1| HOUSE OF REPRESENTATIVES - FLOOR VERSION |
| |
2| STATE OF OKLAHOMA |
| |
3| 1st Session of the 59th Legislature (2023) |
| |
4|COMMITTEE SUBSTITUTE |
|FOR |
5|HOUSE BILL NO. 2318 By: McBride, Hardin, and |
| Hilbert of the House |
6| |
| and |
7| |
| Thompson (Roger) of the |
8| Senate |
| |
9| |
| |
10| COMMITTEE SUBSTITUTE |
| |
11| [ scholarships Oklahoma Equal Opportunity Education |
| |
12| Scholarship Act higher education institution |
| |
13| foundations tax credits - |
| |
14| |
| |
15| emergency ] |
| |
16| |
| |
17|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
| |
18| SECTION 1. AMENDATORY 68 O.S. 2021, Section 2357.206, as |
| |
19|amended by Section 1, Chapter 49, O.S.L. 2022 (68 O.S. Supp. 2022, |
| |
20|Section 2357.206), is amended to read as follows: |
| |
21| Section 2357.206 A. This act shall be known and may be cited |
| |
22|as the "Oklahoma Equal Opportunity Education Scholarship Act". |
| |
23| B. 1. Except as provided in subsection G H of this section, |
| |
24|after August 26, 2011, there shall be allowed a credit for any |
| |
arsid2849996 HB2318 HFLR Page 1
___________________________________________________________________________
1|taxpayer who makes a contribution to an eligible |
| |
2|scholarship-granting organization. |
| |
3| The credit shall be equal to fifty percent (50%) of the total |
| |
4|amount of contributions made during a taxable year, not to exceed |
| |
5|One Thousand Dollars ($1,000.00) for single individuals, Two |
| |
6|Thousand Dollars ($2,000.00) for married individuals filing jointly, |
| |
7|or One Hundred Thousand Dollars ($100,000.00) for any taxpayer which |
| |
8|is a legal business entity including limited and general |
| |
9|partnerships, corporations, subchapter S corporations and limited |
| |
10|liability companies, plus any suspended credits pursuant to |
| |
11|subparagraph d e of paragraph 2 of subsection I J of this section; |
| |
12|provided, if total credits claimed pursuant to this paragraph exceed |
| |
13|the cap amount established pursuant to paragraphs 1 and 2 of |
| |
14|subsection E F of this section, the credit shall be equal to the |
| |
15|taxpayer's proportionate share of the cap for the taxable year, as |
| |
16|determined pursuant to subsection I J of this section. |
| |
17| 2. For any taxpayer who makes a contribution to an eligible |
| |
18|scholarship-granting organization and makes a written commitment to |
| |
19|contribute the same amount for an additional year, the credit for |
| |
20|the first year and the additional year shall be equal to |
| |
21|seventy-five percent (75%) of the total amount of the contribution |
| |
22|made during a taxable year, not to exceed the amounts established in |
| |
23|paragraph 1 of this subsection for the taxable year in which the |
| |
24|credit provided in this subsection is claimed. The taxpayer shall |
| |
arsid2849996 HB2318 HFLR Page 2
___________________________________________________________________________
1|provide evidence of the written commitment to the Oklahoma Tax |
| |
2|Commission at the time of filing the refund claim. |
| |
3| 3. The credits authorized pursuant to the provisions of this |
| |
4|subsection shall be allocable to the partners, shareholders, |
| |
5|members, or other equity owners of a taxpayer that is authorized to |
| |
6|be treated as a partnership for purposes of federal income tax |
| |
7|reporting for the taxable year for which the tax credits authorized |
| |
8|by this subsection are claimed on the applicable return, together |
| |
9|with required schedules, forms or reports of the partners, |
| |
10|shareholders, members, or other equity owners of the taxpayer. Tax |
| |
11|credits which are allocated to such equity owners shall only be |
| |
12|limited in amount for the income tax return of a natural person or |
| |
13|persons based upon the limitation of the total credit amount to the |
| |
14|entity from which the tax credits have been allocated and shall not |
| |
15|be limited to One Thousand Dollars ($1,000.00) for single |
| |
16|individuals or limited to Two Thousand Dollars ($2,000.00) for |
| |
17|married persons filing a joint return. |
| |
18| 4. On or before April 30, 2024, and once every two (2) years |
| |
19|thereafter, such scholarship-granting organization and educational |
| |
20|improvement grant organization shall electronically submit to the |
| |
21|Oklahoma Tax Commission, the Governor, President Pro Tempore of the |
| |
22|Oklahoma State Senate, the Speaker of the Oklahoma House of |
| |
23|Representatives, and the chairs and vice chairs of the education |
| |
24|committees of the Senate and House of Representatives an audited |
| |
arsid2849996 HB2318 HFLR Page 3
___________________________________________________________________________
1|financial statement for the organization along with information |
| |
2|detailing the benefits, successes, or failures of the program, and |
| |
3|make publicly available on its website the financial statement and |
| |
4|information submitted pursuant to this paragraph. |
| |
5| C. 1. Except as provided in subsection G H of this section, |
| |
6|after August 26, 2011, there shall be allowed a credit for any |
| |
7|taxpayer who makes a contribution to an eligible educational |
| |
8|improvement grant organization. Except as otherwise provided by |
| |
9|paragraph 2 of this subsection, the credit shall be equal to fifty |
| |
10|percent (50%) of the total amount of contributions made during a |
| |
11|taxable year, not to exceed One Thousand Dollars ($1,000.00) for |
| |
12|single individuals, Two Thousand Dollars ($2,000.00) for married |
| |
13|individuals filing jointly, or One Hundred Thousand Dollars |
| |
14|($100,000.00) for any taxpayer which is a legal business entity |
| |
15|including limited and general partnerships, corporations, subchapter |
| |
16|S corporations and limited liability companies, plus any suspended |
| |
17|credits pursuant to subparagraph d e of paragraph 2 of subsection I |
| |
