Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 15 - Oklahoma Taxable Income › Part 7 - CREDITS AGAINST TAX › Section 710:50-15-119 - Parental Choice Tax Credit

Current through Vol. 41, No. 20, July 1, 2024
(a)
General
				  provisions.
There is hereby created the Oklahoma Parental Choice Tax
				  Credit Program to provide an income tax credit to a taxpayer for qualified
				  expenses to support the education of eligible students in Oklahoma. For tax
				  year 2024 and subsequent tax years, there shall be allowed against the tax
				  imposed by Section
				  2355 of Title 68 of the Oklahoma
				  Statutes a refundable income tax credit for any Oklahoma taxpayer who incurs a
				  qualified expense on behalf of an eligible student. [
See
: 70 O.S.
				  2023, § 28-100, et seq.]
(b)
Definitions.
The following words and terms, when used in this
				  Section, shall have the following meaning, unless the context clearly indicates
				  otherwise:
(1)
"Curriculum"
means a complete course of study for a
				  particular content area or grade level.
(2)
"Education service
				  provider"
means a person, business, public school district, public
				  charter school, magnet school, or organization that provides educational goods
				  and/or services to eligible students.
(3)
"Eligible student"
means a
				  resident of Oklahoma who is eligible to enroll in a public school within the
				  state at educational levels of pre-kindergarten through 12 th grade. Eligible
				  student shall include a student who is enrolled in and attends a private school
				  in Oklahoma that is accredited by the State Board of Education or another
				  accrediting association or a student who is educated pursuant to the other
				  means of education exception provided for in 70 O.S. § 10-105(A).
(4)
"Home school tax
				  credit"
means credits authorized pursuant to 70 O.S. 2023, §
				  28-101(C)(1)(b).
(5)
"Household"
means the persons who reside in the same home as and
				  provide financial support for the eligible student as of the date the
				  application for the tax credit is submitted.
(6)
"Oklahoma taxpayer"
means:
(A) Any person owing or liable to pay any
				  Oklahoma tax;
(B) Any person
				  required to file a report, a return, or remit any tax required by the
				  provisions of any Oklahoma tax law; or
(C) Any person required to obtain a license
				  or a permit or to keep any records under the provisions of any Oklahoma tax
				  law. [See: 68 O.S. § 202]
(7)
"Priority consideration"
means an application will be reviewed and considered for approval before other
				  applications received by the Tax Commission, regardless of whether the other
				  applications were submitted on an earlier date. An application for the private
				  school tax credit will only receive priority consideration if submitted on or
				  before the deadline set by the Tax Commission and for an eligible student who
				  is a member of a household in which the total federal adjusted gross income
				  (AGI) does not exceed $150,000.
(8)
"Private school tax credit"
means credits authorized pursuant to
				  70 O.S. 2023, § 28-101(C)(1)(a).
(9)
"Qualified expense"
means:
(A) For the purpose of claiming the private
				  school tax credit in subsection (c) of this Section, qualified expense means
				  tuition and fees at a private school accredited by the State Board of Education
				  or another accrediting association. Although not an exhaustive list fees may
				  include enrollment, registration, or application fees; textbook fees;
				  technology fees; activity fees; testing and assessment fees; and fees paid for
				  school uniforms, if paid directly to the school.
(B) For the purpose of claiming the home
				  school tax credit in subsection (d) of this Section, qualified expense means
				  the following expenditures:
(i)
Tuition and fees for nonpublic online learning programs;
(ii)
Academic tutoring
				  services provided by an individual or a private academic tutoring
				  facility;
(iii)
Textbooks, curriculum, or other instructional materials including, but
				  not limited to, supplemental materials or associated online instruction
				  required by an education service provider; and
(iv)
Fees for nationally standardized
				  assessments including, but not limited to, assessments used to determine
				  college admission and advanced placement examinations as well as tuition and
				  fees for tutoring or preparatory courses for the
				  assessments.
(10)
"Second preceding tax year"
means the tax year occurring two taxable years prior to the tax year for which
				  the credit application is submitted.
(11)
"Taxpayer"
means an
				  Oklahoma taxpayer who is a biological or adoptive parent, grandparent, aunt,
				  uncle, legal guardian, custodian, or other person with legal authority to act
				  on behalf of an eligible student.
(A) A
				  foster parent, or the foster parents, shall be included within the meaning of
				  other person with legal authority to act on behalf of an eligible
				  student.
(B) Taxpayer shall not
				  include a parent or the parents of an eligible student whose parental rights
				  over the eligible student has been legally terminated.
(12)
"Warrant"
means an order
				  for payment directing the State Treasurer to disburse funds to a designated
				  payee. A warrant operates like a paper check.