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1 STATE OF OKLAHOMA
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2 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 472 By: Bergstrom
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4
4
5
5
6 AS INTRODUCED
6
7 An Act relating to income tax credit; amending
7 Section 2, Chapter 278, O.S.L. 2023, as amended by
8 Section 3, Chapter 277, O.S.L. 2024 (70 O.S. Supp.
8 2024, Section 28-101), which relates to the Oklahoma
9 Parental Choice Tax Credit Act; modifying definition;
9 expanding the scope of scholarships while
10 participating in the program; and providing an
10 effective date.
11
11
12
12
13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14 SECTION 1. AMENDATORY Section 2, Chapter 278, O.S.L.
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15 2023, as amended by Section 3, Chapter 277, O.S.L. 2024 (70 O.S.
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16 Supp. 2024, Section 28-101), is amended to read as follows:
16
17 Section 28-101. A. As used in the Oklahoma Parental Choice Tax
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18 Credit Act:
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19 1. "Commission" means the Oklahoma Tax Commission;
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20 2. "Curriculum" means a complete course of study for a
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21 particular content area or grade level;
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22 3. "Department" means the State Department of Education;
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23 4. "Education service provider" means a person, business,
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24 public school district, public charter school, magnet school, or
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1 organization that provides educational goods and/or services to
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2 eligible students in this state;
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3 5. "Eligible student" means a resident of this state who is
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4 eligible to enroll in a public school in this state. Eligible
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5 student shall include a student who is enrolled in and attends or is
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6 expected to enroll in a private school in this state accredited by
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7 the State Board of Education or another accrediting association or a
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8 student who is educated pursuant to the other means of education
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9 exception provided for in subsection A of Section 10-105 of this
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10 title;
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11 6. "Qualified expense" for the purpose of claiming the credit
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12 authorized by paragraph 1 of subsection C of this section means
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13 tuition and fees at a private school in this state accredited by the
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14 State Board of Education or another accrediting association.
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15 Provided, the amount of tuition and fees considered a qualified
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16 expense pursuant to this paragraph shall not include the portion of
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17 tuition and fees paid with any scholarship or the portion of tuition
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18 and fees discounted or otherwise reduced by the school;
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19 7. "Qualified expense" for the purpose of claiming the credit
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20 authorized by paragraph 2 of subsection C of this section means the
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21 following expenditures:
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22 a. tuition and fees for nonpublic learning programs,
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23 online or in person,
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1 b. academic tutoring services provided by an individual
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2 or a private academic tutoring facility,
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3 c. textbooks, curriculum, or other instructional
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4 materials including, but not limited to, supplemental
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5 materials or associated online instruction required by
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6 an education service provider, and
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7 d. fees for nationally standardized assessments
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8 including, but not limited to, assessments used to
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9 determine college admission and advanced placement
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10 examinations as well as tuition and fees for tutoring
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11 or preparatory courses for the assessments; and
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12 8. "Taxpayer" means a biological or adoptive parent,
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13 grandparent, aunt, uncle, legal guardian, custodian, or other person
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14 with legal authority to act on behalf of an eligible student.
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15 B. There is hereby created the Oklahoma Parental Choice Tax
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16 Credit Program to provide an income tax credit to a taxpayer for
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17 qualified expenses to support the education of eligible students in
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18 this state.
