SB 684 — Income tax credit; relating to the Oklahoma Parental Choice Tax Credit Act; modifying tax years for which certain annual credit limit is enforced; prescribing procedure for enforcement of annual limit. Effective date. Emergency.

684 Page 3 5.

“Qualified expense” for the purpose of claiming the credit authorized by paragraph 1 of subsection C of this section ENGR.means tuition and fees at a private school in this state accredited by the State Board of Education or another accrediting association.

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B.

NO.

684 Page 2 means tuition and fees at a private school in this state accredited by the State Board of Education or another accrediting association.

and ENGR.ENR.

684 Page 34 8.

Seven Thousand Five Hundred Dollars ($7,500.00) or the amount of tuition and fees for the private school, whichever is less, if the combined adjusted gross income of the parents or legal guardians of the eligible student during the second preceding tax year ENGR.does not exceed Seventy-five Thousand Dollars ($75,000.00), b.

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B.

NO.

684 Page 4 does not exceed Seventy-five Thousand Dollars ($75,000.00), b.

Six Thousand Five Hundred Dollars ($6,500.00) or the amount of tuition and fees for the private school, whichever is less, if the combined adjusted gross incomeENR. of the parents or legal guardians of the eligible student during the second preceding tax year is more than One Hundred Fifty Thousand Dollars ($150,000.00) but does not exceed Two Hundred Twenty- five Thousand Dollars ($225,000.00), d.

Six Thousand Dollars ($6,000.00) or the amount of tuition and fees for the private school, whichever is less, if the combined adjusted gross income of the parents or legal guardians of the eligible student during the second preceding tax year is more than Two Hundred Twenty-five Thousand Dollars ($225,000.00) but ENGR.

684 Page 5 income of the parents or legal guardians of the eligible student during the second preceding tax year is more than One Hundred Fifty Thousand Dollars ($150,000.00) but does not exceed Two Hundred FiftyTwenty- five Thousand Dollars ($250,000.00),($225,000.00), ord. e.

Six Thousand Dollars ($6,000.00) or the amount of tuition and fees for the private school, whichever is less, if the combined adjusted gross income of the parents or legal guardians of the eligible student during the second preceding tax year is more than Two Hundred Twenty-five Thousand Dollars ($225,000.00) but does not exceed Two Hundred Fifty Thousand Dollars ($250,000.00), or e.

To claim the credit, the taxpayer shall submit to the Commission receipts for qualified expenses as defined by paragraph 7 8 of subsection A of this section;

ENGR.4.

If the eligible student attends a private school in this state, accredited by the State Board of Education or another accrediting association, that primarily serves financially ENR.

684 Page 6 4.disadvantaged students, the credit amount shall be the maximum credit amount authorized by paragraph 1 of this subsection or the amount of the cost to educate the eligible student at the private school, whichever is less.

If the eligible student attends a private school in this state, accredited by the State Board of Education or another accrediting association, that primarily serves financially disadvantaged students, the credit amount shall be the maximum credit amount authorized by paragraph 1 of this subsection or the amount of the cost to educate the eligible student at the private school, whichever is less.

ENGR.a.

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B.

NO.

684 Page 7 a.

D.ENR.

S.

B.

NO.

684 Page 7 D.

The Commission shall ENGR.base the credit amount payable for the spring 2025 on the fall 2024 installment disbursement payment amount.

S.

B.

NO.

684 Page 8 base the credit amount payable for the spring 2025 on the fall 2024 installment disbursement payment amount.

If a taxpayer, on behalf of an eligible student in the program, chooses not to participate, is no longer eligible to participate, or chooses to forgo participation in the program for any reason, the credit authorized by paragraph 1 of subsection C of this section but not used and not reallocated pursuant to paragraph ENGR.of subsection H of this section shall be added to the subsequent ENR.

684 Page 98 3 of subsection H of this section shall be added to the subsequent fiscal year limitation as provided in paragraph 1 of this subsection.

The taxpayer shall provide authorization for the Oklahoma Tax Commission ENGR.to disclose application data to the Department of Human Services and/or the Oklahoma Health Care Authority, and for the Department of Human Services and/or the Oklahoma Health Care Authority to provide confirmation of benefits to the Oklahoma Tax Commission for purposes of verifying that the taxpayer is a current recipient of SNAP, TANF, or Oklahoma Medicaid Program benefits;

S.

B.

NO.

684 Page 10 to disclose application data to the Department of Human Services and/or the Oklahoma Health Care Authority, and for Department of Human Services and/or the Oklahoma Health Care Authority to provide confirmation of benefits to the Oklahoma Tax Commission for purposes of verifying that the taxpayer is a current recipient of SNAP, TANF, or Oklahoma Medicaid Program benefits;

The Commission shall give second preference in making paymentsENR. to taxpayers who qualify and have received the credit in the prior year.

