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OklahomaSB 684Oklahoma 2026 Regular SessionSenateWALLET

Income tax credit; relating to the Oklahoma Parental Choice Tax Credit Act; modifying tax years for which certain annual credit limit is enforced; prescribing procedure for enforcement of annual limit. Effective date. Emergency.

Sponsored By: Lonnie Paxton (Republican)

Signed by Governor

Senate Committee

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Bill Overview

Analyzed Economic Effects

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

Parental choice credits not taxable income

Credits you receive under the Parental Choice program are not taxable income. Your state taxable income does not go up because of the credit. This increases the net value of the credit to your household.

Caps on school choice tax credits

The law limits how much the state can award in parental choice tax credits each year. The cap is $150 million for tax year 2024, $100 million from January 1 to June 30, 2025, and $250 million each fiscal year starting in 2026. A separate set of credits is capped at $5 million a year beginning in 2026. The Tax Commission reduces those separate credits by a published percent that equals $5 million divided by the amount claimed two years earlier. When demand is higher than these caps, not all applicants receive a credit or full amount.

Application window and priority for families

Starting with the 2026–2027 school year, you apply from March 15 to June 15 before school starts. Households with combined AGI of $150,000 or less, and prior‑year recipients, get priority if they apply in the first 60 days. For full‑year students, the full credit is paid by August 30. If you receive SNAP, TANF, or SoonerCare, that proof counts as income verification with your authorization. Unused credits are reallocated by September 1 or added to next year’s pool.

Audits and payback for ineligible expenses

The Tax Commission can audit the receipts you use to claim the credit. If expenses are not allowed, or your student leaves private school or enrolls in public school, the Commission can take back part of the credit. Recapture is prorated, so you may owe money back.

Private schools face 2027 accreditation deadline

Private schools in the program on April 15, 2025 must meet accreditation rules by March 1, 2027. If a school fails to get accredited, it can lose program participation. Families at that school could then lose access to the tax credit.

More program data, less name disclosure

The Tax Commission posts monthly totals on credits and students, by year and income levels, plus denials and amounts. It also reports how many students came from public schools. At the same time, names of people claiming parental choice credits are removed from the public taxpayer list as of the law’s effective date.

Sponsors & Cosponsors

Sponsor

  • Lonnie Paxton

    Republican • Senate

Cosponsors

  • Julie Daniels

    Republican • Senate

  • Kyle Hilbert

    Republican • House

  • Pittman

    Affiliation unavailable

  • Ally Seifried

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 257 • No: 64

House vote • 5/21/2025

FOURTH READING

Yes: 68 • No: 23 • Other: 1

Senate vote • 5/21/2025

FOURTH READING

Yes: 40 • No: 0

House vote • 5/7/2025

THIRD READING

Yes: 76 • No: 18

House vote • 4/15/2025

DO PASS

Yes: 20 • No: 7

House vote • 4/7/2025

DO PASS

Yes: 7 • No: 3

Senate vote • 3/13/2025

THIRD READING

Yes: 35 • No: 11

Senate vote • 3/3/2025

Committee vote: Revenue & Taxation

Yes: 11 • No: 2

Actions Timeline

  1. Approved by Governor 05/23/2025

    5/27/2025Senate

  2. Sent to Governor

    5/21/2025Senate

  3. Signed, returned to Senate

    5/21/2025House

  4. Enrolled, to House

    5/21/2025Senate

  5. Referred for enrollment

    5/21/2025Senate

  6. To Senate

    5/21/2025House

  7. Fourth Reading, Measure and Emergency Passed: Ayes: 68 Nays: 23

    5/21/2025House

  8. CCR adopted

    5/21/2025House

  9. CCR submitted

    5/21/2025House

  10. Measure and Emergency passed, to House: Ayes: 40 Nays: 0

    5/21/2025Senate

  11. CCR adopted

    5/21/2025Senate

  12. CCR read

    5/20/2025Senate

  13. Coauthored by Senator Seifried

    5/19/2025Senate

  14. Conference granted, naming GCCA

    5/15/2025House

  15. SCs named Paxton, Daniels, Pugh, Seifried, Rader, Dossett

    5/13/2025Senate

  16. HAs rejected, conference requested

    5/13/2025Senate

  17. HAs read

    5/8/2025Senate

  18. Engrossed, signed, to Senate

    5/8/2025House

  19. Referred for engrossment

    5/7/2025House

  20. Third Reading, Measure and Emergency passed: Ayes: 76 Nays: 18

    5/7/2025House

  21. Amended by floor substitute

    5/7/2025House

  22. Coauthored by Representative(s) Pittman

    5/7/2025House

  23. General Order

    5/7/2025House

  24. CR; Do Pass Appropriations and Budget Committee

    4/16/2025House

  25. Recommendation to the full committee; Do Pass Appropriations and Budget Education Subcommittee

    4/8/2025House

Bill Text

  • Enrolled (final version)

    5/21/2025

    PDF

  • Senate Conference Committee Report

    5/20/2025

    PDF

  • Senate Conference Committee Substitute

    5/20/2025

    PDF

  • Scheduled House CCR 1(A)

    5/19/2025

    PDF

  • Amended And Engrossed

    5/12/2025

    PDF

  • Floor (House)

    4/17/2025

    PDF

  • House Committee Report

    4/16/2025

    PDF

  • House Committee Report

    4/8/2025

    PDF

  • Engrossed

    3/17/2025

    PDF

  • Floor (Senate)

    3/4/2025

    PDF

  • Committee Substitute

    3/3/2025

    PDF

  • Senate Committee Report

    3/3/2025

    PDF

  • Introduced

    1/14/2025

    PDF

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