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19 C. For the tax year 2024 and subsequent tax years, and fiscal
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20 year 2026 and subsequent fiscal years, there shall be allowed
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21 against the tax imposed by Section 2355 of Title 68 of the Oklahoma
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22 Statutes a credit for any Oklahoma taxpayer who incurs a qualified
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23 expense on behalf of an eligible student, to be administered subject
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24 to the following amounts:
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1 1. If the eligible student attends a private school in this
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2 state accredited by the State Board of Education or another
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3 accrediting association, the annual maximum credit amount for tax
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4 year 2024, fiscal year 2026, and each subsequent fiscal year shall
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5 be:
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6 a. Seven Thousand Five Hundred Dollars ($7,500.00) or the
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7 amount of tuition and fees for the private school,
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8 whichever is less, if the combined adjusted gross
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9 income of the parents or legal guardians of the
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10 eligible student during the second preceding tax year
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11 does not exceed Seventy-five Thousand Dollars
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12 ($75,000.00),
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13 b. Seven Thousand Dollars ($7,000.00) or the amount of
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14 tuition and fees for the private school, whichever is
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15 less, if the combined adjusted gross income of the
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16 parents or legal guardians of the eligible student
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17 during the second preceding tax year is more than
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18 Seventy-five Thousand Dollars ($75,000.00) but does
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19 not exceed One Hundred Fifty Thousand Dollars
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20 ($150,000.00),
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21 c. Six Thousand Five Hundred Dollars ($6,500.00) or the
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22 amount of tuition and fees for the private school,
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23 whichever is less, if the combined adjusted gross
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24 income of the parents or legal guardians of the
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1 eligible student during the second preceding tax year
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2 is more than One Hundred Fifty Thousand Dollars
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3 ($150,000.00) but does not exceed Two Hundred Twenty-
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4 five Thousand Dollars ($225,000.00),
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5 d. Six Thousand Dollars ($6,000.00) or the amount of
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6 tuition and fees for the private school, whichever is
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7 less, if the combined adjusted gross income of the
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8 parents or legal guardians of the eligible student
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9 during the second preceding tax year is more than Two
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10 Hundred Twenty-five Thousand Dollars ($225,000.00) but
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11 does not exceed Two Hundred Fifty Thousand Dollars
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12 ($250,000.00), or
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13 e. Five Thousand Dollars ($5,000.00) or the amount of
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14 tuition and fees for the private school, whichever is
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15 less, if the combined adjusted gross income of the
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16 parents or legal guardians of the eligible student
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17 during the second preceding tax year is more than Two
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18 Hundred Fifty Thousand Dollars ($250,000.00);
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19 2. For tax year 2024 and subsequent tax years, the maximum
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20 credit amount shall be One Thousand Dollars ($1,000.00) in qualified
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21 expenses per eligible student in each tax year if the eligible
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22 student is educated pursuant to the other means of education
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23 exception provided for in subsection A of Section 10-105 of this
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24 title. To claim the credit, the taxpayer shall submit to the
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1 Commission receipts for qualified expenses as defined by paragraph 7
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2 of subsection A of this section;
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3 3. If the eligible student attends a private school in this
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4 state, accredited by the State Board of Education or another
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5 accrediting association, that exclusively serves students
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6 experiencing homelessness, the credit amount shall be Seven Thousand
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7 Five Hundred Dollars ($7,500.00) or the amount of the cost to
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8 educate the eligible student at the private school, whichever is
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9 less;
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10 4. If the eligible student attends a private school in this
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11 state, accredited by the State Board of Education or another
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12 accrediting association, that primarily serves financially
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13 disadvantaged students, the credit amount shall be the maximum
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14 credit amount authorized by paragraph 1 of this subsection or the
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15 amount of the cost to educate the eligible student at the private
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16 school, whichever is less. The cost to educate the eligible student
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17 shall be equal to the average cost to educate all students attending
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18 the private school, which shall be calculated by dividing the
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19 private school's total expenditures in the previous year by the
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20 total enrollment in the previous school year. A private school
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21 shall be deemed to be primarily serving financially disadvantaged
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22 students if ninety percent (90%) of the private school's admissions
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23 are based on enrolling students whose gross family income is two
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1 hundred fifty percent (250%) of the federal poverty threshold or
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2 below;
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3 5. The taxpayer shall retain all receipts of qualified expenses
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4 as proof of the amounts paid each tax year the credit is claimed and
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5 shall submit them to the Commission upon request;
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6 6. If the credit exceeds the tax imposed by Section 2355 of
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7 Title 68 of the Oklahoma Statutes, the excess amount shall be
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8 refunded to the taxpayer; and
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9 7. Credits claimed by a taxpayer pursuant to the provisions of
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10 this section shall not be used to offset or pay the following:
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11 a. delinquent tax liability,
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12 b. accrued penalty or interest from the failure to file a
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13 report or return,
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14 c. accrued penalty or interest from the failure to pay a
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15 state tax within the statutory period allowed for its
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16 payment,
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17 d. tax liability of the taxpayer from any prior tax year,
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18 or
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19 e. any debt, unpaid fine, final judgment, or claim filed
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20 with the Commission by a qualified entity as defined
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21 in Section 205.2 of Title 68 of the Oklahoma Statutes.
