1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 HOUSE BILL 3388 By: McCall
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6 AS INTRODUCED
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7 An Act relating to schools; amending Section 2,
7 Chapter 278, O.S.L. 2023 (70 O.S. Supp. 2023,
8 Section 28-101), which relates to the Oklahoma
8 Parental Choice Tax Credit Act; modifying definition;
9 modifying procedures for application process;
9 providing dates for installments; and declaring an
10 emergency.
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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 (70 O.S. Supp. 2023, Section 28-101), is amended to read as
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16 follows:
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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;
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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 accredited by the State Board
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7 of Education or another accrediting association or a student who is
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8 educated pursuant to the other means of education exception provided
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9 for in subsection A of Section 10-105 of Title 70 of the Oklahoma
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10 Statutes;
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11 6. "Qualified expense" for the purpose of claiming the credit
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12 authorized by subparagraph a of paragraph 1 of subsection C of this
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13 section means tuition and fees at a private school accredited by the
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14 State Board of Education or another accrediting association;
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15 7. "Qualified expense" for the purpose of claiming the credit
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16 authorized by subparagraph b of paragraph 1 of subsection C of this
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17 section means the following expenditures:
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18 a. tuition and fees for nonpublic online learning
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19 programs,
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20 b. academic tutoring services provided by an individual
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21 or a private academic tutoring facility,
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22 c. textbooks, curriculum, or other instructional
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23 materials including, but not limited to, supplemental
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 1 materials or associated online instruction required by
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2 an education service provider, and
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3 d. fees for nationally standardized assessments
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4 including, but not limited to, assessments used to
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5 determine college admission and advanced placement
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6 examinations as well as tuition and fees for tutoring
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7 or preparatory courses for the assessments; and
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8 8. "Taxpayer" means a biological or adoptive parent,
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9 grandparent, aunt, uncle, legal guardian, custodian, or other person
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10 with legal authority to act on behalf of an eligible student.
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11 B. There is hereby created the Oklahoma Parental Choice Tax
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12 Credit Program to provide an income tax credit to a taxpayer for
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13 qualified expenses to support the education of eligible students in
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14 this state.
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15 C. For the tax year 2024 and subsequent tax years, there shall
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16 be allowed against the tax imposed by Section 2355 of Title 68 of
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17 the Oklahoma Statutes a credit for any Oklahoma taxpayer who incurs
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18 a qualified expense on behalf of an eligible student, to be
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19 administered subject to the following amounts for each tax year:
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20 1. If the eligible student attends a private school accredited
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21 by the State Board of Education or another accrediting association,
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22 the maximum credit amount shall be:
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23 a. (1) Seven Thousand Five Hundred Dollars ($7,500.00)
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24 or the amount of tuition and fees for the private
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 1 school, whichever is less, if the eligible
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2 student is a member of a household in which the
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3 total adjusted gross income during the second
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4 preceding tax year does not exceed Seventy-five
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5 Thousand Dollars ($75,000.00),
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6 (2) Seven Thousand Dollars ($7,000.00) or the amount
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7 of tuition and fees for the private school,
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8 whichever is less, if the eligible student is a
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9 member of a household in which the total adjusted
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10 gross income during the second preceding tax year
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11 is more than Seventy-five Thousand Dollars
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12 ($75,000.00) but does not exceed One Hundred
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13 Fifty Thousand Dollars ($150,000.00),
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14 (3) Six Thousand Five Hundred Dollars ($6,500.00) or
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15 the amount of tuition and fees for the private
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16 school, whichever is less, if the eligible
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17 student is a member of a household in which the
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18 total adjusted gross income during the second
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19 preceding tax year is more than One Hundred Fifty
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20 Thousand Dollars ($150,000.00) but does not
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21 exceed Two Hundred Twenty-five Thousand Dollars
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22 ($225,000.00),
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23 (4) Six Thousand Dollars ($6,000.00) or the amount of
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24 tuition and fees for the private school,
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 1 whichever is less, if the eligible student is a
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2 member of a household in which the total adjusted
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3 gross income during the second preceding tax year
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4 is more than Two Hundred Twenty-five Thousand
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5 Dollars ($225,000.00) but does not exceed Two
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6 Hundred Fifty Thousand Dollars ($250,000.00), or
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7 (5) Five Thousand Dollars ($5,000.00) or the amount
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8 of tuition and fees for the private school,
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9 whichever is less, if the eligible student is a
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10 member of a household in which the total adjusted
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11 gross income during the second preceding tax year
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12 is more than Two Hundred Fifty Thousand Dollars
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13 ($250,000.00), and
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14 b. One Thousand Dollars ($1,000.00) in qualified expenses
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15 per eligible student in each tax year if the eligible
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16 student is educated pursuant to the other means of
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17 education exception provided for in subsection A of
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18 Section 10-105 of Title 70 of the Oklahoma Statutes.
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19 To claim the credit, the taxpayer shall submit to the
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20 Commission receipts for qualified expenses as defined
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21 by paragraph 7 of subsection A of this section;
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22 2. The taxpayer shall retain all receipts of qualified expenses
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23 as proof of the amounts paid each tax year the credit is claimed and
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24 shall submit them to the Commission upon request; and
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 1 3. If the credit exceeds the tax imposed by Section 2355 of
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2 Title 68 of the Oklahoma Statutes, the excess amount shall be
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3 refunded to the taxpayer.