18|J of this section; provided, if total credits claimed pursuant to |
| |
19|this paragraph exceed the cap amount established pursuant to |
| |
20|paragraphs 3 and 4 of subsection E F of this section, the credit |
| |
21|shall be equal to the taxpayer's proportionate share of the cap for |
| |
22|the taxable year, as determined pursuant to subsection I J of this |
| |
23|section. |
| |
24| |
| |
arsid2849996 HB2318 HFLR Page 4
___________________________________________________________________________
1| 2. For any taxpayer who makes a contribution to an eligible |
| |
2|educational improvement grant organization and makes a written |
| |
3|commitment to contribute the same amount for an additional year, the |
| |
4|credit for the first year and the additional year shall be equal to |
| |
5|seventy-five percent (75%) of the total amount of the contribution |
| |
6|made during a taxable year, not to exceed the cap amount established |
| |
7|in paragraphs 3 and 4 of subsection E F of this section for the |
| |
8|taxable year in which the credit provided in this paragraph is |
| |
9|claimed; provided, if total credits claimed pursuant to this |
| |
10|paragraph exceed the cap established pursuant to paragraphs 3 and 4 |
| |
11|of subsection E F of this section, the credit shall be equal to the |
| |
12|taxpayer's proportionate share of the cap for the taxable year, as |
| |
13|determined pursuant to subsection I J of this section. The taxpayer |
| |
14|shall provide evidence of the written commitment to the Oklahoma Tax |
| |
15|Commission at the time of filing the refund claim. |
| |
16| 3. The credits authorized pursuant to the provisions of this |
| |
17|subsection shall be allocable to the partners, shareholders, |
| |
18|members, or other equity owners of a taxpayer that is authorized to |
| |
19|be treated as a partnership for purposes of federal income tax |
| |
20|reporting for the taxable year for which the tax credits authorized |
| |
21|by this subsection are claimed on the applicable return, together |
| |
22|with required schedules, forms, or reports of the partners, |
| |
23|shareholders, members, or other equity owners of the taxpayer. Tax |
| |
24|credits which are allocated to such equity owners shall only be |
| |
arsid2849996 HB2318 HFLR Page 5
___________________________________________________________________________
1|limited in amount for the income tax return of a natural person or |
| |
2|persons based upon the limitation of the total credit amount to the |
| |
3|entity from which the tax credits have been allocated and shall not |
| |
4|be limited to One Thousand Dollars ($1,000.00) for single |
| |
5|individuals or limited to Two Thousand Dollars ($2,000.00) for |
| |
6|married persons filing a joint return. |
| |
7| D. 1. For contributions made on or after January 1, 2022, |
| |
8|there shall be allowed a credit for any taxpayer who makes a |
| |
9|contribution to an eligible public school foundation or public |
| |
10|school district. Except as otherwise provided by paragraph 2 of |
| |
11|this subsection, the credit shall be equal to fifty percent (50%) of |
| |
12|the total amount of contributions made during a taxable year, not to |
| |
13|exceed One Thousand Dollars ($1,000.00) for single individuals, Two |
| |
14|Thousand Dollars ($2,000.00) for married individuals filing jointly, |
| |
15|or One Hundred Thousand Dollars ($100,000.00) for any taxpayer which |
| |
16|is a legal business entity including limited and general |
| |
17|partnerships, corporations, subchapter S corporations and limited |
| |
18|liability companies; provided, if total credits claimed pursuant to |
| |
19|this paragraph exceed the cap amount established pursuant to |
| |
20|paragraph 4 of subsection E F of this section, the credit shall be |
| |
21|equal to the taxpayer's proportionate share of the cap for the |
| |
22|taxable year, as determined pursuant to subsection I J of this |
| |
23|section. |
| |
24| |
| |
arsid2849996 HB2318 HFLR Page 6
___________________________________________________________________________
1| 2. Except as otherwise provided by paragraph 1 of this |
| |
2|subsection, for any taxpayer who makes a contribution to an eligible |
| |
3|public school foundation or public school district and makes a |
| |
4|written commitment to contribute the same amount for an additional |
| |
5|year, the credit for the first year and the additional year shall be |
| |
6|equal to seventy-five percent (75%) of the total amount of the |
| |
7|contribution made during a taxable year, not to exceed the cap |
| |
8|amount established in paragraph 4 of subsection E F of this section |
| |
9|for the taxable year in which the credit provided in this paragraph |
| |
10|is claimed. The taxpayer shall provide evidence of the written |
| |
11|commitment to the Oklahoma Tax Commission at the time of filing the |
| |
12|refund claim; provided, if total credits claimed pursuant to this |
| |
13|paragraph exceed the cap amount established pursuant to paragraph 4 |
| |
14|of subsection E F of this section, the credit shall be equal to the |
| |
15|taxpayer's proportionate share of the cap for the taxable year, as |
| |
16|determined pursuant to subsection I J of this section. |
| |
17| 3. The credits authorized pursuant to the provisions of this |
| |
18|subsection shall be allocable to the partners, shareholders, |
| |
19|members, or other equity owners of a taxpayer that is authorized to |
| |
20|be treated as a partnership for purposes of federal income tax |
| |
21|reporting for the taxable year for which the tax credits authorized |
| |
22|by this subsection are claimed on the applicable return, together |
| |
23|with required schedules, forms, or reports of the partners, |
| |
24|shareholders, members, or other equity owners of the taxpayer. Tax |
| |
arsid2849996 HB2318 HFLR Page 7
___________________________________________________________________________
1|credits which are allocated to such equity owners shall only be |
| |
