{"data":{"id":"us-ok/okla.-stat.-tit.-70-70-28-101","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 70, § 70-28-101","heading":"Definitions — Oklahoma Parental Choice Tax Credit","body":"Program.\n\nA. As used in the Oklahoma Parental Choice Tax Credit Act:\n\n1. “Accrediting association” means a recognized legal entity\n\nthat meets the accreditation requirements set by the State Board of\n\nEducation, another accrediting association approved by the State\n\nBoard of Education, or a legal entity that accredits education\n\norganizations in multiple states, whose purpose is to verify that an\n\neducation program meets or exceeds predetermined criteria, and\n\nmonitor the education organization during the time it is accredited\n\nby completing regular reevaluations and on-site inspections of the\n\neducation program;\n\n2. “Commission” means the Oklahoma Tax Commission;\n\n3. “Curriculum” means a complete course of study for a\n\nparticular content area or grade level;\n\n4. “Department” means the State Department of Education;\n\n5. “Education service provider” means a person, business,\n\npublic school district, public charter school, magnet school, or\n\norganization that provides educational goods and/or services to\n\neligible students in this state;\n\n6. “Eligible student” means a resident of this state who is\n\neligible to enroll in a public school in this state. Eligible\n\nstudent shall include a student who is enrolled in and attends or is\n\nexpected to enroll in a private school in this state accredited by\n\nthe State Board of Education or another accrediting association or a\n\nstudent who is educated pursuant to the other means of education\n\nexception provided for in subsection A of Section 10-105 of this\n\ntitle;\n\n7. “Qualified expense” for the purpose of claiming the credit\n\nauthorized by paragraph 1 of subsection C of this section means\n\ntuition and fees at a private school in this state accredited by the\n\nState Board of Education or another accrediting association. Such\n\nprivate school shall comply with the provisions of subsection L of\n\nthis section. Provided, the amount of tuition and fees considered a\n\nqualified expense pursuant to this paragraph shall not include\n\ntuition and fees paid with any scholarship or tuition and fees\n\ndiscounted or otherwise reduced by the school;\n\n8. “Qualified expense” for the purpose of claiming the credit\n\nauthorized by paragraph 2 of subsection C of this section means the\n\nfollowing expenditures:\n\na. tuition and fees for nonpublic learning programs,\n\nonline or in person,\n\nb. academic tutoring services provided by an individual\n\nor a private academic tutoring facility,\n\nc. textbooks, curriculum, or other instructional\n\nmaterials including, but not limited to, supplemental\n\nmaterials or associated online instruction required by\n\nan education service provider, and\n\nd. fees for nationally standardized assessments\n\nincluding, but not limited to, assessments used to\n\ndetermine college admission and advanced placement\n\nexaminations as well as tuition and fees for tutoring\n\nor preparatory courses for the assessments; and\n\n9. “Taxpayer” means a biological or adoptive parent,\n\ngrandparent, aunt, uncle, legal guardian, custodian, or other person\n\nwith legal authority to act on behalf of an eligible student.\n\nB. There is hereby created the Oklahoma Parental Choice Tax\n\nCredit Program to provide an income tax credit to a taxpayer for\n\nqualified expenses to support the education of eligible students in\n\nthis state.\n\nC. For the tax year 2024 and subsequent tax years, and fiscal\n\nyear 2026 and subsequent fiscal years, there shall be allowed\n\nagainst the tax imposed by Section 2355 of Title 68 of the Oklahoma\n\nStatutes a credit for any Oklahoma taxpayer who incurs a qualified\n\nexpense on behalf of an eligible student, to be administered subject\n\nto the following amounts:\n\n1. If the eligible student attends a private school in this\n\nstate accredited by the State Board of Education or another\n\naccrediting association, the annual maximum credit amount for tax\n\nyear 2024, fiscal year 2026, and each subsequent fiscal year shall\n\nbe:\nOklahoma taxpayer who incurs a qualified\n\nexpense on behalf of an eligible student, to be administered subject\n\nto the following amounts:\n\n1. If the