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53	53	STATE OF OKLAHOMA
54	54
55	55	1st Session of the 59th Legislature (2023)
56	56
57	57	SENATE BILL 971 By: Bullard
58	58
59	59
60	60
61	61
62	62
63	63	AS INTRODUCED
64	64
65	65	An Act relating to income tax credit; providing
66	66	credit for certain educational choice expenses and
67	67	qualifying educational expens es of dependents;
68	68	providing qualifications for certain credit; limiting
69	69	amount of credit claimed; making credit refundable
70	70	under certain circumstance; prohibiting itemized
71	71	deductions of expenses claimed as credit ; defining
72	72	terms; authorizing Oklahoma Tax Commissio n to require
73	73	certain documentation; re quiring promulgation of
74	74	rules; prohibiting re quirement that certain schools
75	75	or organizations provide documents ; providing for
76	76	codification; and providing an effective date.
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81	81	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
82	82	SECTION 1. NEW LAW A new section of law to be codified
83	83	in the Oklahoma Statutes as Section 2357.43A of Title 68, unless
84	84	there is created a duplication in numb ering, reads as follows:
85	85	A. For tax year 2024 and subsequent tax years, there shal l be
86	86	allowed for any taxpayer a credit against the tax imposed by Section
87	87	2355 of Title 68 of the Oklahoma Statutes for educational choice
88	88	expenses incurred during the tax yea r for taxpayers with a child
89	89	who:
90	90	1. Is eligible to be enrolled in a public school in this state ;
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142	142	2. Qualifies as the taxpayer's dependent for federal tax
143	143	purposes; and
144	144	3. Is enrolled in a public , charter, private school, or private
145	145	educational program that can be used to satisfy the state's
146	146	compulsory school attendance requirements that is not affiliated
147	147	with the student's resident district, as determined by Section 1-113
148	148	of Title 70 of the Oklahoma Statutes .
149	149	B. For tax year 2024 and subsequent tax yea rs, there shall be
150	150	allowed a credit against the tax imposed by Section 2355 of Title 68
151	151	of the Oklahoma Statutes for qualifying educational expenses
152	152	incurred during the tax year for any taxpayer that has a child who
153	153	qualifies as the taxpayer 's dependent for federal tax purposes and
154	154	is eligible to be enroll ed in a public school in this state .
155	155	C. The maximum tax credit allowable for each taxable year , as
156	156	provided for in subsections A and B of this subsection, shall be
157	157	Three Thousand Five Hundred Dollar s ($3,500.00) for each qualifying
158	158	dependent. If the credit provided for in subsection B and this
159	159	subsection exceeds the tax imposed by Section 2355 of this title and
160	160	the taxpayer qualifies for the Oklahoma Earned In come Tax Credit
161	161	pursuant to Section 2357.43 of Title 68 of the Oklahoma Statutes,
162	162	the excess amount shall be refunded to the taxpayer .
163	163	D. Amounts claimed under subsections A and B of this section
164	164	shall not be itemized as deductions for the same tax year when
165	165	computing Oklahoma taxable income.
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217	217	E. As used in this section:
218	218	1. "Academic instruction" means instruction in reading,
219	219	writing, mathematics, science, histo ry, art, music, geography,
220	220	civics, economics, li terature, philosophy, religion, foreign
221	221	languages, and related subjects;
222	222	2. "Educational choice expenses" means tuition and fees for
223	223	enrollment of the child in a school or a private educational program
224	224	not affiliated with the public school district in which the
225	225	taxpayer's primary residence is located; and
226	226	3. "Qualifying education al expenses" include:
227	227	a. costs associated with activities at a school including
228	228	the cost of fees, clothing, and equipment required to
229	229	participate in athletic teams, musical groups , clubs,
230	230	or similar school activities for a student being
231	231	educated by other means , as provided in subsection A
232	232	of Section 10-105 of Title 70 of the Oklahoma
233	233	Statutes, in prekindergarten through grade twelv e
234	234	directed by the parent or guardian, and
235	235	b. costs associated with the pro vision of instruction by
236	236	other means in prekin dergarten through grade twelve
237	237	directed by the parent or guardian including the cost
238	238	of computer equipment, software, on line instruction,
239	239	cooperative educational programs, textbooks,
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291	291	workbooks, curricula, and other written materials used
292	292	primarily for academic instruction.
293	293	F. The Oklahoma Tax Commission may require the taxpayer to
294	294	submit with the tax return copies of receipts or similar financial
295	295	documentation as may be necessary to confi rm the taxpayer's
296	296	statement of the allowable credit provided in subsections A and B of
297	297	this section.
298	298	G. The Tax Commission shall promulgate rules and develop tax
299	299	forms, directions, and worksheets as necessary to effectuate the
300	300	provisions of this section. The rules shall modify the state tax
301	301	forms, directions, and worksheets to provide a reasonab ly convenient
302	302	way for taxpayers to claim a credit .
303	303	H. The Tax Commission shall not require any school or other
304	304	organization to provi de documentation or otherwise act to verify
305	305	claims for a credit provided in subsections A and B of this section.
306	306	SECTION 2. This act shall become effective N ovember 1, 2023.
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308	308	59-1-321 QD 1/19/2023 11:52:01 AM

Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB971 Compare Versions