2|limited in amount for the income tax return of a natural person or |
| |
3|persons based upon the limitation of the total credit amount to the |
| |
4|entity from which the tax credits have been allocated and shall not |
| |
5|be limited to One Thousand Dollars ($1,000.00) for single |
| |
6|individuals or limited to Two Thousand Dollars ($2,000.00) for |
| |
7|married persons filing a joint return. |
| |
8| 4. On or before April 30, 2024, and once every four (4) years |
| |
9|thereafter, such eligible public school foundation and public school |
| |
10|district shall submit to the Oklahoma Tax Commission, the Governor, |
| |
11|President Pro Tempore of the Oklahoma State Senate, and the Speaker |
| |
12|of the Oklahoma House of Representatives an audited financial |
| |
13|statement for the organization along with information detailing the |
| |
14|benefits, successes, or failures of the programs. |
| |
15| E. 1. For contributions made on or after January 1, 2024, |
| |
16|there shall be allowed a credit for any taxpayer who makes a |
| |
17|contribution to an eligible higher education institution foundation. |
| |
18| Except as otherwise provided by paragraph 2 of this subsection, the |
| |
19|credit shall be equal to fifty percent (50%) of the total amount of |
| |
20|contributions made during a taxable year, not to exceed One Thousand |
| |
21|Dollars ($1,000.00) for single individuals, Two Thousand Dollars |
| |
22|($2,000.00) for married individuals filing jointly, or One Hundred |
| |
23|Thousand Dollars ($100,000.00) for any taxpayer which is a legal |
| |
24|business entity including limited and general partnerships, |
| |
arsid2849996 HB2318 HFLR Page 8
___________________________________________________________________________
1|corporations, subchapter S corporations, and limited liability |
| |
2|companies; provided, if total credits claimed pursuant to this |
| |
3|paragraph exceed the cap amount established pursuant to paragraph 4 |
| |
4|of subsection F of this section, the credit shall be equal to the |
| |
5|taxpayer's proportionate share of the cap for the taxable year, as |
| |
6|determined pursuant to subsection J of this section. |
| |
7| 2. Except as otherwise provided by paragraph 1 of this |
| |
8|subsection, for any taxpayer who makes a contribution to an eligible |
| |
9|higher education institution foundation and makes a written |
| |
10|commitment to contribute the same amount for an additional year, the |
| |
11|credit for the first year and the additional year shall be equal to |
| |
12|seventy-five percent (75%) of the total amount of the contribution |
| |
13|made during a taxable year, not to exceed the cap amount established |
| |
14|in paragraph 4 of subsection F of this section for the taxable year |
| |
15|in which the credit provided in this paragraph is claimed. The |
| |
16|taxpayer shall provide evidence of the written commitment to the |
| |
17|Oklahoma Tax Commission at the time of filing the refund claim; |
| |
18|provided, if total credits claimed pursuant to this paragraph exceed |
| |
19|the cap amount established pursuant to paragraph 4 of subsection F |
| |
20|of this section, the credit shall be equal to the taxpayer's |
| |
21|proportionate share of the cap for the taxable year, as determined |
| |
22|pursuant to subsection J of this section. |
| |
23| 3. The credits authorized pursuant to the provisions of this |
| |
24|subsection shall be allocable to the partners, shareholders, |
| |
arsid2849996 HB2318 HFLR Page 9
___________________________________________________________________________
1|members, or other equity owners of a taxpayer that is authorized to |
| |
2|be treated as a partnership for purposes of federal income tax |
| |
3|reporting for the taxable year for which the tax credits authorized |
| |
4|by this subsection are claimed on the applicable return, together |
| |
5|with required schedules, forms, or reports of the partners, |
| |
6|shareholders, members, or other equity owners of the taxpayer. Tax |
| |
7|credits which are allocated to such equity owners shall only be |
| |
8|limited in amount for the income tax return of a natural person or |
| |
9|persons based upon the limitation of the total credit amount to the |
| |
10|entity from which the tax credits have been allocated and shall not |
| |
11|be limited to One Thousand Dollars ($1,000.00) for single |
| |
12|individuals or limited to Two Thousand Dollars ($2,000.00) for |
| |
13|married persons filing a joint return. |
| |
14| 4. On or before April 30, 2026, and once every four (4) years |
| |
15|thereafter, each eligible higher education institution foundation |
| |
16|shall submit to the Oklahoma Tax Commission, the Governor, President |
| |
17|Pro Tempore of the Oklahoma State Senate, and the Speaker of the |
| |
18|Oklahoma House of Representatives an audited financial statement for |
| |
19|the foundation along with information detailing the benefits, |
| |
20|successes, or failures of the program. |
| |
21| F. Except as otherwise provided pursuant to subsection I J of |
| |
22|this section: |
| |
23| 1. The total credits authorized pursuant to subsection B of |
| |
24|this section for all taxpayers for tax years 2017 through 2021 shall |
| |
arsid2849996 HB2318 HFLR Page 10
___________________________________________________________________________
1|not exceed Three Million Five Hundred Thousand Dollars |
| |
2|($3,500,000.00) annually; |
| |
3| 2. The total credits authorized pursuant to subsection B of |
| |
4|this section for all taxpayers for tax years 2022 and subsequent tax |
| |
5|years shall not exceed Twenty-five Million Dollars ($25,000,000.00) |
| |
6|annually; |
| |
7| 3. The total credits authorized pursuant to subsection C of |
| |
8|this section for all taxpayers for tax years 2017 through 2021 shall |
| |
9|not exceed One Million Five Hundred Thousand Dollars ($1,500,000.00) |
| |
10|annually; |
| |
11| 4. The total credits authorized pursuant to subsections C and D |
| |
12|of this section for all taxpayers for tax year 2022 and subsequent |
