide cap amount provided in paragraphs 1
and 2 of subsection E F of this section, the Tax
Commission shall first allocate any amount of credits
not claimed for contributions made to organizations
authorized pursuant to subsections C and, D, and E of
this section, then shall determine the percentage of
the contribution which establishes the proportionate
share of the credit which may be claimed by any
taxpayer so that the total maximum credits authorized
by this section are not exceeded.
b. If the Tax Commission determines the t otal combined
credits claimed for contributions made to
Req. No. 7956 Page 22 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
organizations authorized pursuant to subsections C
and, D, and E of this section during the most recently
completed calendar year by all taxpayers are in excess
of the statewide cap amount provided in paragraphs 3
and, 4, and 5 of subsection E F of this section, the
Tax Commission shall first allocate any amount of
credits not claimed for contributions made to
scholarship-granting organizations, then shall
determine the percentage of the contribution which
establishes the proportionate share of the credit
which may be claimed by any taxpayer so that the
maximum credits authorized by this section are not
exceeded.
c. If the Tax Commission determines the total combined
credits claimed for contributions made to
organizations authorized pursuant to subsections C and
D of this section during the most recently completed
calendar year by all taxpayers are in excess of the
per public school district cap of Two Hundred Thousand
Dollars ($200,000.00) pursuant to paragraph 4 of
subsection E F of this section, the Tax Commission
shall first allocate any amount of credits not claimed
for contributions made to other organizations
authorized pursuant to subsections C and D of this
Req. No. 7956 Page 23 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
section, then shall determine the percentage of the
contribution which establishes the proportionate share
of the credit which may be claimed by any taxpayer so
that the maximum credits authorized by this section
are not exceeded.
d. If the Tax Commission determines the total combined
credits claimed for contributions made to
organizations authorized pursuant to subsection E of
this section during t he most recently completed
calendar year by all taxpayers are in excess of the
per higher education institution cap of Six Million
Dollars ($6,000,000.00) pursuant to paragraph 5 of
subsection F of this section, the Tax Commission shall
first allocate any amount of credits not claimed for
contributions made to other organizations authorized
pursuant to subsection E of this section, then shall
determine the percentage of the contribution which
establishes the proportionate share of the credit
which may be claimed by any taxpayer so that the
maximum credits authorized by this section are not
exceeded.
e. Beginning for tax year 2016, credits earned, but not
allowed due to the application of statewide caps
provided in subsection E F of this section will be
Req. No. 7956 Page 24 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
considered suspended and authorized to be used in the
next immediate tax year and applied to the next year's
statewide cap; and
3. The Tax Commission shall publish the percentage of the
contribution which may be claimed as a credit by contributors for
the most recently completed calendar year on the Tax Commission
website no later than February 15 of each calendar year for
contributions made the previous year. Each organization authorized
pursuant to subsection s B, C, and D, and E of this section shall
notify contributors of that amount annually.
J. K. No tax credits authorized by this section shall be used
to reduce the tax liability of the taxpayer to less than zero (0).
K. L. Any credits authorized by this section allowed but not
used in any tax year may be carried over, in or der, to each of the
three (3) years following the y ear of qualification.
L. M. 1. In order to qualify under this section, each
organization authorized pursuant to subsections C and, D, and E of
this section shall submit an appl ication with information to the
Oklahoma Tax Commission on a form prescribed by the Tax Commission
that:
a. enables the Tax Commission to confirm that the
organization is a nonprofit entity exempt from
taxation pursuant to the provisions of the Internal
Req. No. 7956 Page 25 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Revenue Code, 26 U.S.C., Section 501(c )(3) or Section
509(a), and
b. describes the proposed innovative educational program
or programs supported by the organization.
2. The Tax Commission shall review and approve or disapprove
the application, in consultation with the State Department of
Education or the Oklahoma State Regents for Hig her Education.
3. In order to maintain eligibility under this section, an
organization authorized pursuant to subsections C and D of this
section shall annually report the following information to the Tax
Commission and publish on its website by September 1 of each year:
a. the name of the innovative educational program or
programs and the total amount of the grant or grants
made to those programs during the immediately
preceding school year,
b. a description of how each grant was utilized during
the immediately preceding school year and a
description of any demonstrated or expected innovative
educational improvements,
c. the names of the public school and school districts
where innovative educational programs t hat received
grants during the immediately preceding school year
were implemented,
Req. No. 7956 Page 26 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
d. where the organization collects information on a
county-by-county basis, and
e. the total number and total amount of grants made
during the immediately preceding school y ear for
innovative educational programs at public school by
each county in which the organization made grants.
