Old	New	Differences
1	1
2	2
3	3
4	4	Req. No. 9834 Page 1 1
5	5	2
6	6	3
7	7	4
8	8	5
9	9	6
10	10	7
11	11	8
12	12	9
13	13	10
14	14	11
15	15	12
16	16	13
17	17	14
18	18	15
19	19	16
20	20	17
21	21	18
22	22	19
23	23	20
24	24	21
25	25	22
26	26	23
27	27	24
28	28	1
29	29	2
30	30	3
31	31	4
32	32	5
33	33	6
34	34	7
35	35	8
36	36	9
37	37	10
38	38	11
39	39	12
40	40	13
41	41	14
42	42	15
43	43	16
44	44	17
45	45	18
46	46	19
47	47	20
48	48	21
49	49	22
50	50	23
51	51	24
52	52
53	53	STATE OF OKLAHOMA
54	54
55	55	2nd Session of the 59t h Legislature (2024)
56	56
57	57	HOUSE BILL 3911 By: Caldwell (Chad)
58	58
59	59
60	60
61	61
62	62
63	63	AS INTRODUCED
64	64
65	65	An Act relating to revenue and taxation; amending
66	66	Section 2, Chapter 278, O.S.L. 2023 (70 O.S. S upp.
67	67	2023, Section 28-101), which relates to tax credits
68	68	for certain school related expenditures; modifying
69	69	definitions; providing tax credit amount based upon
70	70	certain housing status; modifying cap amounts;
71	71	modifying procedures related to application process;
72	72	providing for installments; providing for priority of
73	73	allocations; providing for reallocation; provid ing
74	74	for exemption from income tax; and declaring an
75	75	emergency.
76	76
77	77
78	78
79	79
80	80
81	81	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
82	82	SECTION 1. AMENDATORY Section 2, Chapter 278, O.S.L.
83	83	2023 (70 O.S. Supp. 2023, Section 28 -101), is amended to read as
84	84	follows:
85	85	Section 28-101. A. As used in the Oklahoma Parental Choice Tax
86	86	Credit Act:
87	87	1. "Commission" means the Oklahoma Tax Commission;
88	88	2. "Curriculum" means a complete course of study for a
89	89	particular content area or g rade level;
90	90	3. "Department" means the State Department of Education;
91	91
92	92
93	93	Req. No. 9834 Page 2 1
94	94	2
95	95	3
96	96	4
97	97	5
98	98	6
99	99	7
100	100	8
101	101	9
102	102	10
103	103	11
104	104	12
105	105	13
106	106	14
107	107	15
108	108	16
109	109	17
110	110	18
111	111	19
112	112	20
113	113	21
114	114	22
115	115	23
116	116	24
117	117	1
118	118	2
119	119	3
120	120	4
121	121	5
122	122	6
123	123	7
124	124	8
125	125	9
126	126	10
127	127	11
128	128	12
129	129	13
130	130	14
131	131	15
132	132	16
133	133	17
134	134	18
135	135	19
136	136	20
137	137	21
138	138	22
139	139	23
140	140	24
141	141
142	142	4. "Education service provider " means a person, business,
143	143	public school district, public charter school, magnet school, or
144	144	organization that provides educational goods and/or services to
145	145	eligible students;
146	146	5. "Eligible student" means a resident of this state who is
147	147	eligible to enroll in a public school in this state. Eligible
148	148	student shall include a student who is enrolled in and attends or is
149	149	expected to enroll in a private school accredited by the State Board
150	150	of Education or another accrediting associ ation or a student who is
151	151	educated pursuant to the other mea ns of education exception pr ovided
152	152	for in subsection A of Section 10-105 of Title 70 of the Oklahoma
153	153	Statutes;
154	154	6. "Qualified expense" for the purpose of claiming the credit
155	155	authorized by subparag raph a of paragraph 1 of subsection C of this
156	156	section means tuition and fees at a priva te school accredited by the
157	157	State Board of Education or another accrediting association;
158	158	7. "Qualified expense" for the purpose of claiming the credit
159	159	authorized by subparagraph b of paragraph 1 of subsection C of this
160	160	section means the following expendi tures:
161	161	a. tuition and fees for nonpublic online learning
