November 8, 2023
Dear Holland Hall Families,
Last spring, Governor Stitt signed into law the Oklahoma Parental Choice Tax Credit (PCTC). The law permits families with children attending schools that do not receive funding from government entities to apply for a tax credit offsetting tuition and qualifying related expenses at private schools. The program will be administered by the Oklahoma Tax Commission (OTC) and begins in 2024.
With this letter, we aim to bring the tax credit to your attention and also point you in the direction of additional information so you can decide if applying for the credit is something your family would like to pursue. Holland Hall cannot offer advice or guidance on tax or other financial considerations.
The online application opens on December 1, 2023. Priority is given to families with lower Adjusted Gross Incomes (AGI) but all families are eligible to apply. Families will apply for the tax credit at https://www.parentalchoice.ok.gov/
The amount of the tax credit varies by income level, and all Oklahoma taxpayers with children in private schools are eligible to apply. $150 million is designated for the first year of the program, increasing to $250 million over the subsequent two years. Priority consideration is given to families with lower Adjusted Gross Incomes (AGI).
What is the private school tax credit?
Beginning in tax year 2024, a refundable income tax credit is allowed for certain Oklahoma taxpayers who pay, or expect to pay, tuition and fees to an eligible private school on behalf of an eligible student. An eligible taxpayer is someone who is subject to the tax laws of the state of Oklahoma, and who is a biological or adoptive parent, grandparent, aunt, uncle, legal guardian, custodian, or other person with legal authority to act on behalf of the eligible student.
How do I apply?
An online application should be available here on December 1, 2023.
What do I need from the school to apply?
Based on what we know now, an Enrollment Verification form with the student’s estimated net amount of qualified tuition, reduced by any tuition assistance, will be uploaded to the state portal. It will then be accessible to the family. Holland Hall has registered with the Oklahoma Tax Commission but until our registration is verified, we will not have access to the portal. We will update families as soon as we know more.
Do Holland Hall students qualify as eligible students for this program?
For this purpose, is Holland Hall considered an eligible accredited private school
What is the maximum amount of the tax credit for which I may be eligible?
The maximum amount of the credit is determined by the total federal AGI of the student's household during the second preceding tax year.
What expenses qualify?
"Qualified expense" means tuition and fees at a private school accredited by the State Board of Education or another accrediting association, which includes the Oklahoma Private School Accrediting Commission (OPSAC) and any OPSAC-recognized accrediting associations. Fees include enrollment, registration, or application fees; textbook fees; technology fees; activity fees; testing and assessment fees; and fees paid for school uniforms, if paid directly to the school.
If my application is approved, how much tax credit will I receive?
The credit amount will be based on the anticipated private school tuition and fees you expect to pay for the tax year, as indicated in the private school’s Enrollment Verification Form. Each payment will not exceed half of the allowable credit for the applicable tax year.
How will tax credits be issued?
Tax credits will be paid in two installments and each payment will not exceed half of the allowable credit. The checks will be made payable to the taxpayer submitting the application but the payment is sent to the school. Taxpayers will be required to personally appear at the school to either sign the check over to the school or collect the check from the school if tuition has already been paid.
Do I apply for the credit once a year, or do I need to apply before each school semester/quarter?
Only one application is required for each tax year. For tax year 2024, the application process opens on December 1, 2023. Each year thereafter, you can apply for the credit beginning on the first day of December preceding the applicable tax year. For example, the application process opens on December 1, 2024, for tax year 2025. The deadline to apply is on or before December 31 of the tax year you incur private school tuition and fees, or until the cap has been met, whichever occurs first.
How much is the cap for the private school tax credit?
Do I need to fill out an application for each child who is enrolled in a private school?
As of right now, the rules state that it is one application per family, rather than one application per child.
I have more questions. Who do I ask?
The Oklahoma Parental Choice Tax Credit Program Resource Center has an FAQ that delves into the application process, tax questions and more — https://www.parentalchoice.ok.gov/resource-center. If you have further questions, send emails to firstname.lastname@example.org.