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1 STATE OF OKLAHOMA
1
2 1st Session of the 60th Legislature (2025)
2
3 SENATE BILL 285 By: Pugh
3
4
4
5
5
6 AS INTRODUCED
6
7 An Act relating to income tax; amending 68 O.S. 2021,
7 Section 2357.206, as amended by Section 1, Chapter
8 49, O.S.L. 2022 (68 O.S. Supp. 2024, Section
8 2357.206), which relates to the Oklahoma Equal
9 Opportunity Education Scholarship Act; providing tax
9 credit for contributions to certain higher education
10 institution foundations; limiting credit amount;
10 providing for reduction of credit when cap is
11 exceeded; providing credit amount upon certain
11 commitment of additional contribution; prescribing
12 allocation of credit claimed by certain entities;
12 requiring submission of audited statement; limiting
13 total credits claimed for tax year; limiting credits
13 claimed for tax year for contributions to higher
14 education institutions; modifying definition;
14 defining terms; providing for allocation of unclaimed
15 credit upon certain determination by the Oklahoma Tax
15 Commission; requiring submission of report to
16 maintain certain eligibility; adding consulting
16 entity for promulgation of rules; updating statutory
17 language; updating statutory references; and
17 providing an effective date.
18
18
19
19
20 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
20
21 SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.206, as
21
22 amended by Section 1, Chapter 49, O.S.L. 2022 (68 O.S. Supp. 2024,
22
23 Section 2357.206), is amended to read as follows:
23
24
24
Req. No. 1268 Page 1
1 Section 2357.206. A. This act shall be known and may be cited
1
2 as the "Oklahoma Equal Opportunity Education Scholarship Act".
2
3 B. 1. Except as provided in subsection G H of this section,
3
4 after August 26, 2011, there shall be allowed a credit for any
4
5 taxpayer who makes a contribution to an eligible scholarship-
5
6 granting organization.
6
7 The credit shall be equal to fifty percent (50%) of the total
7
8 amount of contributions made during a taxable year, not to exceed
8
9 One Thousand Dollars ($1,000.00) for single individuals, Two
9
10 Thousand Dollars ($2,000.00) for married individuals filing jointly,
10
11 or One Hundred Thousand Dollars ($100,000.00) for any taxpayer which
11
12 is a legal business entity including limited and general
12
13 partnerships, corporations, subchapter S corporations and limited
13
14 liability companies, plus any suspended credits pursuant to
14
15 subparagraph d e of paragraph 2 of subsection I J of this section;
15
16 provided, if total credits claimed pursuant to this paragraph exceed
16
17 the cap amount established pursuant to paragraphs 1 and 2 of
17
18 subsection E F of this section, the credit shall be equal to the
18
19 taxpayer's proportionate share of the cap for the taxable year, as
19
20 determined pursuant to subsection I J of this section.
20
21 2. For any taxpayer who makes a contribution to an eligible
21
22 scholarship-granting organization and makes a written commitment to
22
23 contribute the same amount for an additional year, the credit for
23
24 the first year and the additional year shall be equal to seventy-
24
Req. No. 1268 Page 2
1 five percent (75%) of the total amount of the contribution made
1
2 during a taxable year, not to exceed the amounts established in
2
3 paragraph 1 of this subsection for the taxable year in which the
3
4 credit provided in this subsection is claimed. The taxpayer shall
4
5 provide evidence of the written commitment to the Oklahoma Tax
5
6 Commission at the time of filing the refund claim.
6
7 3. The credits authorized pursuant to the provisions of this
7
8 subsection shall be allocable to the partners, shareholders,
8
9 members, or other equity owners of a taxpayer that is authorized to
9
10 be treated as a partnership for purposes of federal income tax
10
11 reporting for the taxable year for which the tax credits authorized
11
12 by this subsection are claimed on the applicable return, together
12
13 with required schedules, forms or reports of the partners,
13
14 shareholders, members, or other equity owners of the taxpayer. Tax
14
15 credits which are allocated to such equity owners shall only be
15
16 limited in amount for the income tax return of a natural person or
16
17 persons based upon the limitation of the total credit amount to the
17
18 entity from which the tax credits have been allocated and shall not
18
19 be limited to One Thousand Dollars ($1,000.00) for single
19
20 individuals or limited to Two Thousand Dollars ($2,000.00) for
20
21 married persons filing a joint return.
21
22 4. On or before April 30, 2024, and once every two (2) years
22
23 thereafter, such scholarship-granting organization and educational
23
24 improvement grant organization shall electronically submit to the
24
Req. No. 1268 Page 3
1 Oklahoma Tax Commission, the Governor, President Pro Tempore of the
1
2 Senate, the Speaker of the House of Representatives, and the chairs
2
3 chair and vice chairs chair of the education committees of the
3
4 Senate and House of Representatives Education Committee of the
4
5 Senate, the Common Education Committee of the House of
5
6 Representatives, and the Higher Education and Career Tech Committee
6
7 of the House of Representatives an audited financial statement for
7
8 the organization along with information detailing the benefits,
8
9 successes, or failures of the program, and make publicly available
9
10 on its website the financial statement and information submitted
10
11 pursuant to this paragraph.
