Okla. Admin. Code § 710:50-15-174

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

Section 710:50-15-174 - [Effective until 9/14/2025] Credit for students attending an accredited private school exclusively serving students experiencing homelessness

(a)General provisions. Beginning with the 2024-2025 school year, an Oklahoma taxpayer may claim an income tax credit for an eligible student who attends an accredited private school in Oklahoma that exclusively serves students experiencing homelessness.

(b)Claiming the credit. To apply for the credit, the taxpayer shall complete and submit an application for each eligible student and include the following documentation and information with the application:

(1) The name, address, and social security number or ITIN of the taxpayer.

(2) The name, address, date of birth, and social security number or ITIN of the eligible student.

(3) If the taxpayer is not the parent or legal guardian of the eligible student, the taxpayer shall provide a signed parent consent form to allow the taxpayer to apply for the credit on behalf of the eligible student.

(4) Documentation from the school that specifies the amount of the cost to educate the eligible student at the private school for the school year for which the application is submitted.

(c)Amount of the credit.

(1) The amount of the credit for students attending an accredited private school in Oklahoma that exclusively serves students experiencing homelessness shall be $7,500 or the amount of the cost to educate the eligible student at the private school per school year, whichever is less.

(2) The total amount of credits allowed may be reduced pursuant to the provisions 70 O.S. § 28-101(J).

(d)Payment of the credit.

(1) For eligible students enrolled in a full school year, the credit will be paid in two installments, one per school semester. Each payment will be no more than half of the total approved credit. For processible applications filed on or before July 15, payments will be issued no later than August 30 and January 15.

(2) Payments will be issued by the Tax Commission with individual warrants made payable to the taxpayer and mailed to the private school where the eligible student is enrolled or expected to enroll. The taxpayer will restrictively endorse the warrant to the private school for deposit into the account of the school.

(e)Notification. Notification of approval will be sent to the applicant by email once a determination has been made that the taxpayer qualifies for the credit. If the application is denied, a letter will also be sent to the applicant, stating the reason for denial and how to dispute the determination.

(f)Denial of application. If a taxpayer's application for the credit is denied, the taxpayer may request a hearing by filing OTC Form L-26, Application for Commission Hearing pursuant to the provisions of 68 O.S. § 207(c). The application for hearing and supporting documentation may be submitted either online or by mail addressed to Oklahoma Tax Commission, PO Box 269060, Oklahoma City, OK 73126.

(1) The following information and documentation must be included with the request:

(A) A description of the tax credit applied for and the amount in controversy;

(B) A clear explanation of the alleged error(s) committed by the Tax Commission;

(C) The legal authority the taxpayer intends to rely upon at hearing;

(D) A statement of the relief requested; and

(E) A list of witnesses, including names and addresses, and the request to subpoena witnesses if so desired.

(2) The application for hearing and documentation will be reviewed by the Income Tax Accounts Division and Legal Division of the Oklahoma Tax Commission. If the matter cannot be resolved without a hearing, the application for hearing will be forwarded to the Oklahoma Tax Commission's Office of the Administrative Law Judges and set for hearing pursuant to the rules set forth in OAC 710:1-5-21 through 710:1-5-49.

(g)School registration. Each participating accredited private school that exclusively serves students experiencing homelessness shall annually complete an online registration with the Tax Commission. Registration shall include the following information:

(1) Name, address, phone number, FEIN, and website of the private school;

(2) Primary and secondary contact information for the private school, including proof of employment;

(3) Proof of accreditation from the State Board of Education or another accrediting association; and

(4) Attestation from the principal or head of the private school that the private school exclusively serves students experiencing homelessness;

(5) The amount of the cost to educate an eligible student at the private school; and

(6) Other school identification information as requested by the Tax Commission.

(h)Annual verification. No later than June 15 of each year, each participating private school shall provide reconciliation information to confirm student enrollment for each semester. For the reconciliation due no later than June 15, 2025, the participating private school shall provide student enrollment information for the spring 2025 semester. For all subsequent reconciliations, beginning June 15, 2026, the participating private school shall provide student enrollment information for the fall and spring semester of the just completed school year:

(1) The name and address of the private school;

(2) The total number of instructional days per semester;

(3) The total number of instructional days the eligible student was enrolled in the private school each semester;

(4) The name, grade level, address, and date of birth of the eligible student; and

(5) Any other information requested by the Tax Commission.

(i)Recapture. The Tax Commission shall recapture tax credits from the taxpayer if:

(1) The taxpayer has claimed an eligible student who did not or no longer attends the accredited private school that exclusively serves students experiencing homelessness;

(2) The private school no longer qualifies as a private school that exclusively serves students experiencing homelessness; or

(3) The taxpayer fails to comply with the applicable statutes and regulations.

(j)Notification of non-use. Taxpayers claiming the credit shall notify the Tax Commission electronically no later than thirty (30) days after the date on which the eligible student no longer attends the accredited private school that exclusively serves students experiencing homelessness.

Okla. Admin. Code § 710:50-15-174

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