1| STATE OF OKLAHOMA | | | 2| 1st Session of the 59th Legislature (2023) | | | 3|SENATE BILL 971 By: Bullard | | | 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; making credit refundable | | under certain circumstance; prohibiting itemized | 10| deductions of expenses claimed as credit; defining | | terms; authorizing Oklahoma Tax Commission to require | 11| certain documentation; requiring promulgation of | | rules; prohibiting requirement that certain schools | 12| or organizations provide documents; 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 2357.43A 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. 321 Page 1 ___________________________________________________________________________
1| 2. Qualifies as the taxpayer's dependent for federal tax | | | 2|purposes; and | | | 3| 3. Is enrolled in a public, charter, private school, or private | | | 4|educational program that can be used to satisfy the state's | | | 5|compulsory school attendance requirements that is not affiliated | | | 6|with the student's resident district, as determined by Section 1-113 | | | 7|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 | | | 16|Three Thousand Five Hundred Dollars ($3,500.00) for each qualifying | | | 17|dependent. If the credit provided for in subsection B and this | | | 18|subsection exceeds the tax imposed by Section 2355 of this title and | | | 19|the taxpayer qualifies for the Oklahoma Earned Income Tax Credit | | | 20|pursuant to Section 2357.43 of Title 68 of the Oklahoma Statutes, | | | 21|the excess amount shall be refunded to the taxpayer. | | | 22| D. Amounts claimed under subsections A and B of this section | | | 23|shall not be itemized as deductions for the same tax year when | | | 24|computing Oklahoma taxable income. | | | Req. No. 321 Page 2 ___________________________________________________________________________
1| E. As used in this section: | | | 2| 1. "Academic instruction" means instruction in reading, | | | 3|writing, mathematics, science, history, art, music, geography, | | | 4|civics, economics, literature, philosophy, religion, foreign | | | 5|languages, and related subjects; | | | 6| 2. "Educational choice expenses" means tuition and fees for | | | 7|enrollment of the child in a school or a private educational program | | | 8|not affiliated with the public school district in which the | | | 9|taxpayer's primary residence is located; and | | | 10| 3. "Qualifying educational expenses" include: | | | 11| a. costs associated with activities at a school | | | 12| including the cost of fees, clothing, and equipment | | | 13| required to participate in athletic teams, musical | | | 14| groups, clubs, or similar school activities for a | | | 15| student being educated by other means, as provided in | | | 16| subsection A of Section 10-105 of Title 70 of the | | | 17| Oklahoma Statutes, in prekindergarten through grade | | | 18| twelve directed by the parent or guardian, and | | | 19| b. costs associated with the provision of instruction by | | | 20| other means in prekindergarten through grade twelve | | | 21| directed by the parent or guardian including the cost | | | 22| of computer equipment, software, online instruction, | | | 23| cooperative educational programs, textbooks, | | | 24| | | | Req. No. 321 Page 3 ___________________________________________________________________________
1| workbooks, curricula, and other written materials used | | | 2| primarily for academic instruction. | | | 3| F. The Oklahoma Tax Commission may require the taxpayer to | | | 4|submit with the tax return copies of receipts or similar financial | | | 5|documentation as may be necessary to confirm the taxpayer's | | | 6|statement of the allowable credit provided in subsections A and B of | | | 7|this section. | | | 8| G. The Tax Commission shall promulgate rules and develop tax | | | 9|forms, directions, and worksheets as necessary to effectuate the | | | 10|provisions of this section. The rules shall modify the state tax | | | 11|forms, directions, and worksheets to provide a reasonably convenient | | | 12|way for taxpayers to claim a credit. | | | 13| H. The Tax Commission shall not require any school or other | | | 14|organization to provide documentation or otherwise act to verify | | | 15|claims for a credit provided in subsections A and B of this section. | | | 16| SECTION 2. This act shall become effective November 1, 2023. | | | 17| | | | 18| 59-1-321 QD 1/19/2023 1:04:11 PM | | | 19| | | | 20| | | | 21| | | | 22| | | | 23| | | | 24| | | | Req. No. 321 Page 4