11
12 C. 1. Except as provided in subsection G H of this section,
12
13 after August 26, 2011, there shall be allowed a credit for any
13
14 taxpayer who makes a contribution to an eligible educational
14
15 improvement grant organization. Except as otherwise provided by
15
16 paragraph 2 of this subsection, the credit shall be equal to fifty
16
17 percent (50%) of the total amount of contributions made during a
17
18 taxable year, not to exceed One Thousand Dollars ($1,000.00) for
18
19 single individuals, Two Thousand Dollars ($2,000.00) for married
19
20 individuals filing jointly, or One Hundred Thousand Dollars
20
21 ($100,000.00) for any taxpayer which is a legal business entity
21
22 including limited and general partnerships, corporations, subchapter
22
23 S corporations, and limited liability companies, plus any suspended
23
24 credits pursuant to subparagraph d e of paragraph 2 of subsection I
24
Req. No. 1268 Page 4
1 J of this section; provided, if total credits claimed pursuant to
1
2 this paragraph exceed the cap amount established pursuant to
2
3 paragraphs 3 and 4 of subsection E F of this section, the credit
3
4 shall be equal to the taxpayer's proportionate share of the cap for
4
5 the taxable year, as determined pursuant to subsection I J of this
5
6 section.
6
7 2. For any taxpayer who makes a contribution to an eligible
7
8 educational improvement grant organization and makes a written
8
9 commitment to contribute the same amount for an additional year, the
9
10 credit for the first year and the additional year shall be equal to
10
11 seventy-five percent (75%) of the total amount of the contribution
11
12 made during a taxable year, not to exceed the cap amount established
12
13 in paragraphs 3 and 4 of subsection E F of this section for the
13
14 taxable year in which the credit provided in this paragraph is
14
15 claimed; provided, if total credits claimed pursuant to this
15
16 paragraph exceed the cap established pursuant to paragraphs 3 and 4
16
17 of subsection E F of this section, the credit shall be equal to the
17
18 taxpayer's proportionate share of the cap for the taxable year, as
18
19 determined pursuant to subsection I J of this section. The taxpayer
19
20 shall provide evidence of the written commitment to the Oklahoma Tax
20
21 Commission at the time of filing the refund claim.
21
22 3. The credits authorized pursuant to the provisions of this
22
23 subsection shall be allocable to the partners, shareholders,
23
24 members, or other equity owners of a taxpayer that is authorized to
24
Req. No. 1268 Page 5
1 be treated as a partnership for purposes of federal income tax
1
2 reporting for the taxable year for which the tax credits authorized
2
3 by this subsection are claimed on the applicable return, together
3
4 with required schedules, forms, or reports of the partners,
4
5 shareholders, members, or other equity owners of the taxpayer. Tax
5
6 credits which are allocated to such equity owners shall only be
6
7 limited in amount for the income tax return of a natural person or
7
8 persons based upon the limitation of the total credit amount to the
8
9 entity from which the tax credits have been allocated and shall not
9
10 be limited to One Thousand Dollars ($1,000.00) for single
10
11 individuals or limited to Two Thousand Dollars ($2,000.00) for
11
12 married persons filing a joint return.
12
13 D. 1. For contributions made on or after January 1, 2022,
13
14 there shall be allowed a credit for any taxpayer who makes a
14
15 contribution to an eligible public school foundation or public
15
16 school district. Except as otherwise provided by paragraph 2 of
16
17 this subsection, the credit shall be equal to fifty percent (50%) of
17
18 the total amount of contributions made during a taxable year, not to
18
19 exceed One Thousand Dollars ($1,000.00) for single individuals, Two
19
20 Thousand Dollars ($2,000.00) for married individuals filing jointly,
20
21 or One Hundred Thousand Dollars ($100,000.00) for any taxpayer which
21
22 is a legal business entity including limited and general
22
23 partnerships, corporations, subchapter S corporations, and limited
23
24 liability companies; provided, if total credits claimed pursuant to
24
Req. No. 1268 Page 6
1 this paragraph exceed the cap amount established pursuant to
1
2 paragraph 4 of subsection E F of this section, the credit shall be
2
3 equal to the taxpayer's proportionate share of the cap for the
3
4 taxable year, as determined pursuant to subsection I J of this
4
5 section.
5
6 2. Except as otherwise provided by paragraph 1 of this
6
7 subsection, for any taxpayer who makes a contribution to an eligible
7
8 public school foundation or public school district and makes a
8
9 written commitment to contribute the same amount for an additional
9
10 year, the credit for the first year and the additional year shall be
10
11 equal to seventy-five percent (75%) of the total amount of the
11
12 contribution made during a taxable year, not to exceed the cap
12
13 amount established in paragraph 4 of subsection E F of this section
13
14 for the taxable year in which the credit provided in this paragraph
14
15 is claimed. The taxpayer shall provide evidence of the written
15
16 commitment to the Oklahoma Tax Commission at the time of filing the
16
17 refund claim; provided, if total credits claimed pursuant to this
17
18 paragraph exceed the cap amount established pursuant to paragraph 4
18
19 of subsection E F of this section, the credit shall be equal to the
19
20 taxpayer's proportionate share of the cap for the taxable year, as
20
21 determined pursuant to subsection I J of this section.
