All Roll Calls
Yes: 171 • No: 64
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: 3 benefits, 2 costs, 1 mixed.
School choice tax credits for families
The law creates a refundable, state income tax credit for K–12 education costs. You can claim it for tax year 2024 and later. For private school students, the yearly cap per child is based on parents’ combined AGI from two years earlier: $7,500 (up to $75,000 AGI), $7,000 (over $75,000 to $150,000), $6,500 (over $150,000 to $225,000), $6,000 (over $225,000 to $250,000), or $5,000 (over $250,000). The amount cannot exceed what you actually pay in tuition and fees. Homeschool (“other means”) students can get up to $1,000 per child with receipts. If a school only serves students experiencing homelessness, the cap is up to $7,500 or the school’s per‑student cost, whichever is less. If a school primarily serves low‑income families (90% at or below 250% of poverty), your cap still applies, but it cannot exceed the school’s per‑student cost. Any amount over your tax bill is refunded. Credits you receive under this program are not taxable income for state tax purposes.
State caps and cuts on credits
Total private‑school credits are capped at $150 million for tax year 2024, $100 million for Jan 1–Jun 30, 2025, and $250 million each year starting fiscal year 2026. Spring 2025 payments are based on fall 2024 amounts and 2024 recipients do not reapply for that spring payment. If the state declares a revenue failure, available credits are cut in step with cuts to public school funding. For homeschool (“other means”) credits, starting tax year 2026 there is a $5 million yearly cap; the state publishes a reduction percent each year equal to $5,000,000 divided by total claims two years earlier, and reduces claims by that percent. If some private‑school credits go unused and are not reallocated, those amounts roll into the next year’s cap.
Applying and payment schedule for families
Starting July 1, 2025, the Tax Commission sets the application form. For school years 2026–27 and after, you apply March 15 to June 15; to get priority, apply in the first 60 days if your combined AGI is $150,000 or less or you got the credit last year. You must submit a private school enrollment verification form. If you get SNAP, TANF, or SoonerCare, you do not need extra income proof; agencies will confirm your benefits. For full‑year private school students, payments come in two equal parts by August 30 and January 15. If you choose not to participate or are no longer eligible and tell the Commission by September 1, your slot can go to the next eligible applicant that year.
Audits and limits on using credits
Starting July 1, 2025, the Tax Commission can audit your receipts for claimed education costs. If a cost is not allowed, or your student stops attending private school or enrolls in public school, the state can take back part of the credit. You also cannot use this credit to pay delinquent taxes, penalties or interest, tax from past years, or certain debts and judgments filed with the Commission.
New rules for participating private schools
Starting July 1, 2025, participating private schools must send electronic reports each year by June 15 with enrollment and tuition data for the prior school year. Schools that do not report can be denied future participation. Schools already in the program on April 15, 2025, must meet the law’s accreditation rules by March 1, 2027.
Privacy for families claiming credits
Starting July 1, 2025, the state does not publish names or details of people who claim the Parental Choice credit. Existing listings for this credit are removed from the public site. This change protects your privacy and does not change the credit amount or who qualifies.
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
Senate vote • 5/21/2025
Top_of_Page
Yes: 0 • No: 0
House vote • 5/21/2025
Top_of_Page
Yes: 68 • No: 23
House vote • 5/7/2025
Top_of_Page
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: 0 • No: 11
Senate vote • 3/3/2025
Top_of_Page
Yes: 0 • No: 2
Actions Timeline
Approved by Governor 05/23/2025
5/27/2025SenateSent to Governor
5/21/2025SenateSigned, returned to Senate
5/21/2025HouseEnrolled, to House
5/21/2025SenateReferred for enrollment
5/21/2025SenateTo Senate
5/21/2025HouseFourth Reading, Measure and Emergency Passed: Ayes: 68 Nays: 23
5/21/2025HouseCCR adopted
5/21/2025HouseCCR submitted
5/21/2025HouseMeasure and Emergency passed, to House: Ayes: 40 Nays: 0
5/21/2025SenateCCR adopted
5/21/2025SenateCCR read
5/20/2025SenateCoauthored by Senator Seifried
5/19/2025SenateConference granted, naming GCCA
5/15/2025HouseSCs named Paxton, Daniels, Pugh, Seifried, Rader, Dossett
5/13/2025SenateHAs rejected, conference requested
5/13/2025SenateHAs read
5/8/2025SenateEngrossed, signed, to Senate
5/8/2025HouseReferred for engrossment
5/7/2025HouseThird Reading, Measure and Emergency passed: Ayes: 76 Nays: 18
5/7/2025HouseAmended by floor substitute
5/7/2025HouseCoauthored by Representative(s) Pittman
5/7/2025HouseGeneral Order
5/7/2025HouseCR; Do Pass Appropriations and Budget Committee
4/16/2025HouseRecommendation to the full committee; Do Pass Appropriations and Budget Education Subcommittee
4/8/2025House
Bill Text
Enrolled (final version)
5/21/2025
Senate Conference Committee Report
5/20/2025
Senate Conference Committee Substitute
5/20/2025
Scheduled House CCR 1(A)
5/19/2025
Amended And Engrossed
5/12/2025
Floor (House)
4/17/2025
House Committee Report
4/16/2025
House Committee Report
4/8/2025
Engrossed
3/17/2025
Floor (Senate)
3/4/2025
Committee Substitute
3/3/2025
Senate Committee Report
3/3/2025
Introduced
1/14/2025
Related Bills
HB 4030 — Education; apportionment of certain appropriated funds; purposes for allocated funds; effective date; emergency.
HB 4072 — Public Finance; creating the Taxpayer Endowment Trust Fund Act; creating the Taxpayer Endowment Trust Fund; effective date; emergency.
SB 1733 — Schools; requiring public and private school employees to report certain disclosure, allegation, or information to law enforcement within certain time period; requiring school employees to annually sign certain attestation. Effective date. Emergency.
SB 1481 — Schools; requiring certain schools to provide students in certain grades with certain amount of recess per day. Effective date. Emergency.
SB 1176 — Oklahoma Water Resources Board; creating the Water and Wastewater Infrastructure Investment Program. Effective date. Emergency.
SB 1161 — Oklahoma Health Care Authority; general appropriations; modifying certain date; providing for duties and compensation of administrators and employees. Effective date. Emergency.