House Bill No. 1760, introduced by Kerbs, amends the Oklahoma Equal Opportunity Education Scholarship Act to enhance tax credits for contributions to eligible scholarship-granting organizations, educational improvement grant organizations, and public school foundations. The bill establishes a tax credit equal to 50% of contributions made during a taxable year, with caps of $1,000 for single filers, $2,000 for married couples, and $100,000 for legal business entities. If a taxpayer commits to contributing the same amount for an additional year, the credit increases to 75% for both years. The bill also introduces a new credit for contributions to eligible higher education institution funds starting January 1, 2026, and mandates organizations to submit audited financial statements and performance reports to the Oklahoma Tax Commission.

Significant changes include the establishment of a cap on total credits at $25 million annually, with a specific limit of $7.5 million per public higher education institution. The bill emphasizes accountability by requiring organizations to notify contributors about the statewide cap on tax credits and mandates annual reporting on educational programs and fund usage. It also ensures that contributions cannot reduce state appropriations for public education and allows unused credits to be carried over for three years. The Tax Commission is tasked with implementing rules for the registration and oversight of the relevant organizations, and the act is set to take effect on July 1, 2025, with an emergency clause for immediate implementation upon passage.

Statutes affected:
House Committee Substitute: 68-2357.206
Floor (House): 68-2357.206
Engrossed: 68-2357.206
Sub Committee OR Policy Committee Recommendations (House) Sub Committee Recommendation: 68-2357.206