21
22 3. The credits authorized pursuant to the provisions of this
22
23 subsection shall be allocable to the partners, shareholders,
23
24 members, or other equity owners of a taxpayer that is authorized to
24
Req. No. 1268 Page 7
1 be treated as a partnership for purposes of federal income tax
1
2 reporting for the taxable year for which the tax credits authorized
2
3 by this subsection are claimed on the applicable return, together
3
4 with required schedules, forms, or reports of the partners,
4
5 shareholders, members, or other equity owners of the taxpayer. Tax
5
6 credits which are allocated to such equity owners shall only be
6
7 limited in amount for the income tax return of a natural person or
7
8 persons based upon the limitation of the total credit amount to the
8
9 entity from which the tax credits have been allocated and shall not
9
10 be limited to One Thousand Dollars ($1,000.00) for single
10
11 individuals or limited to Two Thousand Dollars ($2,000.00) for
11
12 married persons filing a joint return.
12
13 4. On or before April 30, 2024, and once every four (4) years
13
14 thereafter, such eligible public school foundation and public school
14
15 district shall submit to the Oklahoma Tax Commission, the Governor,
15
16 President Pro Tempore of the Senate, and the Speaker of the House of
16
17 Representatives an audited financial statement for the organization
17
18 along with information detailing the benefits, successes, or
18
19 failures of the programs.
19
20 E. 1. For contributions made on or after January 1, 2025,
20
21 there shall be allowed a credit for any taxpayer who makes a
21
22 contribution to an eligible higher education institution foundation.
22
23 Except as otherwise provided by paragraph 2 of this subsection, the
23
24 credit shall be equal to fifty percent (50%) of the total amount of
24
Req. No. 1268 Page 8
1 contributions made during a taxable year, not to exceed One Thousand
1
2 Dollars ($1,000.00) for single individuals, Two Thousand Dollars
2
3 ($2,000.00) for married individuals filing jointly, or One Hundred
3
4 Thousand Dollars ($100,000.00) for any taxpayer which is a legal
4
5 business entity including limited and general partnerships,
5
6 corporations, subchapter S corporations, and limited liability
6
7 companies; provided, if total credits claimed pursuant to this
7
8 paragraph exceed the cap amount established pursuant to paragraph 5
8
9 of subsection F of this section, the credit shall be equal to the
9
10 taxpayer's proportionate share of the cap for the taxable year, as
10
11 determined pursuant to subsection J of this section.
11
12 2. Except as otherwise provided by paragraph 1 of this
12
13 subsection, for any taxpayer who makes a contribution to an eligible
13
14 higher education institution foundation and makes a written
14
15 commitment to contribute the same amount for an additional year, the
15
16 credit for the first year and the additional year shall be equal to
16
17 seventy-five percent (75%) of the total amount of the contribution
17
18 made during a taxable year, not to exceed the cap amount established
18
19 in paragraph 5 of subsection F of this section for the tax year in
19
20 which the credit provided in this paragraph is claimed. The
20
21 taxpayer shall provide evidence of the written commitment to the
21
22 Oklahoma Tax Commission at the time of filing the refund claim;
22
23 provided, if total credits claimed pursuant to this paragraph exceed
23
24 the cap amount established pursuant to paragraph 5 of subsection F
24
Req. No. 1268 Page 9
1 of this section, the credit shall be equal to the proportionate
1
2 share of the cap for the taxable year, as determined pursuant to
2
3 subsection J of this section.
3
4 3. The credits authorized pursuant to the provisions of this
4
5 subsection shall be allocable to the partners, shareholders,
5
6 members, or other equity owners of a taxpayer that is authorized to
6
7 be treated as a partnership for purposes of federal income tax
7
8 reporting for the taxable year for which the tax credits authorized
8
9 by this subsection are claimed on the applicable return, together
9
10 with required schedules, forms, or reports of the partners,
10
11 shareholders, members, or other equity owners of the taxpayer. Tax
11
12 credits which are allocated to the equity owners shall be limited
12
13 only in the amount for the income tax return of a natural person or
13
14 persons based upon the limitation of the total credit amount to the
14
15 entity from which the tax credits have been allocated and shall not
15
16 be subject to the limitations for single filers or married persons
16
17 filing a joint return as provided in paragraph 1 of this subsection.
17
18 4. On or before April 30, 2027, and once every four (4) years
18
19 thereafter, each eligible higher education institution foundation
19
20 shall submit to the Oklahoma Tax Commission, the Governor, the
20
21 President Pro Tempore of the Senate, and the Speaker of the House of
21
22 Representatives an audited financial statement for the foundation
22
23 along with information detailing the benefits, successes, or
23
24 failures of the program.
