HB 2133 Summary

• Creates the "Educational Improvement Act" establishing state income tax credits for taxpayers who contribute to eligible educational improvement grant organizations and scholarship organizations.

• Provides a 50% tax credit on contributions (capped at 50% of tax liability) or a 75% credit for multi-year commitments (capped at 75% of tax liability).

• Caps total annual credits at $2.5 million, allocated on a first-come, first-served basis by the Oklahoma Tax Commission.

• Requires eligible organizations to be nonprofit 501(c)(3) entities that distribute at least 80% of annual receipts as grants to public schools for innovative programs or as scholarships to low-income students.

• Establishes the Educational Improvement Act Fund within the State Treasury to pay approved tax credits, with payments available beginning July 1, 2012.