162	162	programs, online or in person,
163	163	b. academic tutoring services provide d by an individual
164	164	or a private academic tutoring facility,
165	165
166	166
167	167	Req. No. 9834 Page 3 1
168	168	2
169	169	3
170	170	4
171	171	5
172	172	6
173	173	7
174	174	8
175	175	9
176	176	10
177	177	11
178	178	12
179	179	13
180	180	14
181	181	15
182	182	16
183	183	17
184	184	18
185	185	19
186	186	20
187	187	21
188	188	22
189	189	23
190	190	24
191	191	1
192	192	2
193	193	3
194	194	4
195	195	5
196	196	6
197	197	7
198	198	8
199	199	9
200	200	10
201	201	11
202	202	12
203	203	13
204	204	14
205	205	15
206	206	16
207	207	17
208	208	18
209	209	19
210	210	20
211	211	21
212	212	22
213	213	23
214	214	24
215	215
216	216	c. textbooks, curriculum, or other instructional
217	217	materials including, but not limited to, supplemental
218	218	materials or associated online instruction required by
219	219	an education service provid er, and
220	220	d. fees for nationally standardized assessments
221	221	including, but not li mited to, assessments used to
222	222	determine college admission and advanced placement
223	223	examinations as well as tuition and fees for tutoring
224	224	or preparatory courses for the assessments ; and
225	225	8. "Taxpayer" means a biological or adoptive parent,
226	226	grandparent, aunt, uncle, legal guardian, custodian, or other person
227	227	with legal authority to act on behalf of an eligible student.
228	228	B. There is hereby created the Oklahoma Parental Choice Tax
229	229	Credit Program to provide an income tax credit to a taxpayer for
230	230	qualified expenses to support the education of eligible students in
231	231	this state.
232	232	C. For the tax year 2024 and subsequent tax years, there shall
233	233	be allowed against the tax imposed by Section 2355 of Title 68 of
234	234	the Oklahoma Statutes a credit for any Oklahoma taxpayer who i ncurs
235	235	a qualified expense on behalf of an eligible student, to be
236	236	administered subject to the followi ng amounts for each tax year:
237	237	1. If the eligible student attends a private scho ol accredited
238	238	by the State Board of Education or another accrediting assoc iation,
239	239	the maximum credit amount shall be:
240	240
241	241
242	242	Req. No. 9834 Page 4 1
243	243	2
244	244	3
245	245	4
246	246	5
247	247	6
248	248	7
249	249	8
250	250	9
251	251	10
252	252	11
253	253	12
254	254	13
255	255	14
256	256	15
257	257	16
258	258	17
259	259	18
260	260	19
261	261	20
262	262	21
263	263	22
264	264	23
265	265	24
266	266	1
267	267	2
268	268	3
269	269	4
270	270	5
271	271	6
272	272	7
273	273	8
274	274	9
275	275	10
276	276	11
277	277	12
278	278	13
279	279	14
280	280	15
281	281	16
282	282	17
283	283	18
284	284	19
285	285	20
286	286	21
287	287	22
288	288	23
289	289	24
290	290
291	291	a. (1) Seven Thousand Five Hundred Dollars ($7,500.00)
292	292	or the amount of tuition and fees for the private
293	293	school, whichever is less, if the eligible
294	294	student is a member of a household in which the
295	295	total adjusted gross income during the second
296	296	preceding tax year does not exceed Seventy-five
297	297	Thousand Dollars ($75,000.00),
298	298	(2) Seven Thousand Dollars ($7,000.00) or the amount
299	299	of tuition and fees for the private schoo l,
300	300	whichever is less, if the eligible student is a
301	301	member of a household in which the total adjusted
302	302	gross income during the second preceding tax year
303	303	is more than Seventy-five Thousand Dollars
304	304	($75,000.00) but does not exceed One Hundred
305	305	Fifty Thousand Dollars ($150,000.00),
306	306	(3) Six Thousand Five Hundre d Dollars ($6,500.00) or