24
Req. No. 1268 Page 10
1 F. Except as otherwise provided pursuant to subsection I J of
1
2 this section:
2
3 1. The total credits authorized pursuant to subsection B of
3
4 this section for all taxpayers for tax years 2017 through 2021 shall
4
5 not exceed Three Million Five Hundred Thousand Dollars
5
6 ($3,500,000.00) annually;
6
7 2. The total credits authorized pursuant to subsection B of
7
8 this section for all taxpayers for tax years year 2022 and
8
9 subsequent tax years shall not exceed Twenty-five Million Dollars
9
10 ($25,000,000.00) annually;
10
11 3. The total credits authorized pursuant to subsection C of
11
12 this section for all taxpayers for tax years 2017 through 2021 shall
12
13 not exceed One Million Five Hundred Thousand Dollars ($1,500,000.00)
13
14 annually;
14
15 4. The total credits authorized pursuant to subsections C and D
15
16 of this section for all taxpayers for tax year 2022 and subsequent
16
17 tax years shall not exceed Twenty-five Million Dollars
17
18 ($25,000,000.00) annually. In Except as otherwise provided pursuant
18
19 to subparagraph c of paragraph 2 of subsection J of this section, in
19
20 addition to the cap amount prescribed by this paragraph, the credit
20
21 amount shall also be limited to Two Hundred Thousand Dollars
21
22 ($200,000.00) of credits per public school district annually; and
22
23 5. The total credits authorized pursuant to subsection E of
23
24 this section for all taxpayers for tax year 2025 and subsequent tax
24
Req. No. 1268 Page 11
1 years shall not exceed Twenty-five Million Dollars ($25,000,000.00)
1
2 annually. Except as otherwise provided pursuant to subparagraph d
2
3 of paragraph 2 of subsection J of this section, in addition to the
3
4 cap amount prescribed by this paragraph, the credit amount shall
4
5 also be limited to Seven Million Five Hundred Thousand Dollars
5
6 ($7,500,000.00) of credits per public higher education institution
6
7 annually; and
7
8 6. The cap on total credits provided for in this subsection
8
9 shall be allocated by the Tax Commission as provided in subsection I
9
10 J of this section.
10
11 F. G. For credits claimed for eligible contributions made
11
12 during tax year 2014 and thereafter, a credit shall not be allowed
12
13 by the Oklahoma Tax Commission for contributions made to a
13
14 scholarship-granting organization or an educational improvement
14
15 grant organization if that organization's percentage of funds
15
16 actually awarded is less than ninety percent (90%). For purposes of
16
17 this section, the "percentage of funds actually awarded" shall be
17
18 determined by dividing the total amount of funds actually awarded as
18
19 educational scholarships or educational improvement grants over the
19
20 most recent twenty-four (24) months by the total amount available to
20
21 award as educational scholarships or educational improvement grants
21
22 over the most recent twenty-four (24) months.
22
23 G. H. Any tax credits which are earned by a taxpayer pursuant
23
24 to this section during the time period beginning August 26, 2011,
24
Req. No. 1268 Page 12
1 through December 31, 2012, may not be claimed for any period prior
1
2 to the taxable year beginning January 1, 2013. No credits which
2
3 accrue during the time period beginning August 26, 2011, through
3
4 December 31, 2012, may be used to file an amended tax return for any
4
5 taxable year prior to the taxable year beginning January 1, 2013.
