710:50-15-175 Credit for students attending an accredited private school primarily serving financially disadvantaged students

(a) General provisions . Beginning with the 2024-2025 school year, an income tax credit is allowed for an eligible student who attends an accredited private school in Oklahoma that primarily serves financially disadvantaged students. (b) Claiming the credit. To apply for the credit, the taxpayer shall complete and submit an application for each eligible student and include the following documentation and information with the application: (1) The name, address, and social security number or individual taxpayer identification number (ITIN) of the taxpayer. (2) The name, address, date of birth, and social security number or ITIN of the eligible student. (3) If the taxpayer is not the parent or legal guardian of the eligible student, the taxpayer shall provide a signed parent consent form to allow the taxpayer to apply for the credit on behalf of the eligible student. (4) Documentation from the school that specifies the amount of the cost to educate the eligible student at the private school for the school year for which the application is submitted. (c) Amount of the credit. (1) The amount of the credit for students attending an accredited private school in Oklahoma that primarily serves financially disadvantaged students shall be $7,500 or the amount of the cost to educate the eligible student at the private school per school year, whichever is less. (2) The total amount of credits allowed may be reduced pursuant to the provisions of 70 O.S. § 28-101(I). (d) Payment of the credit. (1) For school year 2025-2026, the approved credit will be paid in two payments disbursed on or before August 30, 2025, and January 15, 2026. Beginning with school year 2026-2027, and for subsequent school years, the full credit will be paid by August 30 of the applicable school year. (2) Payments shall be made by the Tax Commission with an individual warrant made payable to the taxpayer and mailed to the private school identified on the application. (3) If a student changes schools prior to the issuance of the checks, a school change notification must be submitted online to redirect the check to the new school. If a school change notification is not submitted prior to the issuance of the check, but a student changes schools, the taxpayer is responsible for picking up the check from the school identified in the approved application. (e) Notification . Notification of approval will be sent to the applicant by email once a determination has been made that the taxpayer qualifies for the credit. If the application is denied, an email will be sent to the applicant, stating the reason for denial and how to dispute the determination. (f) School registration . Each participating accredited private school that primarily serves financially disadvantaged students shall annually complete an online registration with the Tax Commission. Registration shall include the following information: (1) Name, mailing address, phone number, FEIN, and website of the private school; (2) Permanent physical address of the school location in Oklahoma; (3) Primary and secondary contact information for the private school, including proof of employment; (4) Proof of accreditation from the State Board of Education or another accrediting association; and (5) Attestation from the principal or head of the private school that 90% of the private school’s admissions are based on enrolling students whose gross family income is 250% of the federal poverty threshold or below; (6) The amount of the cost to educate an eligible student at the private school; and (7) Other school identification information as requested by the Tax Commission. (g) Annual verification. No later than June 15 of each year, each participating private school shall provide reconciliation information. Failure to provide all reconciliation by the required date may result in removing the school from participating in the Parental Choice Tax Credit Program the following school year. The participating private school shall provide student enrollment information for the spring 2025 semester. For all subsequent reconciliations, beginning June 15, 2026, the participating private school shall provide student enrollment information for the just completed school year: (1) The name and address of the private school; (2) The total number of instructional days; (3) The total number of instructional days the eligible student was enrolled in the private school; (4) Student information; and (5) Any other information requested by the Tax Commission. (h) Recapture . The Tax Commission shall recapture tax credits from the taxpayer if: (1) The taxpayer has claimed an eligible student who no longer attends the accredited private school that primarily serves financially disadvantaged students; (2) The private school no longer qualifies as a private school that primarily serves financially disadvantaged students; or (3) Taxpayer fails to comply with the applicable statutes and regulations. (i) Notification of non-use . Taxpayers claiming the credit shall notify the Tax Commission electronically no later than thirty (30) days after the date on which the eligible student no longer attends the accredited private school that primarily serves financially disadvantaged students. The taxpayer is responsible for repayment of the portion of the tax credit attributable to the time in which the student was not enrolled in an accredited private school that primarily serves financially disadvantaged students.