eligible student attends a private school in this\n\nstate accredited by the State Board of Education or another\n\naccrediting association, the annual maximum credit amount for tax\n\nyear 2024, fiscal year 2026, and each subsequent fiscal year shall\n\nbe:\n\na. Seven Thousand Five Hundred Dollars ($7,500.00) or the\n\namount of tuition and fees for the private school,\n\nwhichever is less, if the combined adjusted gross\n\nincome of the parents or legal guardians of the\n\neligible student during the second preceding tax year\n\ndoes not exceed Seventy-five Thousand Dollars\n\n($75,000.00),\n\nb. Seven Thousand Dollars ($7,000.00) or the amount of\n\ntuition and fees for the private school, whichever is\n\nless, if the combined adjusted gross income of the\n\nparents or legal guardians of the eligible student\n\nduring the second preceding tax year is more than\n\nSeventy-five Thousand Dollars ($75,000.00) but does\n\nnot exceed One Hundred Fifty Thousand Dollars\n\n($150,000.00),\n\nc. Six Thousand Five Hundred Dollars ($6,500.00) or the\n\namount of tuition and fees for the private school,\n\nwhichever is less, if the combined adjusted gross\n\nincome of the parents or legal guardians of the\n\neligible student during the second preceding tax year\n\nis more than One Hundred Fifty Thousand Dollars\n\n($150,000.00) but does not exceed Two Hundred Twenty-\n\nfive Thousand Dollars ($225,000.00),\n\nd. Six Thousand Dollars ($6,000.00) or the amount of\n\ntuition and fees for the private school, whichever is\n\nless, if the combined adjusted gross income of the\n\nparents or legal guardians of the eligible student\n\nduring the second preceding tax year is more than Two\n\nHundred Twenty-five Thousand Dollars ($225,000.00) but\n\ndoes not exceed Two Hundred Fifty Thousand Dollars\n\n($250,000.00), or\n\ne. Five Thousand Dollars ($5,000.00) or the amount of\n\ntuition and fees for the private school, whichever is\n\nless, if the combined adjusted gross income of the\n\nparents or legal guardians of the eligible student\n\nduring the second preceding tax year is more than Two\n\nHundred Fifty Thousand Dollars ($250,000.00);\n\n2. For tax year 2024 and subsequent tax years, the maximum\n\ncredit amount shall be One Thousand Dollars ($1,000.00) in qualified\n\nexpenses per eligible student in each tax year if the eligible\n\nstudent is educated pursuant to the other means of education\n\nexception provided for in subsection A of Section 10-105 of this\n\ntitle. To claim the credit, the taxpayer shall submit to the\n\nCommission receipts for qualified expenses as defined by paragraph 8\n\nof subsection A of this section;\n\n3. If the eligible student attends a private school in this\n\nstate, accredited by the State Board of Education or another\n\naccrediting association, that exclusively serves students\n\nexperiencing homelessness, the credit amount shall be Seven Thousand\n\nFive Hundred Dollars ($7,500.00) or the amount of the cost to\n\neducate the eligible student at the private school, whichever is\n\nless;\n\n4. If the eligible student attends a private school in this\n\nstate, accredited by the State Board of Education or another\n\naccrediting association, that primarily serves financially\n\ndisadvantaged students, the credit amount shall be the maximum\n\ncredit amount authorized by paragraph 1 of this subsection or the\n\namount of the cost to educate the eligible student at the private\n\nschool, whichever is less. The cost to educate the eligible student\n\nshall be equal to the average cost to educate all students attending\n\nthe private school, which shall be calculated by dividing the\n\nprivate school’s total expenditures in the previous year by the\n\ntotal enrollment in the previous school year. A private school\n\nshall be deemed to be primarily serving financially disadvantaged\nte\n\nschool, whichever is less. The cost to educate the eligible student\n\nshall be equal to the average cost to educate all students attending\n\nthe private school, which shall be calculated by dividing the\n\nprivate school’s total expenditures in the previous year by the\n\ntotal enrollment in the previous school year. A private school\n\nshall be deemed to be primarily serving financially disadvantaged\n\nstudents if ninety percent (90%) of the private school’s admissions\n\nare based on enrolling students whose gross