307	307	the amount of tuition and fees for the private
308	308	school, whichever is less, if the eligible
309	309	student is a member of a household in which the
310	310	total adjusted gross in come during the second
311	311	preceding tax year is more than One Hundred Fifty
312	312	Thousand Dollars ($150,000.00) but does not
313	313	exceed Two Hundred Twenty-five Thousand Dollars
314	314	($225,000.00),
315	315
316	316
317	317	Req. No. 9834 Page 5 1
318	318	2
319	319	3
320	320	4
321	321	5
322	322	6
323	323	7
324	324	8
325	325	9
326	326	10
327	327	11
328	328	12
329	329	13
330	330	14
331	331	15
332	332	16
333	333	17
334	334	18
335	335	19
336	336	20
337	337	21
338	338	22
339	339	23
340	340	24
341	341	1
342	342	2
343	343	3
344	344	4
345	345	5
346	346	6
347	347	7
348	348	8
349	349	9
350	350	10
351	351	11
352	352	12
353	353	13
354	354	14
355	355	15
356	356	16
357	357	17
358	358	18
359	359	19
360	360	20
361	361	21
362	362	22
363	363	23
364	364	24
365	365
366	366	(4) Six Thousand Dollars ($6,000.00) or the amount of
367	367	tuition and fees for the private school,
368	368	whichever is less, if the eligible student is a
369	369	member of a household in which the total adjusted
370	370	gross income during the second preceding tax year
371	371	is more than Two Hundred Twenty-five Thousand
372	372	Dollars ($225,000.00) but does not exceed Two
373	373	Hundred Fifty Thousand Dollars ($250,000.00), or
374	374	(5) Five Thousand Dollars ($5,000.00) or the amount
375	375	of tuition and fees for the private school,
376	376	whichever is less, if the el igible student is a
377	377	member of a household in which the total adjusted
378	378	gross income during the second preceding tax year
379	379	is more than Two Hundred Fifty Thousand Dollars
380	380	($250,000.00), and
381	381	b. One Thousand Dollars ($1,000.00) in qualified expenses
382	382	per eligible student in each tax year if the eligible
383	383	student is educated pursuant to the other means of
384	384	education exception provided for in subsection A of
385	385	Section 10-105 of Title 70 of the Okl ahoma Statutes.
386	386	To claim the credit, the taxpayer shall submit to the
387	387	Commission receipts for qualified expense s as defined
388	388	by paragraph 7 of subsection A of this section;
389	389
390	390
391	391	Req. No. 9834 Page 6 1
392	392	2
393	393	3
394	394	4
395	395	5
396	396	6
397	397	7
398	398	8
399	399	9
400	400	10
401	401	11
402	402	12
403	403	13
404	404	14
405	405	15
406	406	16
407	407	17
408	408	18
409	409	19
410	410	20
411	411	21
412	412	22
413	413	23
414	414	24
415	415	1
416	416	2
417	417	3
418	418	4
419	419	5
420	420	6
421	421	7
422	422	8
423	423	9
424	424	10
425	425	11
426	426	12
427	427	13
428	428	14
429	429	15
430	430	16
431	431	17
432	432	18
433	433	19
434	434	20
435	435	21
436	436	22
437	437	23
438	438	24
439	439
440	440	2. If the eligible student attends a private school, accredited
441	441	by the State Board of Education or another accrediting association,
442	442	that exclusively services students experiencing homelessness, the
443	443	credit amount shall be Seven Thousand Five Hundred Dollars
444	444	($7,500.00) or the amount of the cost to educate the eligible
445	445	student at the private school , whichever is less;
446	446	3. The taxpayer shall retain all receipts of qualified expenses
447	447	as proof of the amounts paid each tax year the credit is claime d and
448	448	shall submit them to the Commission upon request; and
449	449	3. 4. If the credit exceeds the tax imposed by Section 2355 of
450	450	Title 68 of the Oklahoma Statutes, th e excess amount shall be
451	451	refunded to the taxpayer.
