1| STATE OF OKLAHOMA | | | 2| 1st Session of the 59th Legislature (2023) | | | 3|SENATE BILL 1083 By: Jett | | | 4| | | | 5| | | | 6| AS INTRODUCED | | | 7| An Act relating to income tax credit; providing | | credit for certain educational choice expenses and | 8| qualifying educational expenses of dependents; | | providing qualifications for certain credit; limiting | 9| amount of credit claimed; providing for carryover for | | certain credit amount; prohibiting itemized | 10| deductions of expenses claimed as credit; authorizing | | Oklahoma Tax Commission to require certain | 11| documentation; prohibiting requirement that certain | | schools or organizations provide documents; defining | 12| terms; providing for codification; and providing an | | effective date. | 13| | | | 14| | | | 15|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: | | | 16| SECTION 1. NEW LAW A new section of law to be codified | | | 17|in the Oklahoma Statutes as Section 2357.207 of Title 68, unless | | | 18|there is created a duplication in numbering, reads as follows: | | | 19| A. For tax year 2024 and subsequent tax years, there shall be | | | 20|allowed for any taxpayer a credit against the tax imposed by Section | | | 21|2355 of Title 68 of the Oklahoma Statutes for educational choice | | | 22|expenses incurred during the tax year for taxpayers with a child | | | 23|who: | | | 24| 1. Is eligible to be enrolled in a public school in this state; | | | Req. No. 1566 Page 1 ___________________________________________________________________________
1| 2. Qualifies as the taxpayer's dependent for federal tax | | | 2|purposes; and | | | 3| 3. Is enrolled in a public school, charter school, private | | | 4|school, or private educational program that can be used to satisfy | | | 5|the state's compulsory school attendance requirements that is not | | | 6|affiliated with the student's resident district, as determined by | | | 7|Section 1-113 of Title 70 of the Oklahoma Statutes. | | | 8| B. For tax year 2024 and subsequent tax years, there shall be | | | 9|allowed a credit against the tax imposed by Section 2355 of Title 68 | | | 10|of the Oklahoma Statutes for qualifying educational expenses | | | 11|incurred during the tax year for any taxpayer that has a child who | | | 12|qualifies as the taxpayer's dependent for federal tax purposes and | | | 13|is eligible to be enrolled in a public school in this state. | | | 14| C. The maximum tax credit allowable for each taxable year, as | | | 15|provided for in subsections A and B of this subsection, shall be Two | | | 16|Thousand Five Hundred Dollars ($2,500.00) for each qualifying | | | 17|dependent. | | | 18| D. If the amount of the allowable credit pursuant to | | | 19|subsections A and B of this section exceeds the maximum allowable | | | 20|credit pursuant to subsection C of this section, such excess may be | | | 21|carried over, in order, to each of the two (2) subsequent tax years. | | | 22| E. Amounts claimed under this section shall not also be | | | 23|itemized as deductions for the same tax year when computing Oklahoma | | | 24|taxable income. | | | Req. No. 1566 Page 2 ___________________________________________________________________________
1| F. The Oklahoma Tax Commission is authorized to require the | | | 2|taxpayer to submit with the tax return copies of such receipts or | | | 3|similar financial documentation as may be necessary to confirm the | | | 4|taxpayer's statement of the allowable credit. Provided, no school | | | 5|or other educational organization shall be required to provide | | | 6|documentation or otherwise act to verify eligibility for credits | | | 7|under this act. | | | 8| G. As used in this section: | | | 9| 1. "Academic instruction" means instruction in reading, | | | 10|writing, mathematics, science, history, art, music, geography, | | | 11|civics, economics, literature, philosophy, religion, foreign | | | 12|languages, and related subjects; | | | 13| 2. "Close relatives" refers to a person's children, | | | 14|grandchildren, mother, father, brothers, sisters, aunts, or uncles | | | 15|whether by blood, marriage, or adoption; | | | 16| 3. "Educational choice expenses" means tuition and fees for | | | 17|enrollment of the child in a school or a private educational program | | | 18|not affiliated with the public school district in which the | | | 19|taxpayer's primary residence is located; | | | 20| 4. "Qualifying educational expenses" include: | | | 21| a. tuition and fees for concurrent enrollment as | | | 22| described in Section 628.13 of Title 70 of the | | | 23| Oklahoma Statutes for a student who meets the | | | 24| | | | Req. No. 1566 Page 3 ___________________________________________________________________________
1| requirements set forth in subsection C of that | | | 2| section, | | | 3| b. tuition and other instructional fees charged by a | | | 4| qualified school, | | | 5| c. costs associated with activities at a qualified | | | 6| school, including the cost of fees, clothing, and | | | 7| equipment required to participate in athletic teams, | | | 8| musical groups, clubs, or similar school activities, | | | 9| d. tuition and other instructional fees charged for | | | 10| tutoring, private instruction, or remedial education | | | 11| services for the purposes of academic instruction and | | | 12| not provided by a close relative, | | | 13| e. costs associated with the provision of instruction by | | | 14| other means in prekindergarten through grade twelve | | | 15| directed by the parent or guardian including the cost | | | 16| of computer equipment, software, online instruction, | | | 17| cooperative educational programs, textbooks, | | | 18| workbooks, curricula, and other written materials used | | | 19| primarily for academic instruction, and | | | 20| f. costs associated with activities comparable to those | | | 21| defined in subparagraph c of this paragraph for a | | | 22| student being educated by other means in | | | 23| prekindergarten through grade twelve directed by the | | | 24| parent or guardian; and | | | Req. No. 1566 Page 4 ___________________________________________________________________________
1| 5. "Qualified school" means either a public elementary or | | | 2|secondary school or a private educational program that can be used | | | 3|to satisfy the state's compulsory school attendance requirements. | | | 4| SECTION 2. This act shall become effective November 1, 2023. | | | 5| | | | 6| 59-1-1566 QD 1/19/2023 4:30:22 PM | | | 7| | | | 8| | | | 9| | | | 10| | | | 11| | | | 12| | | | 13| | | | 14| | | | 15| | | | 16| | | | 17| | | | 18| | | | 19| | | | 20| | | | 21| | | | 22| | | | 23| | | | 24| | | | Req. No. 1566 Page 5