5
6 H. I. As used in this section:
6
7 1. "Eligible student" means a child of school age who is
7
8 lawfully present in the United States and who is a member of a
8
9 household in which the total annual income during the preceding tax
9
10 year does not exceed an amount equal to three hundred percent (300%)
10
11 of the income standard used to qualify for a free or reduced-price
11
12 school lunch or who, during the immediately preceding school year,
12
13 attended or, by virtue of the location of such student's place of
13
14 residence, was eligible to attend a public school in this state
14
15 which has been identified for school improvement as determined by
15
16 the State Board of Education pursuant to the requirements of the No
16
17 Child Left Behind Act of 2001, P.L. No. 107-110. Once a student has
17
18 received an educational scholarship, as defined in paragraph 3 of
18
19 this subsection, the student and any siblings who are members of the
19
20 same household shall remain eligible until they graduate from high
20
21 school or reach twenty-one (21) years of age, whichever occurs
21
22 first;
22
23 2. "Eligible special needs student" means a child who has been
23
24 provided services under an Individualized Family Service Plan
24
Req. No. 1268 Page 13
1 individualized family service plan through the SoonerStart program
1
2 and during transition was evaluated and determined to be eligible
2
3 for school district services, a child of school age who has attended
3
4 public school in our state with an individualized education program
4
5 pursuant to the Individuals With Disabilities Education Act, 20
5
6 U.S.C.A., Section 1400 et seq., or a child who has been diagnosed by
6
7 a clinical professional as having a significant disability that will
7
8 affect learning and who has been approved by the board of a
8
9 scholarship-granting organization;
9
10 3. "Educational scholarships" means:
10
11 a. scholarships to an eligible student of up to Five
11
12 Thousand Dollars ($5,000.00) or eighty percent (80%)
12
13 of the statewide annual average per-pupil expenditure
13
14 as determined by the National Center for Education
14
15 Statistics, U.S. Department of Education, whichever is
15
16 greater, to cover all or part of the tuition, fees,
16
17 and transportation costs of a qualified school which
17
18 is accredited by the State Board of Education or an
18
19 accrediting association approved by the Board pursuant
19
20 to Section 3-104 of Title 70 of the Oklahoma Statutes,
20
21 b. scholarships to an eligible student of up to Five
21
22 Thousand Dollars ($5,000.00) or eighty percent (80%)
22
23 of the statewide annual average per-pupil expenditure
23
24 as determined by the National Center for Education
24
Req. No. 1268 Page 14
1 Statistics, U.S. Department of Education, whichever is
1
2 greater, to cover the educational costs of a qualified
2
3 school which does not charge tuition, which enrolls
3
4 special populations of students, and which is
4
5 accredited by the State Board of Education or an
5
6 accrediting association approved by the Board pursuant
6
7 to Section 3-104 of Title 70 of the Oklahoma Statutes,
7
8 or
8
9 c. scholarships to an eligible special needs student of
9
10 up to Twenty-five Thousand Dollars ($25,000.00) to
10
11 cover all or part of the tuition, fees, and
11
12 transportation costs of a qualified school for
12
13 eligible special needs students which is accredited by
13
14 the State Board of Education or an accrediting
14
15 association approved by the Board pursuant to Section
15
16 3-104 of Title 70 of the Oklahoma Statutes, or
16
17 d. scholarships to an eligible public higher education
17
18 institution student to cover all or part of the
18
19 tuition and fees for undergraduate courses at an
19
20 institution authorized by the Oklahoma State Regents
20
21 for Higher Education;
21
22 4. "Low-income eligible student" means an eligible student or
22
23 eligible special needs student who qualifies for a free or reduced-
23
24 price lunch;
24
Req. No. 1268 Page 15
1 5. "Qualified school" means an early childhood, elementary, or
1
2 secondary private school in this state including schools which
2
3 provide special educational programs for three-year-olds or
3
4 prekindergarten educational programs for four-year-olds, which:
4
5 a. is accredited by the State Board of Education or an
5
6 accrediting association approved by the Board pursuant
6
7 to Section 3-104 of Title 70 of the Oklahoma Statutes,
7
8 b. is in compliance with all applicable health and safety
8
9 laws and codes,
9
10 c. has a stated policy against discrimination in
10
11 admissions on the basis of race, color, national
11
12 origin, or disability, and
12
13 d. ensures academic accountability to parents and
13
14 guardians of students through regular progress
14
15 reports;
15
16 6. "Qualified school for eligible special needs students" means
16
17 an early childhood, elementary, or secondary private school in a
17
18 county in this state including schools which provide special
18
19 educational programs for three-year-olds or prekindergarten
19
20 educational programs for four-year-olds;
20
21 7. "Scholarship-granting organization" means an organization
21
22 which:
22
23
23
24
24
Req. No. 1268 Page 16
1 a. is a nonprofit entity exempt from taxation pursuant to
1
2 the provisions of the Internal Revenue Code of 1986,
2
3 as amended, 26 U.S.C., Section 501(c)(3),
3
4 b. distributes periodic scholarship payments as checks
4
5 made out to an eligible student's or eligible special
5
6 needs student's parent or guardian and mailed to the
6
7 qualified school where the student is enrolled,
7
8 c. spends no more than ten percent (10%) of its annual
8
9 revenue on expenditures other than educational
9
10 scholarships as defined in paragraph 3 of this
10
11 subsection,
11
12 d. spends each year a portion of its expenditures on
12
13 educational scholarships for low-income eligible
13
14 students, as defined in paragraph 4 of this
14
15 subsection, in an amount equal to or greater than the
15
16 percentage of low-income eligible students in the
16
17 state,
17
18 e. ensures that scholarships are portable during the
