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Oklahoma Legislature· HB 1469Referred to Common Education

An act relating to schools, the official text

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1                    STATE OF OKLAHOMA

2            1st Session of the 60th Legislature (2025)

3 HOUSE BILL 1469               By: Blancett

4

5

6                    AS INTRODUCED

7   An Act relating to schools; amending Section 2,

    Chapter 278, O.S.L. 2023, as amended by Section 3,

8   Chapter 277, O.S.L. 2024 (70 O.S. Supp. 2024, Section

    28-101), which relates to the Oklahoma Parental

9   Choice Tax Credit Act; modifying website requirements

    for the Oklahoma Tax Commission; and providing an

10  effective date.

11

12

13

14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

15  SECTION 1.      AMENDATORY  Section 2, Chapter 278, O.S.L.

16 2023, as amended by Section 3, Chapter 277, O.S.L. 2024 (70 O.S.

17 Supp. 2024, Section 28-101), is amended to read as follows:

18 Section 28-101. Definitions -- Oklahoma Parental Choice Tax Credit

19 Program.

20  A. As used in the Oklahoma Parental Choice Tax Credit Act:

21  1. "Commission" means the Oklahoma Tax Commission;

22  2. "Curriculum" means a complete course of study for a

23 particular content area or grade level;

24  3. "Department" means the State Department of Education;

    Req. No. 10254                                              Page 1
1   4. "Education service provider" means a person, business,

2 public school district, public charter school, magnet school, or

3 organization that provides educational goods and/or services to

4 eligible students in this state;

5   5. "Eligible student" means a resident of this state who is

6 eligible to enroll in a public school in this state. Eligible

7 student shall include a student who is enrolled in and attends or is

8 expected to enroll in a private school in this state accredited by

9 the State Board of Education or another accrediting association or a

10 student who is educated pursuant to the other means of education

11 exception provided for in subsection A of Section 10-105 of this

12 title;

13  6. "Qualified expense" for the purpose of claiming the credit

14 authorized by paragraph 1 of subsection C of this section means

15 tuition and fees at a private school in this state accredited by the

16 State Board of Education or another accrediting association.

17 Provided, the amount of tuition and fees considered a qualified

18 expense pursuant to this paragraph shall not include tuition and

19 fees paid with any scholarship or tuition and fees discounted or

20 otherwise reduced by the school;

21  7. "Qualified expense" for the purpose of claiming the credit

22 authorized by paragraph 2 of subsection C of this section means the

23 following expenditures:

24

    Req. No. 10254                                                  Page 2
1   a. tuition and fees for nonpublic learning programs,

2               online or in person,

3   b. academic tutoring services provided by an individual

4               or a private academic tutoring facility,

5   c. textbooks, curriculum, or other instructional

6               materials including, but not limited to, supplemental

7               materials or associated online instruction required by

8               an education service provider, and

9   d. fees for nationally standardized assessments

10              including, but not limited to, assessments used to

11              determine college admission and advanced placement

12              examinations as well as tuition and fees for tutoring

13              or preparatory courses for the assessments; and

14  8. "Taxpayer" means a biological or adoptive parent,

15 grandparent, aunt, uncle, legal guardian, custodian, or other person

16 with legal authority to act on behalf of an eligible student.

17  B. There is hereby created the Oklahoma Parental Choice Tax

18 Credit Program to provide an income tax credit to a taxpayer for

19 qualified expenses to support the education of eligible students in

20 this state.

21  C. For the tax year 2024 and subsequent tax years, and fiscal

22 year 2026 and subsequent fiscal years, there shall be allowed

23 against the tax imposed by Section 2355 of Title 68 of the Oklahoma

24 Statutes a credit for any Oklahoma taxpayer who incurs a qualified

    Req. No. 10254                                                Page 3
1 expense on behalf of an eligible student, to be administered subject

2 to the following amounts:

3      1. If the eligible student attends a private school in this

4 state accredited by the State Board of Education or another

5 accrediting association, the annual maximum credit amount for tax

6 year 2024, fiscal year 2026, and each subsequent fiscal year shall

7 be:

