OK
Oklahoma House Bill HB1469

Oklahoma 2025 Regular Session

Oklahoma House Bill HB1469 Compare Versions

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2828 STATE OF OKLAHOMA
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3030 1st Session of the 60th Legislature (2025)
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3232 HOUSE BILL 1469 By: Blancett
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3838 AS INTRODUCED
3939
4040 An Act relating to schools; amending Section 2,
4141 Chapter 278, O.S.L. 2023, as amended by Section 3,
4242 Chapter 277, O.S.L. 2024 (70 O.S. Su pp. 2024, Section
4343 28-101), which relates to the Oklahoma Parental
4444 Choice Tax Credit Act; modifying website requirements
4545 for the Oklahoma Tax Commission; and providing an
4646 effective date.
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5454 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
5555 SECTION 1. AMENDATORY Section 2, Chapter 278, O.S.L.
5656 2023, as amended by Section 3, Chapter 277, O.S.L. 2024 (70 O.S.
5757 Supp. 2024, Section 28 -101), is amended to read as follows:
5858 Section 28-101. Definitions — Oklahoma Parental Choic e Tax Credit
5959 Program.
6060 A. As used in the Oklahoma Parental Choice Tax Credit Act:
6161 1. "Commission" means the Oklahoma Tax Commission;
6262 2. "Curriculum" means a complete course of study for a
6363 particular content area or grade level;
6464 3. "Department" means the State Department of Education;
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9191 4. "Education service provider " means a person, business,
9292 public school district, public charter school, magnet school, or
9393 organization that provides educational goods and/or services to
9494 eligible students in this state;
9595 5. "Eligible student" means a resident of this state who is
9696 eligible to enroll in a public school in this state. Eligible
9797 student shall include a student who is enrolled in and attends or is
9898 expected to enroll in a private school in this state accredited by
9999 the State Board of Education or another accrediting association or a
100100 student who is educated pursuant to the other means of education
101101 exception provided for in subsection A of Section 10 -105 of this
102102 title;
103103 6. "Qualified expense" for the purpose of claimi ng the credit
104104 authorized by paragraph 1 of subsection C of this section means
105105 tuition and fees at a private school in this state accredited by the
106106 State Board of Education or another accrediting association.
107107 Provided, the amount of tuition and fees consid ered a qualified
108108 expense pursuant to this paragraph shall not include tuition and
109109 fees paid with any scholarship or tuition and fees discounted or
110110 otherwise reduced by the school;
111111 7. "Qualified expense" for the purpose of claiming the credit
112112 authorized by paragraph 2 of subsection C of this section means the
113113 following expenditures:
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140140 a. tuition and fees for nonpublic learning programs,
141141 online or in person,
142142 b. academic tutoring services provided by an individual
143143 or a private academic tutoring facility,
144144 c. textbooks, curriculum, or other instructional
145145 materials including, but not limite d to, supplemental
146146 materials or associated online instruction required by
147147 an education service provider, and
148148 d. fees for nationally standardized assessments
149149 including, but not li mited to, assessments used to
150150 determine college admission and advanced placement
151151 examinations as well as tuition and fees for tutoring
152152 or preparatory courses for the assessments; and
153153 8. "Taxpayer" means a biological or adoptive parent,
154154 grandparent, aunt, uncle, legal guardian, custodian, or other person
155155 with legal authority to act on behalf of an eligible student.
156156 B. There is hereby created the Oklahoma Parental Choice Tax
157157 Credit Program to provide an income tax credit to a taxpayer for
158158 qualified expenses to support the education of eligible students in
159159 this state.
