Okla. Stat. tit. 70, § 70-28-101

Program.

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

1. “Accrediting association” means a recognized legal entity

that meets the accreditation requirements set by the State Board of

Education, another accrediting association approved by the State

Board of Education, or a legal entity that accredits education

organizations in multiple states, whose purpose is to verify that an

education program meets or exceeds predetermined criteria, and

monitor the education organization during the time it is accredited

by completing regular reevaluations and on-site inspections of the

education program;

2. “Commission” means the Oklahoma Tax Commission;

3. “Curriculum” means a complete course of study for a

particular content area or grade level;

4. “Department” means the State Department of Education;

5. “Education service provider” means a person, business,

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

organization that provides educational goods and/or services to

eligible students in this state;

6. “Eligible student” means a resident of this state who is

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

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

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

the State Board of Education or another accrediting association or a

student who is educated pursuant to the other means of education

Oklahoma Statutes - Title 70. Schools Page 973

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

title;

7. “Qualified expense” for the purpose of claiming the credit

authorized by paragraph 1 of subsection C of this section means

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

State Board of Education or another accrediting association. Such

private school shall comply with the provisions of subsection L of

this section. Provided, the amount of tuition and fees considered a

qualified expense pursuant to this paragraph shall not include

tuition and fees paid with any scholarship or tuition and fees

discounted or otherwise reduced by the school;

8. “Qualified expense” for the purpose of claiming the credit

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

following expenditures:

a. tuition and fees for nonpublic learning programs,

online or in person,

b. academic tutoring services provided by an individual

or a private academic tutoring facility,

c. textbooks, curriculum, or other instructional

materials including, but not limited to, supplemental

materials or associated online instruction required by

an education service provider, and

d. fees for nationally standardized assessments

including, but not limited to, assessments used to

determine college admission and advanced placement

examinations as well as tuition and fees for tutoring

or preparatory courses for the assessments; and

9. “Taxpayer” means a biological or adoptive parent,

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

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

B. There is hereby created the Oklahoma Parental Choice Tax

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

qualified expenses to support the education of eligible students in

this state.

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

year 2026 and subsequent fiscal years, there shall be allowed

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

Statutes a credit for any Oklahoma taxpayer who incurs a qualified

expense on behalf of an eligible student, to be administered subject

to the following amounts:

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

state accredited by the State Board of Education or another

accrediting association, the annual maximum credit amount for tax

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

be:
Oklahoma taxpayer who incurs a qualified

expense on behalf of an eligible student, to be administered subject

to the following amounts:

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

state accredited by the State Board of Education or another

accrediting association, the annual maximum credit amount for tax

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

be:

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

amount of tuition and fees for the private school,

Oklahoma Statutes - Title 70. Schools Page 974

whichever is less, if the combined adjusted gross

income of the parents or legal guardians of the

eligible student during the second preceding tax year

does not exceed Seventy-five Thousand Dollars

($75,000.00),

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

tuition and fees for the private school, whichever is

less, if the combined adjusted gross income of the

parents or legal guardians of the eligible student

during the second preceding tax year is more than

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

not exceed One Hundred Fifty Thousand Dollars

($150,000.00),

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

amount of tuition and fees for the private school,

whichever is less, if the combined adjusted gross

income of the parents or legal guardians of the

eligible student during the second preceding tax year

is more than One Hundred Fifty Thousand Dollars

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

five Thousand Dollars ($225,000.00),

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

tuition and fees for the private school, whichever is

less, if the combined adjusted gross income of the

parents or legal guardians of the eligible student

during the second preceding tax year is more than Two

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

does not exceed Two Hundred Fifty Thousand Dollars

($250,000.00), or

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

tuition and fees for the private school, whichever is

less, if the combined adjusted gross income of the

parents or legal guardians of the eligible student

during the second preceding tax year is more than Two

Hundred Fifty Thousand Dollars ($250,000.00);

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

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

expenses per eligible student in each tax year if the eligible

student is educated pursuant to the other means of education

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

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

Commission receipts for qualified expenses as defined by paragraph 8

of subsection A of this section;

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

state, accredited by the State Board of Education or another

accrediting association, that exclusively serves students

experiencing homelessness, the credit amount shall be Seven Thousand

Oklahoma Statutes - Title 70. Schools Page 975

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

educate the eligible student at the private school, whichever is

less;

