An Act
ENROLLED HOUSE
BILL NO. 1934 By: McCall of the House
and
Treat, Stanley, Thompson
(Kristen), Bullard, Haste,
Green, Seifried,
Standridge, Coleman,
Prieto, Daniels, Bergstrom,
Rader, Garvin, Newhouse,
Rogers, Woods, and Stewart
of the Senate
An Act relating to students; creating the Oklahoma
Parental Choice Tax Credit Act; providing short
title; providing legislative int ent; defining terms;
creating the Oklahoma Parental Choice Tax Credit
Program; providing purpose ; creating income tax
credit for certain taxpayers beginning in certain tax
year; prescribing maximum credit amount s based on
certain income levels ; directing taxpayer claiming
certain credit to retain certain receipts and submit
them upon certain requ est; prescribing maximum amount
of credits for certain tax years; authorizing the
Oklahoma Tax Commission to prescribe certain
applications and certain deadline ; providing for
advancement of certain credit in installments;
providing procedures for claiming credit; directing
the Commission to give first preference in making
installments to certain taxpayers; authorizing dual
participation in certain program ; authorizing the
Commission to conduct or contract for certain audit;
authorizing prorated recapture of credits under
certain circumstances ; directing certain credit
amount to be reduced if certain event occurs;
requiring the posting of certain credit amounts;
requiring the State Department of Education to
provide certain notice; directing implementation of
certain system; requiring coordination of a process
to verify student enrollment statu s; providing for
promulgation of rules; providing immunity fro m ENR. H. B. NO. 1934 Page 2
liability for certain actions; a llowing certain
parents to intervene in certain legal proce eding;
prohibiting severability of act provisions; and
providing for codification.
SUBJECT: Students
BE IT ENACTED BY THE PE OPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 28-100 of Title 70, unless the re
is created a duplication in numbering, reads as follows:
A. This act shall be know n and may be cited as the “Oklahoma
Parental Choice Tax Credit Act ”.
B. It is the intent of the Legislature that par ents, legal
guardians, custodians, and others with legal authority over children
in this state be able to choose educational services that meet the
needs of their individual children. The Legislature affirms that
parents and legal guardians are best suite d to make choices to help
children in this state re ach their full potential and achieve a
brighter future.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statut es as Section 28-101 of Title 70, unless there
is created a duplication in numbering, reads as fol lows:
A. As used in the Oklahoma Parental Choice Tax Credit Act:
1. “Commission” means the Oklahoma Tax Commission;
2. “Curriculum” means a complete course of study for a
particular content area or g rade level;
3. “Department” means the State Depar tment of Education;
4. “Education service provider ” means a person, business,
public school district, public charter school, magnet school, or
organization that provides educational goods and/or services to
eligible students;
ENR. H. B. NO. 1934 Page 3
5. “Eligible student” means a resident of this state who is
eligible to enroll in a public school in this state. Eligible
student shall include a student who is enrolled in and attends a
private school accredited by the State Board of Education or another
accrediting association or a student who is educated pursuant to the
other means of education exception provided for in subsection A of
Section 10-105 of Title 70 of the Oklahoma Statutes;
6. “Qualified expense” for the purpose of claiming the credit
authorized by subparagraph a of paragraph 1 of subsection C of this
section means tuition and fees at a private school accre dited by the
State Board of Education or another accrediting association;
7. “Qualified expense” for the purpose of claiming the credit
authorized by subparag raph b of paragraph 1 of subsection C of this
section means the following expenditures:
a. tuition and fees for nonpublic online learning
programs,
b. academic tutoring services provide d by an individual
or a private academic tutoring facility,
c. textbooks, curriculum, or oth er instructional
materials including, but not limited to, supplemental
materials or associated online instruction required by
an education service provider, and
d. fees for nationally standardized assessments
including, but not lim ited to, assessments used to
determine college admission and advanced placement
examinations as well as tuition and fees for tutoring
or preparatory courses for the assessments ; and
8. “Taxpayer” means a biological or adoptive parent,
grandparent, aunt, uncle, legal guardian, cus todian, or other person
with legal authority to act on behalf of an eligible student.
B. There is hereby created the Oklahoma Parental Choice Tax
Credit Program to provide an income tax credit to a taxpayer for
qualified expenses to support the education of eligible students in
this state.
