Oklahoma 2024 Regular Session

Oklahoma House Bill HB3387 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	~~HB3387 HFLR Page 1~~
4		-	~~BOLD FACE denotes Committee Amendments.~~ 1
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31	53		STATE OF OKLAHOMA
32	54
33	55		2nd Session of the 59th Legislature (202 4)
34	56
35	57		HOUSE BILL 3387 By: McCall
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41	63		AS INTRODUCED
42	64
43	65		An Act relating to schools; amending Section 2,
44	66		Chapter 278, O.S.L. 2023 (70 O.S. Supp. 2023, Section
45	67		28-101), which relates to the Oklahoma Parental
46	68		Choice Tax Credit Act; exempting certain eligible
47	69		taxpayers from providing additional income
48	70		verification; providing an effective date ; and
49	71		declaring an emergency .
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55	77		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
56	78		SECTION 1. AMENDATORY Section 2, Chapter 278, O.S.L.
57	79		2023 (70 O.S. Supp. 2023, Section 28 -101), is amended to read as
58	80		follows:
59	81		Section 28-101. A. As used in the Oklahoma Parental Choice Tax
60	82		Credit Act:
61	83		1. "Commission" means the Oklahoma Tax Commission;
62	84		2. "Curriculum" means a complete course of study for a
63	85		particular content area or grade level;
64	86		3. "Department" means the State Department of Education;
	87	+	4. "Education service provider " means a person, business,
	88	+	public school district, public charter school, magnet school, or
65	89
66		-	HB3387 HFLR Page 2
67		-	BOLD FACE denotes Committee Amendments. 1
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92		-	4. "Education service provider " means a person, business,
93		-	public school district, public charter school, magnet school, or
94	140		organization that provides educational goods and/ or services to
95	141		eligible students;
96	142		5. "Eligible student" means a resident of this state who is
97	143		eligible to enroll in a public school in this state. Eligible
98	144		student shall include a student who is enrolled in and attends a
99	145		private school accredited by the State Board of Education or another
100	146		accrediting association or a student who is educated pursuant to the
101	147		other means of education exception pr ovided for in subsection A of
102	148		Section 10-105 of Title 70 of the Oklahoma Statutes;
103	149		6. "Qualified expense" for the purpose of claiming the credit
104	150		authorized by subparag raph a of paragraph 1 of subsection C of this
105	151		section means tuition and fees at a priva te school accredited by the
106	152		State Board of Education or another accrediting association;
107	153		7. "Qualified expense" for the purpose of claiming the credit
108	154		authorized by subparagraph b of paragraph 1 of subsection C of this
109	155		section means the following expendi tures:
110	156		a. tuition and fees for nonpublic online learning
111	157		programs,
112	158		b. academic tutoring services provide d by an individual
113	159		or a private academic tutoring facility,
114	160		c. textbooks, curriculum, or other instructional
115	161		materials including, but not limited to, supplemental
	162	+	materials or associated online instruction required by
	163	+	an education service provider, and
116	164
117		-	HB3387 HFLR Page 3
118		-	BOLD FACE denotes Committee Amendments. 1
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143		-	materials or associated online instruction required by
144		-	an education service provider, and
145	215		d. fees for nationally standardized assessments
146	216		including, but not li mited to, assessments used to
147	217		determine college admission and advanced placement
148	218		examinations as well as tuition and fees for tutoring
149	219		or preparatory courses for the assessments ; and
150	220		8. "Taxpayer" means a biological or adoptive parent,
151	221		grandparent, aunt, uncle, legal guardian, custodian, or other person
152	222		with legal authority to act on behalf of an eligible student.
153	223		B. There is hereby created the Oklahoma Parental Choice Tax
154	224		Credit Program to provide an income tax credit to a taxpayer for
155	225		qualified expenses to support the education of eligible students in
156	226		this state.
