Economy

School Tax Credit From Oklahoma Approved, Held From Governor

Aman Jain

Published: May 8, 2023 10:20 am

Last Updated: May 8, 2023 12:59 pm

Oklahoma parents could get a much-needed school tax credit once the proposal lands on Governor Kevin Stitt’s desk. Last week, the House of Representatives approved a bill to establish a refundable tax credit program for households with homeschooled or private school children. Although the bill offering the school tax credit from Oklahoma has been approved, it has not yet been sent to Governor Stitt’s desk for final approval.

School Tax Credit From Oklahoma: How Much To Expect

Last week, the Oklahoma State House of Representatives approved House Bill 1934, called the Oklahoma Parental Choice Tax Credit Act. The bill establishes a $1,000-per-student credit for homeschool families.

Families with children in private schools will also be entitled to a tiered tax credit.

Families with income $75,000 or less would receive $7,500 per student; families with income between $75,000 – $100,000 annually will receive $7,000 per student; families with income between $150,000 – $225,000 annually will get $6,500 per student; families with income between $225,000 – $250,000 annually will get $6,000 per student; and those with income more than $250,000 will get $5,000 per student.

Governor Stitt applauded the final passage of HB 1934 in the House of Representatives by a vote count of 61-31.

“Today is a major victory for parents and students across the state,” Governor Stitt said in a statement. “With the House’s action today, we have made transformative change to improve education outcomes for Oklahoma students.”

Opponents of the bill say it will mostly benefit the rich, arguing that 90% of the kids go to public schools across this state.

“We know this is a gift for the rich,” said State Rep. Regina Goodwin of District 73. “The very students that are going to most benefit are going to be children that are in private schools. Not the 90% that we’ve been talking about.”

Why Is The House Withholding The Bill?

Although the House has approved the bill offering a school tax credit from Oklahoma, it is withholding the bill from the Governor’s signature. House Speaker Charles McCall notes that the House is withholding the bill until it reaches a compromise with the Senate on the public education funding plan.

McCall wants the Senate to approve Governor Stitt’s Oklahoma Education and Parental Choice Plan or negotiate a new education plan that supports every school in the state.

“We don’t want any more political games played with school funding, and it’s time for the Senate to work with us to create a public school funding plan that works for all,” McCall said in a statement earlier this month.

McCall said the House has already approved the Senate tax credit plan, and now it’s the Senate’s turn “to meet the House halfway on public education funding.”

Last month, Governor Stitt announced a $800 million education reform plan. The plan set aside $300 million for the Oklahoma Student Fund, $300 million for teacher funding and $200 million for the Parental Choice tax credit for the school tax credit from Oklahoma.

This article originally appeared on ValueWalk