C. For the tax year 2024 and subsequent tax years, there shall
be allowed against the tax imposed by Section 2355 of Title 68 of ENR. H. B. NO. 1934 Page 4
the Oklahoma Statutes a credit for any Oklahoma taxpayer who i ncurs
a qualified expense on behalf of an eligible student , to be
administered subject to the following amounts for each tax year:
1. If the eligible student attends a private school accredited
by the State Board of Education or another accrediting assoc iation,
the maximum credit amount shall be:
a. (1) Seven Thousand Five Hundred Dollars ($7,500.00)
or the amount of tuition and fees for the private
school, whichever is less , if the eligible
student is a member of a household in which the
total adjusted gross income during the second
preceding tax year does not exceed Seventy-five
Thousand Dollars ($75,000.00),
(2) Seven Thousand Dollars ($7,000.00) or the amount
of tuition and fees for the private schoo l,
whichever is less, if the eligible student is a
member of a household in which the total adjusted
gross income during the second preceding tax year
is more than Seventy-five Thousand Dollars
($75,000.00) but does not exceed One Hundred
Fifty Thousand Dollars ($150,000.00),
(3) Six Thousand Five Hundre d Dollars ($6,500.00) or
the amount of tuition and fees for the private
school, whichever is less, if the eli gible
student is a member of a household in which the
total adjusted gross income during the second
preceding tax year is more than One Hundred Fifty
Thousand Dollars ($150,000.00) but does not
exceed Two Hundred Twenty-five Thousand Dollars
($225,000.00),
(4) Six Thousand Dollars ($6,000.00) or the amount of
tuition and fees for the private school,
whichever is less, if the eligible student is a
member of a household in which the t otal adjusted
gross income during the second preceding tax year
is more than Two Hundred Twenty-five Thousand
Dollars ($225,000.00) but does not exceed Two
Hundred Fifty Thousand Dollars ($250,000.00), or
ENR. H. B. NO. 1934 Page 5
(5) Five Thousand Dollars ($5,000.00) or the amount
of tuition and fees for the private school,
whichever is less, if the eligi ble student is a
member of a household in which the total adjusted
gross income during the second preceding tax year
is more than Two Hundred Fifty Thousand Dollars
($250,000.00), and
b. One Thousand Dollars ($1, 000.00) in qualified expenses
per eligible student in each tax year if the eligible
student is educated pursuant to the other means of
education exception provided for in subsection A of
Section 10-105 of Title 70 of the Okl ahoma Statutes.
To claim the credit, the taxpayer shall submit to the
Commission receipts for qualified expense s as defined
by paragraph 7 of subsection A of this section;
2. The taxpayer shall retain all receipts of qualified expenses
as proof of the amounts paid each tax year the credit is claimed and
shall submit them to the Commission upon request; and
3. If the credit exceeds the tax imposed by Section 2355 of
Title 68 of the Oklahoma Statutes, th e excess amount shall be
refunded to the taxpayer.
D. 1. a. For tax year 2024, the total amount of credits
authorized by subparagraph a of paragraph 1 of
subsection C of this section shall not exceed One
Hundred Fifty Million Dollars ($150,000,000.00).
b. For tax year 2025, the total amount of credits
authorized by subparagraph a of paragraph 1 of
subsection C of this section shall not exceed Two
Hundred Million Dollars ($200,000,000.00).
c. For tax year 2026, and subsequent tax years, the total
amount of credits author ized by subparagraph a of
paragraph 1 of subsection C of this section shall not
exceed Two Hundred Fifty Million Dol lars
($250,000,000.00).
2. For tax year 2025, and subsequent tax years, the total
amount of credits authorized by subparagraph b of paragr aph 1 of
subsection C of this section sha ll not exceed Five Million Dollars
($5,000,000.00). ENR. H. B. NO. 1934 Page 6
E. The Commission shall prescribe applications for the purposes
of claiming the credits authorized by t he Oklahoma Parental Choice
Tax Credit Act and a deadline by which applications shall be
submitted. A taxpayer claiming the credit authorized by
subparagraph a of paragraph 1 of subsection C of this section shall
submit an application prescribed by the Commissio n to receive the
credit in two installments, each of which shall be half of the
expected amount of tuition and fe es for the private school based on
the affidavit submitt ed pursuant to this subsection, but in no event
shall an installment payment exceed hal f the amount of the credit
authorized by subparagraph a of paragraph 1 of subsection C of thi s
section. A taxpayer claiming the credit authorized by subparagraph
a of paragraph 1 of subsection C of this section shall submit to the
Commission an affidavit from the private school in which the
eligible student is enrolled or is expected to enroll wi th the
tuition and fees to be charged the taxpayer for the applicable
school year. In reviewing applications submitted by e ligible
taxpayers to determine whether they qualify for a credit authorized
by subparagraph a of paragraph 1 of subsection C of this section,
the Commission shall give first preference in making installments to
taxpayers who qualify pursuant to divisions ( 1) and (2) of
subparagraph a of paragra ph 1 of subsection C of this section. The
Commission shall make the installments based on th e expected amount
of tuition and fee amounts on the affidavit submitted purs uant to
this subsection.
