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ENGROSSED HOUSE
BILL NO. 1760 By: Kerbs of the House
and
Pugh of the Senate
[ revenue – taxation – credit – foundations – cap –
contribution – entities – year – institutions –
definitions – eligibility – rules ]
BE IT ENACTED BY THE PEOPL E OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.206, as
amended by Section 1, Chapter 49, O.S.L. 2022 (68 O.S. Supp. 2022,
Section 2357.206), is amended to read as follows:
Section 2357.206. A. This act shall be known and may be cited
as the "Oklahoma Equal Opportunity Education Scholarship Act".
B. 1. Except as provided in subsection G H of this section,
after August 26, 2011, there shall be allowed a credit for any
taxpayer who makes a contributio n to an eligible scholarship -
granting organization.
The credit shall be equal to fifty percent (50%) of the total
amount of contributions made during a taxable year, not to exceed
One Thousand Dollars ($1,000.00) for single individuals, Two
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Thousand Dollars ($2,000.00) for married individuals filing jointly,
or One Hundred Thousand Dollars ($100,000.00) for any taxpayer which
is a legal business entity including limited and general
partnerships, corporations, subchapter S corporations and limited
liability companies, plus any suspended credits pursuant to
subparagraph d e of paragraph 2 of subsection I J of this section;
provided, if total credits claimed pursuant to this paragraph exceed
the cap amount established pursuant to paragraphs 1 and 2 of
subsection E F of this section, the credit shall be equal to the
taxpayer's proportionate share of the cap for the taxable year, as
determined pursuant to subsection I J of this section.
2. For any taxpayer who makes a contribution to an eligible
scholarship-granting organization and makes a written commitment to
contribute the same amount for an additional year, the credit for
the first year and the additional year shall be equal to seventy -
five percent (75%) of the total amount of the contribution made
during a taxable year, not to exceed the amounts established in
paragraph 1 of this subsection for the taxable year in which the
credit provided in this subsection is claimed. The taxpayer shall
provide evidence of the written commitment to the Oklahoma Tax
Commission at the time of filing the refund claim.
3. The credits authorized pursuant to the provisions of this
subsection shall be allocable to the partners, shareholders,
members, or other equity owners of a taxpayer that is authorized to
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be treated as a partn ership for purposes of federal income tax
reporting for the taxable year for which the tax credits authorized
by this subsection are claimed on the applicable return, together
with required schedules, forms or reports of the partners,
shareholders, members , or other equity owners of the taxpayer. Tax
credits which are allocated to such equity owners shall only be
limited in amount for the income tax return of a natural person or
persons based upon the limitation of the total credit amount to the
entity from which the tax credits have been allocated and shall not
be limited to One Thousand Dollars ($1,000.00) for single
individuals or limited to Two Thousand Dollars ($2,000.00) for
married persons filing a joint return.
4. On or before April 30, 2024, and o nce every two (2) years
thereafter, such scholarship -granting organization and educational
improvement grant organization shall electronically submit to the
Oklahoma Tax Commission, the Governor, President Pro Tempore of the
Oklahoma State Senate, the Speaker of the Oklahoma House of
Representatives, and the chairs and vice chairs of the education
committees of the Senate and House of Representatives an audited
financial statement for the organization along with information
detailing the benefits, successes , or failures of the program, and
make publicly available on its website the financial statement and
information submitted pursuant to this paragraph.
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C. 1. Except as provided in subsection G H of this section,
after August 26, 2011, there shall be allow ed a credit for any
taxpayer who makes a contribution to an eligible educational
improvement grant organization. Except as otherwise provided by
paragraph 2 of this subsection, the credit shall be equal to fifty
percent (50%) of the total amount of contri butions made during a
taxable year, not to exceed One Thousand Dollars ($1,000.00) for
single individuals, Two Thousand Dollars ($2,000.00) for married
individuals filing jointly, or One Hundred Thousand Dollars
($100,000.00) for any taxpayer which is a le gal business entity
including limited and general partnerships, corporations, subchapter
S corporations and limited liability companies, plus any suspended
credits pursuant to subparagraph d e of paragraph 2 of subsection I
J of this section; provided, if total credits claimed pursuant to
this paragraph exceed the cap amount established pursuant to
paragraphs 3 and 4 of subsection E F of this section, the credit
shall be equal to the taxpayer's proportionate share of the cap for
the taxable year, as determi ned pursuant to subsection I J of this
section.