452	452	D. 1. a. For tax year 2024, the total amount of credits
453	453	authorized by subparagraph a of paragraph 1 of
454	454	subsection C of this section shall not exceed One
455	455	Hundred Fifty Million Dollars ($150,000,000.00).
456	456	b. For tax year 2025, the total amount of credits
457	457	authorized by subparagraph a of paragraph 1 of
458	458	subsection C of this section shall not exceed Two
459	459	Hundred Million Dollars ($200,000,000.00).
460	460	c. For tax year 2026, and subsequent tax years, the total
461	461	amount of credits aut horized by subparagraph a of
462	462	paragraph 1 of subsection C of this section shall n ot
463	463
464	464
465	465	Req. No. 9834 Page 7 1
466	466	2
467	467	3
468	468	4
469	469	5
470	470	6
471	471	7
472	472	8
473	473	9
474	474	10
475	475	11
476	476	12
477	477	13
478	478	14
479	479	15
480	480	16
481	481	17
482	482	18
483	483	19
484	484	20
485	485	21
486	486	22
487	487	23
488	488	24
489	489	1
490	490	2
491	491	3
492	492	4
493	493	5
494	494	6
495	495	7
496	496	8
497	497	9
498	498	10
499	499	11
500	500	12
501	501	13
502	502	14
503	503	15
504	504	16
505	505	17
506	506	18
507	507	19
508	508	20
509	509	21
510	510	22
511	511	23
512	512	24
513	513
514	514	exceed Two Hundred Fifty Million Dol lars
515	515	($250,000,000.00).
516	516	2. For tax year 2025, and subsequent tax years, the total
517	517	amount of credits authorized by subparagraph b of para graph 1 of
518	518	subsection C of this section shall not exceed Five Million Dollars
519	519	($5,000,000.00).
520	520	E. The Commission shall prescribe applications for the purposes
521	521	of claiming the credits authorized by the Oklahoma Parental Choice
522	522	Tax Credit Act and a deadline by which applications shall be
523	523	submitted. To ensure educational continuity for students, the
524	524	application process shall be administered based on the school year.
525	525	The first application aligned to the school year shall open on May
526	526	1, 2024, for school year 2024-2025. In school year 2025-2026 and
527	527	subsequent years, the application shall open on March 15. For any
528	528	eligible student who is a member of a household in which the total
529	529	federal adjusted gross income does not exceed One Hundred Fifty
530	530	Thousand Dollars ($150,000.00), applications shall be submitted to
531	531	the Tax Commission within the first si xty (60) days of the
532	532	application period to receive priority consideration . Any taxpayer
533	533	who receives an allocation of tax credits shall also hav e priority
534	534	consideration in any subsequent cycle provided that an application
535	535	is submitted within the first sixty (60) days of the application
536	536	period. A taxpayer claiming the credit authorized by subparagraph a
537	537	of paragraph 1 of subsection C of this section shall submit an
538	538
539	539
540	540	Req. No. 9834 Page 8 1
541	541	2
542	542	3
543	543	4
544	544	5
545	545	6
546	546	7
547	547	8
548	548	9
549	549	10
550	550	11
551	551	12
552	552	13
553	553	14
554	554	15
555	555	16
556	556	17
557	557	18
558	558	19
559	559	20
560	560	21
561	561	22
562	562	23
563	563	24
564	564	1
565	565	2
566	566	3
567	567	4
568	568	5
569	569	6
570	570	7
571	571	8
572	572	9
573	573	10
574	574	11
575	575	12
576	576	13
577	577	14
578	578	15
579	579	16
580	580	17
581	581	18
582	582	19
583	583	20
584	584	21
585	585	22
586	586	23
587	587	24
588	588
589	589	application prescribed by the Commission to receive the credit in
590	590	two installments, one per school semester to be p aid no later than
591	591	August 30 and January 15, each of which shall be half of the
592	592	expected amount of tuition and fe es for the private school based on
593	593	the affidavit enrollment verification form submitted pursuant to
594	594	this subsection, but in no event shall an installment payment exceed
595	595	half the amount of the credit authorized by sub paragraph a of
596	596	paragraph 1 of subsection C of this section. A taxpayer claiming
597	597	the credit authorized by subparagraph a of p aragraph 1 of subsection
598	598	C of this section shall submit to the Commission an affidavit
599	599	enrollment application form from the private school in which the
600	600	eligible student is enrolled or is expected to enroll with the
601	601	tuition and fees to be charged t he taxpayer for the applicable
602	602	school year. The Commission shall make the installments based on
603	603	the expected amount of tuition and fee amounts on the enrollment
604	604	verification form submitted pursuant to this subsection.