F. Taxpayers claiming the credit shall:
1. Only claim the credit for qualified expenses as defined in
paragraphs 6 and 7 of subsection A of this section to provide an
education for an eligible student;
2. Ensure no other person is claiming a credit for the eligible
student;
3. Not claim the credit for an elig ible student who enrolls as
a full-time student in a public school district, public charter
school, public virtual charter s chool, or magnet school; and
4. Comply with rules and requirements established by the
Commission for administration of the Oklahom a Parental Choice Tax
Credit Program.
ENR. H. B. NO. 1934 Page 7
G. Eligible students may accept a scholarship from the Lindsey
Nicole Henry Scholarshi ps for Students with Disabilities Program
created by Section 13-101.2 of Title 70 of the Oklahoma Statutes
while participating in the Oklahoma Parental Choice Tax Credit
Program.
H. 1. The Commission shall have the authority to conduct an
audit or contract for the auditing of receipts fo r qualified
expenses submitted pursuant to subparagraph b of paragraph 1 of
subsection C of this section.
2. The Commission shall be authorized to recapture the credits
otherwise authorized by the provisions of this act on a p rorated
basis if an audit conducted pursuant to this subsection shows that
the credit was claimed for expenditures that wer e not qualified
expenses or it finds that the taxpa yer has claimed an eligible
student who no longer attends a private school or has enrolled in a
public school in the state.
I. In the event of a failure of revenue pursuant to the
Oklahoma State Finance Act, the tax credits otherwise authorized in
subsection C of this section shall be reduced proportionately to the
reduction in the amo unt of money appropriated to the State Board of
Education for the financial support of public schools for the fiscal
year in which the failure of revenue occurs.
J. The Commission shall make available on its website the
amount of credits claimed each tax year pursuant to subparagraphs a
and b of paragraph 1 of subsection C of this section.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 28-102 of Title 70, unless there
is created a duplicat ion in numbering, reads as follows:
A. The State Department of Education shall provide parents,
legal guardians, custo dians, or other persons with legal authority
of eligible students with disabilities notice that participation in
the Oklahoma Parental Ch oice Tax Credit Program shall have the same
effect as a parental revocation of consent pursuant to 20 U.S.C.,
Sections 1414(a)(1)(D) and 1414(C) of the Individuals with
Disabilities Education Act (IDEA) and an explanation of the rights
parents, legal guard ians, custodians, or other persons with lega l
authority of eligible students with disabilities have under IDEA and
any applicable state laws and regulations.
ENR. H. B. NO. 1934 Page 8
B. The Department shall implement a commercially viable, cost-
effective, and user-friendly system for users to publicly rate,
review, and share information about education service providers.
C. The Oklahoma Tax Commission shall coordinate with the State
Department of Education to develop a process to review student
enrollment information in order to verify that an eligible student
who is claimed by a taxpayer receiving a tax credit is not enrolled
in a public school in the state.
D. The Commission may promulgate rules to implement the
provisions of the Oklahoma Parental Choice Tax Credit Act. The
State Board of Education may promulgate rules to implement the
provisions of this section.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 28-103 of Title 70, unless there
is created a duplication in numbering, reads as follows:
A. No liability shall arise on the part of the Oklahoma Tax
Commission, State Department of Education, State Board of Education,
the state, a public school district, a public charter school, a
public virtual charter s chool, or a magnet school based on the award
of or use of a tax credit pursuant to the Oklahoma Parental Choice
Tax Credit Act.
B. If any part of the Oklahoma Parental Choice Tax Credit Act
is challenged in a state court as violating either the Oklahoma
Constitution or United States Constitution, t axpayers shall be
permitted to intervene for the purposes of defending the Oklahoma
Parental Choice Tax Credit Program’s constitutionality. Ho wever,
for the purposes of judicial administration, a court may requi re
that all taxpayers file a joint brief so long as they are not
required to join any brief filed on behalf of any named state
defendant.
C. The provisions of the Oklahoma Parental Choic e Tax Credit
Act shall not be severable, and if any provision of the Oklahoma
Parental Choice Tax Credit Act or t he application thereof to any
person or circumstances is held invalid, such invalidity shall
invalidate the other provi sions or applications of this act.
ENR. H. B. NO. 1934 Page 9
Passed the House of Representatives the 2nd day of May, 2023.
Presiding Officer of the House
of Representatives
Passed the Senate the 27th day of April, 2023.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20______ _, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _____ ____
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________