8      a. Seven Thousand Five Hundred Dollars ($7,500.00) or the

9      amount of tuition and fees for the private school,

10     whichever is less, if the combined adjusted gross

11     income of the parents or legal guardians of the

12     eligible student during the second preceding tax year

13     does not exceed Seventy-five Thousand Dollars

14     ($75,000.00),

15     b. Seven Thousand Dollars ($7,000.00) or the amount of

16     tuition and fees for the private school, whichever is

17     less, if the combined adjusted gross income of the

18     parents or legal guardians of the eligible student

19     during the second preceding tax year is more than

20     Seventy-five Thousand Dollars ($75,000.00) but does

21     not exceed One Hundred Fifty Thousand Dollars

22     ($150,000.00),

23     c. Six Thousand Five Hundred Dollars ($6,500.00) or the

24     amount of tuition and fees for the private school,

    Req. No. 10254                                             Page 4
1   whichever is less, if the combined adjusted gross

2   income of the parents or legal guardians of the

3   eligible student during the second preceding tax year

4   is more than One Hundred Fifty Thousand Dollars

5   ($150,000.00) but does not exceed Two Hundred Twenty-

6   five Thousand Dollars ($225,000.00),

7   d. Six Thousand Dollars ($6,000.00) or the amount of

8   tuition and fees for the private school, whichever is

9   less, if the combined adjusted gross income of the

10  parents or legal guardians of the eligible student

11  during the second preceding tax year is more than Two

12  Hundred Twenty-five Thousand Dollars ($225,000.00) but

13  does not exceed Two Hundred Fifty Thousand Dollars

14  ($250,000.00), or

15  e. Five Thousand Dollars ($5,000.00) or the amount of

16  tuition and fees for the private school, whichever is

17  less, if the combined adjusted gross income of the

18  parents or legal guardians of the eligible student

19  during the second preceding tax year is more than Two

20  Hundred Fifty Thousand Dollars ($250,000.00);

21  2. For tax year 2024 and subsequent tax years, the maximum

22 credit amount shall be One Thousand Dollars ($1,000.00) in qualified

23 expenses per eligible student in each tax year if the eligible

24 student is educated pursuant to the other means of education

    Req. No. 10254                                                 Page 5
1 exception provided for in subsection A of Section 10-105 of this

2 title. To claim the credit, the taxpayer shall submit to the

3 Commission receipts for qualified expenses as defined by paragraph 7

4 of subsection A of this section;

5   3. If the eligible student attends a private school in this

6 state, accredited by the State Board of Education or another

7 accrediting association, that exclusively serves students

8 experiencing homelessness, the credit amount shall be Seven Thousand

9 Five Hundred Dollars ($7,500.00) or the amount of the cost to

10 educate the eligible student at the private school, whichever is

11 less;

12  4. If the eligible student attends a private school in this

13 state, accredited by the State Board of Education or another

14 accrediting association, that primarily serves financially

15 disadvantaged students, the credit amount shall be the maximum

16 credit amount authorized by paragraph 1 of this subsection or the

17 amount of the cost to educate the eligible student at the private

18 school, whichever is less. The cost to educate the eligible student

19 shall be equal to the average cost to educate all students attending

20 the private school, which shall be calculated by dividing the

21 private school's total expenditures in the previous year by the

22 total enrollment in the previous school year. A private school

23 shall be deemed to be primarily serving financially disadvantaged

24 students if ninety percent (90%) of the private school's admissions

    Req. No. 10254                                                  Page 6
1 are based on enrolling students whose gross family income is two

2 hundred fifty percent (250%) of the federal poverty threshold or

3 below;

4   5. The taxpayer shall retain all receipts of qualified expenses

5 as proof of the amounts paid each tax year the credit is claimed and

6 shall submit them to the Commission upon request;

7   6. If the credit exceeds the tax imposed by Section 2355 of

8 Title 68 of the Oklahoma Statutes, the excess amount shall be

9 refunded to the taxpayer; and

10  7. Credits claimed by a taxpayer pursuant to the provisions of

11 this section shall not be used to offset or pay the following:

12        a. delinquent tax liability,

13        b. accrued penalty or interest from the failure to file a

14        report or return,

15        c. accrued penalty or interest from the failure to pay a

16        state tax within the statutory period allowed for its

17        payment,

18        d. tax liability of the taxpayer from any prior tax year,

19        or

20        e. any debt, unpaid fine, final judgment, or claim filed

21        with the Commission by a qualified entity as defined

22        in Section 205.2 of Title 68 of the Oklahoma Statutes.