605	605	E. In reviewing the event there are mor e applications submitted
606	606	by eligible taxpayers to determine whether they qualify for a credit
607	607	authorized by subparagraph a of paragraph 1 of subsection C of this
608	608	section, than credits are available pursuant to subsection D of this
609	609	section, then the Commission shall give fir st preference in making
610	610	installments authorizing credits to eligible students of taxpayers
611	611	who qualify pursuant to divisions ( 1) and (2) of subparagraph a of
612	612	paragraph 1 of subsection C of this section. The Commission shall
613	613
614	614
615	615	Req. No. 9834 Page 9 1
616	616	2
617	617	3
618	618	4
619	619	5
620	620	6
621	621	7
622	622	8
623	623	9
624	624	10
625	625	11
626	626	12
627	627	13
628	628	14
629	629	15
630	630	16
631	631	17
632	632	18
633	633	19
634	634	20
635	635	21
636	636	22
637	637	23
638	638	24
639	639	1
640	640	2
641	641	3
642	642	4
643	643	5
644	644	6
645	645	7
646	646	8
647	647	9
648	648	10
649	649	11
650	650	12
651	651	13
652	652	14
653	653	15
654	654	16
655	655	17
656	656	18
657	657	19
658	658	20
659	659	21
660	660	22
661	661	23
662	662	24
663	663
664	664	make the installments based on the expected amount of tuition and
665	665	fee amounts on the affidavit submitted purs uant to this subsection:
666	666	1. First, received the credit the prior year ;
667	667	2. Second, qualify pursuant to division s (1) and (2) of
668	668	subparagraph a of paragraph 1 of subsection C of this section ; or
669	669	3. Third, are siblings of eligible studen ts of taxpayers who
670	670	received the credit in the prior year .
671	671	F. Taxpayers claiming the credit shall:
672	672	1. Only claim the credit for qualified expenses as defined in
673	673	paragraphs 6 and 7 of subsection A of this section to provide an
674	674	education for an eligible student;
675	675	2. Ensure no other person is claiming a credit for the eligible
676	676	student;
677	677	3. Not claim the credit for an eligible student who enrolls as
678	678	a full-time student in a public school district, public charter
679	679	school, public virtual charter s chool, or magnet school; and
680	680	4. Comply with rules and requirements established by the
681	681	Commission for administration of the Oklahoma Parental Choice Tax
682	682	Credit Program; and
683	683	5. Notify the Commission not later than the thirtieth day after
684	684	the date on which the eligible student:
685	685	a. enrolls in a public school, including an open -
686	686	enrollment charter school,
687	687	b. graduates from high school, or
688	688
689	689
690	690	Req. No. 9834 Page 10 1
691	691	2
692	692	3
693	693	4
694	694	5
695	695	6
696	696	7
697	697	8
698	698	9
699	699	10
700	700	11
701	701	12
702	702	13
703	703	14
704	704	15
705	705	16
706	706	17
707	707	18
708	708	19
709	709	20
710	710	21
711	711	22
712	712	23
713	713	24
714	714	1
715	715	2
716	716	3
717	717	4
718	718	5
719	719	6
720	720	7
721	721	8
722	722	9
723	723	10
724	724	11
725	725	12
726	726	13
727	727	14
728	728	15
729	729	16
730	730	17
731	731	18
732	732	19
733	733	20
734	734	21
735	735	22
736	736	23
737	737	24
738	738
739	739	c. is no longer participating in the program for any
740	740	reason.
