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OK HB3704

OK HB3704
Revenue and taxation; income tax; federal income tax credit; election to participate; scholarship granting organizations; Oklahoma Tax Commission; effective date; emergency.


summary

Introduced
02/02/2026
In Committee
02/03/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

An Act relating to revenue and taxation; electing the State of Oklahoma to participate in the federal income tax credit for individual contributions to scholarship granting organizations; directing the Governor to execute required certification and agreements as required by the United States Department of the Treasury; requiring the Oklahoma Tax Commission to identify certain scholarship granting organizations and provide list to the Secretary of the Treasury; defining terms; requiring the Oklahoma Tax Commission to promulgate necessary rules, forms, and procedures; directing the Oklahoma Tax Commission to certain activities performed by scholarship granting organizations; providing for election to participate in the federal income tax credit to remain in effect for certain period; providing for codification; providing an effective date; and declaring an emergency.

AI Summary

This bill enacts a new law allowing the State of Oklahoma to participate in a federal income tax credit program that incentivizes individual contributions to Scholarship Granting Organizations (SGOs). An SGO is defined as a tax-exempt organization that meets specific federal requirements for awarding scholarships. The Governor is authorized to sign necessary agreements with the U.S. Department of the Treasury, and the Oklahoma Tax Commission will be responsible for identifying and listing eligible SGOs in Oklahoma, as well as managing administrative and compliance functions related to the federal credit. The bill also directs the Oklahoma Tax Commission to coordinate with existing state tax credits for SGO contributions, create necessary rules and forms, and ensure that SGOs comply with federal guidelines regarding scholarship awards, student eligibility, and contribution restrictions. This election to participate in the federal credit program will remain in effect as long as federal law permits, and the act will become effective on July 1, 2026, with an emergency clause for immediate implementation.

Committee Categories

Budget and Finance

Sponsors (2)

Last Action

Remove Representative Caldwell (Chad) as principal House author and substitute with Representative CrosswhiteHader (on 02/05/2026)

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