4. In order to maintain eligibility under this section, an
organization authorized pursuant to subsection E of this section
shall annually report the following information to the Tax
Commission and publish on its website by September 1 of each year:
a. the name of the higher education institution
scholarship program or programs and the total amount
of funds distributed by the foundation through those
programs during the immediately preceding school year,
b. a description of how the scholarship funds were
utilized during the immediately preceding school year,
and
c. the total number and total amount of scholarships
granted during the immediately preceding school y ear.
5. The information required under paragraph paragraphs 3 and 4
of this subsection shall be submitted on a form provided by the Tax
Commission. No later than May 1 of each year, the Tax Commission
shall annually distribute sample forms together with the forms on
Req. No. 7956 Page 27 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
which the reports are required to be made to each approved
organization.
5. 6. The Tax Commission shall not require any other
information be provided by an organization, except as expressly
authorized in this section.
M. N. 1. Beginning in 2023 for the 2022-2023 academic year, in
order to maintain registration, a scholarship-granting organization
shall annually report to the Tax Commission by Septembe r 1 of each
year the following information regarding the educational
scholarships funded by the organization in the previous academic
year:
a. the name and address of the scholarship-granting
organization,
b. the names of the qualifying schools that receiv ed
funding for educational scholarships, the total amount
of funds paid to each qualifying school, and the total
number of scholarship recipients enrolled in each
qualifying school,
c. the total number and total dollar amount of
contributions received duri ng the previous academic
year,
d. the total number and total dollar amount of
educational scholarships awarded and funded during the
previous academic year,
Req. No. 7956 Page 28 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
e. the total number, total dollar amount, and percentage
of educational scholarships awarded and fu nded during
the previous academic year disaggregated into the
following categories:
(1) low-income eligible students,
(2) students who during the immediately preceding
school year attended or who were eligible by
virtue of the residence of the student to a ttend
a public school in the state which was identified
for school improvement by the State Board of
Education,
(3) eligible special needs students, and
(4) students who were first-time recipients of a
scholarship including information about the type
of public or private school the student was
enrolled in during the entire previous academic
year,
f. the percentage of annual revenue received by the
organization from donations which qualify for tax
credits pursuant to this section which was not
expended on scholarships,
g. disaggregated data reported under this subsection
shall be redacted if reporting would allow for
identification of specific children, and shall be
Req. No. 7956 Page 29 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
reported in accordance with the Student Data
Accessibility, Transparency and Accountability Ac t of
2013, division subparagraph b of subparagraph
paragraph 2 of subsection C of Section 3-168 of Title
70 of the Oklahoma Statutes, and the Family
Educational Rights and Privacy Act of 1974 (FERPA), 20
U.S.C., Section 1232g, and
h. the percentage of the total amount of education
scholarship expenditures spent on low-income eligible
students.
2. The Tax Commission shall make available on its website:
a. the information submitted by the scholarship-granting
organization pursuant to paragraph 1 of this
subsection,
b. a list of participating schools, and
c. all other application information submitted to the Tax
Commission by a scholarship-granting organization,
except that information which would violate the
privacy of an individual.
3. A scholarship-granting organization shall annually submit
verification to the Tax Commission that the organization still meets
the criteria set forth in paragraph 7 of subsection H I of this
section.
Req. No. 7956 Page 30 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
N. O. Contributions made pursuant to subsections B, C, and D of
this section shall not be used by the Legislature to reduce the
amount appropriated for the financial support of public schools.
O. P. In consultation with the State Department of Education
and the Oklahoma State Regents for Higher Education, the Tax
Commission shall promulgate rules necessary to implement the
Oklahoma Equal Opportunity Education Scholarship Act. The rules
shall include procedures for the registration of a scholarship-
granting organization, an educational improvement grant
organization, a public school foundation, or public school district,
or public higher education institution foundation for purposes of
determining if the organization meets the requirements of the
Oklahoma Equal Opportunity Education Scholarship Act or for the
revocation of the registration of an organization, if applicable,
and for notice as required in subsection I J of this section.
SECTION 2. It being immediately necess ary for the preservatio n
of the public peace, health or safety, an emergency is here by
declared to exist, by reason whereof this act shall take effect and
be in full force from and after it s passage and approval.
59-1-7956 JM 03/03/23