OklahomaHB 3705Oklahoma 2026 Regular SessionHouseWALLET

Schools; Parental Choice Tax Credit Program; increasing the amount of credits authorized.

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 1 costs, 3 mixed.

Refundable private-school credits for families

The law gives families a refundable state tax credit for private-school costs. Credit amounts are based on your household AGI from two years earlier: up to $7,500 (AGI ≤ $75,000), $7,000 (>$75,000–$150,000), $6,500 (>$150,000–$225,000), $6,000 (>$225,000–$250,000), or $5,000 (>$250,000). The credit cannot exceed the school’s tuition and fees. If your child attends a school that only serves homeless students, the credit is up to $7,500 or the school’s cost to educate the student, whichever is less. If your child attends a school that primarily serves low‑income students, the credit is the tiered maximum for your income or the school’s cost to educate the student, whichever is less. Any credit above your state tax bill is paid to you as a refund, and this credit is not counted as taxable income.

Program funding caps and revenue cuts

Total credits for private-school tuition are capped at $150 million for 2024 and $100 million from Jan 1–Jun 30, 2025. If you got the credit in 2024, you do not reapply for spring 2025; spring payments use fall 2024 amounts. The cap rises to $250 million in FY 2026 and $275 million in FY 2027 and later. Unused credits can carry to the next year’s limit. If state revenue fails and public-school funding is cut, these credits are cut by the same percent for that year.

Audits, recapture, and use limits

You may claim the credit only for qualified costs, and only one person can claim it per student. You must tell the Tax Commission within 30 days if the student starts public school, attends a non‑accredited school, graduates, or stops using the credit. The Commission can audit your receipts and take back part of the credit if costs are not qualified or a student no longer qualifies. You cannot use the credit to pay delinquent taxes, penalties, prior‑year tax, or certain debts filed with the Commission.

Homeschool and tutoring $1,000 credit

Families who homeschool or use other nonpublic learning can claim up to $1,000 per student each year. You must submit receipts to the Tax Commission. Starting in tax year 2026, these credits share a $5 million statewide limit each year. The Commission sets a reduction percent each year ($5,000,000 ÷ credits claimed two years earlier). If many people claim the credit, your allowed credit is cut by that percent.

Application window and payment timing

Starting with the 2026–2027 school year, you apply March 15 to June 15. If your combined AGI is $150,000 or less, or you got the credit last year, apply in the first 60 days for priority. The Commission must tell you if you’re approved within 30 days after the window closes (similar timing for higher‑income applicants). For full‑year students, the full credit is paid by August 30. If someone drops out or is ineligible, the credit can be given to the next person by September 1.

Private school reporting and accreditation

Participating private schools must send electronic enrollment and tuition data for the prior fall and spring by June 15 each year. Not sending the data can lead to denial from the program. Schools that were participating on April 15, 2025 have until March 1, 2027 to meet accreditation rules.

Sponsors & Cosponsors

Sponsor

Kyle Hilbert
Republican • House

Cosponsors

Chad Caldwell
Republican • House
Julie Daniels
Republican • Senate
Lonnie Paxton
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 147 • No: 44

Senate vote • 4/27/2026

THIRD READING

Yes: 39 • No: 9

Senate vote • 4/20/2026

Top_of_Page

Yes: 0 • No: 3

Senate vote • 4/20/2026

Committee vote: Rules

Yes: 13 • No: 3

House vote • 4/9/2026

THIRD READING

Yes: 70 • No: 19 • Other: 1

House vote • 3/4/2026

DO PASS

Yes: 18 • No: 6

House vote • 2/9/2026

DO PASS

Yes: 7 • No: 4

Actions Timeline

Approved by Governor 05/01/2026
5/4/2026House
Sent to Governor
4/28/2026House
Enrolled measure signed, returned to House
4/28/2026Senate
Enrolled, signed, to Senate
4/28/2026House
Referred for enrollment
4/27/2026House
Engrossed measure signed, returned to House
4/27/2026Senate
Measure passed: Ayes: 39 Nays: 9
4/27/2026Senate
General Order, Considered
4/27/2026Senate
Placed on General Order
4/22/2026Senate
Reported Do Pass Rules committee; CR filed
4/20/2026Senate
Second Reading referred to Rules
4/13/2026Senate
First Reading
4/13/2026Senate
Engrossed, signed, to Senate
4/13/2026House
Referred for engrossment
4/9/2026House
Third Reading, Measure passed: Ayes: 70 Nays: 19
4/9/2026House
Title restored
4/9/2026House
Amended by floor substitute
4/9/2026House
Coauthored by Senator(s) Daniels
4/9/2026House
Remove Senator Daniels as principal Senate author and substitute with Senator Paxton
4/9/2026House
Coauthored by Representative(s) Caldwell (Chad)
4/9/2026House
General Order
4/9/2026House
Remove Representative Caldwell (Chad) as principal House author and substitute with Representative Hilbert
4/6/2026House
Emergency removed
3/5/2026House
Title stricken
3/5/2026House
Authored by Senator Daniels (principal Senate author)
3/5/2026House

Bill Text

Enrolled (final version)
4/27/2026
PDF
Floor (Senate)
4/21/2026
PDF
Senate Committee Report
4/20/2026
PDF
Engrossed
4/9/2026
PDF
Floor (House)
3/9/2026
PDF
House Committee Report
3/5/2026
PDF
House Committee Substitute
3/5/2026
PDF
House Committee Report
2/9/2026
PDF
Introduced
1/15/2026
PDF

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