2. For any taxpayer who makes a contribution to an eligible
educational improvement grant organization and makes a written
commitment to contribute the same amount for an additional year, the
credit for the first year and the additional year shall be equal to
seventy-five percent (75%) of the total amount of the contribution
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made during a taxable year, not to exceed the cap amount established
in paragraphs 3 and 4 of subsection E F of this section for the
taxable year in which the credit provided in this paragraph is
claimed; provided, if total credits claimed pursuant to this
paragraph exceed the cap established pursuant to paragraphs 3 and 4
of subsection E F of this section, the credit shall be equal to the
taxpayer's proportionate share of the cap for the taxable year, as
determined pursuant to subsection I J of this section. The taxpayer
shall provide evidence of the written commitment to the Oklahoma Tax
Commission at the time of filing the refund claim.
3. The credits authorized pursuant to the provisions of this
subsection shall be allocable to the partners, shareholders,
members, or other equity owners of a taxpayer that is authorized to
be treated as a partnership for purposes of federal income tax
reporting for the taxable year for which the tax credits authorized
by this subsection are claimed on the applicable return, together
with required schedules, forms, or reports of the partners,
shareholders, members, or other equity owners of the taxpayer. Tax
credits which are allocated to such equity owners shall only be
limited in amount for the income tax return of a natural person or
persons based upon the limitation of the total credit amount to the
entity from which the tax credits have been allocate d and shall not
be limited to One Thousand Dollars ($1,000.00) for single
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individuals or limited to Two Thousand Dollars ($2,000.00) for
married persons filing a joint return.
D. 1. For contributions made on or after January 1, 2022,
there shall be allow ed a credit for any taxpayer who makes a
contribution to an eligible public school foundation or public
school district. Except as otherwise provided by paragraph 2 of
this subsection, the credit shall be equal to fifty percent (50%) of
the total amount of contributions made during a taxable year, not to
exceed One Thousand Dollars ($1,000.00) for single individuals, Two
Thousand Dollars ($2,000.00) for married individuals filing jointly,
or One Hundred Thousand Dollars ($100,000.00) for any taxpayer which
is a legal business entity including limited and general
partnerships, corporations, subchapter S corporations and limited
liability companies; provided, if total credits claimed pursuant to
this paragraph exceed the cap amount established pursuant to
paragraph 4 of subsection E F of this section, the credit shall be
equal to the taxpayer's proportionate share of the cap for the
taxable year, as determined pursuant to subsection I J of this
section.
2. Except as otherwise provided by paragraph 1 of this
subsection, for any taxpayer who makes a contribution to an eligible
public school foundation or public school district and makes a
written commitment to contribute the same amount for an additional
year, the credit for the first year and the additional yea r shall be
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equal to seventy-five percent (75%) of the total amount of the
contribution made during a taxable year, not to exceed the cap
amount established in paragraph 4 of subsection E F of this section
for the taxable year in which the credit provided i n this paragraph
is claimed. The taxpayer shall provide evidence of the written
commitment to the Oklahoma Tax Commission at the time of filing the
refund claim; provided, if total credits claimed pursuant to this
paragraph exceed the cap amount establish ed pursuant to paragraph 4
of subsection E F of this section, the credit shall be equal to the
taxpayer's proportionate share of the cap for the taxable year, as
determined pursuant to subsection I J of this section.