For credits issued in the 2025-2026 2026-2027 school year and subsequent school years, the application period shall be open on February 15 March 15 through June 15 prior to the beginning of each school year.

For any eligible student whose parents or legal guardians have a combined adjusted gross income ENGR.

684 Page 119 thatpayments doesto nottaxpayers exceedwho Onequalify Hundred Fifty Thousand Dollars ($150,000.00) or qualified and have received the credit in the prior year,year. applications shall be submitted to the Commission within the first sixty (60) days of the opening of the application period to receive priority consideration.

For credits issued in the 2025-2026 2026-2027 school year and subsequent school years, the application period shall be open on February 15 March 15 through June 15 prior to the beginning of each school year.

For any eligible student whose parents or legal guardians have a combined adjusted gross income that does not exceed One Hundred Fifty Thousand Dollars ($150,000.00) or qualified and received credit in the prior year, applications shall be submitted to the Commission within the first sixty (60) days of the opening of the application period to receive priority consideration.

ENGR.3.

S.

B.

NO.

684 Page 12 3.

and 5.ENR.

S.

B.

NO.

684 Page 10 5.

is no longer utilizing credits authorized by paragraph 1 of subsection C of this section for any reason.

The Commission shall be authorized to recapture the credits otherwise authorized by the provisions of the Oklahoma Parental ENGR.Choice Tax Credit Act on a prorated basis if an audit conducted pursuant to this subsection shows that the credit was claimed for expenditures that were not qualified expenses or it finds that the taxpayer has claimed an eligible student who no longer attends a private school or has enrolled in a public school in the state.

S.

B.

NO.

684 Page 13 Choice Tax Credit Act on a prorated basis if an audit conducted pursuant to this subsection shows that the credit was claimed for expenditures that were not qualified expenses or it finds that the taxpayer has claimed an eligible student who no longer attends a private school or has enrolled in a public school in the state.

The Commission shall provide notification of approval status to applicants within thirty (30) days of closure of the application window.ENR.

Notice to applicants with an eligible student, whose parents or legal guardians have a combined adjusted gross income of more than One Hundred Fifty Thousand Dollars ($150,000.00), shall be sent within thirty (30) days or no later than thirty (30) days after the last day of the priority consideration period.

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I.

In the event of a failure of revenue pursuant to the Oklahoma State Finance Act, the tax credits otherwise authorized in subsection C of this section shall be reduced proportionately to the reduction in the amount of money appropriated to the State Board of ENGR.

684 Page 1411 Educationwindow. for the financial support of public schools for the fiscal year in which the failure of revenue occurs.

Notice to applicants with an eligible student, whose parents or legal guardians have a combined adjusted gross income of more than One Hundred Fifty Thousand Dollars ($150,000.00), shall be sent within thirty (30) days or no later than thirty (30) days after the last day of the priority consideration period.

J.

I.

In the event of a failure of revenue pursuant to the Oklahoma State Finance Act, the tax credits otherwise authorized in subsection C of this section shall be reduced proportionately to the reduction in the amount of money appropriated to the State Board of Education for the financial support of public schools for the fiscal year in which the failure of revenue occurs.

Failure to provide this ENGR.information may result in denial of private school participation in subsequent school years.

ENR.

684 Page 1512 informationM. may result in denial of private school participation in subsequent school years.

SECTIONAn 2.eligible and participating private school as of April 15, 2025, shall have until March 1, 2027, to meet the accreditation requirements of this section.

This act shall become effective July 1, 2025.

This act shall become effective July 1, 2025.

SECTION 4.

PassedENR. the Senate the 13th day of March, 2025.

Presiding Officer of the Senate Passed the House of Representatives the ____ day of __________, 2025.

Presiding Officer of the House of Representatives ENGR.

684 Page 1613 Passed the Senate the 21st day of May, 2025.

Presiding Officer of the Senate Passed the House of Representatives the 21st day of May, 2025.

Presiding Officer of the House of Representatives OFFICE OF THE GOVERNOR Received by the Office of the Governor this ____________________ day of ___________________, 20_______, at _______ o'clock _______ M.

By:

_________________________________ Approved by the Governor of the State of Oklahoma this _________ day of ___________________, 20_______, at _______ o'clock _______ M.

_________________________________ Governor of the State of Oklahoma OFFICE OF THE SECRETARY OF STATE Received by the Office of the Secretary of State this __________ day of __________________, 20 _______, at _______ o'clock _______ M.

By:

_________________________________ ENR.

S.

B.

NO.

684 Page 14