TULSA, Okla. — Applications for the Parental Choice Tax Credit Program originally planned to become available Friday, Dec. 1 – but that’s been pushed back.
Eligible parents or guardians can claim these refundable income tax credits to pay for tuition and fees for participating private schools.
The Oklahoma Tax Commission announced Nov. 30 it is pushing the application start date to Dec. 6 at 2 pm and the 60-day priority period end date to Feb. 5.
Citing “some obstacles in ensuring a seamless rollout” of the program, the OTC said:
Due to the popularity of the program, it is imperative that everyone be given the opportunity to have the best possible experience on the day the Taxpayer application opens. Although the majority of parents have received their Enrollment Verification Forms, and are ready to apply, we do have parents who have not received their form as of close of business Thursday, November 30. We continue to work diligently to resolve all unanticipated complications and will continue to do so.
The decision to delay the application start date was not made lightly. Despite being disappointed with the delay, we believe this adjustment is necessary to establish a "fair playing field" for all Taxpayers, since having the Enrollment Verification Form is a required part of the application process. This is critical, given the fact the OTC may only authorize $150 million of tax credits for tax year 2024. We do not anticipate that postponement of the application start date will delay disbursement of the first installment payments.
We sincerely apologize to those who have been impacted by this unforeseen delay. Since beginning this implementation, our goal has been to simplify the experience for both taxpayers and schools. Although delaying the application start date does not meet our goal in the short term, we firmly believe it will ensure a fair and transparent experience for all.
2 News spoke with Republican Representative Cody Maynard of Durant last month about his concern for the rollout:
WHO IS ELIGIBLE?
You need to be an Oklahoma taxpayer to claim these credits. Those are for K-12 students, and it costs nothing to apply.
The most credit anyone can receive for one student during each tax year is $7,500 if your yearly household income is $75,000 or less.
The program published a chart (below), breaking down the amount people can claim based on income. The more money you make, the less credits you can claim.
HOW THE PROGRAM WORKS & HOW TO APPLY
1. Accredited schools wishing to participate in the program can apply. There is an online directory of participating schools that users can browse.
2. Parents or guardians need to request an enrollment verification form for each child, from the school they plan to attend or already attend. The form is emailed to you and must be uploaded during the application process.
3. When it comes to claiming the tax credit apply at ParentalChoice.OK.gov. Upload a filled-out enrollment verification form for each student. Non-guardian applicants need to also upload a finished parental request form.
4. They will let you know about your application status after it's verified. Applicants with a household income below $150,000 get priority. To be considered for priority submit applications on or before Monday, Feb. 5.
5. The Oklahoma Tax Commission sends checks directly to the school. Those checks will also be payable to the applicant.
More information about applications and payments can be found on the program’s website.
SOME CONCERNS RAISED ABOUT THE PROGRAM
Proponents say the program helps promote school choice, and critics say it benefits wealthy families and diverts funding from public schools. That's among other concerns.
- Previous coverage >>> Pro-school choice lawmaker expresses concern over implementation
The OTC teamed up with a California company called Merit International Inc. to run the program. That one-year contract costs $3.95 million in taxpayer money.
2 News Oklahoma asked the Oklahoma Senate President Pro Tempore Greg Treat (R) on Thursday afternoon if this is the most efficient use of tax dollars and the most efficient way to promote school choice. He said "the opportunity for families to change generationally" outweighs any early hurdles.
"I think having an independent third party administer it probably was a good decision,” Treat added. “We're not involved in the intricacies of who gets chosen. That's an executive branch function. But we're talking about going from – you know – this year, $150 million. It automatically escalates to $250 million by year three. You want to make sure you have good parameters on that, good marketing, and good IT infrastructure."
- Previous coverage >>> State seeks input on school tax credits amid initial concerns
Another major concern raised is the potential for schools to use the tax credits as an excuse to hike tuition and fees, with some reports of participating schools already doing that. Asked if lawmakers are considering any potential measures to mitigate this, Treat said the government simply can't control their tuition because these schools are private entities.
"I would strongly caution private schools against doing that without merit,” he emphasized. “I think there would be a backlash within their existing family community, and it's not the intent of the legislature just to be able to raise the tuition, commiserate with whatever the tax credit is. But I think— I think the market will take care of that. I think families will demand that they're [tuition and fees] reasonable."
Senate Pro Tem Greg Treat voiced his support for the plan but said he is agitated with the rollout process being delayed.
“While I am agitated that the enrollment has been delayed, it is important to get it right to ensure fairness for all Oklahoma children looking to get the best education possible,” Treat said. “While everyone knew undertaking a project of this size and magnitude would have different challenges, the Tax Commission must do whatever they can to provide parents and their children the best path forward.”
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