3. The credits authorized pursuant to the provisions of this
subsection shall be allocable to the partners, shareholders,
members, or other equity owners of a taxpayer that is authorized to
be treated as a partnership for purposes of federal income tax
reporting for the taxable year for which the tax credits authorized
by this subsection are claimed on the applicable return, together
with required schedules, forms, or reports of the partners,
shareholders, members, or other equity owners of the taxpayer. Tax
credits which are allocated to such equity owners shall only be
limited in amount for the income tax return of a natural person or
persons based upon the limitation of the total credit amount to the
entity from which the tax credits have been allocated and shall not
be limited to One Thousa nd Dollars ($1,000.00) for single
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individuals or limited to Two Thousand Dollars ($2,000.00) for
married persons filing a joint return.
4. On or before April 30, 2024, and once every four (4) years
thereafter, such eligible public school foundation and pu blic school
district shall submit to the Oklahoma Tax Commission, the Governor,
President Pro Tempore of the Oklahoma State Senate, and the Speaker
of the Oklahoma House of Representatives an audited financial
statement for the organization along with info rmation detailing the
benefits, successes, or failures of the programs.
E. 1. For contributions made on or after January 1, 2026,
there shall be allowed a credit for any taxpayer who makes a
contribution to an eligible higher education institution fund.
Except as otherwise provided by paragraph 2 of this subsection, the
credit shall be equal to fifty percent (50%) of the total amount of
contributions made during a taxable year, not to exceed One Thousand
Dollars ($1,000.00) for single individuals, Two Th ousand Dollars
($2,000.00) for married individuals filing jointly, or One Hundred
Thousand Dollars ($100,000.00) for any taxpayer which is a legal
business entity including limited and general partnerships,
corporations, subchapter S corporations, and limi ted liability
companies; provided, if total credits claimed pursuant to this
paragraph exceed the cap amount established pursuant to paragraph 5
of subsection F of this section, the credit shall be equal to the
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taxpayer's proportionate share of the cap for the taxable year, as
determined pursuant to subsection J of this section.
2. Except as otherwise provided by paragraph 1 of this
subsection, for any taxpayer who makes a contribution to an eligible
higher education institution fund and makes a written co mmitment to
contribute the same amount for an additional year to an eligible
higher education institution fund, the credit for the first year and
the additional year shall be equal to seventy -five percent (75%) of
the total amount of the contribution made during a taxable year, not
to exceed the cap amount established in paragraph 5 of subsection F
of this section for the taxable year in which the credit provided in
this paragraph is claimed. The taxpayer shall provide evidence of
the written commitment to the Oklahoma Tax Commission at the time of
filing the refund claim; provided, if total credits claimed pursuant
to this paragraph exceed the cap amount established pursuant to
paragraph 5 of subsection F of this section, the credit shall be
equal to the taxpayer's proportionate share of the cap for the
taxable year, as determined pursuant to subsection J of this
section.
3. The credits authorized pursuant to the provisions of this
subsection shall be allocable to the partners, shareholders,
members, or other equity owners of a taxpayer that is authorized to
be treated as a partnership for purposes of federal income tax
reporting for the taxable year for which the tax credits authorized
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by this subsection are claimed on the applicable return, together
with required schedules, forms, or reports of the partners,
shareholders, members, or other equity owners of the taxpayer. Tax
credits which are allocated to such equity owners shall only be
limited in amount for the income tax return of a natural person or
persons based upon the limitation of the total credit amount to the
entity from which the tax credits have been allocated and shall not
be limited to One Thousand Dollars ($1,000.00) for single
individuals or limited to Two Thousand Dollars ($2,000.00) for
married persons filing a joint return.
4. On or before April 30, 2028, and once every four (4) years
thereafter, each eligible higher education institution foundation
shall submit to the Oklahoma Tax Commission, the Governor, President
Pro Tempore of the O klahoma State Senate, and the Speaker of the
Oklahoma House of Representatives an audited financial statement for
the foundation along with information detailing the benefits,
successes, or failures of the program.