18
19 school year and can be used at any qualified school
19
20 that accepts the eligible student or at any qualified
20
21 school for special needs students that accepts the
21
22 eligible special needs student,
22
23 f. registers with the Oklahoma Tax Commission as a
23
24 scholarship-granting organization, and
24
Req. No. 1268 Page 17
1 g. has policies in place to:
1
2 (1) carry out criminal background checks on all
2
3 employees and board members to ensure that no
3
4 individual is involved with the organization who
4
5 might reasonably pose a risk to the appropriate
5
6 use of contributed funds, and
6
7 (2) maintain full and accurate records with respect
7
8 to the receipt of contributions and expenditures
8
9 of those contributions and supply such records
9
10 and any other documentation required by the Tax
10
11 Commission to demonstrate financial
11
12 accountability;
12
13 8. "Annual revenue" means the total amount or value of
13
14 contributions received by an organization from taxpayers awarded
14
15 credits during the organization's fiscal year and all amounts earned
15
16 from interest or investments;
16
17 9. "Public school" means public schools as defined in Section
17
18 1-106 of Title 70 of the Oklahoma Statutes;
18
19 10. "Eligible public school district" means any public school;
19
20 11. "Early childhood education program" means a special
20
21 educational program for eligible special needs students who are
21
22 three (3) years of age or a prekindergarten educational program
22
23 provided to children who are at least four (4) years of age but not
23
24 more than five (5) years of age on or before September 1;
24
Req. No. 1268 Page 18
1 12. "Innovative educational program" means an advanced academic
1
2 or academic improvement program that is not part of the regular
2
3 coursework of a public school but that enhances the curriculum or
3
4 academic program of the school or provides early childhood education
4
5 programs to students;
5
6 13. "Educational improvement grant" means a grant to an
6
7 eligible public school to implement an innovative educational
7
8 program for students including the ability for multiple public
8
9 schools to make an application and be awarded a grant to jointly
9
10 provide an innovative educational program;
10
11 14. "Educational improvement grant organization" means an
11
12 organization which:
12
13 a. is a nonprofit entity exempt from taxation pursuant to
13
14 the provisions of the Internal Revenue Code of 1986,
14
15 as amended, 26 U.S.C., Section 501(c)(3), and
15
16 b. contributes at least ninety percent (90%) of its
16
17 annual receipts as grants to eligible schools for
17
18 innovative educational programs. For purposes of this
18
19 subparagraph, an educational improvement grant
19
20 organization contributes its annual cash receipts when
20
21 it expends or otherwise irrevocably encumbers those
21
22 funds for expenditure during the then current fiscal
22
23 year of the organization or during the next succeeding
23
24 fiscal year of the organization; and
24
Req. No. 1268 Page 19
1 15. "Eligible public school foundation" means a nonprofit
1
2 entity formed pursuant to the laws of this state and is exempt from
2
3 federal income taxation pursuant to either Section 501(c)(3) or
3
4 Section 509(a) of the Internal Revenue Code of 1986, as amended.
4
5 Each public school foundation must shall be approved by the local
5
6 board of education prior to accepting qualifying donations;
6
7 16. "Eligible public higher education institution student"
7
8 means a student who is enrolled in a public higher education
8
9 institution in the state, who is lawfully present in the United
9
10 States, and who is a member of a household in which the total annual
10
11 income during the preceding tax year does not exceed an amount equal
11
12 to three hundred percent (300%) of the income standard used to
12
13 qualify for a free or reduced-price school lunch; and
13
14 17. "Eligible higher education institution foundation" means a
14
15 nonprofit entity formed pursuant to the laws of this state that is
15
16 exempt from federal income taxation pursuant to either Section
16
17 501(c)(3) or Section 509(a) of the Internal Revenue Code of 1986, as
17
18 amended, and is formed for the primary purpose of supporting a
18
19 public higher education institution. Each public higher education
19
20 institution foundation shall be approved by the governing board of
20
21 the higher education institution prior to accepting qualifying
21
22 donations.
22
23 I. J. Total credits authorized by this section shall be
23
24 allocated as follows:
24
Req. No. 1268 Page 20
1 1. By January 10 of the year immediately following each
1
2 calendar year, a scholarship-granting organization, an educational
2
3 improvement grant organization, an eligible public school
3
4 foundation, or a public school district, or an eligible higher
4
5 education institution foundation which accepts contributions
5
6 pursuant to this section shall provide electronically to the Tax
6
7 Commission information on each contribution accepted during such
7
8 taxable year. At least once each taxable year, the entity making
8
9 the report shall notify each contributor that Oklahoma law provides
9
10 for a total, statewide cap on the amount of income tax credits
10
11 allowed annually;
11
12 2. a. If the Tax Commission determines the total combined
12
13 credits claimed for contributions made to scholarship-
13
14 granting organizations during the most recently
14
15 completed calendar year by all taxpayers are in excess
15
16 of the statewide cap amount provided in paragraphs 1
16
17 and 2 of subsection E F of this section, the Tax
17
18 Commission shall first allocate any amount of credits
18
19 not claimed for contributions made to organizations
19
20 authorized pursuant to subsections C and, D, and E of
20
21 this section, then shall determine the percentage of
21
22 the contribution which establishes the proportionate
22
23 share of the credit which may be claimed by any
23
24
24
Req. No. 1268 Page 21
1 taxpayer so that the total maximum credits authorized
1
2 by this section are not exceeded.