160160 C. For the tax year 2024 and subsequent tax years, and fiscal
161161 year 2026 and subsequent fiscal years, there shall be allowed
162162 against the tax imposed by Section 2355 of Title 68 of the Oklahoma
163163 Statutes a credit for any Oklahoma taxpayer who incurs a qualified
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190190 expense on behalf of an eligible student, to be administered subject
191191 to the following amounts:
192192 1. If the eligible student attends a private school in this
193193 state accredited by the State Boar d of Education or another
194194 accrediting association, the annual maximum credit amount for tax
195195 year 2024, fiscal year 2026, and each subsequent fiscal year shall
196196 be:
197197 a. Seven Thousand Five Hundred Dollars ($7,500.00) or the
198198 amount of tuition and fees for the private school,
199199 whichever is less, if the combined adjusted gross
200200 income of the parents or legal guardians of the
201201 eligible student during the second preceding tax year
202202 does not exceed Seventy -five Thousand Dollars
203203 ($75,000.00),
204204 b. Seven Thousand Dollars ($ 7,000.00) or the amount of
205205 tuition and fees for the private school, whichever is
206206 less, if the combined adjusted gross income of the
207207 parents or legal guardians of the eligible student
208208 during the second preceding tax year is more than
209209 Seventy-five Thousand Dollars ($75,000.00) but does
210210 not exceed One Hundred Fifty Thousand Dollars
211211 ($150,000.00),
212212 c. Six Thousand Five Hundred Dollars ($6,500.00) or the
213213 amount of tuition and fees for the private school,
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240240 whichever is less, if the combined adjusted gross
241241 income of the parents or legal guardians of the
242242 eligible student during the second preceding tax year
243243 is more than One Hundred Fifty Thousand Dollars
244244 ($150,000.00) but does not exceed Two Hundred Twenty -
245245 five Thousand Dollars ($225,000.00),
246246 d. Six Thousand Dollars ( $6,000.00) or the amount of
247247 tuition and fees for the private school, whichever is
248248 less, if the combined adjusted gross income of the
249249 parents or legal guardians of the eligible student
250250 during the second preceding tax year is more than Two
251251 Hundred Twenty-five Thousand Dollars ($225,000.00) but
252252 does not exceed Two Hundred Fifty Thousand Dollars
253253 ($250,000.00), or
254254 e. Five Thousand Dollars ($5,000.00) or the amount of
255255 tuition and fees for the private school, whichever is
256256 less, if the combined adjusted gross incom e of the
257257 parents or legal guardians of the eligible student
258258 during the second preceding tax year is more than Two
259259 Hundred Fifty Thousand Dollars ($250,000.00);
260260 2. For tax year 2024 and subsequent tax years, the maximum
261261 credit amount shall be One Thousand Dollars ($1,000.00) in qualified
262262 expenses per eligible student in each tax year if the eligible
263263 student is educated pursuant to the other means of education
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290290 exception provided for in subsection A of Section 10 -105 of this
291291 title. To claim the credit, the t axpayer shall submit to the
292292 Commission receipts for qualified expenses as defi ned by paragraph 7
293293 of subsection A of this section;
294294 3. If the eligible student attends a private school in this
295295 state, accredited by the State Board of Education or another
296296 accrediting association, that exclusively serves students
297297 experiencing homelessness, the credit amount shall be Seven Thousand
298298 Five Hundred Dollars ($7,500.00) or the amount of the cost to
299299 educate the eligible student at the private school, whichever is
300300 less;
301301 4. If the eligible student attends a private school in this
302302 state, accredited by the State Board of Education or another
303303 accrediting association, that primarily serves financially
304304 disadvantaged students, the credit amount shall be the maximum
305305 credit amount authorized by paragraph 1 of this subsection or the
306306 amount of the cost to educate the eligible student at the private
307307 school, whichever is less. The cost to educate the eligible student
308308 shall be equal to the average cost to educate all students attendin g
309309 the private school, which shall be calculated by dividing the
310310 private school's total expenditures in the previous year by the
311311 total enrollment in the previous school year. A private school
312312 shall be deemed to be primarily serving financially disadvantage d
313313 students if ninety percent (90%) of the private school 's admissions
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340340 are based on enrolling students whose gross family income is two
341341 hundred fifty percent (250%) of the federal poverty threshold or
342342 below;
343343 5. The taxpayer shall retain all receipts of qua lified expenses
344344 as proof of the amounts paid each tax year the credit is claim ed and
345345 shall submit them to the Commission upon request;
346346 6. If the credit exceeds the tax imposed by Section 2355 of
347347 Title 68 of the Oklahoma Statutes, the excess amount shall b e
348348 refunded to the taxpayer; and
349349 7. Credits claimed by a taxpayer pursuant to the provisions of
350350 this section shall not be used to offset or pay the following:
351351 a. delinquent tax liability,
352352 b. accrued penalty or interest from the failure to file a
353353 report or return,
354354 c. accrued penalty or interest from the failure to pay a
355355 state tax within the statutory period allowed for its
356356 payment,
357357 d. tax liability of the taxpayer from any prior tax year,
358358 or
359359 e. any debt, unpaid fine, final judgment, or claim filed
360360 with the Commission by a qualified entity as defined
361361 in Section 205.2 of Title 68 of the Oklahoma Statutes.
