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 for individuals and businesses. If a taxpayer commits to contributing the same amount for an additional year, the credit increases to 75% for both years. The legislation also requires organizations to submit audited financial statements and detailed program outcome reports to the Oklahoma Tax Commission and other state officials. Additionally, starting January 1, 2026, contributions to eligible higher education institution funds will be subject to similar credit structures and reporting requirements.

The bill sets an annual cap on total credits at $25 million, with a specific limit of $7.5 million per public higher education institution. It mandates that at least 90% of funds must be distributed as scholarships or grants to eligible students. The Tax Commission is responsible for allocating credits based on these caps and managing excess claims. The legislation also updates definitions and requirements for scholarship-granting organizations and eligible higher education institution foundations, clarifying criteria for eligible students, including special needs students. Furthermore, it outlines reporting requirements for organizations to maintain eligibility for tax credits and ensures that contributions cannot offset state funding for public schools or higher education institutions. 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