| |
13|tax years shall not exceed Twenty-five Million Dollars |
| |
14|($25,000,000.00) annually. In Except as otherwise provided pursuant |
| |
15|to subparagraph c of paragraph 2 of subsection J of this section, in |
| |
16|addition to the cap amount prescribed by this paragraph, the credit |
| |
17|amount shall also be limited to Two Hundred Thousand Dollars |
| |
18|($200,000.00) of credits per public school district annually; and |
| |
19| 5. The total credits authorized pursuant to subsection E of |
| |
20|this section for all taxpayers for tax year 2024 and subsequent tax |
| |
21|years shall not exceed Twenty-five Million Dollars ($25,000,000.00) |
| |
22|annually. Except as otherwise provided pursuant to subparagraph d |
| |
23|of paragraph 2 of subsection J of this section, in addition to the |
| |
24|cap amount prescribed by this paragraph, the credit amount shall |
| |
arsid2849996 HB2318 HFLR Page 11
___________________________________________________________________________
1|also be limited to Six Million Dollars ($6,000,000.00) of credits |
| |
2|per public higher education institution annually; and |
| |
3| 6. The cap on total credits provided for in this subsection |
| |
4|shall be allocated by the Tax Commission as provided in subsection I |
| |
5|J of this section. |
| |
6| F. G. For credits claimed for eligible contributions made |
| |
7|during tax year 2014 and thereafter, a credit shall not be allowed |
| |
8|by the Oklahoma Tax Commission for contributions made to a |
| |
9|scholarship-granting organization or an educational improvement |
| |
10|grant organization if that organization's percentage of funds |
| |
11|actually awarded is less than ninety percent (90%). For purposes of |
| |
12|this section, the "percentage of funds actually awarded" shall be |
| |
13|determined by dividing the total amount of funds actually awarded as |
| |
14|educational scholarships or educational improvement grants over the |
| |
15|most recent twenty-four (24) months by the total amount available to |
| |
16|award as educational scholarships or educational improvement grants |
| |
17|over the most recent twenty-four (24) months. |
| |
18| G. H. Any tax credits which are earned by a taxpayer pursuant |
| |
19|to this section during the time period beginning August 26, 2011, |
| |
20|through December 31, 2012, may not be claimed for any period prior |
| |
21|to the taxable year beginning January 1, 2013. No credits which |
| |
22|accrue during the time period beginning August 26, 2011, through |
| |
23|December 31, 2012, may be used to file an amended tax return for any |
| |
24|taxable year prior to the taxable year beginning January 1, 2013. |
| |
arsid2849996 HB2318 HFLR Page 12
___________________________________________________________________________
1| H. I. As used in this section: |
| |
2| 1. "Eligible student" means a child of school age who is |
| |
3|lawfully present in the United States and who is a member of a |
| |
4|household in which the total annual income during the preceding tax |
| |
5|year does not exceed an amount equal to three hundred percent (300%) |
| |
6|of the income standard used to qualify for a free or reduced-price |
| |
7|school lunch or who, during the immediately preceding school year, |
| |
8|attended or, by virtue of the location of such student's place of |
| |
9|residence, was eligible to attend a public school in this state |
| |
10|which has been identified for school improvement as determined by |
| |
11|the State Board of Education pursuant to the requirements of the No |
| |
12|Child Left Behind Act of 2001, P.L. No. 107-110. Once a student has |
| |
13|received an educational scholarship, as defined in paragraph 3 of |
| |
14|this subsection, the student and any siblings who are members of the |
| |
15|same household shall remain eligible until they graduate from high |
| |
16|school or reach twenty-one (21) years of age, whichever occurs |
| |
17|first; |
| |
18| 2. "Eligible special needs student" means a child who has been |
| |
19|provided services under an Individualized Family Service Plan |
| |
20|through the SoonerStart program and during transition was evaluated |
| |
21|and determined to be eligible for school district services, a child |
| |
22|of school age who has attended public school in our state with an |
| |
23|individualized education program pursuant to the Individuals With |
| |
24|Disabilities Education Act, 20 U.S.C.A., Section 1400 et seq., or a |
| |
arsid2849996 HB2318 HFLR Page 13
___________________________________________________________________________
1|child who has been diagnosed by a clinical professional as having a |
| |
2|significant disability that will affect learning and who has been |
| |
3|approved by the board of a scholarship-granting organization; |
| |
4| 3. "Educational scholarships" means: |
| |
5| a. scholarships to an eligible student of up to Five |
| |
6| Thousand Dollars ($5,000.00) or eighty percent (80%) |
| |
7| of the statewide annual average per-pupil expenditure |
| |
8| as determined by the National Center for Education |
| |
9| Statistics, U.S. Department of Education, whichever is |
| |
10| greater, to cover all or part of the tuition, fees, |
| |
11| and transportation costs of a qualified school which |
| |
12| is accredited by the State Board of Education or an |
| |
13| accrediting association approved by the Board pursuant |
| |
14| to Section 3-104 of Title 70 of the Oklahoma Statutes, |
| |
15| b. scholarships to an eligible student of up to Five |
| |
16| Thousand Dollars ($5,000.00) or eighty percent (80%) |
| |
17| of the statewide annual average per-pupil expenditure |
| |
18| as determined by the National Center for Education |
| |
19| Statistics, U.S. Department of Education, whichever is |
| |
20| greater, to cover the educational costs of a qualified |
| |
21| school which does not charge tuition, which enrolls |
| |
22| special populations of students, and which is |
| |
