A new federal tax credit program will take effect in Oklahoma on Nov. 1, according to the Oklahoma House of Representatives. The program allows residents to reduce their federal income tax by contributing to scholarship-granting organizations.
Contributions can be made beginning Jan. 1 and claimed as a tax credit on 2027 federal income tax returns filed in 2028. Oklahoma is one of 30 states participating in the Federal Scholarship Tax Credit program.
Individuals can receive a federal tax credit of up to $1,700 for cash contributions, while married couples can receive up to $3,400 if each contributes to a state-approved, federally recognized nonprofit. The credits apply to funds supporting scholarships for students from households earning no more than 300 percent of their county's median income.
Funds support scholarships for elementary and secondary education expenses, including tutoring and academic materials. The tax credits are reduced by any amount claimed under Oklahoma's existing Equal Opportunity Education Scholarship program in the same year.
The Oklahoma Tax Commission is currently accepting applications from eligible scholarship-granting organizations through Dec. 15. The commission must submit Oklahoma's first list of approved organizations to the Internal Revenue Service by Feb. 15, 2027.
The program is part of the federal One Big Beautiful Bill Act signed into law last year by President Trump. Gov. Kevin Stitt previously signed an executive order opting Oklahoma into the program; new legislation makes it permanent statutory policy.