Jen Lindstrom
Jan 21, 2025
In May 2023, Gov. Stitt signed House Bill 1934 into law, establishing the Parental Choice Tax Credit Act (the Act). The Act aimed to provide financial assistance to Oklahoma families choosing non-public school education. Under HB 1934, the state offered a tax credit of at least $5,000 and up to $7,500 for private school tuition, with half applied to Spring 2024 and the other half to Fall 2024.
Additionally, families who chose alternative education methods, such as homeschooling, could receive up to $1,000 in credit. Applications for the 2024 tax year were submitted in December 2023. The credit was targeted at low- to middle-income households, prioritizing those with combined adjusted gross incomes under $150,000.
One year later, HB 3388 was signed into law, introducing significant amendments to the Act. Responding to concerns from parents, educators, and policymakers, HB 3388 aimed to make the tax credit more accessible. The changes expanded the definition of qualified expenses, introduced new credits for specific student populations, and shifted the program from a calendar-year to a fiscal-year system. Consequently, new eligibility criteria for the 2024-2025 school year were established to refine the program’s structure and ensure more Oklahoma families could benefit from school choice.
One key change in HB 3388 was the expansion of eligible expenses for which parents could use the tax credit. Under HB 1934, the credit primarily covered private school tuition. HB 3388 broadened this to include tutoring services, homeschooling materials, online courses, and fees for educational activities outside the traditional classroom. This change offered more flexibility for families choosing alternatives to private school education, such as homeschooling or online learning, and better supported a range of educational needs.
Additionally, HB 3388 introduced two new targeted credits for students attending specific types of private schools. One credit applies to students attending private schools exclusively serving students experiencing homelessness. This provision ensures these students receive additional support to access quality education. The second new credit targets students attending private schools that primarily serve financially disadvantaged students.
Another significant change in HB 3388 was the shift from a calendar-year to a fiscal-year tax cycle. Under HB 1934, the credit operated on a calendar-year basis, from January to December. HB 3388 moved the tax period to a fiscal year.
HB 3388 made important changes to the Oklahoma Parental Choice Tax Credit Act, including expanding eligible expenses, introducing credits for homeless and financially disadvantaged students, and shifting to a fiscal-year cycle. These amendments aim to enhance the program’s accessibility and effectiveness, ensuring that more Oklahoma families can benefit.