HB 1909 Summary

• Establishes a tax credit against state banking and national banking association and credit union taxes for lender fees paid to the U.S. Department of Education under the Stafford loan guaranty program for Oklahoma residents attending in-state postsecondary institutions.

• Credit is limited to lender fees paid on or after January 1, 2009, but not later than December 31, 2010, and only applies to loans guaranteed through the Oklahoma Guaranteed Student Loan Program (OGSLP).

• Prohibits credit claim if the banking association or credit union added the lender fee to the financed amount or recovered it from the borrower in any other way.

• Allows unused credits to be carried forward for up to five succeeding taxable years and cannot reduce tax liability below zero.

• Requires the Oklahoma Tax Commission to submit annual reports to the House Speaker and Senate President Pro Tempore detailing claimed tax credits, effective January 1, 2009.