The Opportunity Tax Credit Act establishes a new tax credit for taxpayers with resident dependents who are not enrolled in a public school or receiving an educational savings account (ESA) payment. The credit is set at $4,000 for each eligible dependent who meets specific criteria, such as being eligible for kindergarten, having attended a public school for at least one semester in the previous academic year, or having received an ESA payment in the prior year. Taxpayers who received an ESA payment for the same academic year as the credit cannot claim it. Additionally, any credit exceeding the taxpayer's tax liability is refundable, and taxpayers can apply for advance payments from a newly created opportunity fund.

The bill also mandates that the Department of Revenue will oversee the administration of the credit and will have the authority to review enrollment statuses and ESA payments to verify eligibility. Starting January 15, 2028, the department is required to report annually to the General Assembly on the credit's usage, including details on claims and potential fraud. The Act takes effect immediately upon enactment and is retroactively applicable to tax years beginning on or after January 1, 2026.