23| accredited by the State Board of Education or an |
| |
24| |
| |
arsid2849996 HB2318 HFLR Page 14
___________________________________________________________________________
1| accrediting association approved by the Board pursuant |
| |
2| to Section 3-104 of Title 70 of the Oklahoma Statutes, |
| |
3| or |
| |
4| c. scholarships to an eligible special needs student of |
| |
5| up to Twenty-five Thousand Dollars ($25,000.00) to |
| |
6| cover all or part of the tuition, fees, and |
| |
7| transportation costs of a qualified school for |
| |
8| eligible special needs students which is accredited by |
| |
9| the State Board of Education or an accrediting |
| |
10| association approved by the Board pursuant to Section |
| |
11| 3-104 of Title 70 of the Oklahoma Statutes, or |
| |
12| d. scholarships to an eligible public higher education |
| |
13| institution student to cover all or part of the |
| |
14| tuition and fees for undergraduate courses at an |
| |
15| institution authorized by the Oklahoma State Regents |
| |
16| for Higher Education; |
| |
17| 4. "Low-income eligible student" means an eligible student or |
| |
18|eligible special needs student who qualifies for a free or |
| |
19|reduced-price lunch; |
| |
20| 5. "Qualified school" means an early childhood, elementary, or |
| |
21|secondary private school in this state including schools which |
| |
22|provide special educational programs for three-year-olds or |
| |
23|prekindergarten educational programs for four-year-olds, which: |
| |
24| |
| |
arsid2849996 HB2318 HFLR Page 15
___________________________________________________________________________
1| a. is accredited by the State Board of Education or an |
| |
2| accrediting association approved by the Board pursuant |
| |
3| to Section 3-104 of Title 70 of the Oklahoma Statutes, |
| |
4| b. is in compliance with all applicable health and safety |
| |
5| laws and codes, |
| |
6| c. has a stated policy against discrimination in |
| |
7| admissions on the basis of race, color, national |
| |
8| origin, or disability, and |
| |
9| d. ensures academic accountability to parents and |
| |
10| guardians of students through regular progress |
| |
11| reports; |
| |
12| 6. "Qualified school for eligible special needs students" means |
| |
13|an early childhood, elementary, or secondary private school in a |
| |
14|county in this state including schools which provide special |
| |
15|educational programs for three-year-olds or prekindergarten |
| |
16|educational programs for four-year-olds; |
| |
17| 7. "Scholarship-granting organization" means an organization |
| |
18|which: |
| |
19| a. is a nonprofit entity exempt from taxation pursuant to |
| |
20| the provisions of the Internal Revenue Code, 26 |
| |
21| U.S.C., Section 501(c)(3), |
| |
22| b. distributes periodic scholarship payments as checks |
| |
23| made out to an eligible student's or eligible special |
| |
24| |
| |
arsid2849996 HB2318 HFLR Page 16
___________________________________________________________________________
1| needs student's parent or guardian and mailed to the |
| |
2| qualified school where the student is enrolled, |
| |
3| c. spends no more than ten percent (10%) of its annual |
| |
4| revenue on expenditures other than educational |
| |
5| scholarships as defined in paragraph 3 of this |
| |
6| subsection, |
| |
7| d. spends each year a portion of its expenditures on |
| |
8| educational scholarships for low-income eligible |
| |
9| students, as defined in paragraph 4 of this |
| |
10| subsection, in an amount equal to or greater than the |
| |
11| percentage of low-income eligible students in the |
| |
12| state, |
| |
13| e. ensures that scholarships are portable during the |
| |
14| school year and can be used at any qualified school |
| |
15| that accepts the eligible student or at any qualified |
| |
16| school for special needs students that accepts the |
| |
17| eligible special needs student, |
| |
18| f. registers with the Oklahoma Tax Commission as a |
| |
19| scholarship-granting organization, and |
| |
20| g. has policies in place to: |
| |
21| (1) carry out criminal background checks on all |
| |
22| employees and board members to ensure that no |
| |
23| individual is involved with the organization who |
| |
24| |
| |
arsid2849996 HB2318 HFLR Page 17
___________________________________________________________________________
1| might reasonably pose a risk to the appropriate |
| |
2| use of contributed funds, and |
| |
3| (2) maintain full and accurate records with respect |
| |
4| to the receipt of contributions and expenditures |
| |
5| of those contributions and supply such records |
| |
6| and any other documentation required by the Tax |
| |
7| Commission to demonstrate financial |
| |
8| accountability; |
| |
9| 8. "Annual revenue" means the total amount or value of |
| |
10|contributions received by an organization from taxpayers awarded |
| |
11|credits during the organization's fiscal year and all amounts earned |
| |
12|from interest or investments; |
| |
13| 9. "Public school" means public schools as defined in Section |
| |
14|1-106 of Title 70 of the Oklahoma Statutes; |
| |
15| 10. "Eligible public school district" means any public school; |
| |
16| 11. "Early childhood education program" means a special |
| |
17|educational program for eligible special needs students who are |
| |
18|three (3) years of age or a prekindergarten educational program |
| |
19|provided to children who are at least four (4) years of age but not |
| |
20|more than five (5) years of age on or before September 1; |
| |
21| 12. "Innovative educational program" means an advanced academic |
| |
22|or academic improvement program that is not part of the regular |
| |
23|coursework of a public school but that enhances the curriculum or |
| |
24| |
| |
arsid2849996 HB2318 HFLR Page 18
___________________________________________________________________________
1|academic program of the school or provides early childhood education |
| |
2|programs to students; |
| |