362362 D. 1. a. For tax year 2024, the total amount of credits
363363 authorized by paragraph 1 of subsection C of this
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390390 section shall not exceed One Hundred Fifty Million
391391 Dollars ($150,000,000.00).
392392 b. For the period of January 1, 2025, through June 3 0,
393393 2025, the total amount of credits authorized by
394394 paragraph 1 of subsection C of this section shall not
395395 exceed One Hundred Million Dollars ($100,000,000.00).
396396 The Commission shall not require a taxpayer who
397397 received a credit pursuant to paragraph 1 of
398398 subsection C of this section in tax year 2024 to
399399 reapply for a credit payable during the period
400400 described in this subparagraph. The Commission shall
401401 base the credit amount payable for the spring 2025 on
402402 the fall 2024 installment disbursement payment amount.
403403 c. For fiscal year 2026 and subsequent fiscal years, the
404404 total amount of credits authorized by paragraph 1 of
405405 subsection C of this section shall not exceed Two
406406 Hundred Fifty Million Dollars ($250,000,000.00).
407407 2. For tax year 2025 and subsequent tax years, the total amount
408408 of credits authorized by paragraph 2 of subsection C of this section
409409 shall not exceed Five Million Dollars ($5,000,000.00).
410410 E. The Commission shall prescribe a pplications for the purposes
411411 of claiming the credits authorized by the Oklahom a Parental Choice
412412 Tax Credit Act and a deadline by which applications shall be
413413 submitted. A taxpayer claiming the credit authorized by paragraph 1
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440440 of subsection C of this sectio n shall submit an application
441441 prescribed by the Commission to receive the credit in two
442442 installments, each of which shall be half of the expected amount of
443443 tuition and fees for the private school based on the enrollment
444444 verification form submitted pursuant to this subsection, but in no
445445 event shall an installment payment exceed the a mount of the credit
446446 authorized by paragraph 1 of subsection C of this section. If an
447447 eligible taxpayer provides documentation on the application that he
448448 or she is a recipient of income-based government benefits including
449449 the Supplemental Nutrition Assistance Program (SNAP), Temporary
450450 Assistance for Needy Families (TANF), or SoonerCare, the eligible
451451 taxpayer shall not be required to provide additional income
452452 verification. A taxpa yer claiming the credit authorized by
453453 paragraph 1 of subsection C of this sect ion shall submit to the
454454 Commission an enrollment verification form from the private school
455455 in which the eligible student is enrolled or is expected to enroll
456456 with the tuition and fees to be charged the taxpayer for the
457457 applicable school year. In reviewing applications submitted by
458458 eligible taxpayers to determine whether they qualify for a credit
459459 authorized by paragraph 1 of subsection C of this section, the
460460 Commission shall give first preference in making installments to
461461 taxpayers who qualify pursuant to s ubparagraphs a and b of paragraph
462462 1 of subsection C of this section. For credits issued in the 2025 -
463463 2026 school year and subsequent school years, the application period
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490490 shall open on February 15 prior to the beginning of each school
491491 year. For any eligible student whose parents or legal guardians
492492 have a combined adjusted gross income that does not exceed One
493493 Hundred Fifty Thousand Dollars ($150,000.00), applications shall be
494494 submitted to the Commission within the first sixty (60) days of the
495495 opening of the application period to receive priority consideration.
496496 For students enrolled in the full school year, the credit shall be
497497 paid in two installments, one per school semester, to b e paid no
498498 later than August 30 and January 15, each of which shall be half of
499499 the total expected amount of tuition and fees on the enrollment
500500 verification form submitted pursuant to this subsection.
501501 F. In the event there are more applications submitted by
502502 eligible taxpayers for a credit authorized by paragraph 1 of
503503 subsection C of this section than available credits pursuant to
504504 subsection D of this section, then the Commission shall give first
505505 preference in authorizing credits for eligible students of taxp ayers
506506 who qualify pursuant to subparagraphs a and b of paragraph 1 of
507507 subsection C of this section and have received the credit in the
508508 prior year.