23  D. 1. a. For tax year 2024, the total amount of credits

24        authorized by paragraph 1 of subsection C of this

    Req. No. 10254                                                 Page 7
1   section shall not exceed One Hundred Fifty Million

2   Dollars ($150,000,000.00).

3   b. For the period of January 1, 2025, through June 30,

4   2025, the total amount of credits authorized by

5   paragraph 1 of subsection C of this section shall not

6   exceed One Hundred Million Dollars ($100,000,000.00).

7   The Commission shall not require a taxpayer who

8   received a credit pursuant to paragraph 1 of

9   subsection C of this section in tax year 2024 to

10  reapply for a credit payable during the period

11  described in this subparagraph. The Commission shall

12  base the credit amount payable for the spring 2025 on

13  the fall 2024 installment disbursement payment amount.

14  c. For fiscal year 2026 and subsequent fiscal years, the

15  total amount of credits authorized by paragraph 1 of

16  subsection C of this section shall not exceed Two

17  Hundred Fifty Million Dollars ($250,000,000.00).

18  2. For tax year 2025 and subsequent tax years, the total amount

19 of credits authorized by paragraph 2 of subsection C of this section

20 shall not exceed Five Million Dollars ($5,000,000.00).

21  E. The Commission shall prescribe applications for the purposes

22 of claiming the credits authorized by the Oklahoma Parental Choice

23 Tax Credit Act and a deadline by which applications shall be

24 submitted. A taxpayer claiming the credit authorized by paragraph 1

    Req. No. 10254                                               Page 8
 1 of subsection C of this section shall submit an application
 2 prescribed by the Commission to receive the credit in two
 3 installments, each of which shall be half of the expected amount of
 4 tuition and fees for the private school based on the enrollment
 5 verification form submitted pursuant to this subsection, but in no
 6 event shall an installment payment exceed the amount of the credit
 7 authorized by paragraph 1 of subsection C of this section. If an
 8 eligible taxpayer provides documentation on the application that he
 9 or she is a recipient of income-based government benefits including
10 the Supplemental Nutrition Assistance Program (SNAP), Temporary
11 Assistance for Needy Families (TANF), or SoonerCare, the eligible
12 taxpayer shall not be required to provide additional income
13 verification. A taxpayer claiming the credit authorized by
14 paragraph 1 of subsection C of this section shall submit to the
15 Commission an enrollment verification form from the private school
16 in which the eligible student is enrolled or is expected to enroll
17 with the tuition and fees to be charged the taxpayer for the
18 applicable school year. In reviewing applications submitted by
19 eligible taxpayers to determine whether they qualify for a credit
20 authorized by paragraph 1 of subsection C of this section, the
21 Commission shall give first preference in making installments to
22 taxpayers who qualify pursuant to subparagraphs a and b of paragraph
23 1 of subsection C of this section. For credits issued in the 2025-
24 2026 school year and subsequent school years, the application period

Req. No. 10254  Page 9
1 shall open on February 15 prior to the beginning of each school

2 year. For any eligible student whose parents or legal guardians

3 have a combined adjusted gross income that does not exceed One

4 Hundred Fifty Thousand Dollars ($150,000.00), applications shall be

5 submitted to the Commission within the first sixty (60) days of the

6 opening of the application period to receive priority consideration.

7 For students enrolled in the full school year, the credit shall be

8 paid in two installments, one per school semester, to be paid no

9 later than August 30 and January 15, each of which shall be half of

10 the total expected amount of tuition and fees on the enrollment

11 verification form submitted pursuant to this subsection.

12  F. In the event there are more applications submitted by

13 eligible taxpayers for a credit authorized by paragraph 1 of

14 subsection C of this section than available credits pursuant to

15 subsection D of this section, then the Commission shall give first

16 preference in authorizing credits for eligible students of taxpayers

17 who qualify pursuant to subparagraphs a and b of paragraph 1 of

18 subsection C of this section and have received the credit in the

19 prior year.