157	227		C. For the tax year 2024 and subsequent tax years, there shall
158	228		be allowed against the tax imposed by Section 2355 of Title 68 of
159	229		the Oklahoma Statutes a credit for any Oklahoma taxpayer who i ncurs
160	230		a qualified expense on behalf of an eligible student , to be
161	231		administered subject to the following amounts for each tax year:
162	232		1. If the eligible student attends a private school accredited
163	233		by the State Board of Education or another accrediting assoc iation,
164	234		the maximum credit amount shall be:
165	235		a. (1) Seven Thousand Five Hundred Dollars ($7,500.00)
166	236		or the amount of tuition and fees for the private
	237	+	school, whichever is less , if the eligible
	238	+	student is a member of a household in which the
167	239
168		-	HB3387 HFLR Page 4
169		-	BOLD FACE denotes Committee Amendments. 1
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194		-	school, whichever is less , if the eligible
195		-	student is a member of a household in which the
196	290		total adjusted gross income during the second
197	291		preceding tax year does not exceed Seventy-five
198	292		Thousand Dollars ($75,000.00),
199	293		(2) Seven Thousand Dollars ($7,000.00) or the amount
200	294		of tuition and fees for the private schoo l,
201	295		whichever is less, if the eligible student is a
202	296		member of a household in which the total adjusted
203	297		gross income during the second preceding tax year
204	298		is more than Seventy-five Thousand Dollars
205	299		($75,000.00) but does not exceed One Hundred
206	300		Fifty Thousand Dollars ($150,000.00),
207	301		(3) Six Thousand Five Hundre d Dollars ($6,500.00) or
208	302		the amount of tuition and fees for the private
209	303		school, whichever is less, if the eligible
210	304		student is a member of a household in which the
211	305		total adjusted gross income during the second
212	306		preceding tax year is more than One Hundred Fifty
213	307		Thousand Dollars ($150,000.00) but does not
214	308		exceed Two Hundred Twenty-five Thousand Dollars
215	309		($225,000.00),
216	310		(4) Six Thousand Dollars ($6,000.00) or the amount of
217	311		tuition and fees for the private school,
	312	+	whichever is less, if the eligible student is a
	313	+	member of a household in which the total adjusted
218	314
219		-	HB3387 HFLR Page 5
220		-	BOLD FACE denotes Committee Amendments. 1
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245		-	whichever is less, if the eligible student is a
246		-	member of a household in which the total adjusted
247	365		gross income during the second preceding tax year
248	366		is more than Two Hundred Twenty-five Thousand
249	367		Dollars ($225,000.00) but does not exceed Two
250	368		Hundred Fifty Thousand Dollars ($250,000.00), or
251	369		(5) Five Thousand Dollars ($5,000.00) or the amount
252	370		of tuition and fees for the private school,
253	371		whichever is less, if the eligible student is a
254	372		member of a household in which the total adjusted
255	373		gross income during the second preceding tax year
256	374		is more than Two Hundred Fifty Thousand Dollars
257	375		($250,000.00), and
258	376		b. One Thousand Dollars ($1, 000.00) in qualified expenses
259	377		per eligible student in each tax year if the eligible
260	378		student is educated pursuant to the other means of
261	379		education exception provided for in subsection A of
262	380		Section 10-105 of Title 70 of the Oklahoma Statutes.
263	381		To claim the credit, the taxpayer shall submit to the
264	382		Commission receipts for qualified expense s as defined
265	383		by paragraph 7 of subsection A of this section;
266	384		2. The taxpayer shall retain all receipts of qualified expenses
267	385		as proof of the amounts paid each tax year the credit is claime d and
268	386		shall submit them to the Commission upon request; and
269	387
270		-	HB3387 HFLR Page 6
271		-	BOLD FACE denotes Committee Amendments. 1
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296	438		3. If the credit exceeds the tax imposed by Section 2355 of
297	439		Title 68 of the Oklahoma Statutes, th e excess amount shall be
298	440		refunded to the taxpayer.
299	441		D. 1. a. For tax year 2024, the total amount of credits
300	442		authorized by subparagraph a of paragraph 1 of
301	443		subsection C of this section shall not exceed One
302	444		Hundred Fifty Million Dollars ($150,000,000.00).
303	445		b. For tax year 2025, the total amount of credits
304	446		authorized by subparagraph a of paragraph 1 of
305	447		subsection C of this section shall not exceed Two
306	448		Hundred Million Dollars ($200,000,000.00).
307	449		c. For tax year 2026, and subsequent tax years, the total
308	450		amount of credits author ized by subparagraph a of
309	451		paragraph 1 of subsection C of this section shall not
310	452		exceed Two Hundred Fif ty Million Dollars
311	453		($250,000,000.00).
312	454		2. For tax year 2025, and subsequent tax years, the total
313	455		amount of credits authorized by subparagraph b of paragr aph 1 of
314	456		subsection C of this section shall not exceed Five Million Dollars
315	457		($5,000,000.00).
