House Passes Legislation to Raise Cap on Parental Choice Tax Credit Act

OKLAHOMA CITY – The Oklahoma House of Representatives today secured passage off the House floor of House Bill 3705, which would give more students the ability to attend the school of their choice by increasing the Parental Choice Tax Credit cap to $275 million.
“Our tax dollars should follow Oklahoma students to the school that best meets their needs,” said Chad Caldwell, R-Enid, who presented the bill on the House floor Thursday. “Oklahoma families clearly value this program, as shown by record application numbers this year. We must continue expanding access to educational options so every student has the opportunity to succeed in the environment that works best for them.”
The Parental Choice Tax Credit program was established through House Bill 1934 in 2023. The program provides families with greater flexibility to choose educational settings that best suit their children.
Under the program’s tiered structure, eligible families may receive refundable tax credits ranging from $5,000 to $7,500 per student for private school tuition, depending on household income. Additionally, families who homeschool may qualify for a $1,000 per-student tax credit for approved educational expenses.
Currently, tax credits for private school expenses are capped at $250 million annually, while homeschooling credits are capped at $5 million per year. The cap is now increased to $275 million.
"Parents should have the choice to find a school that best fits the needs of their child," said House Speaker Kyle Hilbert, R-Bristow and author of the bill. “For my daughters, the best choice for them is Bristow Public Schools. But the government shouldn’t tell other parents what is the best school for their children. This legislation simply allows parents to take some of their tax dollars to a school of their choice."
House Bill 3705 passed the House by a vote of 70-19 and now heads to the Senate for further consideration.