HB 1395 Summary

• Amends the Oklahoma Parental Choice Tax Credit Act to modify income-based credit limits for private school tuition, ranging from $5,000 to $7,500 annually depending on family income, with maximum credits of $1,000 for homeschooled students and qualified educational expenses.

• Establishes credit caps at $150 million for tax year 2024, $100 million for January-June 2025, and $250 million for fiscal year 2026 and beyond; limits credits for other educational expenses to $5 million annually starting in 2025.

• Requires the Oklahoma Tax Commission to publish monthly website reports disaggregated by individual private school and homeschool, including total credits claimed, student numbers by income category, applications denied, and qualified expense categories.

• Allows credits to be refunded if they exceed income tax liability, prohibits use of credits to offset delinquent taxes or prior-year liabilities, and authorizes the Commission to audit and recapture credits for ineligible expenses or students.

• Becomes effective November 1, 2025.