The program provides families with a tax credit of $5,000-$7,000 to cover tuition and fees at eligible Oklahoma private schools for the 2025 to 2026 school year. Homeschooled students qualify for up to $1,000 in credits.
Though the program was billed as a way to help lower income families afford private school, data from the Oklahoma Tax Commission show more than $56 million was awarded to families with incomes of over $225,000. For families with incomes of $75,000 or less, $55 million was awarded.
According to data from Private School Review, tuition at Oklahoma private schools has increased 61% since the 2023-24 school year. The Parental Choice Tax Credit Program first went into effect for the 2024-25 school year.
The program is currently capped at $250 million, but efforts from lawmakers may change that.
House Bill 3701 by Rep. Chad Caldwell (R-Enid) would increase the cap to $300 million. It also includes a rolling expansion for the program’s future. If in any fiscal year the total amount of credits awarded equals or exceeds 90% of the annual cap, the cap for the next fiscal year would increase by $50 million.
According to the OTC, $248.4 million was expended on private school tuition, and an additional $2.6 million — not subject to the cap — went to financially disadvantaged and homeless students.
The bill passed committee hurdles and is available to be heard on the House floor.
Senate leadership also unveiled its plan last month to redirect $25 million from the Oklahoma Teachers’ Retirement System to increase the Parental Choice Tax Credit funding cap.
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