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22 D. 1. a. For tax year 2024, the total amount of credits
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23 authorized by paragraph 1 of subsection C of this
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1 section shall not exceed One Hundred Fifty Million
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2 Dollars ($150,000,000.00).
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3 b. For the period of January 1, 2025, through June 30,
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4 2025, the total amount of credits authorized by
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5 paragraph 1 of subsection C of this section shall not
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6 exceed One Hundred Million Dollars ($100,000,000.00).
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7 The Commission shall not require a taxpayer who
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8 received a credit pursuant to paragraph 1 of
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9 subsection C of this section in tax year 2024 to
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10 reapply for a credit payable during the period
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11 described in this subparagraph. The Commission shall
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12 base the credit amount payable for the spring 2025 on
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13 the fall 2024 installment disbursement payment amount.
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14 c. For fiscal year 2026 and subsequent fiscal years, the
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15 total amount of credits authorized by paragraph 1 of
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16 subsection C of this section shall not exceed Two
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17 Hundred Fifty Million Dollars ($250,000,000.00).
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18 2. For tax year 2025 and subsequent tax years, the total amount
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19 of credits authorized by paragraph 2 of subsection C of this section
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20 shall not exceed Five Million Dollars ($5,000,000.00).
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21 E. The Commission shall prescribe applications for the purposes
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22 of claiming the credits authorized by the Oklahoma Parental Choice
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23 Tax Credit Act and a deadline by which applications shall be
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24 submitted. A taxpayer claiming the credit authorized by paragraph 1
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1 of subsection C of this section shall submit an application
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2 prescribed by the Commission to receive the credit in two
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3 installments, each of which shall be half of the expected amount of
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4 tuition and fees for the private school based on the enrollment
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5 verification form submitted pursuant to this subsection, but in no
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6 event shall an installment payment exceed the amount of the credit
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7 authorized by paragraph 1 of subsection C of this section. If an
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8 eligible taxpayer provides documentation on the application that he
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9 or she is a recipient of income-based government benefits including
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10 the Supplemental Nutrition Assistance Program (SNAP), Temporary
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11 Assistance for Needy Families (TANF), or SoonerCare, the eligible
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12 taxpayer shall not be required to provide additional income
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13 verification. A taxpayer claiming the credit authorized by
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14 paragraph 1 of subsection C of this section shall submit to the
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15 Commission an enrollment verification form from the private school
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16 in which the eligible student is enrolled or is expected to enroll
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17 with the tuition and fees to be charged the taxpayer for the
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18 applicable school year. In reviewing applications submitted by
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19 eligible taxpayers to determine whether they qualify for a credit
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20 authorized by paragraph 1 of subsection C of this section, the
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21 Commission shall give first preference in making installments to
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22 taxpayers who qualify pursuant to subparagraphs a and b of paragraph
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23 1 of subsection C of this section. For credits issued in the 2025-
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24 2026 school year and subsequent school years, the application period
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Req. No. 186 Page 9
1 shall open on February 15 prior to the beginning of each school
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2 year. For any eligible student whose parents or legal guardians
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3 have a combined adjusted gross income that does not exceed One
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4 Hundred Fifty Thousand Dollars ($150,000.00), applications shall be
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5 submitted to the Commission within the first sixty (60) days of the
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6 opening of the application period to receive priority consideration.
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7 For students enrolled in the full school year, the credit shall be
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8 paid in two installments, one per school semester, to be paid no
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9 later than August 30 and January 15, each of which shall be half of
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10 the total expected amount of tuition and fees on the enrollment
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11 verification form submitted pursuant to this subsection.
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12 F. In the event there are more applications submitted by
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13 eligible taxpayers for a credit authorized by paragraph 1 of
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14 subsection C of this section than available credits pursuant to
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15 subsection D of this section, then the Commission shall give first
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16 preference in authorizing credits for eligible students of taxpayers
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17 who qualify pursuant to subparagraphs a and b of paragraph 1 of
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18 subsection C of this section and have received the credit in the
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19 prior year.
