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Bill > SB684
OK SB684
OK SB684Income 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.
summary
Introduced
02/03/2025
02/03/2025
In Committee
04/16/2025
04/16/2025
Crossed Over
03/17/2025
03/17/2025
Passed
05/27/2025
05/27/2025
Dead
Signed/Enacted/Adopted
05/27/2025
05/27/2025
Introduced Session
2025 Regular Session
Bill Summary
An Act ENROLLED SENATE BILL NO. 684 By: Paxton, Daniels, and Seifried of the Senate and Hilbert and Pittman of the House An Act relating to income tax credit; amending 68 O.S. 2021, Section 205.6, which relates to list of taxpayers who claim or may claim any tax credit; excluding certain credits from list; requiring removal of certain information by certain date; amending Section 2, Chapter 278, O.S.L. 2023, as amended by Section 3, Chapter 277, O.S.L. 2024 (70 O.S. Supp. 2024, Section 28-101), which relates to the Oklahoma Parental Choice Tax Credit Act; defining term; modifying definition; modifying tax years for which certain annual credit limit is enforced; prescribing procedure for enforcement of annual limit; increasing the annual credit limitation by the amount of certain unused credit; requiring the Department of Human Services and the Oklahoma Health Care Authority to verify certain claims by applicants upon request; modifying application period for certain school years; requiring the payment of full credit amount by certain date; modifying preference for taxpayers who received credit in prior years; stipulating that authorization to reallocate credit is before certain date; requiring participating private schools to provide certain information to the Oklahoma Tax Commission; updating statutory references; updating statutory language; setting accreditation compliance date for currently participating private schools; providing an effective date; and declaring an emergency. SUBJECT: Income tax credit
AI Summary
This bill modifies the Oklahoma Parental Choice Tax Credit Program, making several key changes to the existing tax credit system for education expenses. The bill adjusts the annual credit limits, with a total cap of $150 million for tax year 2024, reducing to $100 million for January-June 2025, and increasing to $250 million for fiscal year 2026 and beyond. It introduces a new method for calculating credit reductions if the annual limit is exceeded, creating a percentage adjustment formula based on claimed credits. The bill also changes the application period to March 15-June 15, with priority given to lower-income families and those who received credits in prior years. Additionally, the legislation requires participating private schools to provide enrollment and tuition information annually and gives existing private schools until March 1, 2027, to meet new accreditation requirements. The bill expands the definition of qualified expenses to include various educational costs like tutoring, textbooks, and assessment fees, and allows the Department of Human Services and Oklahoma Health Care Authority to verify applicants' eligibility for income-based benefits. The tax credit can be used for private school tuition, homeschooling expenses, and other educational services, with credit amounts varying based on family income levels.
Committee Categories
Budget and Finance
Sponsors (5)
Last Action
Approved by Governor 05/23/2025 (on 05/27/2025)
Taxonomy
Education
- ‐ Elementary and Secondary Education
Government Operations
- ‐ Government Transparency and Open Records
Macroeconomics
- ‐ Taxation, Tax Policy, and Tax Reform
Official Document
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