F. Except as otherwise provided pursuant to subsection I J of
this section:
1. The total credits authorized pursuant to subsection B of
this section for all taxpayers for tax years 2017 through 2021 shall
not exceed Three Million Five Hundred Thousand Dollars
($3,500,000.00) annually;
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2. The total credits authorized pursuant to subsection B of
this section for all taxpayers for tax years 2022 and subsequent tax
years shall not exceed Twenty -five Million Dollars ($25,000,000.00)
annually;
3. The total credits authorized pursuant to subsection C of
this section for all taxpayers for tax years 2017 through 2021 shall
not exceed One Million Five Hundred Thousand Dollars ($1,500,000.00)
annually;
4. The total credits authorized pursuant to subsections C and D
of this section for all taxpayers for t ax year 2022 and subsequent
tax years shall not exceed Twenty -five Million Dollars
($25,000,000.00) annually. In Except as otherwise provided pursuant
to subparagraph c of paragraph 2 of subsection J of this section, in
addition to the cap amount prescrib ed by this paragraph, the credit
amount shall also be limited to Two Hundred Thousand Dollars
($200,000.00) of credits per public school district annually; and
5. The total credits authorized pursuant to subsection E of
this section for all taxpayers for tax year 2026 and subsequent tax
years shall not exceed Twenty -five Million Dollars ($25,000,000.00)
annually. The cap amount set forth by this paragraph shall be
independent of the cap amounts set forth in paragraphs 1 through 4
of this subsection and sh all not be construed in any way to limit,
reduce, or otherwise impact the cap amounts set forth in paragraphs
1 through 4 of this subsection. Except as otherwise provided
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pursuant to subparagraph d of paragraph 2 of subsection J of this
section, in addition to the cap amount prescribed by this paragraph,
the credit amount shall also be limited to Seven Million Five
Hundred Thousand Dollars ($7,500,000.00) of credits per public
higher education institution annually; and
6. The cap on total credits provided for in this subsection
shall be allocated by the Tax Commission as provided in subsection I
J of this section.
F. G. 1. For credits claimed for eligible contributions made
during tax year 2014 and thereafter, a credit shall not be allowed
by the Oklahoma Tax Commission for contributions made to a
scholarship-granting organization or an educational improvement
grant organization if that organization's percentage of funds
actually awarded to an eligible student is less than ninety percent
(90%). For purposes of this section, the "percentage of funds
actually awarded to an eligible student " shall be determined by
dividing the total amount of funds actually awarded as educational
scholarships or educational improvement grants over the most recent
twenty-four (24) months by the total amount available to award as
educational scholarships or educational improvement grants over the
most recent twenty-four (24) months.
2. For credits claimed for eligible contributions made during
tax year 2026 and thereafter, a c redit shall not be allowed by the
Oklahoma Tax Commission for contributions made to an eligible higher
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education institution foundation if that foundation's percentage of
funds actually awarded to eligible public higher education
institution students is le ss than ninety percent (90%). For
purposes of this section, the "percentage of funds actually awarded
to eligible public higher education institution students" shall be
determined by dividing the total amount of funds actually awarded
for scholarships for eligible public higher education institution
students to cover all or part of the tuition and fees for
undergraduate courses at a public higher education institution over
the most recent twenty -four (24) months by the total amount of
scholarships for elig ible public higher education institution
students to cover all or part of the tuition and fees for
undergraduate courses at a public higher education institution
available to award over the most recent twenty -four (24) months.
G. H. Any tax credits which are earned by a taxpayer pursuant
to this section during the time period beginning August 26, 2011,
through December 31, 2012, may not be claimed for any period prior
to the taxable year beginning January 1, 2013. No credits which
accrue during the time p eriod beginning August 26, 2011, through
December 31, 2012, may be used to file an amended tax return for any
taxable year prior to the taxable year beginning January 1, 2013.