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20 G. Taxpayers claiming the credit shall:
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21 1. Only claim the credit for qualified expenses as defined in
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22 paragraphs 6 and 7 of subsection A of this section to provide an
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23 education for an eligible student;
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1 2. Ensure no other person is claiming a credit for the eligible
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2 student;
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3 3. Not claim the credit for an eligible student who enrolls as
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4 a full-time student in a public school district, public charter
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5 school, public virtual charter school, or magnet school;
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6 4. Comply with rules and requirements established by the
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7 Commission for administration of the Oklahoma Parental Choice Tax
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8 Credit Program; and
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9 5. Notify the Commission not later than thirty (30) days after
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10 the date on which the eligible student:
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11 a. enrolls in a public school, including an open-
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12 enrollment charter school,
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13 b. enrolls in a nonaccredited private school,
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14 c. graduates from high school, or
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15 d. is no longer utilizing credits authorized by paragraph
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16 1 of subsection C of this section for any reason.
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17 H. Eligible For fiscal year 2026 and subsequent fiscal years,
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18 eligible students may accept a scholarship from the Lindsey Nicole
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19 Henry Scholarships for Students with Disabilities Program created by
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20 Section 13-101.2 of this title while participating in the Oklahoma
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21 Parental Choice Tax Credit Program.
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22 I. 1. The Commission shall have the authority to conduct an
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23 audit or contract for the auditing of receipts for qualified
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1 expenses submitted pursuant to paragraph 2 of subsection C of this
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2 section.
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3 2. The Commission shall be authorized to recapture the credits
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4 otherwise authorized by the provisions of the Oklahoma Parental
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5 Choice Tax Credit Act on a prorated basis if an audit conducted
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6 pursuant to this subsection shows that the credit was claimed for
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7 expenditures that were not qualified expenses or it finds that the
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8 taxpayer has claimed an eligible student who no longer attends a
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9 private school or has enrolled in a public school in the state.
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10 3. The Commission shall be authorized to reallocate credits to
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11 the next eligible taxpayer in line when a taxpayer, on behalf of an
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12 eligible student in the program, chooses not to participate, is no
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13 longer eligible to participate, or chooses to forgo participation in
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14 the program for any reason.
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15 4. The Commission shall provide notification of approval status
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16 to applicants within thirty (30) days of closure of the application
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17 window. Notice to applicants with an eligible student, whose
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18 parents or legal guardians have a combined adjusted gross income of
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19 more than One Hundred Fifty Thousand Dollars ($150,000.00), shall be
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20 sent within thirty (30) days or no later than thirty (30) days after
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21 the last day of the priority consideration period.
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22 J. In the event of a failure of revenue pursuant to the
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23 Oklahoma State Finance Act, the tax credits otherwise authorized in
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24 subsection C of this section shall be reduced proportionately to the
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1 reduction in the amount of money appropriated to the State Board of
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2 Education for the financial support of public schools for the fiscal
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3 year in which the failure of revenue occurs.
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4 K. The Commission shall make available on its website to be
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5 updated monthly:
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6 1. The total amount of credits claimed each year pursuant to
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7 paragraphs 1 through 4 of subsection C of this section;
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8 2. The amount of credits claimed and number of students awarded
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9 each fiscal year pursuant to paragraph 1 of subsection C of this
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10 section disaggregated by income categories;
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11 3. The total amount of credits claimed and number of students
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12 awarded who attended a public school in the semester immediately
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13 preceding the school year for which the application is made each
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14 year; and
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15 4. The total number of applications denied and total amount of
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16 credits the denied applications represent for each fiscal year.
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17 L. Credits received pursuant to the Oklahoma Parental Choice
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18 Tax Credit Act shall not constitute taxable income to a taxpayer who
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19 received the credit on behalf of an eligible student.
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20 SECTION 2. This act shall become effective November 1, 2025.
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22 60-1-186 QD 1/19/2025 5:37:05 AM
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Req. No. 186 Page 13Every fact on this page links to its source, starting with the official bill record.