Okla. Admin. Code § 710:50-15-173

Current through Vol. 42, No. 7, December 16, 2024

Section 710:50-15-173 - [Effective until 9/14/2025] Homeschool tax credit

(a)General provisions. Beginning with tax year 2024, an income tax credit is allowed for qualified expenses paid by an Oklahoma taxpayer for the homeschool education of an eligible student. The amount of the credit is 100% of qualified expenses, not to exceed $1,000 per eligible student per calendar year.

(b)Claiming the credit.

(1) The homeschool tax credit may be claimed on the applicable tax year's Oklahoma income tax return and must include legible copies of receipts of eligible expenses.

(2) The credit can be claimed only for the tax year the qualified expenses are incurred and paid. Where qualified expenses are incurred in excess of the allowable credit for any given tax year, the excess of qualified expenses shall not be used in claiming the credit for any other tax year.

(3) The credit cannot be claimed for eligible homeschool expenses incurred during any semester when the student was enrolled in a public or private school.

(4) The credit cannot be claimed for expenses incurred during summer or winter breaks between semesters when the student is enrolled in a public or private school.

(c)Qualified homeschool expenses.

(1) Qualified expenses for the homeschool tax credit include the following expenditures:

(A) Tuition and fees for nonpublic learning programs, which may be online or in-person.

(B) Academic tutoring services, which are provided by an individual or a private academic tutoring facility.

(C) Textbooks, curriculum, or other instructional materials including, but not limited to, supplemental materials or associated online instruction required by an education service provide. Instructional materials mean all materials that are designed for use by students and their teachers as a learning resource and help students to acquire facts, skills, or opinions or to develop cognitive processes.

(D) Costs or fees for nationally standardized assessments including, but not limited to college admission assessments and advanced placement examinations, as well as the tuition and fees for tutoring or preparatory courses for the assessments or examinations.

(2) Qualified expenses for the homeschool credit do not include internet access, laptops, computers, tablets, screens, or any other device that provides internet access or is required to make use of instructional materials, tutoring, or learning programs.

(3) Each eligible homeschool expense can be claimed only once, even if a taxpayer is claiming the credit for multiple students. For example, the parent of two homeschool students may claim only once the cost of an online learning program subscription even though both students have access to the subscription.

(d)Annual cap and limitation of credit. For tax year 2025, and subsequent tax years, the total amount of credits shall not exceed $5,000,000 annually. The total amount of credits allowed may be reduced pursuant to the provisions 70 O.S. § 28-101(J).

(e)Recapture. The Tax Commission will recapture credits if an audit shows the credits were not claimed for a qualified homeschool expense, the student was enrolled in public or private school for two semesters in that year, or the taxpayer fails to comply with the applicable statutes and regulations.

Okla. Admin. Code § 710:50-15-173

Adopted by Oklahoma Register, Volume 42, Issue 5, November 15, 2024, eff. 10/10/2024, exp. 9/14/2025 (Emergency)