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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 971 By: Bullard
AS INTRODUCED
An Act relating to income tax credit; providing
credit for certain educational choice expenses and
qualifying educational expens es of dependents;
providing qualifications for certain credit; limiting
amount of credit claimed; making credit refundable
under certain circumstance; prohibiting itemized
deductions of expenses claimed as credit ; defining
terms; authorizing Oklahoma Tax Commissio n to require
certain documentation; re quiring promulgation of
rules; prohibiting re quirement that certain schools
or organizations provide documents ; providing for
codification; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.43A of Title 68, unless
there is created a duplication in numb ering, reads as follows:
A. For tax year 2024 and subsequent tax years, there shal l be
allowed for any taxpayer a credit against the tax imposed by Section
2355 of Title 68 of the Oklahoma Statutes for educational choice
expenses incurred during the tax yea r for taxpayers with a child
who:
1. Is eligible to be enrolled in a public school in this state ;
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2. Qualifies as the taxpayer's dependent for federal tax
purposes; and
3. Is enrolled in a public , charter, private school, or private
educational program that can be used to satisfy the state's
compulsory school attendance requirements that is not affiliated
with the student's resident district, as determined by Section 1-113
of Title 70 of the Oklahoma Statutes .
B. For tax year 2024 and subsequent tax yea rs, there shall be
allowed a credit against the tax imposed by Section 2355 of Title 68
of the Oklahoma Statutes for qualifying educational expenses
incurred during the tax year for any taxpayer that has a child who
qualifies as the taxpayer 's dependent for federal tax purposes and
is eligible to be enroll ed in a public school in this state .
C. The maximum tax credit allowable for each taxable year , as
provided for in subsections A and B of this subsection, shall be
Three Thousand Five Hundred Dollar s ($3,500.00) for each qualifying
dependent. If the credit provided for in subsection B and this
subsection exceeds the tax imposed by Section 2355 of this title and
the taxpayer qualifies for the Oklahoma Earned In come Tax Credit
pursuant to Section 2357.43 of Title 68 of the Oklahoma Statutes,
the excess amount shall be refunded to the taxpayer .
D. Amounts claimed under subsections A and B of this section
shall not be itemized as deductions for the same tax year when
computing Oklahoma taxable income.
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E. As used in this section:
1. "Academic instruction" means instruction in reading,
writing, mathematics, science, histo ry, art, music, geography,
civics, economics, li terature, philosophy, religion, foreign
languages, and related subjects;
2. "Educational choice expenses" means tuition and fees for
enrollment of the child in a school or a private educational program
not affiliated with the public school district in which the
taxpayer's primary residence is located; and
3. "Qualifying education al expenses" include:
a. costs associated with activities at a school including
the cost of fees, clothing, and equipment required to
participate in athletic teams, musical groups , clubs,
or similar school activities for a student being
educated by other means , as provided in subsection A
of Section 10-105 of Title 70 of the Oklahoma
Statutes, in prekindergarten through grade twelv e
directed by the parent or guardian, and
b. costs associated with the pro vision of instruction by
other means in prekin dergarten through grade twelve
directed by the parent or guardian including the cost
of computer equipment, software, on line instruction,
cooperative educational programs, textbooks,
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workbooks, curricula, and other written materials used
primarily for academic instruction.
F. The Oklahoma Tax Commission may require the taxpayer to
submit with the tax return copies of receipts or similar financial
documentation as may be necessary to confi rm the taxpayer's
statement of the allowable credit provided in subsections A and B of
this section.
G. The Tax Commission shall promulgate rules and develop tax
forms, directions, and worksheets as necessary to effectuate the
provisions of this section. The rules shall modify the state tax
forms, directions, and worksheets to provide a reasonab ly convenient
way for taxpayers to claim a credit .
H. The Tax Commission shall not require any school or other
organization to provi de documentation or otherwise act to verify
claims for a credit provided in subsections A and B of this section.
SECTION 2. This act shall become effective N ovember 1, 2023.
59-1-321 QD 1/19/2023 11:52:01 AM