H. I. As used in this section:
1. "Eligible student" means a child of school a ge who is
lawfully present in the United States and who is a member of a
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household in which the total annual income during the preceding tax
year does not exceed an amount equal to three hundred percent (300%)
of the income standard used to qualify for a f ree or reduced-price
school lunch or who, during the immediately preceding school year,
attended or, by virtue of the location of such student's place of
residence, was eligible to attend a public school in this state
which has been identified for school i mprovement as determined by
the State Board of Education pursuant to the requirements of the No
Child Left Behind Act of 2001, P.L. No. 107 -110. Once a student has
received an educational scholarship, as defined in paragraph 3 of
this subsection, the stud ent and any siblings who are members of the
same household shall remain eligible until they graduate from high
school or reach twenty -one (21) years of age, whichever occurs
first;
2. "Eligible special needs student" means a child who has been
provided services under an Individualized Family Service Plan
through the SoonerStart program and during transition was evaluated
and determined to be eligible for school district services, a child
of school age who has attended public school in our state with an
individualized education program pursuant to the Individuals With
Disabilities Education Act, 20 U.S.C.A., Section 1400 et seq., or a
child who has been diagnosed by a clinical professional as having a
significant disability that will affect learning and who has been
approved by the board of a scholarship -granting organization;
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3. "Educational scholarships" means:
a. scholarships to an eligible student of up to Five
Thousand Dollars ($5,000.00) or eighty percent (80%)
of the statewide annual average per -pupil expenditure
as determined by the National Center for Education
Statistics, U.S. Department of Education, whichever is
greater, to cover all or part of the tuition, fees,
and transportation costs of a qualified school which
is accredited by the State Board of Education or an
accrediting association approved by the Board pursuant
to Section 3-104 of Title 70 of the Oklahoma Statutes,
b. scholarships to an eligible student of up to Five
Thousand Dollars ($5,000.00) or eighty percent (80%)
of the statewide ann ual average per-pupil expenditure
as determined by the National Center for Education
Statistics, U.S. Department of Education, whichever is
greater, to cover the educational costs of a qualified
school which does not charge tuition, which enrolls
special populations of students, and which is
accredited by the State Board of Education or an
accrediting association approved by the Board pursuant
to Section 3-104 of Title 70 of the Oklahoma Statutes,
or
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c. scholarships to an eligible special needs student of
up to Twenty-five Thousand Dollars ($25,000.00) to
cover all or part of the tuition, fees, and
transportation costs of a qualified school for
eligible special needs students which is accredited by
the State Board of Education or an accrediting
association approved by the Board pursuant to Section
3-104 of Title 70 of the Oklahoma Statutes ;
4. "Low-income eligible student" means an eligible student or
eligible special needs student who qualifies for a free or reduced -
price lunch;
5. "Qualified school" means an early childhood, elementary, or
secondary private school in this state including schools which
provide special educational programs for three -year-olds or
prekindergarten educational programs for four -year-olds, which:
a. is accredited by the State Boa rd of Education or an
accrediting association approved by the Board pursuant
to Section 3-104 of Title 70 of the Oklahoma Statutes,
b. is in compliance with all applicable health and safety
laws and codes,
c. has a stated policy against discrimination in
admissions on the basis of race, color, national
origin, or disability, and
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d. ensures academic accountability to parents and
guardians of students through regular progress
reports;
6. "Qualified school for eligible special needs students" means
an early childhood, elementary, or secondary private school in a
county in this state including schools which provide special
educational programs for three -year-olds or prekindergarten
educational programs for four -year-olds;
7. "Scholarship-granting organization" means an organization
which:
a. is a nonprofit entity exempt from taxation pursuant to
the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3),
b. distributes periodic scholarship payments as checks
made out to an eligible student's or e ligible special
needs student's parent or guardian and mailed to the
qualified school where the student is enrolled,
c. spends no more than ten percent (10%) of its annual
revenue on expenditures other than educational
scholarships as defined in paragraph 3 of this
subsection,
d. spends each year a portion of its expenditures on
educational scholarships for low -income eligible
students, as defined in paragraph 4 of this
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subsection, in an amount equal to or greater than the
percentage of low-income eligible students in the
state,
e. ensures that scholarships are portable during the
school year and can be used at any qualified school
that accepts the eligible student or at any qualified
school for special needs students that accepts the
eligible special needs student,
