By Nuria Martinez-Keel, Oklahoma Voice
OKLAHOMA CITY — Tax credits supporting private-school students opened again to high demand in the program’s latest round of awarding funds.
The Oklahoma Tax Commission announced it received more than 31,000 applications for the tax credits on Tuesday, the first day of the application period for the 2025-26 school year.
Created in 2023, the program distributes tax credits of $5,000 to $7,500, depending on household income, for each student attending an accredited K-12 private school to assist with the cost of tuition and other fees.
Households earning up to $150,000 per year receive priority status and have until April 19 to apply. Families with a net income above $150,000 are awarded on a first-come-first-served basis with whatever funds are still available after the priority applicants, which has incentivized a rush of applications on the first day.
The program’s first application window opened in December 2023 to more than 30,000 entries in the first 90 minutes. The Tax Commission spent much of 2024 reviewing applications and distributing funds for the new initiative.
It’s unclear what household income levels are represented among Tuesday’s applications. Even if all 31,000 qualify for the lowest possible tax credit amount, they still would account for more than half of the program’s $250 million budget for the 2025-26 school year.
This year, the Tax Commission sought to simplify the application process and prepare schools and taxpayers, the agency’s executive director Doug Linehan said in a news release Wednesday.
“By all accounts, the agency’s hard work resulted in a very positive taxpayer application experience,” Linehan said. “We remain committed to processing applications in a timely and transparent manner. I am very fortunate to work with such a talented and dedicated team.”
The Tax Commission had $100 million to distribute in spring 2025 and awarded $91.7 million of it, according to a Jan. 14 report. The agency has $200 million to spend on the program for the entire 2025 tax year, which is split between two different school years.
The budget will increase to $250 million in the 2026 tax year, the highest amount allowed in state law. Gov. Kevin Stitt has advocated for removing the spending cap.
About 54% of the spring 2025 awardees came from priority households earning $150,000 a year or less, according to Tax Commission data. More than a quarter of awarded students are from households earning over $250,000 a year, the program’s highest income bracket.
The state has approved 190 accredited private schools across the state for the tax credit program.
The Tax Commission awards each tax credit in the form of checks sent directly to the students’ school. Families must appear at the school in person to sign the check over to the school or collect it if their tuition costs already have been paid.
Students who receive funds but don’t stay enrolled at the private school for the entire tax credit period would have to return the money. The Tax Commission is trying to claw back $5 million of last year’s credits from 1,855 taxpayers for this reason.
The Tax Commission expects to send the first checks of the 2025-26 school year in August in the order that it approved applications, according to the agency’s webpage explaining the program. The second payments are expected in January 2026.
A bill from the state Senate’s top lawmaker, President Pro Tem Lonnie Paxton, R-Tuttle, would require the tax credits to be paid in one installment instead of two. Paxton’s bill also would move the application window to May through July. The legislation has not yet passed a committee vote.