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

state, accredited by the State Board of Education or another

accrediting association, that primarily serves financially

disadvantaged students, the credit amount shall be the maximum

credit amount authorized by paragraph 1 of this subsection or the

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

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

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

the private school, which shall be calculated by dividing the

private school’s total expenditures in the previous year by the

total enrollment in the previous school year. A private school

shall be deemed to be primarily serving financially disadvantaged
te

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

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

the private school, which shall be calculated by dividing the

private school’s total expenditures in the previous year by the

total enrollment in the previous school year. A private school

shall be deemed to be primarily serving financially disadvantaged

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

are based on enrolling students whose gross family income is two

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

below;

5. The taxpayer shall retain all receipts of qualified expenses

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

shall submit them to the Commission upon request;

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

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

refunded to the taxpayer; and

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

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

a. delinquent tax liability,

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

report or return,

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

state tax within the statutory period allowed for its

payment,

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

or

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

with the Commission by a qualified entity as defined

in Section 205.2 of Title 68 of the Oklahoma Statutes.

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

authorized by paragraph 1 of subsection C of this

section shall not exceed One Hundred Fifty Million

Dollars ($150,000,000.00).

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

2025, the total amount of credits authorized by

paragraph 1 of subsection C of this section shall not

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

The Commission shall not require a taxpayer who

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received a credit pursuant to paragraph 1 of

subsection C of this section in tax year 2024 to

reapply for a credit payable during the period

described in this subparagraph. The Commission shall

base the credit amount payable for the spring 2025 on

the fall 2024 installment disbursement payment amount.

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

total amount of credits authorized by paragraph 1 of

subsection C of this section shall not exceed Two

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

2. For tax year 2026 and subsequent tax years, the total amount

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

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

Tax Commission shall annually calculate and publish a percentage by

which the credits authorized by this section shall be reduced so the

total amount of credits used to offset tax does not exceed the

annual limit. The formula to be used for the percentage adjustment

shall be Five Million Dollars ($5,000,000.00) divided by the amount

of credit claimed in the second preceding tax year. In the event

the total tax credits authorized by this section exceed the annual

limit in any tax year, the Tax Commission shall permit any excess

but shall factor such excess into the percentage adjustment formula

for subsequent tax years.

3. If a taxpayer, on behalf of an eligible student in the

program, chooses not to participate, is no longer eligible to

participate, or chooses to forgo participation in the program for

any reason, the credit authorized by paragraph 1 of subsection C of

this section but not used and not reallocated pursuant to paragraph

3 of subsection H of this section shall be added to the subsequent

fiscal year limitation as provided in paragraph 1 of this

subsection.

E. The Commission shall prescribe applications for the purposes
ate, or chooses to forgo participation in the program for

any reason, the credit authorized by paragraph 1 of subsection C of

this section but not used and not reallocated pursuant to paragraph

3 of subsection H of this section shall be added to the subsequent

fiscal year limitation as provided in paragraph 1 of this

subsection.