family income is two\n\nhundred fifty percent (250%) of the federal poverty threshold or\n\nbelow;\n\n5. The taxpayer shall retain all receipts of qualified expenses\n\nas proof of the amounts paid each tax year the credit is claimed and\n\nshall submit them to the Commission upon request;\n\n6. If the credit exceeds the tax imposed by Section 2355 of\n\nTitle 68 of the Oklahoma Statutes, the excess amount shall be\n\nrefunded to the taxpayer; and\n\n7. Credits claimed by a taxpayer pursuant to the provisions of\n\nthis section shall not be used to offset or pay the following:\n\na. delinquent tax liability,\n\nb. accrued penalty or interest from the failure to file a\n\nreport or return,\n\nc. accrued penalty or interest from the failure to pay a\n\nstate tax within the statutory period allowed for its\n\npayment,\n\nd. tax liability of the taxpayer from any prior tax year,\n\nor\n\ne. any debt, unpaid fine, final judgment, or claim filed\n\nwith the Commission by a qualified entity as defined\n\nin Section 205.2 of Title 68 of the Oklahoma Statutes.\n\nD. 1. a. For tax year 2024, the total amount of credits\n\nauthorized by paragraph 1 of subsection C of this\n\nsection shall not exceed One Hundred Fifty Million\n\nDollars ($150,000,000.00).\n\nb. For the period of January 1, 2025, through June 30,\n\n2025, the total amount of credits authorized by\n\nparagraph 1 of subsection C of this section shall not\n\nexceed One Hundred Million Dollars ($100,000,000.00).\n\nThe Commission shall not require a taxpayer who\n\nreceived a credit pursuant to paragraph 1 of\n\nsubsection C of this section in tax year 2024 to\n\nreapply for a credit payable during the period\n\ndescribed in this subparagraph. The Commission shall\n\nbase the credit amount payable for the spring 2025 on\n\nthe fall 2024 installment disbursement payment amount.\n\nc. For fiscal year 2026 and subsequent fiscal years, the\n\ntotal amount of credits authorized by paragraph 1 of\n\nsubsection C of this section shall not exceed Two\n\nHundred Fifty Million Dollars ($250,000,000.00).\n\n2. For tax year 2026 and subsequent tax years, the total amount\n\nof credits authorized by paragraph 2 of subsection C of this section\n\nshall not exceed Five Million Dollars ($5,000,000.00). The Oklahoma\n\nTax Commission shall annually calculate and publish a percentage by\n\nwhich the credits authorized by this section shall be reduced so the\n\ntotal amount of credits used to offset tax does not exceed the\n\nannual limit. The formula to be used for the percentage adjustment\n\nshall be Five Million Dollars ($5,000,000.00) divided by the amount\n\nof credit claimed in the second preceding tax year. In the event\n\nthe total tax credits authorized by this section exceed the annual\n\nlimit in any tax year, the Tax Commission shall permit any excess\n\nbut shall factor such excess into the percentage adjustment formula\n\nfor subsequent tax years.\n\n3. If a taxpayer, on behalf of an eligible student in the\n\nprogram, chooses not to participate, is no longer eligible to\n\nparticipate, or chooses to forgo participation in the program for\n\nany reason, the credit authorized by paragraph 1 of subsection C of\n\nthis section but not used and not reallocated pursuant to paragraph\n\n3 of subsection H of this section shall be added to the subsequent\n\nfiscal year limitation as provided in paragraph 1 of this\n\nsubsection.\n\nE. The Commission shall prescribe applications for the purposes\nate, or chooses to forgo participation in the program for\n\nany reason, the credit authorized by paragraph 1 of subsection C of\n\nthis section but not used and not reallocated pursuant to paragraph\n\n3 of subsection H of this section shall be added to the subsequent\n\nfiscal year limitation as provided in paragraph 1 of this\n\nsubsection.