How the Oklahoma House Education Plan for tax credits will work

OKLAHOMA CITY (KFOR) – The Oklahoma House of Representatives launched its two-part Education Plan Thursday.

The first half would give public colleges $500 million in elevated funding for public colleges, which included raises for academics and employees. The second half can be referred to as the Oklahoma Parental Choice Tax Credit. It would supply personal and residential faculty college students a tax credit score to make use of on issues like tutoring, tuition, charges, textbooks, and educational provides.

“In order to claim the credit, the taxpayer’s child cannot be a full-time student in a public school district, public charter school, public virtual charter school, school or magnet school,” mentioned Speaker Charles McCall, R-Atoka.

With almost 37,000 personal faculty college students and one other 22,000 dwelling schoolers, the House plan was estimated to price round $300 million.

“But we don’t believe that it will have that big of a price tag,” mentioned McCall.

Parents with youngsters in personal colleges would get a $5,000 tax credit score per scholar. Parents with dwelling faculty college students would get $2,500 for every little one. The cash must be spent up entrance earlier than mother and father may very well be reimbursed.

“This is a fully refundable tax credit that we’re talking about,” mentioned McCall. “The taxpayer will have to retain all receipts, private school tuition and fees or qualified expense as at proof of the amount to claim the tax credit.”

 Speaker McCall mentioned the Oklahoma Tax Commission would primarily oversee the tax credits to ensure they have been used appropriately on present, eligible college students.

News 4 reached out to the tax fee to ask if that they had the manpower to deal with the extra workload for the plan. The OTC despatched us an announcement that mentioned, “The OTC is in the process of reviewing this proposed legislation and any potential corresponding revenue and/or administrative related issues.”

Representative Forrest Bennett has questioned the invoice and mentioned it was not honest to decrease revenue districts throughout the state.

“Especially when it comes to lower income students, an equal approach is not the right thing to do. An equitable approach is the right thing to do,” mentioned Bennett. “The larger school districs in Oklahoma, including the one that I represent – OKCPS – will be negatively impacted by this.”

The Oklahoma Education Association additionally reacted to the proposed laws. The OEA agreed with the first a part of the invoice however not the tax credits.  

“Taxpayer dollars are public funds that should go to public schools,” mentioned Katherine Bishop, president of the OEA.

The plan handed a House committee and will now transfer to a full House flooring vote, which might happen as quickly as subsequent week.