2
3 b. If the Tax Commission determines the total combined
3
4 credits claimed for contributions made to
4
5 organizations authorized pursuant to subsections C
5
6 and, D, and E of this section during the most recently
6
7 completed calendar year by all taxpayers are in excess
7
8 of the statewide cap amount provided in paragraphs 3
8
9 and, 4, and 5 of subsection E F of this section, the
9
10 Tax Commission shall first allocate any amount of
10
11 credits not claimed for contributions made to
11
12 scholarship-granting organizations, then shall
12
13 determine the percentage of the contribution which
13
14 establishes the proportionate share of the credit
14
15 which may be claimed by any taxpayer so that the
15
16 maximum credits authorized by this section are not
16
17 exceeded.
17
18 c. If the Tax Commission determines the total combined
18
19 credits claimed for contributions made to
19
20 organizations authorized pursuant to subsections C and
20
21 D of this section during the most recently completed
21
22 calendar year by all taxpayers are in excess of the
22
23 per public school district cap pursuant to paragraph 4
23
24 of subsection E F of this section, the Tax Commission
24
Req. No. 1268 Page 22
1 shall first allocate any amount of credits not claimed
1
2 for contributions made to other organizations
2
3 authorized pursuant to subsections C and D of this
3
4 section, then shall determine the percentage of the
4
5 contribution which establishes the proportionate share
5
6 of the credit which may be claimed by any taxpayer so
6
7 that the maximum credits authorized by this section
7
8 are not exceeded.
8
9 d. If the Tax Commission determines the total combined
9
10 credits claimed for contributions made to
10
11 organizations authorized pursuant to subsection E of
11
12 this section during the most recently completed
12
13 calendar year by all taxpayers are in excess of the
13
14 per higher education institution cap provided in
14
15 paragraph 5 of subsection F of this section, the Tax
15
16 Commission shall first allocate any amount of credits
16
17 not claimed for contributions made to other
17
18 organizations authorized pursuant to subsection E of
18
19 this section, then shall determine the percentage of
19
20 the contribution which establishes the proportionate
20
21 share of the credit which may be claimed by any
21
22 taxpayer so that the maximum credits authorized by
22
23 this section are not exceeded.
23
24
24
Req. No. 1268 Page 23
1 e. Beginning for tax year 2016, credits earned, but not
1
2 allowed due to the application of statewide caps
2
3 provided in subsection E F of this section will be
3
4 considered suspended and authorized to be used in the
4
5 next immediate tax year and applied to the next year's
5
6 statewide cap; and
6
7 3. The Tax Commission shall publish the percentage of the
7
8 contribution which may be claimed as a credit by contributors for
8
9 the most recently completed calendar year on the Tax Commission
9
10 website no later than February 15 of each calendar year for
10
11 contributions made the previous year. Each organization authorized
11
12 pursuant to subsections B, C, and D, and E of this section shall
12
13 notify contributors of that amount annually.
13
14 J. K. No tax credits authorized by this section shall be used
14
15 to reduce the tax liability of the taxpayer to less than zero (0).
15
16 K. L. Any credits authorized by this section allowed but not
16
17 used in any tax year may be carried over, in order, to each of the
17
18 three (3) years following the year of qualification.
18
19 L. M. 1. In order to qualify under this section, each
19
20 organization authorized pursuant to subsections C and, D, and E of
20
21 this section shall submit an application with information to the
21
22 Oklahoma Tax Commission on a form prescribed by the Tax Commission
22
23 that:
23
24
24
Req. No. 1268 Page 24
1 a. enables the Tax Commission to confirm that the
1
2 organization is a nonprofit entity exempt from
2
3 taxation pursuant to the provisions of the Internal
3
4 Revenue Code of 1986, as amended, 26 U.S.C., Section
4
5 501(c)(3) or Section 509(a), and
5
6 b. describes the proposed innovative educational program
6
7 or programs supported by the organization.
7
8 2. The Tax Commission shall review and approve or disapprove
8
9 the application, in consultation with the State Department of
9
10 Education or the Oklahoma State Regents for Higher Education.
10
11 3. In order to maintain eligibility under this section, an
11
12 organization authorized pursuant to subsections C and D of this
12
13 section shall annually report the following information to the Tax
13
14 Commission and publish on its website by September 1 of each year:
14
15 a. the name of the innovative educational program or
15
16 programs and the total amount of the grant or grants
16
17 made to those programs during the immediately
17
18 preceding school year,
18
19 b. a description of how each grant was utilized during
19
20 the immediately preceding school year and a
20
21 description of any demonstrated or expected innovative
21
22 educational improvements,
22
23 c. the names of the public school and school districts
23
24 where innovative educational programs that received
24
Req. No. 1268 Page 25
1 grants during the immediately preceding school year
1
2 were implemented,
2
3 d. where the organization collects information on a
3
4 county-by-county basis, and
4
5 e. the total number and total amount of grants made
5
6 during the immediately preceding school year for
6
7 innovative educational programs at public school by
7
8 each county in which the organization made grants.
8
9 4. In order to maintain eligibility under this section, an
9
10 organization authorized pursuant to subsection E of this section
10
11 shall annually report the following information to the Tax
11
12 Commission and publish on its website by September 1 of each year:
12
13 a. the name of the higher education institution
13
14 scholarship program or programs and the total amount
14
15 of funds distributed by the foundation through those
15
16 programs during the immediately preceding school year,
16
17 b. a description of how the scholarship funds were
17
18 utilized during the immediately preceding school year,
18
19 and
19
20 c. the total number and total amount of scholarships
20
21 granted during the immediately preceding school year.