\n\nE. The Commission shall prescribe applications for the purposes\n\nof claiming the credits authorized by the Oklahoma Parental Choice\n\nTax Credit Act and a deadline by which applications shall be\n\nsubmitted. A taxpayer claiming the credit authorized by paragraph 1\n\nof subsection C of this section shall submit an application\n\nprescribed by the Commission to receive the credit based on the\n\nenrollment verification form submitted pursuant to this subsection,\n\nbut in no event shall a payment exceed the amount of the credit\n\nauthorized by paragraph 1 of subsection C of this section. If an\n\neligible taxpayer provides documentation on the application that he\n\nor she is a recipient of income-based government benefits including\n\nthe Supplemental Nutrition Assistance Program (SNAP), Temporary\n\nAssistance for Needy Families (TANF), or the Oklahoma Medicaid\n\nProgram commonly known as SoonerCare, the eligible taxpayer shall\n\nnot be required to provide additional income verification. The\n\nDepartment of Human Services and the Oklahoma Health Care Authority\n\nshall, upon request by the Oklahoma Tax Commission, verify whether\n\nan applicant receives income-based government benefits. The\n\ntaxpayer shall provide authorization for the Oklahoma Tax Commission\n\nto disclose application data to the Department of Human Services\n\nand/or the Oklahoma Health Care Authority, and for the Department of\n\nHuman Services and/or the Oklahoma Health Care Authority to provide\n\nconfirmation of benefits to the Oklahoma Tax Commission for purposes\n\nof verifying that the taxpayer is a current recipient of SNAP, TANF,\n\nor Oklahoma Medicaid Program benefits; provided, the information\n\nshall not be used for any other purpose. A taxpayer claiming the\n\ncredit authorized by paragraph 1 of subsection C of this section\n\nshall submit to the Commission an enrollment verification form from\n\nthe private school in which the eligible student is enrolled or is\n\nexpected to enroll with the tuition and fees to be charged the\n\ntaxpayer for the applicable school year. In reviewing applications\n\nsubmitted by eligible taxpayers to determine whether they qualify\n\nfor a credit authorized by paragraph 1 of subsection C of this\n\nsection, the Commission shall give first preference in making\n\npayments to taxpayers who qualify pursuant to subparagraphs a and b\n\nof paragraph 1 of subsection C of this section. The Commission\n\nshall give second preference in making payments to taxpayers who\n\nqualify and have received the credit in the prior year. For credits\n\nissued in the 2026-2027 school year and subsequent school years, the\n\napplication period shall be open March 15 through June 15 prior to\n\nthe beginning of each school year. For any eligible student whose\n\nparents or legal guardians have a combined adjusted gross income\n\nthat does not exceed One Hundred Fifty Thousand Dollars\n\n($150,000.00) or qualified and received credit in the prior year,\n\napplications shall be submitted to the Commission within the first\n\nsixty (60) days of the opening of the application period to receive\n\npriority consideration. For students enrolled in the full school\n\nyear, the full credit amount authorized for the school year shall be\n\npaid no later than August 30.\n\nF. Taxpayers claiming the credit shall:\n\n1. Only claim the credit for qualified expenses as defined in\n\nparagraphs 7 and 8 of subsection A of this section to provide an\n\neducation for an eligible student;\n\n2. Ensure no other person is claiming a credit for the eligible\n\nstudent;\n\n3. Not claim the credit for an eligible student who enrolls as\nthe school year shall be\n\npaid no later than August 30.\n\nF. Taxpayers claiming the credit shall:\n\n1. Only claim the credit for qualified expenses as defined in\n\nparagraphs 7 and 8 of subsection A of this section to provide an\n\neducation for an eligible student;\n\n2. Ensure no other person is claiming a credit for the eligible\n\nstudent;\n\n3. Not claim the credit for an eligible student who enrolls as\n\na full-time student in a public school district, public charter\n\nschool, public virtual charter school, or magnet school;\n\n4. Comply with rules and requirements established by the\n\nCommission for administration of the Oklahoma Parental Choice Tax\n\nCredit Program; and\n\n5. Notify the Commission not later than thirty (30) days after\n\nthe date on which the eligible student:\n\na. enrolls in a public school, including an open-\n\nenrollment charter school,\n\nb. enrolls in a nonaccredited private school,\n\nc. graduates from high school, or\n\nd. is no longer utilizing credits authorized by paragraph\n\n1 of subsection C of this section for any reason.\n\nG. Eligible students may accept a scholarship from the Lindsey\n\nNicole Henry Scholarships for Students with Disabilities Program\n\ncreated by Section 13-101.2 of this title while participating in the\n\nOklahoma Parental Choice Tax Credit Program.