3| 13. "Educational improvement grant" means a grant to an |
| |
4|eligible public school to implement an innovative educational |
| |
5|program for students including the ability for multiple public |
| |
6|schools to make an application and be awarded a grant to jointly |
| |
7|provide an innovative educational program; |
| |
8| 14. "Educational improvement grant organization" means an |
| |
9|organization which: |
| |
10| a. is a nonprofit entity exempt from taxation pursuant to |
| |
11| the provisions of the Internal Revenue Code, 26 |
| |
12| U.S.C., Section 501(c)(3), and |
| |
13| b. contributes at least ninety percent (90%) of its |
| |
14| annual receipts as grants to eligible schools for |
| |
15| innovative educational programs. For purposes of this |
| |
16| subparagraph, an educational improvement grant |
| |
17| organization contributes its annual cash receipts when |
| |
18| it expends or otherwise irrevocably encumbers those |
| |
19| funds for expenditure during the then current fiscal |
| |
20| year of the organization or during the next succeeding |
| |
21| fiscal year of the organization; and |
| |
22| 15. "Eligible public school foundation" means a nonprofit |
| |
23|entity formed pursuant to the laws of this state and is exempt from |
| |
24|federal income taxation pursuant to either Section 501(c)(3) or |
| |
arsid2849996 HB2318 HFLR Page 19
___________________________________________________________________________
1|Section 509(a) of the Internal Revenue Code of 1986, as amended. |
| |
2|Each public school foundation must shall be approved by the local |
| |
3|board of education prior to accepting qualifying donations; |
| |
4| 16. "Eligible public higher education institution student" |
| |
5|means a student who is enrolled in a public higher education |
| |
6|institution in the state, who is lawfully present in the United |
| |
7|States, and who is a member of a household in which the total annual |
| |
8|income during the preceding tax year does not exceed an amount equal |
| |
9|to three hundred percent (300%) of the income standard used to |
| |
10|qualify for a free or reduced-price school lunch; and |
| |
11| 17. "Eligible higher education institution foundation" means a |
| |
12|nonprofit entity formed pursuant to the laws of this state that is |
| |
13|exempt from federal income taxation pursuant to either Section 501 |
| |
14|(c)(3) or Section 509(a) of the Internal Revenue Code of 1986, as |
| |
15|amended, and is formed for the primary purpose of supporting a |
| |
16|public higher education institution. Each public higher education |
| |
17|institution foundation shall be approved by the governing board of |
| |
18|the higher education institution prior to accepting qualifying |
| |
19|donations. |
| |
20| I. J. Total credits authorized by this section shall be |
| |
21|allocated as follows: |
| |
22| 1. By January 10 of the year immediately following each |
| |
23|calendar year, a scholarship-granting organization, an educational |
| |
24|improvement grant organization, an eligible public school |
| |
arsid2849996 HB2318 HFLR Page 20
___________________________________________________________________________
1|foundation, or a public school district, or an eligible higher |
| |
2|education institution foundation which accepts contributions |
| |
3|pursuant to this section shall provide electronically to the Tax |
| |
4|Commission information on each contribution accepted during such |
| |
5|taxable year. At least once each taxable year, the entity making |
| |
6|the report shall notify each contributor that Oklahoma law provides |
| |
7|for a total, statewide cap on the amount of income tax credits |
| |
8|allowed annually; |
| |
9| 2. a. If the Tax Commission determines the total combined |
| |
10| credits claimed for contributions made to |
| |
11| scholarship-granting organizations during the most |
| |
12| recently completed calendar year by all taxpayers are |
| |
13| in excess of the statewide cap amount provided in |
| |
14| paragraphs 1 and 2 of subsection E F of this section, |
| |
15| the Tax Commission shall first allocate any amount of |
| |
16| credits not claimed for contributions made to |
| |
17| organizations authorized pursuant to subsections C |
| |
18| and, D, and E of this section, then shall determine |
| |
19| the percentage of the contribution which establishes |
| |
20| the proportionate share of the credit which may be |
| |
21| claimed by any taxpayer so that the total maximum |
| |
22| credits authorized by this section are not exceeded. |
| |
23| b. If the Tax Commission determines the total combined |
| |
24| credits claimed for contributions made to |
| |
arsid2849996 HB2318 HFLR Page 21
___________________________________________________________________________
1| organizations authorized pursuant to subsections C |
| |
2| and, D, and E of this section during the most recently |
| |
3| completed calendar year by all taxpayers are in excess |
| |
4| of the statewide cap amount provided in paragraphs 3 |
| |
5| and, 4, and 5 of subsection E F of this section, the |
| |
6| Tax Commission shall first allocate any amount of |
| |
7| credits not claimed for contributions made to |
| |
8| scholarship-granting organizations, then shall |
| |
9| determine the percentage of the contribution which |
| |
10| establishes the proportionate share of the credit |
| |
11| which may be claimed by any taxpayer so that the |
| |
12| maximum credits authorized by this section are not |
| |
13| exceeded. |
| |
14| c. If the Tax Commission determines the total combined |
| |
15| credits claimed for contributions made to |
| |
16| organizations authorized pursuant to subsections C and |
| |
17| D of this section during the most recently completed |
| |
18| calendar year by all taxpayers are in excess of the |
| |
19| per public school district cap of Two Hundred Thousand |
| |
20| Dollars ($200,000.00) pursuant to paragraph 4 of |
| |
21| subsection E F of this section, the Tax Commission |
| |