20  G. Taxpayers claiming the credit shall:

21  1. Only claim the credit for qualified expenses as defined in

22 paragraphs 6 and 7 of subsection A of this section to provide an

23 education for an eligible student;

24

    Req. No. 10254                                                Page 10
1   2. Ensure no other person is claiming a credit for the eligible

2 student;

3   3. Not claim the credit for an eligible student who enrolls as

4 a full-time student in a public school district, public charter

5 school, public virtual charter school, or magnet school;

6   4. Comply with rules and requirements established by the

7 Commission for administration of the Oklahoma Parental Choice Tax

8 Credit Program; and

9   5. Notify the Commission not later than thirty (30) days after

10 the date on which the eligible student:

11           a. enrolls in a public school, including an open-

12           enrollment charter school,

13           b. enrolls in a nonaccredited private school,

14           c. graduates from high school, or

15           d. is no longer utilizing credits authorized by paragraph

16           1 of subsection C of this section for any reason.

17  H. Eligible students may accept a scholarship from the Lindsey

18 Nicole Henry Scholarships for Students with Disabilities Program

19 created by Section 13-101.2 of this title while participating in the

20 Oklahoma Parental Choice Tax Credit Program.

21  I. 1. The Commission shall have the authority to conduct an

22 audit or contract for the auditing of receipts for qualified

23 expenses submitted pursuant to paragraph 2 of subsection C of this

24 section.

    Req. No. 10254                                               Page 11
1   2. The Commission shall be authorized to recapture the credits

2 otherwise authorized by the provisions of the Oklahoma Parental

3 Choice Tax Credit Act on a prorated basis if an audit conducted

4 pursuant to this subsection shows that the credit was claimed for

5 expenditures that were not qualified expenses or it finds that the

6 taxpayer has claimed an eligible student who no longer attends a

7 private school or has enrolled in a public school in the state.

8   3. The Commission shall be authorized to reallocate credits to

9 the next eligible taxpayer in line when a taxpayer, on behalf of an

10 eligible student in the program, chooses not to participate, is no

11 longer eligible to participate, or chooses to forgo participation in

12 the program for any reason.

13  4. The Commission shall provide notification of approval status

14 to applicants within thirty (30) days of closure of the application

15 window. Notice to applicants with an eligible student, whose

16 parents or legal guardians have a combined adjusted gross income of

17 more than One Hundred Fifty Thousand Dollars ($150,000.00), shall be

18 sent within thirty (30) days or no later than thirty (30) days after

19 the last day of the priority consideration period.

20  J. In the event of a failure of revenue pursuant to the

21 Oklahoma State Finance Act, the tax credits otherwise authorized in

22 subsection C of this section shall be reduced proportionately to the

23 reduction in the amount of money appropriated to the State Board of

24

    Req. No. 10254                                               Page 12
1 Education for the financial support of public schools for the fiscal

2 year in which the failure of revenue occurs.

3   K. The Commission shall make available on its website to be

4 updated monthly:

5   1. The total dollar amount of credits claimed each year, listed

6 in total and disaggregated by individual private school and/or

7 homeschool, pursuant to paragraphs 1 through 4 of subsection C of

8 this section;

9   2. The By individual private school and/or homeschool, the

10 amount of credits claimed awarded and number of students awarded

11 each fiscal year pursuant to paragraph 1 of subsection C of this

12 section disaggregated by income categories;

13  3. The By individual private school and/or homeschool, the

14 total amount of credits claimed awarded and number of students

15 awarded who attended a public school in the semester immediately

16 preceding the school year for which the application is made each

17 year; and

18  4. The By individual private school and/or homeschool, the

19 total number of applications denied and total amount of credits the

20 denied applications represent for each fiscal year;

21  5. The total amount by category of qualified expenses as listed

22 in paragraph 7 of subsection A of section 28-101 of this title; and

23

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    Req. No. 10254                                                 Page 13
1   6. The total cost for tuition disaggregated by individual

2 private school and/or homeschool for each school year, beginning

3 with the 2025-2026 school year and each subsequent school year.

4   L. Credits received pursuant to the Oklahoma Parental Choice

5 Tax Credit Act shall not constitute taxable income to a taxpayer who

6 received the credit on behalf of an eligible student.

7   SECTION 2. This act shall become effective November 1, 2025.

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9   60-1-10254      AO  01/14/25

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    Req. No. 10254                                             Page 14
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