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4 D. 1. a. For tax year 2024, the total amount of credits
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5 authorized by subparagraph a of paragraph 1 of
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6 subsection C of this section shall not exceed One
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7 Hundred Fifty Million Dollars ($150,000,000.00).
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8 b. For tax year 2025, the total amount of credits
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9 authorized by subparagraph a of paragraph 1 of
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10 subsection C of this section shall not exceed Two
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11 Hundred Million Dollars ($200,000,000.00).
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12 c. For tax year 2026, and subsequent tax years, the total
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13 amount of credits authorized by subparagraph a of
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14 paragraph 1 of subsection C of this section shall not
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15 exceed Two Hundred Fifty Million Dollars
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16 ($250,000,000.00).
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17 2. For tax year 2025, and subsequent tax years, the total
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18 amount of credits authorized by subparagraph b of paragraph 1 of
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19 subsection C of this section shall not exceed Five Million Dollars
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20 ($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. The application process shall be administered based on
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 1 the school year. The first application aligned to the school year
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2 shall open on May 1, 2024, for 2024-2025 school year. Beginning in
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3 the 2025-2026 school year and subsequent years, the application
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4 shall open on March 15. A taxpayer claiming the credit authorized
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5 by subparagraph a of paragraph 1 of subsection C of this section
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6 shall submit an application prescribed by the Commission to receive
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7 the credit in two installments, one per school semester to be paid
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8 no later than August 30 and January 15, each of which shall be half
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9 of the expected amount of tuition and fees for the private school
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10 based on the affidavit submitted pursuant to this subsection, but in
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11 no event shall an installment payment exceed half the amount of the
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12 credit authorized by subparagraph a of paragraph 1 of subsection C
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13 of this section. A taxpayer claiming the credit authorized by
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14 subparagraph a of paragraph 1 of subsection C of this section shall
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15 submit to the Commission an affidavit from the private school in
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16 which the eligible student is enrolled or is expected to enroll with
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17 the tuition and fees to be charged the taxpayer for the applicable
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18 school year. In reviewing applications submitted by eligible
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19 taxpayers to determine whether they qualify for a credit authorized
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20 by subparagraph a of paragraph 1 of subsection C of this section,
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21 the Commission shall give first preference in making installments to
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22 taxpayers who qualify pursuant to divisions (1) and (2) of
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23 subparagraph a of paragraph 1 of subsection C of this section. The
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24 Commission shall make the installments based on the expected amount
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 1 of tuition and fee amounts on the affidavit submitted pursuant to
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2 this subsection.
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3 F. Taxpayers claiming the credit shall:
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4 1. Only claim the credit for qualified expenses as defined in
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5 paragraphs 6 and 7 of subsection A of this section to provide an
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6 education for an eligible student;
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7 2. Ensure no other person is claiming a credit for the eligible
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8 student;
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9 3. Not claim the credit for an eligible student who enrolls as
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10 a full-time student in a public school district, public charter
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11 school, public virtual charter school, or magnet school; and
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12 4. Comply with rules and requirements established by the
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13 Commission for administration of the Oklahoma Parental Choice Tax
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14 Credit Program.
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15 G. Eligible students may accept a scholarship from the Lindsey
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16 Nicole Henry Scholarships for Students with Disabilities Program
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17 created by Section 13-101.2 of Title 70 of the Oklahoma Statutes
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18 while participating in the Oklahoma Parental Choice Tax Credit
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19 Program.
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20 H. 1. The Commission shall have the authority to conduct an
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21 audit or contract for the auditing of receipts for qualified
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22 expenses submitted pursuant to subparagraph b of paragraph 1 of
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23 subsection C of this section.
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 1 2. The Commission shall be authorized to recapture the credits
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2 otherwise authorized by the provisions of this act on a prorated
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3 basis if an audit conducted pursuant to this subsection shows that
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4 the credit was claimed for expenditures that were not qualified
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5 expenses or it finds that the taxpayer has claimed an eligible
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6 student who no longer attends a private school or has enrolled in a
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7 public school in the state.
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8 I. In the event of a failure of revenue pursuant to the
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9 Oklahoma State Finance Act, the tax credits otherwise authorized in
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10 subsection C of this section shall be reduced proportionately to the
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11 reduction in the amount of money appropriated to the State Board of
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12 Education for the financial support of public schools for the fiscal
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13 year in which the failure of revenue occurs.
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14 J. The Commission shall make available on its website the
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15 amount of credits claimed each tax year pursuant to subparagraphs a
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16 and b of paragraph 1 of subsection C of this section.
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17 SECTION 2. It being immediately necessary for the preservation
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18 of the public peace, health or safety, an emergency is hereby
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19 declared to exist, by reason whereof this act shall take effect and
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20 be in full force from and after its passage and approval.
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22 59-2-9234 EK 01/11/24
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Statutes affected:
Senate Committee Substitute for House Bill: 68-2358
Floor (Senate): 68-2358
Amended And Engrossed: 68-2358
Enrolled (final version): 68-2358