22| shall first allocate any amount of credits not claimed |
| |
23| for contributions made to other organizations |
| |
24| authorized pursuant to subsections C and D of this |
| |
arsid2849996 HB2318 HFLR Page 22
___________________________________________________________________________
1| section, then shall determine the percentage of the |
| |
2| contribution which establishes the proportionate share |
| |
3| of the credit which may be claimed by any taxpayer so |
| |
4| that the maximum credits authorized by this section |
| |
5| are not exceeded. |
| |
6| d. If the Tax Commission determines the total combined |
| |
7| credits claimed for contributions made to |
| |
8| organizations authorized pursuant to subsection E of |
| |
9| this section during the most recently completed |
| |
10| calendar year by all taxpayers are in excess of the |
| |
11| per higher education institution cap of Six Million |
| |
12| Dollars ($6,000,000.00) pursuant to paragraph 5 of |
| |
13| subsection F of this section, the Tax Commission shall |
| |
14| first allocate any amount of credits not claimed for |
| |
15| contributions made to other organizations authorized |
| |
16| pursuant to subsection E of this section, then shall |
| |
17| determine the percentage of the contribution which |
| |
18| establishes the proportionate share of the credit |
| |
19| which may be claimed by any taxpayer so that the |
| |
20| maximum credits authorized by this section are not |
| |
21| exceeded. |
| |
22| e. Beginning for tax year 2016, credits earned, but not |
| |
23| allowed due to the application of statewide caps |
| |
24| provided in subsection E F of this section will be |
| |
arsid2849996 HB2318 HFLR Page 23
___________________________________________________________________________
1| considered suspended and authorized to be used in the |
| |
2| next immediate tax year and applied to the next year's |
| |
3| statewide cap; and |
| |
4| 3. The Tax Commission shall publish the percentage of the |
| |
5|contribution which may be claimed as a credit by contributors for |
| |
6|the most recently completed calendar year on the Tax Commission |
| |
7|website no later than February 15 of each calendar year for |
| |
8|contributions made the previous year. Each organization authorized |
| |
9|pursuant to subsections B, C, and D, and E of this section shall |
| |
10|notify contributors of that amount annually. |
| |
11| J. K. No tax credits authorized by this section shall be used |
| |
12|to reduce the tax liability of the taxpayer to less than zero (0). |
| |
13| K. L. Any credits authorized by this section allowed but not |
| |
14|used in any tax year may be carried over, in order, to each of the |
| |
15|three (3) years following the year of qualification. |
| |
16| L. M. 1. In order to qualify under this section, each |
| |
17|organization authorized pursuant to subsections C and, D, and E of |
| |
18|this section shall submit an application with information to the |
| |
19|Oklahoma Tax Commission on a form prescribed by the Tax Commission |
| |
20|that: |
| |
21| a. enables the Tax Commission to confirm that the |
| |
22| organization is a nonprofit entity exempt from |
| |
23| taxation pursuant to the provisions of the Internal |
| |
24| |
| |
arsid2849996 HB2318 HFLR Page 24
___________________________________________________________________________
1| Revenue Code, 26 U.S.C., Section 501(c)(3) or Section |
| |
2| 509(a), and |
| |
3| b. describes the proposed innovative educational program |
| |
4| or programs supported by the organization. |
| |
5| 2. The Tax Commission shall review and approve or disapprove |
| |
6|the application, in consultation with the State Department of |
| |
7|Education or the Oklahoma State Regents for Higher Education. |
| |
8| 3. In order to maintain eligibility under this section, an |
| |
9|organization authorized pursuant to subsections C and D of this |
| |
10|section shall annually report the following information to the Tax |
| |
11|Commission and publish on its website by September 1 of each year: |
| |
12| a. the name of the innovative educational program or |
| |
13| programs and the total amount of the grant or grants |
| |
14| made to those programs during the immediately |
| |
15| preceding school year, |
| |
16| b. a description of how each grant was utilized during |
| |
17| the immediately preceding school year and a |
| |
18| description of any demonstrated or expected innovative |
| |
19| educational improvements, |
| |
20| c. the names of the public school and school districts |
| |
21| where innovative educational programs that received |
| |
22| grants during the immediately preceding school year |
| |
23| were implemented, |
| |
24| |
| |
arsid2849996 HB2318 HFLR Page 25
___________________________________________________________________________
1| d. where the organization collects information on a |
| |
2| county-by-county basis, and |
| |
3| e. the total number and total amount of grants made |
| |
4| during the immediately preceding school year for |
| |
5| innovative educational programs at public school by |
| |
6| each county in which the organization made grants. |
| |
7| 4. In order to maintain eligibility under this section, an |
| |
8|organization authorized pursuant to subsection E of this section |
| |
9|shall annually report the following information to the Tax |
| |
10|Commission and publish on its website by September 1 of each year: |
| |
11| a. the name of the higher education institution |
| |
12| scholarship program or programs and the total amount |
| |
13| of funds distributed by the foundation through those |
| |
14| programs during the immediately preceding school year, |
| |
15| b. a description of how the scholarship funds were |
| |
16| utilized during the immediately preceding school year, |
| |
17| and |
| |
18| c. the total number and total amount of scholarships |
| |
19| granted during the immediately preceding school year. |
| |
20| 5. The information required under paragraph paragraphs 3 and 4 |
