The Oklahoma Tax Commission has released new rules for the Oklahoma Parental Choice Tax Credit. OPSA has made a list of 20 important changes for our parents.
Below changes 3-20 the notation (*See) will point you to where the change is in the new rules so you can read more about each one.
1) All language referring to the fiscal or tax year has been changed to refer to the school year.
2) All references to the Adjusted Gross Income (AGI) of the household have been changed to be for the AGI of the student(s) parents or guardians.
3) 4-year-old children entering Pre-K are eligible for the PCTC.
*See eligible student definition
4) The maximum credit amount allowed is $7,500 for taxpayers who receive income-based government benefits, including the Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), or SoonerCare/SoonerSelect, as of the date of the tax credit application.
*See amount of credit
5) The amount available for the spring semester of 2025 has been clarified. For the period of January 1, 2025, through June 30, 2025, the total amount of credits shall not exceed $100,000,000.
*See annual cap and limitation of credit
6) The rules do not explicitly state this, but after extensive emails back and forth to the OTC, it has been determined that there will be no opportunity for any families not currently receiving the tax credit, to reapply until Feb. 15, 2025. Only those families already approved for the tax credit will receive funding in the Spring 2025 semester.
7) New rule for families that have not filed their taxes in the previous year. If, at the time of submission of the tax credit application, the taxpayer has not filed the second preceding years’ tax return, but had a filing requirement, and therefore AGI cannot be verified, the tax credit application will be denied and must be resubmitted once the second preceding tax year return is filed. The resubmission date and time of a complete application will determine the applicant's place in line. * See claiming the private school tax credit
8) Application Adjustment: Once the enrollment verification form is submitted with an application, the information included within the enrollment verification form cannot be changed. Applicants must withdraw their application, request a new enrollment verification form from the private school, and submit a new application if changes are necessary. When an application is withdrawn the applicant loses their place in line and the new place in line will be the date the application is resubmitted. * See review and submission
9) Permanent application opening date: Beginning with the 2025-2026 school year and subsequent school years, the application period will open on February 15, at 9:00 a.m. (CST), prior to the beginning of the applicable school year. If February 15 falls on a Saturday, Sunday or legal holiday, the application process will open on the next day that is not a Saturday, Sunday or legal holiday.
* See application period opening date
10) Permanent application closing date: To ensure payment of the credit by August 30, processable applications must be submitted no later than July 15. * See application period opening date
11) Applicants with an AGI of $150,000 or less must submit their applications on or before the sixtieth (60th) calendar day following the opening of the application period to receive priority consideration. * See priority consideration
12) Students of parents with an AGI of $150,000 or less, who are currently using the tax credit, will receive priority consideration. * See priority consideration
13) Those approved for the tax credit will receive notification via email.
* See notification of approval or denial
14) Those denied will receive notification via a mailed letter which will contain a reason for the denial.
* See notification of approval or denial
15) If a taxpayer’s application for the credit is denied, the taxpayer may request a hearing by filing OTC Form L-26. There is a lot of information included about the process for requesting the hearing. If you need assistance please email parents@okpsaedu.org. We would be happy to assist you in advocating for your student.
* See application for review hearing
16) Students approved for the tax credit will receive it in two installments, one per school semester. Each payment will be no more than half of the total approved credit. For processable applications filed on or before July 15, payments will be issued no later than August 30 and January 15.
* See installment payments
17) The amount of the credit payable for the spring 2025 semester will be the amount of the 2024 fall semester installment payment. Again, no additional funds are available for students that didn't receive an installment in 2024. Those students will also not receive a payment in spring 2025. * See 2025 credit payment
18) No later than June 15 of each year, each participating private school must electronically provide the following reconciliation information to confirm student enrollment and tuition for each semester. Beginning June 15, 2026, schools must provide student enrollment and tuition information for the fall and spring semester of the just completed school year. *See reconciliation
19) Schools must annually register online with the OTC in order to receive enrollment verification forms. Registration information:
* See school registration
20) Taxpayers that claimed the credit shall notify the Tax Commission electronically no later than thirty (30) days after the date on which the eligible student:
(A) Enrolls in a public school, including an open-enrollment charter school;
(B) Enrolls in a non-accredited private school;
(C) Is no longer enrolled in an accredited private school;
(D) Graduates from high school; or
(E) Is no longer utilizing private school tax credits for any reason.
* See notification of non-use
Please read the complete OTC rules here. The rules with a line through them are the old rules. Please scroll down for the new rules. If you have questions and need help please email us at parents@okpsaedu.org, or call 405-428-4814. To contact the OTC call 405-521-3160.
