The bill amends the Oklahoma Parental Choice Tax Credit Act to expand the definition of eligible students and the scope of qualified expenses for tax credits related to educational expenses. Key modifications include the insertion of language that specifies that qualified expenses do not include the portion of tuition and fees covered by scholarships or discounts. The bill also introduces new categories of qualified expenses, such as tuition for nonpublic learning programs, academic tutoring services, and fees for standardized assessments. Additionally, it establishes a tiered credit system based on the combined adjusted gross income of the parents or guardians, with maximum credit amounts ranging from $5,000 to $7,500 depending on income levels.

Furthermore, the bill allows eligible students to accept scholarships while participating in the tax credit program, a change from previous restrictions. It sets a cap on the total amount of credits authorized for each tax year and outlines the process for claiming credits, including the requirement for taxpayers to retain receipts for qualified expenses. The Oklahoma Tax Commission is tasked with administering the program, conducting audits, and reallocating credits as necessary. The act is set to take effect on November 1, 2025.