| |
21|of this subsection shall be submitted on a form provided by the Tax |
| |
22|Commission. No later than May 1 of each year, the Tax Commission |
| |
23|shall annually distribute sample forms together with the forms on |
| |
24| |
| |
arsid2849996 HB2318 HFLR Page 26
___________________________________________________________________________
1|which the reports are required to be made to each approved |
| |
2|organization. |
| |
3| 5. 6. The Tax Commission shall not require any other |
| |
4|information be provided by an organization, except as expressly |
| |
5|authorized in this section. |
| |
6| M. N. 1. Beginning in 2023 for the 2022-2023 academic year, in |
| |
7|order to maintain registration, a scholarship-granting organization |
| |
8|shall annually report to the Tax Commission by September 1 of each |
| |
9|year the following information regarding the educational |
| |
10|scholarships funded by the organization in the previous academic |
| |
11|year: |
| |
12| a. the name and address of the scholarship-granting |
| |
13| organization, |
| |
14| b. the names of the qualifying schools that received |
| |
15| funding for educational scholarships, the total amount |
| |
16| of funds paid to each qualifying school, and the total |
| |
17| number of scholarship recipients enrolled in each |
| |
18| qualifying school, |
| |
19| c. the total number and total dollar amount of |
| |
20| contributions received during the previous academic |
| |
21| year, |
| |
22| d. the total number and total dollar amount of |
| |
23| educational scholarships awarded and funded during the |
| |
24| previous academic year, |
| |
arsid2849996 HB2318 HFLR Page 27
___________________________________________________________________________
1| e. the total number, total dollar amount, and percentage |
| |
2| of educational scholarships awarded and funded during |
| |
3| the previous academic year disaggregated into the |
| |
4| following categories: |
| |
5| (1) low-income eligible students, |
| |
6| (2) students who during the immediately preceding |
| |
7| school year attended or who were eligible by |
| |
8| virtue of the residence of the student to attend |
| |
9| a public school in the state which was identified |
| |
10| for school improvement by the State Board of |
| |
11| Education, |
| |
12| (3) eligible special needs students, and |
| |
13| (4) students who were first-time recipients of a |
| |
14| scholarship including information about the type |
| |
15| of public or private school the student was |
| |
16| enrolled in during the entire previous academic |
| |
17| year, |
| |
18| f. the percentage of annual revenue received by the |
| |
19| organization from donations which qualify for tax |
| |
20| credits pursuant to this section which was not |
| |
21| expended on scholarships, |
| |
22| g. disaggregated data reported under this subsection |
| |
23| shall be redacted if reporting would allow for |
| |
24| identification of specific children, and shall be |
| |
arsid2849996 HB2318 HFLR Page 28
___________________________________________________________________________
1| reported in accordance with the Student Data |
| |
2| Accessibility, Transparency and Accountability Act of |
| |
3| 2013, division subparagraph b of subparagraph |
| |
4| paragraph 2 of subsection C of Section 3-168 of Title |
| |
5| 70 of the Oklahoma Statutes, and the Family |
| |
6| Educational Rights and Privacy Act of 1974 (FERPA), 20 |
| |
7| U.S.C., Section 1232g, and |
| |
8| h. the percentage of the total amount of education |
| |
9| scholarship expenditures spent on low-income eligible |
| |
10| students. |
| |
11| 2. The Tax Commission shall make available on its website: |
| |
12| a. the information submitted by the scholarship-granting |
| |
13| organization pursuant to paragraph 1 of this |
| |
14| subsection, |
| |
15| b. a list of participating schools, and |
| |
16| c. all other application information submitted to the |
| |
17| Tax Commission by a scholarship-granting organization, |
| |
18| except that information which would violate the |
| |
19| privacy of an individual. |
| |
20| 3. A scholarship-granting organization shall annually submit |
| |
21|verification to the Tax Commission that the organization still meets |
| |
22|the criteria set forth in paragraph 7 of subsection H I of this |
| |
23|section. |
| |
24| |
| |
arsid2849996 HB2318 HFLR Page 29
___________________________________________________________________________
1| N. O. Contributions made pursuant to subsections B, C, and D of |
| |
2|this section shall not be used by the Legislature to reduce the |
| |
3|amount appropriated for the financial support of public schools. |
| |
4| O. P. In consultation with the State Department of Education |
| |
5|and the Oklahoma State Regents for Higher Education, the Tax |
| |
6|Commission shall promulgate rules necessary to implement the |
| |
7|Oklahoma Equal Opportunity Education Scholarship Act. The rules |
| |
8|shall include procedures for the registration of a |
| |
9|scholarship-granting organization, an educational improvement grant |
| |
10|organization, a public school foundation, or public school district, |
| |
11|or public higher education institution foundation for purposes of |
| |
12|determining if the organization meets the requirements of the |
| |
13|Oklahoma Equal Opportunity Education Scholarship Act or for the |
| |
14|revocation of the registration of an organization, if applicable, |
| |
15|and for notice as required in subsection I J of this section. |
| |
16| SECTION 2. It being immediately necessary for the preservation |
| |
17|of the public peace, health or safety, an emergency is hereby |
| |
18|declared to exist, by reason whereof this act shall take effect and |
| |
19|be in full force from and after its passage and approval. |
| |
20| |
| |
21|COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated |
|03/06/2023 - DO PASS, As Amended and Coauthored. |
22| |
| |
23| |
| |
24| |
| |
arsid2849996 HB2318 HFLR Page 30