\n\nH. 1. The Commission shall have the authority to conduct an\n\naudit or contract for the auditing of receipts for qualified\n\nexpenses submitted pursuant to paragraph 2 of subsection C of this\n\nsection.\n\n2. The Commission shall be authorized to recapture the credits\n\notherwise authorized by the provisions of the Oklahoma Parental\n\nChoice Tax Credit Act on a prorated basis if an audit conducted\n\npursuant to this subsection shows that the credit was claimed for\n\nexpenditures that were not qualified expenses or it finds that the\n\ntaxpayer has claimed an eligible student who no longer attends a\n\nprivate school or has enrolled in a public school in the state.\n\n3. The Commission shall be authorized to reallocate credits for\n\nthe current application year to the next eligible taxpayer in line\n\nwhen a taxpayer, on behalf of an eligible student in the program,\n\nchooses not to participate, is no longer eligible to participate, or\n\nchooses to forgo participation in the program for any reason no\n\nlater than September 1 following the opening of the application\n\nperiod of each year.\n\n4. The Commission shall provide notification of approval status\n\nto applicants within thirty (30) days of closure of the application\n\nwindow. Notice to applicants with an eligible student, whose\n\nparents or legal guardians have a combined adjusted gross income of\n\nmore than One Hundred Fifty Thousand Dollars ($150,000.00), shall be\n\nsent within thirty (30) days or no later than thirty (30) days after\n\nthe last day of the priority consideration period.\n\nI. In the event of a failure of revenue pursuant to the\n\nOklahoma State Finance Act, the tax credits otherwise authorized in\n\nsubsection C of this section shall be reduced proportionately to the\n\nreduction in the amount of money appropriated to the State Board of\n\nEducation for the financial support of public schools for the fiscal\n\nyear in which the failure of revenue occurs.\n\nJ. The Commission shall make available on its website to be\n\nupdated monthly:\n\n1. The total amount of credits claimed each year pursuant to\n\nparagraphs 1 through 4 of subsection C of this section;\n\n2. The amount of credits claimed and number of students awarded\n\neach fiscal year pursuant to paragraph 1 of subsection C of this\n\nsection disaggregated by income categories;\n\n3. The total amount of credits claimed and number of students\n\nawarded who attended a public school in the semester immediately\n\npreceding the school year for which the application is made each\n\nyear; and\n\n4. The total number of applications denied and total amount of\nof students awarded\n\neach fiscal year pursuant to paragraph 1 of subsection C of this\n\nsection disaggregated by income categories;\n\n3. The total amount of credits claimed and number of students\n\nawarded who attended a public school in the semester immediately\n\npreceding the school year for which the application is made each\n\nyear; and\n\n4. The total number of applications denied and total amount of\n\ncredits the denied applications represent for each fiscal year.\n\nK. Credits received pursuant to the Oklahoma Parental Choice\n\nTax Credit Act shall not constitute taxable income to a taxpayer who\n\nreceived the credit on behalf of an eligible student.\n\nL. No later than June 15 of each year, each participating\n\nprivate school shall electronically provide information to confirm\n\nstudent enrollment and tuition information for the fall and spring\n\nsemesters of the preceding school year and any other information\n\nrequested by the Oklahoma Tax Commission. Failure to provide this\n\ninformation may result in denial of private school participation in\n\nsubsequent school years.\n\nM. An eligible and participating private school as of April 15,\n\n2025, shall have until March 1, 2027, to meet the accreditation\n\nrequirements of this section.","path":["OK Code","Title 70"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os70.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"9c3c0132a2618c3b393a51a293c4040f791c2abdd30fe6e91ec7696f18108797","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-70-70-28-100a","next":"us-ok/okla.-stat.-tit.-70-70-28-102"},"notice":"GroundRules: Original legal text. Not legal advice."}