f. registers with the Oklahoma Tax Commission as a
scholarship-granting organization, and
g. has policies in place to:
(1) carry out criminal background checks on all
employees and board members to ensure that no
individual is involved with the or ganization who
might reasonably pose a risk to the appropriate
use of contributed funds, and
(2) maintain full and accurate records with respect
to the receipt of contributions and expenditures
of those contributions and supply such records
and any other documentation required by the Tax
Commission to demonstrate financial
accountability;
8. "Annual revenue" means the total amount or value of
contributions received by an organization from taxpayers awarded
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credits during the organization's fiscal year and all amounts earned
from interest or investments;
9. "Public school" means public schools as defined in Section
1-106 of Title 70 of the Oklahoma Statutes;
10. "Eligible public school district" means any public school;
11. "Early childhood education prog ram" means a special
educational program for eligible special needs students who are
three (3) years of age or a prekindergarten educational program
provided to children who are at least four (4) years of age but not
more than five (5) years of age on or b efore September 1;
12. "Innovative educational program" means an advanced academic
or academic improvement program that is not part of the regular
coursework of a public school but that enhances the curriculum or
academic program of the school or provides early childhood education
programs to students;
13. "Educational improvement grant" means a grant to an
eligible public school to implement an innovative educational
program for students including the ability for multiple public
schools to make an applic ation and be awarded a grant to jointly
provide an innovative educational program;
14. "Educational improvement grant organization" means an
organization which:
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a. is a nonprofit entity exempt from taxation pursuant to
the provisions of the Internal Reven ue Code, 26
U.S.C., Section 501(c)(3), and
b. contributes at least ninety percent (90%) of its
annual receipts as grants to eligible schools for
innovative educational programs. For purposes of this
subparagraph, an educational improvement grant
organization contributes its annual cash receipts when
it expends or otherwise irrevocably encumbers those
funds for expenditure during the then current fiscal
year of the organization or during the next succeeding
fiscal year of the organization; and
15. "Eligible public school foundation" means a nonprofit
entity formed pursuant to the laws of this state and is exempt from
federal income taxation pursuant to either Section 501(c)(3) or
Section 509(a) of the Internal Revenue Code of 1986, as amended.
Each public school foundation must shall be approved by the local
board of education prior to accepting qualifying donations ;
16. "Eligible public higher education institution student"
means a student who receives a scholarship from an eligible higher
education institution fund;
17. "Eligible higher education institution foundation" means a
nonprofit entity formed pursuant to the laws of this state that is
exempt from federal income taxation pursuant to either Section
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501(c)(3) or Section 509(a) of the Internal Reven ue Code of 1986, as
amended, and is formed for the primary purpose of supporting a
public higher education institution. Each eligible higher education
institution foundation shall be approved by the governing board of
the public higher education instituti on prior to accepting
qualifying donations;
18. "Eligible higher education institution fund" means a
scholarship fund established at a public higher education
institution that is restricted for the sole purpose of awarding
scholarships to a student enroll ed at such institution, who meets
the total annual income limitations set forth in paragraph 1 of
subsection I of this section; and
19. "Public higher education institution" means an institution
authorized by the Oklahoma State Regents for Higher Educatio n.
I. J. Total credits authorized by this section shall be
allocated as follows:
1. By January 10 31 of the year immediately following each
calendar year, a scholarship -granting organization, an educational
improvement grant organization, an eligible pub lic school
foundation, or a public school district , or an eligible higher
education institution foundation which accepts contributions
pursuant to this section shall provide electronically to the Tax
Commission information on each eligible contribution accepted during
such taxable year. At least once each taxable year, the entity
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making the report shall notify each contributor that Oklahoma law
provides for a total, statewide cap on the amount of income tax
credits allowed annually;
2. a. If the Tax Commission determines the total combined
credits claimed for contributions made to scholarship -
granting organizations during the most recently
completed calendar year by all taxpayers are in excess
of the statewide cap amount provided in paragraphs 1
and 2 of subsection E F of this section, the Tax
Commission shall first allocate any amount of credits
not claimed for contributions made to organizations
authorized pursuant to subsections C and D of this
section, then shall determine the percentage of the
contribution which establishes the proportionate share
of the credit which may be claimed by any taxpayer so
that the total maximum credits authorized by this
section are not exceeded.
