Req. No. 9234 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
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
2nd Session of the 59th Legislature (202 4)
HOUSE BILL 3388 By: McCall
AS INTRODUCED
An Act relating to schools; amending Section 2,
Chapter 278, O.S.L. 2023 (70 O.S. S upp. 2023,
Section 28-101), which relates to the Oklahoma
Parental Choice Tax Credit Act; modifying definition;
modifying procedures for application process;
providing dates for installments; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY Section 2, Chapter 278, O.S.L.
2023 (70 O.S. Supp. 2023, Section 28 -101), is amended to read as
follows:
Section 28-101. 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 grade level;
3. "Department" means the State Department of Education;
4. "Education service provider " means a person, business,
public school district, public charter school, magnet school, or
Req. No. 9234 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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
organization that provides educational goods and/ or services to
eligible students;
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 or is
expected to enroll in a private school accredited by the State Board
of Education or another accrediting associ ation or a student who is
educated pursuant to the other means of education exception pr ovided
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 subparag raph a of paragraph 1 of subsection C of this
section means tuition and fees at a priva te school accredited by the
State Board of Education or another accrediting association;
7. "Qualified expense" for the purpose of claiming the credit
authorized by subparagraph b of paragraph 1 of subsection C of this
section means the following expendi tures:
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 other instructional
materials including, but not limited to, supplemental
Req. No. 9234 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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
materials or associated online instruction required by
an education service provider, and
d. fees for nationally standardized assessments
including, but not li mited 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, custodian, 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
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 followin g 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
Req. No. 9234 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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 e ligible
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,
Req. No. 9234 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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 Two Hundred Twenty-five Thousand
Dollars ($225,000.00) but does not exceed Two
Hundred Fifty Thousand Dollars ($250,000.00), or
(5) Five Thousand Dollars ($5,000.00) 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 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 Oklahoma Statutes.
To claim the credit, the taxpayer shall submit to the
Commission receipts for qualified expenses 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 claime d and
shall submit them to the Commission upon request; and
Req. No. 9234 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
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. 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 D ollars
($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 shall not exceed Five Million Dollars
($5,000,000.00).
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. The application process shall be administered based on
Req. No. 9234 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
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 school year. The first application aligned to the school year
shall open on May 1, 2024, for 2024-2025 school year. Beginning in
the 2025-2026 school year and subsequent years, the application
shall open on March 15. 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, one per school semester to be p aid
no later than August 30 and January 15, 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 sub paragraph a of paragraph 1 of subsection C
of this section. A taxpayer claiming the cre dit 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 stude nt is enrolled or is expected to enroll with
the tuition and fees to be charged t he 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 fir st 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 the expected amount
Req. No. 9234 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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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.
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.
Req. No. 9234 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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
2. The Commission shall be authorized to recapture the credits
otherwise authorized by the provisions of this act on a prorated
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 amount 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 t ax year pursuant to subparagraphs a
and b of paragraph 1 of subsection C of this section.
SECTION 2. It being immediately necessary for the preservation
of the public peace, he alth or safety, an emergency is he reby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage an d approval.
59-2-9234 EK 01/11/24