The bill amends the Oklahoma Parental Choice Tax Credit Program by updating the monthly information that the Oklahoma Tax Commission must provide on its website and clarifying key definitions such as "accrediting association," "eligible student," and "qualified expense." It establishes a framework for income tax credits for taxpayers who incur qualified educational expenses for eligible students, with varying maximum credit amounts based on the income of the student's parents or guardians. The bill also outlines the process for claiming these credits, including the requirement for taxpayers to retain receipts and submit applications, while allowing the Commission to conduct audits and recapture improperly claimed credits. Notably, the requirement for the Commission to report on the total number of applications denied has been deleted.

Additionally, the bill introduces new reporting requirements for educational scholarships and tax credits, mandating data collection on the number of applications approved and denied for individuals below the federal poverty line and those below the median household income in Oklahoma. It requires reporting on approved applications for students receiving state-funded scholarships and the median income of families of all approved students. The bill specifies that credits received under the Oklahoma Parental Choice Tax Credit Act will not be considered taxable income and establishes a deadline for private schools to provide enrollment and tuition information to the Commission, with consequences for non-compliance. Eligible private schools are given until March 1, 2027, to meet accreditation requirements, and the act is set to take effect on November 1, 2026.