b. If the Tax Commission determines the total combined
credits claimed for contr ibutions made to
organizations authorized pursuant to subsections C and
D of this section during the most recently completed
calendar year by all taxpayers are in excess of the
statewide cap amount provided in paragraphs 3 and 4 of
subsection E F of this section, the Tax Commission
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shall first allocate any amount of credits not claimed
for contributions made to scholarship -granting
organizations, then shall determine the percentage of
the contribution which establishes the proportionate
share of the credit which may be claimed by any
taxpayer so that the maximum credits authorized by
this section are not exceeded.
c. If the Tax Commission determines the total combined
credits claimed for contributions made to
organizations authorized pursuant to subsections C and
D of this section during the most recently completed
calendar year by all taxpayers are in excess of the
per public school district cap of Two Hundred Thousand
Dollars ($200,000.00) pursuant to paragraph 4 of
subsection E F of this section, the Tax C ommission
shall first allocate any amount of credits not claimed
for contributions made to other organizations
authorized pursuant to subsections C and D of this
section, then shall determine the percentage of the
contribution which establishes the proport ionate share
of the credit which may be claimed by any taxpayer so
that the maximum credits authorized by this section
are not exceeded.
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d. If the Tax Commission determines the total combined
credits claimed for contributions made to
organizations authoriz ed pursuant to subsection E of
this section during the most recently completed
calendar year by all taxpayers are in excess of the
per public higher education institution cap of Seven
Million Five Hundred Thousand Dollars ($7,500,000.00)
pursuant to paragraph 5 of subsection F of this
section, the Tax Commission shall first allocate any
amount of credits not claimed for contributions made
to other organizations authorized pursuant to
subsection E of this section, then shall determine the
percentage of the contribution which establishes the
proportionate share of the credit which may be claimed
by any taxpayer so that the maximum credits authorized
by this section are not exceeded.
e. Beginning for tax year 2016, credits earned, but not
allowed due to the app lication of statewide caps
provided in subsection E F of this section will be
considered suspended and authorized to be used in the
next immediate tax year and applied to the next year's
statewide cap; and
3. The Tax Commission shall publish the percentag e of the
contribution which may be claimed as a credit by contributors for
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the most recently completed calendar year on the Tax Commission
website no later than February 15 of each calendar year for
contributions made the previous year. Each organization authorized
pursuant to subsections B, C, and D, and E of this section shall
notify contributors of that amount annually.
J. K. No tax credits authorized by this section shall be used
to reduce the tax liability of the taxpayer to less than zero (0).
K. L. Any credits authorized by this section allowed but not
used in any tax year may be carried over, in order, to each of the
three (3) years following the year of qualification.
L. M. 1. In order to qualify under this section, each
organization authorized pursuant to subsections C and D of this
section shall submit an application with information to the Oklahoma
Tax Commission on a form prescribed by the Tax Commission that:
a. enables the Tax Commission to confirm that the
organization is a nonprofit enti ty exempt from
taxation pursuant to the provisions of the Internal
Revenue Code, 26 U.S.C., Section 501(c)(3) or Section
509(a), and
b. describes the proposed innovative educational program
or programs supported by the organization.
2. The Tax Commission shall review and approve or disapprove
the application, in consultation with the State Department of
Education.
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3. In order to maintain eligibility under this section, an
organization authorized pursuant to subsections C and D of this
section shall annual ly report the following information to the Tax
Commission and publish on its website by September 1 of each year:
a. the name of the innovative educational program or
programs and the total amount of the grant or grants
made to those programs during the im mediately
preceding school year,
b. a description of how each grant was utilized during
the immediately preceding school year and a
description of any demonstrated or expected innovative
educational improvements,
c. the names of the public school and schoo l districts
where innovative educational programs that received
grants during the immediately preceding school year
were implemented,
d. where the organization collects information on a
county-by-county basis, and
e. the total number and total amount of gr ants made
during the immediately preceding school year for
innovative educational programs at public school by
each county in which the organization made grants.