316	458		E. The Commission shall prescribe applications for the purposes
317	459		of claiming the credits authorized by t he Oklahoma Parental Choice
318	460		Tax Credit Act and a deadline by which applications shall be
319	461		submitted. A taxpayer claiming the credit authorized by
320	462
321		-	HB3387 HFLR Page 7
322		-	BOLD FACE denotes Committee Amendments. 1
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347	513		subparagraph a of paragraph 1 of subsection C of this section shall
348	514		submit an application prescribed by the Commissio n to receive the
349	515		credit in two installments, each of which shall be half of the
350	516		expected amount of tuition and fe es for the private school based on
351	517		the affidavit submitted pursuant to this subsection, but in no event
352	518		shall an installment payment exceed hal f the amount of the credit
353	519		authorized by subparagraph a of paragraph 1 of subsection C of this
354	520		section. A taxpayer claiming the cre dit authorized by subpa ragraph
355	521		a of paragraph 1 of subsection C of this section shall submit to the
356	522		Commission an affidavit from the private school in which the
357	523		eligible student is enrolled or is expected to enroll with the
358	524		tuition and fees to be charged t he taxpayer for the app licable
359	525		school year. In reviewing applications submitted by e ligible
360	526		taxpayers to determine whether they qualify for a credit authorized
361	527		by subparagraph a of paragraph 1 of subsection C of this section,
362	528		the Commission shall give fir st preference in making installments to
363	529		taxpayers who qualify pursuant to divisions ( 1) and (2) of
364	530		subparagraph a of paragra ph 1 of subsection C of this section . If
365	531		an eligible taxpayer provides documentation on the application that
366	532		he or she is a recipient of income-based government benefits
367	533		including the Supplemental Nutrition Assistance Program (SNAP ),
368	534		Temporary Assistance for Needy Families (TANF), or SoonerCare, the
369	535		eligible taxpayer sh all not be required to provide additiona l income
370	536		verification. The Commission shall make the installments based on
371	537
372		-	HB3387 HFLR Page 8
373		-	BOLD FACE denotes Committee Amendments. 1
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398	588		the expected amount of tuition and fee amounts on the affidavit
399	589		submitted pursuant to this subsection.
400	590		F. Taxpayers claiming the credit shall:
401	591		1. Only claim the credit for qualified expenses as defined in
402	592		paragraphs 6 and 7 of subsection A of this section to provide an
403	593		education for an eligible student;
404	594		2. Ensure no other person is claiming a credit for the eligible
405	595		student;
406	596		3. Not claim the credit for an elig ible student who enrolls as
407	597		a full-time student in a public school district, public charter
408	598		school, public virtual charter s chool, or magnet school; and
409	599		4. Comply with rules and requirements established by the
410	600		Commission for administration of the Oklahom a Parental Choice Tax
411	601		Credit Program.
412	602		G. Eligible students may accept a scholarship from the Lindsey
413	603		Nicole Henry Scholarshi ps for Students with Disabilities Program
414	604		created by Section 13-101.2 of Title 70 of the Oklahoma Statutes
415	605		while participating in the Oklahoma Parental Choice Tax Credit
416	606		Program.
417	607		H. 1. The Commission shall have the authority to conduct an
418	608		audit or contract for the auditing of receipts fo r qualified
419	609		expenses submitted pursuant to subparagraph b of paragraph 1 of
420	610		subsection C of this section.
421	611
422		-	HB3387 HFLR Page 9
423		-	BOLD FACE denotes Committee Amendments. 1
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448	662		2. The Commission shall be authorized to recapture the credits
449	663		otherwise authorized by the provisions of this act on a prorated
450	664		basis if an audit conducted pursuant to this subsection shows that
451	665		the credit was claimed for expenditures that wer e not qualified
452	666		expenses or it finds that the taxpa yer has claimed an eligible
453	667		student who no longer attends a private school or has enrolled in a
454	668		public school in the state.
455	669		I. In the event of a failure of revenue pursuant to the
456	670		Oklahoma State Finance Act, the tax credits otherwise authorized in
457	671		subsection C of this section shall be reduced proportionately to the
458	672		reduction in the amount of money appropriated to the State Board of
459	673		Education for the financial support of public schools for the fiscal
460	674		year in which the failure of revenue occurs.
461	675		J. The Commission shall make available on its website the
462	676		amount of credits claimed each t ax year pursuant to subparagraphs a
463	677		and b of paragraph 1 of subsection C of this section.
464	678		SECTION 2. This act shall become effective July 1, 2024.
465	679		SECTION 3. It being immediately necessary for t he preservation
466	680		of the public peace, health or safety, an emergency is hereby
467	681		declared to exist, by reason whereof thi s act shall take effect and
468	682		be in full force from and after its passage a nd approval.
469	683
470		-	~~COMMITTEE REPORT BY: COMMITTEE ON RULES, dated 02~~/13/~~2024 - DO PASS.~~
	684	+	59-2-9233 EK 01/10/24