E. The Commission shall prescribe applications for the purposes

of claiming the credits authorized by the Oklahoma Parental Choice

Tax Credit Act and a deadline by which applications shall be

submitted. A taxpayer claiming the credit authorized by paragraph 1

of subsection C of this section shall submit an application

prescribed by the Commission to receive the credit based on the

enrollment verification form submitted pursuant to this subsection,

but in no event shall a payment exceed the amount of the credit

authorized by paragraph 1 of subsection C of this section. If an

eligible taxpayer provides documentation on the application that he

or she is a recipient of income-based government benefits including

the Supplemental Nutrition Assistance Program (SNAP), Temporary

Assistance for Needy Families (TANF), or the Oklahoma Medicaid

Program commonly known as SoonerCare, the eligible taxpayer shall

not be required to provide additional income verification. The

Department of Human Services and the Oklahoma Health Care Authority

Oklahoma Statutes - Title 70. Schools Page 977

shall, upon request by the Oklahoma Tax Commission, verify whether

an applicant receives income-based government benefits. The

taxpayer shall provide authorization for the Oklahoma Tax Commission

to disclose application data to the Department of Human Services

and/or the Oklahoma Health Care Authority, and for the Department of

Human Services and/or the Oklahoma Health Care Authority to provide

confirmation of benefits to the Oklahoma Tax Commission for purposes

of verifying that the taxpayer is a current recipient of SNAP, TANF,

or Oklahoma Medicaid Program benefits; provided, the information

shall not be used for any other purpose. A taxpayer claiming the

credit authorized by paragraph 1 of subsection C of this section

shall submit to the Commission an enrollment verification form from

the private school in which the eligible student is enrolled or is

expected to enroll with the tuition and fees to be charged the

taxpayer for the applicable school year. In reviewing applications

submitted by eligible taxpayers to determine whether they qualify

for a credit authorized by paragraph 1 of subsection C of this

section, the Commission shall give first preference in making

payments to taxpayers who qualify pursuant to subparagraphs a and b

of paragraph 1 of subsection C of this section. The Commission

shall give second preference in making payments to taxpayers who

qualify and have received the credit in the prior year. For credits

issued in the 2026-2027 school year and subsequent school years, the

application period shall be open March 15 through June 15 prior to

the beginning of each school year. For any eligible student whose

parents or legal guardians have a combined adjusted gross income

that does not exceed One Hundred Fifty Thousand Dollars

($150,000.00) or qualified and received credit in the prior year,

applications shall be submitted to the Commission within the first

sixty (60) days of the opening of the application period to receive

priority consideration. For students enrolled in the full school

year, the full credit amount authorized for the school year shall be

paid no later than August 30.

F. Taxpayers claiming the credit shall:

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

paragraphs 7 and 8 of subsection A of this section to provide an

education for an eligible student;

2. Ensure no other person is claiming a credit for the eligible

student;

3. Not claim the credit for an eligible student who enrolls as
the school year shall be

paid no later than August 30.

F. Taxpayers claiming the credit shall:

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

paragraphs 7 and 8 of subsection A of this section to provide an

education for an eligible student;

2. Ensure no other person is claiming a credit for the eligible

student;

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

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

school, public virtual charter school, or magnet school;

4. Comply with rules and requirements established by the

Commission for administration of the Oklahoma Parental Choice Tax

Credit Program; and

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

the date on which the eligible student:

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

enrollment charter school,

b. enrolls in a nonaccredited private school,

c. graduates from high school, or

d. is no longer utilizing credits authorized by paragraph

1 of subsection C of this section for any reason.

G. Eligible students may accept a scholarship from the Lindsey

Nicole Henry Scholarships for Students with Disabilities Program

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

Oklahoma Parental Choice Tax Credit Program.

H. 1. The Commission shall have the authority to conduct an

audit or contract for the auditing of receipts for qualified

expenses submitted pursuant to paragraph 2 of subsection C of this

section.

2. The Commission shall be authorized to recapture the credits

otherwise authorized by the provisions of the Oklahoma Parental

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

pursuant to this subsection shows that the credit was claimed for

expenditures that were not qualified expenses or it finds that the

taxpayer has claimed an eligible student who no longer attends a

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

3. The Commission shall be authorized to reallocate credits for

the current application year to the next eligible taxpayer in line

when a taxpayer, on behalf of an eligible student in the program,

chooses not to participate, is no longer eligible to participate, or

chooses to forgo participation in the program for any reason no

later than September 1 following the opening of the application

period of each year.

4. The Commission shall provide notification of approval status

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

window. Notice to applicants with an eligible student, whose

parents or legal guardians have a combined adjusted gross income of

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

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

the last day of the priority consideration period.

I. In the event of a failure of revenue pursuant to the

Oklahoma State Finance Act, the tax credits otherwise authorized in

subsection C of this section shall be reduced proportionately to the

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

Education for the financial support of public schools for the fiscal

year in which the failure of revenue occurs.

J. The Commission shall make available on its website to be

updated monthly:

1. The total amount of credits claimed each year pursuant to

paragraphs 1 through 4 of subsection C of this section;

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2. The amount of credits claimed and number of students awarded

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

section disaggregated by income categories;

3. The total amount of credits claimed and number of students

awarded who attended a public school in the semester immediately

preceding the school year for which the application is made each

year; and

4. The total number of applications denied and total amount of
of students awarded

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

section disaggregated by income categories;

3. The total amount of credits claimed and number of students

awarded who attended a public school in the semester immediately

preceding the school year for which the application is made each

year; and

4. The total number of applications denied and total amount of

credits the denied applications represent for each fiscal year.

K. Credits received pursuant to the Oklahoma Parental Choice

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

received the credit on behalf of an eligible student.

L. No later than June 15 of each year, each participating

private school shall electronically provide information to confirm

student enrollment and tuition information for the fall and spring

semesters of the preceding school year and any other information

requested by the Oklahoma Tax Commission. Failure to provide this

information may result in denial of private school participation in

subsequent school years.

M. An eligible and participating private school as of April 15,

2025, shall have until March 1, 2027, to meet the accreditation

requirements of this section.