Student Funding

Use of Funds

Qualifying expenses for students attending an accredited private school include tuition and fees. Taxpayers are instructed to keep their receipts. Students “educated by other means” or homeschooled are eligible to participate in the program. Qualifying expenses for students educated at home include tuition and fees for nonpublic online learning programs; academic tutoring services provided by an individual or a private academic tutoring facility; textbooks, curriculum, or other instructional materials including, but not limited to, supplemental materials or associated online instruction required by an education service provider; and fees for nationally norm-referenced testing including, but not limited to, assessments used to determine college admission and advanced placement examinations; as well as tuition and fees for tutoring or preparatory courses for the assessments. An education service provider can include unbundled courses and services at a public school (district or charter). The program is stackable with Oklahoma’s other private choice programs: Oklahoma Equal Opportunity Education Scholarships (tax-credit scholarship) and Lindsey Nicole Henry Scholarships for Students with Disabilities (voucher)

Funding Amount and Source

Parents may receive a refundable tax credit to cover the cost of private school tuition and fees at an accredited private school. Tax credits are tiered based on the household income two-year priors to the application. Payments are disbursed in two equal installments and mailed directly to participating schools to be restrictively endorsed.

Family Adjusted Gross Income (AGI)			Maximum Tax Credit Amount (per child in private school)
$74,999 and below			$7,500
$75,000.01 – $150,000			$7,000
$150,000.01 – $225,000			$6,500
$225,000.01 – $275,000			$6,000
$275,000.01 and above			$5,000

Alternatively, parents may receive a refundable tax credit of $1,000 per child to cover the cost of home education expenses. Initial scholarship amount will range from $5,000 to $7,500 for recipients attending private schools. For tax year 2024, the tax credit program was limited by the $150 million appropriation for families sending students to accredited private schools. The program shifted from a calendar year to a fiscal year on July 1, 2024, with a program cap of an additional $100 million for spring 2025. Fiscal year 2026 will be capped at $250 million in provided credits for private school participants. Families claiming a credit for homeschool are limited to $5 million annual, beginning with tax year 2024.

(Last updated July 15, 2024)

Student Eligibility

All Oklahoma students are eligible for a refundable tax credit under the Oklahoma Parental Choice Tax Credit program, provided they have education expenses at an accredited private school or are “educated by other means” (e.g. homeschooling).

(Last updated July 15, 2024)

EdChoice Expert Feedback

Oklahoma’s refundable tax-credit program could provide thousands of families access to the schools that best fit the needs of their students but policymakers could do more to expand educational opportunity. All Oklahoma students are eligible to receive a scholarship via this program. Statewide, fewer than one percent of students participate in one of Oklahoma’s private educational choice options (including the Lindsey Nicole Henry Scholarships for Students with Disabilities and Oklahoma Equal Opportunity Education Scholarships). Initial scholarship amount will range from $5,000 to $7,500, or about 50 to 74 percent of the average expenditure per student at Oklahoma’s district schools, for recipients attending private schools. For tax year 2024, the tax credit program is capped at $150 million. For tax year 2025, the cap is increased to $200 million. For tax year 2026 and subsequent years, the cap will be $250 million, or equivalent to 8.4% of Oklahoma’s total K–12 revenue. The homeschool credits are capped at $5 million. In order to expand access to educational choice, Oklahoma policymakers should significantly increase the amount of available refundable credits for both the private schools and homeschool components. Use for the private school tuition credit could also be expanded to offer families more freedom in customizing their child’s education. While the homeschool credit of $1,000 (about 10% of the public school expenditure) will help families who are already customizing and unbundling their child’s education, the credit amount should be increased so more families can have access to a fully customized and unbundled home education. Oklahoma’s refundable tax credit is a novel funding mechanism and a promising advancement in educational freedom for Oklahoma families. (Last updated December 18, 2023)

Rules and Regulations

Program Guidelines

• Income Limit: None – low-income priority
• Prior Year Public School Requirement: None
• Enrollment Cap: None
• Credit Value: 100%
• Taxpayer Credit/Deduction Cap: $5,000 to $7,500 (private school) / $1,000 (Homeschool)
• Testing Mandates: None
• Budget Cap: Tax Year 2024 – $150 million; Spring 2025 – $100 million; Fiscal Year 2026 – $250 million; Homeschool – $5 million
• Special Needs Pathway: Universal
• Homeschool Compatibility: Compatible

Participant and Family Guidelines

• Education Requirements: Only claim the credit for qualified expenses to provide an education for an eligible student
• Parent Supplemented Funds/Scholarships: Allowed
• Miscellaneous:
  • Ensure no other person is claiming a credit for the eligible student
  • Not claim the credit for an eligible student who enrolls as a full-time student in a public school district, public charter school, public virtual charter school, or magnet school
  • Comply with rules and requirements established by the Tax Commission for administration of the Oklahoma Parental Choice Tax Credit Program
  • Retain receipts
  • Eligible students may accept a scholarship from the Lindsey Nicole Henry Scholarships for Students with Disabilities Program or from the Oklahoma Equal Opportunity Education Scholarships while participating in the Oklahoma Parental Choice Tax Credit Program.

Education Provider Guidelines

• Accreditation/Approval: Private schools must be accredited by the State Board of Education or another accrediting association
• Employment Standards: Follow rules for accredited providers
• Nondiscrimination: Follow all applicable state and federal laws
• Calendar/Curriculum/Attendance: N/A
• Financial: N/A
• Miscellaneous: N/A

(Last updated December 18, 2024)

Governing Statutes

Okla. Stat. tit. 70 §§ 28-100 – 103 

(Last updated July 15, 2024) 

Legal History

No legal challenges have been filed against the program. 

(Last updated July 15, 2024)