Oklahomans who contribute to organizations like GO for Catholic Schools can expect a 10-times increase in allowable tax credits through the Oklahoma Equal Opportunity Education Scholarship Act.
The state House voted 63-36 in favor of Senate Bill 1080 which will raise the maximum tax credits from $5 million to $50 million for contributions to Oklahoma schools.
What is the Oklahoma Equal Opportunity Education Scholarship Act?
The Oklahoma Equal Opportunity Education Scholarship Act (68 Okla. Stat. §2357.206) (“Scholarship Act”) allows individuals and businesses to receive Oklahoma state income tax credits for contributing to a scholarship granting organization (“SGO”) recognized by the Oklahoma Tax Commission. The SGO then uses those contributions to provide scholarships for eligible students to attend a private school.
What are tax credits and how do they work?
Tax credits directly reduce the taxes you pay on a dollar-for-dollar basis. An Oklahoma state income tax credit is like a gift card from the State of Oklahoma that you can use to pay your state income taxes. For example, with a $1,000 tax credit from the State of Oklahoma, you can pay $1,000 in state income taxes. Individuals and legal business entities (corporations, limited liability companies and partnerships) can contribute to the GO for Catholic Schools Tax Credit Scholarship Fund and receive a state income tax credit from Oklahoma. Individuals can receive up to a $1,000 tax credit annually, married couples can receive up to a $2,000 tax credit annually, and legal business entities can receive up to a $100,000 tax credit annually.