4. In order to maintain eligibility under this section, an
organization authorized pursuant t o subsection E of this section
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shall annually report the following information to the Tax
Commission and publish on its website by September 1 of each year:
a. the name of the eligible public higher education fund
and the total amount of funds distributed by the
foundation from such fund during the immediately
preceding school year,
b. a description of how the scholarship funds were
utilized during the immediately preceding school year,
and
c. the total number and total amount of such scholarships
granted during the immediately preceding school year.
5. The information required under paragraph paragraphs 3 and 4
of this subsection shall be submitted on a form provided by the Tax
Commission. No later than May 1 of each year, the Tax Commission
shall annually distribute sample forms together with the forms on
which the reports are required to be made to each approved
organization.
5. 6. The Tax Commission shall not require any other
information be provided by an organization, except as expressly
authorized in this section.
M. N. 1. Beginning in 2023 for the 2022 -2023 academic year, in
order to maintain registration, a scholarship -granting organization
shall annually report to the Tax Commission by September 1 of each
year the following information regarding the educational
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scholarships funded by the organization in the previous academic
year:
a. the name and address of the scholarship -granting
organization,
b. the names of the qualifying schools that received
funding for educational scholarships, the total a mount
of funds paid to each qualifying school, and the total
number of scholarship recipients enrolled in each
qualifying school,
c. the total number and total dollar amount of
contributions received during the previous academic
year,
d. the total number and total dollar amount of
educational scholarships awarded and funded during the
previous academic year,
e. the total number, total dollar amount, and percentage
of educational scholarships awarded and funded during
the previous academic year disaggregated into the
following categories:
(1) low-income eligible students,
(2) students who during the immediately preceding
school year attended or who were eligible by
virtue of the residence of the student to attend
a public school in the state which was identif ied
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for school improvement by the State Board of
Education,
(3) eligible special needs students, and
(4) students who were first -time recipients of a
scholarship including information about the type
of public or private school the student was
enrolled in during the entire previous academic
year,
f. the percentage of annual revenue received by the
organization from donations which qualify for tax
credits pursuant to this section which was not
expended on scholarships,
g. disaggregated data reported under thi s subsection
shall be redacted if reporting would allow for
identification of specific children, and shall be
reported in accordance with the Student Data
Accessibility, Transparency and Accountability Act of
2013, division subparagraph b of subparagraph
paragraph 2 of subsection C of Section 3 -168 of Title
70 of the Oklahoma Statutes, and the Family
Educational Rights and Privacy Act of 1974 (FERPA), 20
U.S.C., Section 1232g, and
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h. the percentage of the total amount of education
scholarship expenditures s pent on low-income eligible
students.
2. The Tax Commission shall make available on its website:
a. the information submitted by the scholarship -granting
organization pursuant to paragraph 1 of this
subsection,
b. a list of participating schools, and
c. all other application information submitted to the Tax
Commission by a scholarship -granting organization,
except that information which would violate the
privacy of an individual.
3. A scholarship-granting organization shall annually submit
verification to the Tax Commission that the organization still meets
the criteria set forth in paragraph 7 of subsection H I of this
section.
N. O. Contributions made pursuant to subsections B, C, and D of
this section shall not be used by the Legislature to reduce the
amount appropriated for the financial support of public schools.
Contributions made pursuant to subsection E of this section shall
not be used by the Legislature to reduce the amount appropriated for
the financial support of public higher education instit utions.
O. P. In consultation with the State Department of Education
and the Oklahoma State Regents for Higher Education , the Tax
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Commission shall promulgate rules necessary to implement the
Oklahoma Equal Opportunity Education Scholarship Act. The rules
shall include procedures for the registration of a scholarship -
granting organization, an educational improvement grant
organization, a public school foundation, or public school district ,
or eligible higher education institution foundation for purposes of
determining if the organization meets the requirements of the
Oklahoma Equal Opportunity Education Scholarship Act or for the
revocation of the registration of an organization, if applicable,
and for notice as required in subsection I J of this section.
Passed the House of Representatives the 27th day of March, 2025.
Presiding Officer of the House
of Representatives
Passed the Senate the ____ day of __________, 2025.
Presiding Officer of the Senate