Oklahoma Parental Choice Tax Credit Legislation

The Oklahoma Tax Commission (OTC) is preparing to implement the Parental Choice Tax Credit program for the 2025-2026 school year.

House Bill 3388 was signed into law during the 2024 legislative session and amended several of the program’s original rules:

• Beginning with the 2025-2026 school year, the Parental Choice Tax Credit program is aligned with the school year. 
• Applications for the 2025-2026 school year will open on February 18, 2025. 
• Priority applications MUST be submitted within the first 60 days to receive priority consideration. 
• Payments will be made in two installments – paid on or before August 30 and January 15. 
• The credit is now exempt from Oklahoma taxable income beginning in tax year 2024 and thereafter. 
• Participating schools MUST be physically located in Oklahoma.

Please note, the OTC is no longer partnering with Merit for the administration of the Parental Choice Tax Credit program. If you have any additional questions, please contact the OTC directly.

To assist taxpayers and schools in the navigation of these changes, the OTC has created a web page that includes an updated list of frequently asked questions and other referential resources.

Questions can be directed to pressinquiries@tax.ok.gov.