Based on income levels, the program credits families with $5,000 to $7,500 per student to cover private school expenses and up to $1,000 for homeschool expenses.
The OTC processes priority applications first through April 19. Priority applications are those that came from families with a Federal Adjusted Gross Income of $150,000 or less.
Last year, the program maxed out the $150 million allotted for credits. This year, that limit goes up to $200 million.
Gov. Kevin Stitt has called for the removal of the cap, and at least one bill, Senate Bill 229 by Julie Daniels (R-Bartlesville), would remove the cap beginning in Fiscal Year 2027. The bill has been referred to the Senate Revenue and Taxation Committee, but has not yet been heard.
Another bill, House Bill 1396 by Rep. Melissa Provenzano (D-Tulsa) passed the House Common Education Committee Wednesday. It would prohibit private schools from requiring families to apply for the tax credit in order to enroll.
It originally also included a section that would have prohibited private schools from raising their tuition more than inflation rates, but that section was pulled with an amendment. Last year, an investigation by Oklahoma Watch found private schools across the state raised prices after the implementation of the tax credit program.
Rep. Meloyde Blancett (D-Tulsa) unsuccessfully pitched another bill at the same committee meeting. House Bill 1469 would require the OTC to collect data about the program, such as how much each private school is receiving and the income categories of awarded families. The bill was laid over.
The application window opened a week after the Tulsa World first reported the OTC was trying to claw back $5 million in tax credits from families whose students did not attend a qualifying school for all or part of the tax year.
Public records also reveal the OTC allowed its $4 million yearly contract with third-party management vendor, Merit International, to quietly expire. Merit is credited with errors like double-paying schools and families and months-long delays in payments. The OTC is now managing the program.
“The OTC committed to having a successful application launch by simplifying the application process and proactively preparing both schools and taxpayers,” OTC Executive Director Doug Linehan said in a statement. “By all accounts, the agency’s hard work resulted in a very positive taxpayer application experience.”
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