21
22 5. The information required under paragraph paragraphs 3 and 4
22
23 of this subsection shall be submitted on a form provided by the Tax
23
24 Commission. No later than May 1 of each year, the Tax Commission
24
Req. No. 1268 Page 26
1 shall annually distribute sample forms together with the forms on
1
2 which the reports are required to be made to each approved
2
3 organization.
3
4 5. 6. The Tax Commission shall not require any other
4
5 information be provided by an organization, except as expressly
5
6 authorized in this section.
6
7 M. N. 1. Beginning in 2023 for the 2022-2023 academic year, in
7
8 order to maintain registration, a scholarship-granting organization
8
9 shall annually report to the Tax Commission by September 1 of each
9
10 year the following information regarding the educational
10
11 scholarships funded by the organization in the previous academic
11
12 year:
12
13 a. the name and address of the scholarship-granting
13
14 organization,
14
15 b. the names of the qualifying schools that received
15
16 funding for educational scholarships, the total amount
16
17 of funds paid to each qualifying school, and the total
17
18 number of scholarship recipients enrolled in each
18
19 qualifying school,
19
20 c. the total number and total dollar amount of
20
21 contributions received during the previous academic
21
22 year,
22
23
23
24
24
Req. No. 1268 Page 27
1 d. the total number and total dollar amount of
1
2 educational scholarships awarded and funded during the
2
3 previous academic year,
3
4 e. the total number, total dollar amount, and percentage
4
5 of educational scholarships awarded and funded during
5
6 the previous academic year disaggregated into the
6
7 following categories:
7
8 (1) low-income eligible students,
8
9 (2) students who during the immediately preceding
9
10 school year attended or who were eligible by
10
11 virtue of the residence of the student to attend
11
12 a public school in the state which was identified
12
13 for school improvement by the State Board of
13
14 Education,
14
15 (3) eligible special needs students, and
15
16 (4) students who were first-time recipients of a
16
17 scholarship including information about the type
17
18 of public or private school the student was
18
19 enrolled in during the entire previous academic
19
20 year,
20
21 f. the percentage of annual revenue received by the
21
22 organization from donations which qualify for tax
22
23 credits pursuant to this section which was not
23
24 expended on scholarships,
24
Req. No. 1268 Page 28
1 g. disaggregated data reported under this subsection
1
2 shall be redacted if reporting would allow for
2
3 identification of specific children, and shall be
3
4 reported in accordance with the Student Data
4
5 Accessibility, Transparency and Accountability Act of
5
6 2013, division subparagraph b of subparagraph
6
7 paragraph 2 of subsection C of Section 3-168 of Title
7
8 70 of the Oklahoma Statutes, and the Family
8
9 Educational Rights and Privacy Act of 1974 (FERPA), 20
9
10 U.S.C., Section 1232g, and
10
11 h. the percentage of the total amount of education
11
12 scholarship expenditures spent on low-income eligible
12
13 students.
13
14 2. The Tax Commission shall make available on its website:
14
15 a. the information submitted by the scholarship-granting
15
16 organization pursuant to paragraph 1 of this
16
17 subsection,
17
18 b. a list of participating schools, and
18
19 c. all other application information submitted to the Tax
19
20 Commission by a scholarship-granting organization,
20
21 except that information which would violate the
21
22 privacy of an individual.
22
23 3. A scholarship-granting organization shall annually submit
23
24 verification to the Tax Commission that the organization still meets
24
Req. No. 1268 Page 29
1 the criteria set forth in paragraph 7 of subsection H I of this
1
2 section.
2
3 N. O. Contributions made pursuant to subsections B, C, and D of
3
4 this section shall not be used by the Legislature to reduce the
4
5 amount appropriated for the financial support of public schools.
5
6 O. P. In consultation with the State Department of Education
6
7 and the Oklahoma State Regents for Higher Education, the Tax
7
8 Commission shall promulgate rules necessary to implement the
8
9 Oklahoma Equal Opportunity Education Scholarship Act. The rules
9
10 shall include procedures for the registration of a scholarship-
10
11 granting organization, an educational improvement grant
11
12 organization, a public school foundation, or a public school
12
13 district, or a public higher education institution foundation for
13
14 purposes of determining if the organization meets the requirements
14
15 of the Oklahoma Equal Opportunity Education Scholarship Act or for
15
16 the revocation of the registration of an organization, if
16
17 applicable, and for notice as required in subsection I J of this
17
18 section.
18
19 SECTION 2. This act shall become effective November 1, 2025.
19
20
20
21 60-1-1268 QD 12/30/2024 11:14:39 PM
21
22
22
23
23
24
24
Req. No. 1268 Page 30Every fact on this page links to its source, starting with the official bill record.