741	741	G. Eligible students may accept a scholarship from the Lindsey
742	742	Nicole Henry Scholarships for Students with Disabilities Program
743	743	created by Section 13-101.2 of Title 70 of the Oklahoma Statutes
744	744	while participating in the Oklahoma Parental Choice Tax Credit
745	745	Program.
746	746	H. 1. The Commission shall have the authority to:
747	747	1. Have the authority to conduct an audit or contract for the
748	748	auditing of receipts for qualified expenses submitted pursuant to
749	749	subparagraph b of paragraph 1 of subsection C of this section;
750	750	2. The Commission shall be Be authorized to recapture the
751	751	credits otherwise authorized by the provisions of this act on a
752	752	prorated basis if an audit conducted pursuant to this subsection
753	753	shows that the credit was claimed for expenditures that wer e not
754	754	qualified expenses or it finds that the taxpa yer has claimed an
755	755	eligible student who no longer attends a private school or has
756	756	enrolled in a public school in the state; and
757	757	3. Reallocate credits within thirty (30) days of receipt of
758	758	notice from a taxpayer pursuant to paragraph 5 of subsection F of
759	759	this section to the next eligible taxpayer in line when a taxpayer,
760	760	on behalf of an eligible student in the program, chooses not to
761	761	participate, is no longer eligible to part icipate, or chooses to
762	762	forgo participation in the program for any reason .
763	763
764	764
765	765	Req. No. 9834 Page 11 1
766	766	2
767	767	3
768	768	4
769	769	5
770	770	6
771	771	7
772	772	8
773	773	9
774	774	10
775	775	11
776	776	12
777	777	13
778	778	14
779	779	15
780	780	16
781	781	17
782	782	18
783	783	19
784	784	20
785	785	21
786	786	22
787	787	23
788	788	24
789	789	1
790	790	2
791	791	3
792	792	4
793	793	5
794	794	6
795	795	7
796	796	8
797	797	9
798	798	10
799	799	11
800	800	12
801	801	13
802	802	14
803	803	15
804	804	16
805	805	17
806	806	18
807	807	19
808	808	20
809	809	21
810	810	22
811	811	23
812	812	24
813	813
814	814	I. In the event of a failure of revenue pursuant to the
815	815	Oklahoma State Finance Act, the tax credits otherwise authorized in
816	816	subsection C of this section shall be reduced proportionately to the
817	817	reduction in the amount of money appropriated to the State Board of
818	818	Education for the financial support of public schools for the fiscal
819	819	year in which the failure of revenue occurs.
820	820	J. The Commission shall make available on its website the
821	821	amount of credits claimed each t ax year pursuant to subparagraphs a
822	822	and b of paragraph 1 of subsection C of this section.
823	823	K. Credits received under this act do not constitute taxable
824	824	income to a taxpayer who received the credit on behalf of a child
825	825	participating in the program. The Commission shall not issue any
826	826	Form 1099s to taxpayers.
827	827	SECTION 2. It being immediately necessary for the preservation
828	828	of the public peace, health or safety, an emergency is hereby
829	829	declared to exist, by reason whereof this act shall take effect and
830	830	be in full force from and after its passage and approval.
831	831
832	832	59-2-9834 MAH 01/18/24

Oklahoma 2024 Regular Session

Oklahoma House Bill HB3911 Compare Versions