509509 G. Taxpayers claiming the credit shall:
510510 1. Only claim the credit for qualified expenses as defined in
511511 paragraphs 6 and 7 of subsection A of this section to provide an
512512 education for an eligible student;
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539539 2. Ensure no other person is claiming a credit for the eligible
540540 student;
541541 3. Not claim the credit for an eligible student who enrolls as
542542 a full-time student in a public school district, public charter
543543 school, public virtual charter school, or magnet school;
544544 4. Comply with rules and requirements established by the
545545 Commission for administration of the Oklahoma Parental Choice Tax
546546 Credit Program; and
547547 5. Notify the Commission not later than thirty (30) days after
548548 the date on which the eligib le student:
549549 a. enrolls in a public school, including an open -
550550 enrollment charter school,
551551 b. enrolls in a nonaccredited private school,
552552 c. graduates from high school, or
553553 d. is no longer utilizing credits authorized by paragraph
554554 1 of subsection C of this section for any reason.
555555 H. Eligible students may accept a scholarship from the Lindsey
556556 Nicole Henry Scholarships for Students with Disabilities Program
557557 created by Section 13 -101.2 of this title while participating in the
558558 Oklahoma Parental Choice Tax Credit Pr ogram.
559559 I. 1. The Commission shall have the authority to conduct an
560560 audit or contract for the auditing of receipts for qualified
561561 expenses submitted pursuant to paragraph 2 of su bsection C of this
562562 section.
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589589 2. The Commission shall be authorized to recapture the credits
590590 otherwise authorized by the provisions of the Oklahoma Parental
591591 Choice Tax Credit Act on a prorated basis if an audit conducted
592592 pursuant to this subsection shows th at the credit was claimed for
593593 expenditures that were not qualified expenses or it finds that the
594594 taxpayer has claimed an eligible student who no longer attends a
595595 private school or has enrolled in a public school in the state.
596596 3. The Commission shall be au thorized to reallocate credits to
597597 the next eligible taxpayer in line when a taxpayer, on behalf of an
598598 eligible student in the program, chooses not to participate, is no
599599 longer eligible to participate, or chooses to forgo participation in
600600 the program for any reason.
601601 4. The Commission shall provide notification of approval status
602602 to applicants within thirty (30) days of closure of the application
603603 window. Notice to applicants with an eligible student, whose
604604 parents or legal guardians have a combined adjusted gross income of
605605 more than One Hundred Fifty Thousand Dollars ($150,000.00), shall be
606606 sent within thirty (30) days or no later than thirty (30) days after
607607 the last day of the priority consideration period.
608608 J. In the event of a failure of revenue pursuant to the
609609 Oklahoma State Finance Act, the tax credits otherwise authorized in
610610 subsection C of this section shall be reduced proportionately to the
611611 reduction in the amount of money appropriated to the State Board of
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638638 Education for the financial support of publi c schools for the fiscal
639639 year in which the failure of revenue occurs.
640640 K. The Commission shall make available on its website to be
641641 updated monthly:
642642 1. The total dollar amount of credits claimed each year , listed
643643 in total and disaggregated by individual pr ivate school and/or
644644 homeschool, pursuant to paragraphs 1 through 4 of subsecti on C of
645645 this section;
646646 2. The By individual private school and/or homeschool, the
647647 amount of credits claimed awarded and number of students awarded
648648 each fiscal year pursuant to pa ragraph 1 of subsection C of this
649649 section disaggregated by income categories;
650650 3. The By individual private school and/or homeschool, the
651651 total amount of credits claimed awarded and number of students
652652 awarded who attended a public school in the semester im mediately
653653 preceding the school year for which the application is made each
654654 year; and
655655 4. The By individual private school and/or homeschool, the
656656 total number of applications denied and total amount of credits the
657657 denied applications represent for each fisc al year;
658658 5. The total amount by category of qualified expenses as listed
659659 in paragraph 7 of subsection A of section 28-101 of this title; and
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686686 6. The total cost for tuition disaggregated by individual
687687 private school and/or homeschool for each school year, beginning
688688 with the 2025-2026 school year and each subsequent school year .
689689 L. Credits received pursuant to the Oklahoma Parental Choice
690690 Tax Credit Act shall not constitute taxable income to a taxpayer who
691691 received the credit on behalf of an eligible studen t.
692692 SECTION 2. This act shall become effective November 1, 2025.
693693
694694 60-1-10254 AO 01/14/25