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Oklahoma Equal Opportunity Education Scholarships

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Oklahoma Equal Opportunity Education Scholarships

The Oklahoma Equal Opportunity Education Scholarships program was enacted in 2011 and launched in 2013. The program gives individuals and businesses a 50 percent tax credit for contributions made to nonprofit organizations that provide school scholarships to students who meet the income and/or zoning requirements. Learn more about the program, including funding, eligibility, and regulations, on this page.

Program Fast Facts

  • 904 participating students (2015–16)

  • 79 percent of families with children income-eligible statewide

  • 3 scholarship organizations awarding scholarships (2015–16)

  • 52 participating schools (2015–16)

  • Average scholarship value: $1,129 (2015–16)

  • Value as a percentage of public school per-student spending: 12 percent

Program Details

Oklahoma’s Equal Opportunity Education Scholarships Participation

Students Participating
School Year Ending

Click the + symbols to learn more about this program’s details.

Oklahoma offers tax credits for donations to Scholarship Granting Organizations (SGOs), nonprofits that provide private school scholarships.

Student Funding

For students without an Individualized Education Plan (IEP), scholarships may be worth up to $5,000, or 80 percent of the average per-pupil expenditure in the assigned public school district, whichever is greater. For students with special needs who attended a public school with an IEP, the scholarship is worth up to $25,000.

Student Eligibility

Students are eligible if they either live in families with incomes up to 300 percent of the free and reduced-price lunch program ($134,589 for a family of four in 2015–16) or attend or live in the attendance zone of a public school designated as “in need of improvement.” Once a student has received a scholarship, that student and his or her siblings remain eligible until high school graduation or age 21.

Friedman Feedback

Oklahoma’s tax-credit scholarship program could be one of the most generous in the nation because of the high income limit for eligibility, however, the $3.5 million cap on credits severely restricts the number and amount of scholarships that can be awarded. Additionally, the pro-rata distribution of tax credits to donors makes administration difficult for SGOs, as they cannot notify donors of the credit they will receive until the state tax commission receives all credits claimed for the year. Donors are also only allowed a 50 percent tax credit for donations (unless they commit to two years of giving, which raises their credit to 75 percent). The program has a reasonable level of school regulations: Participating schools must provide progress reports to parents, be accredited, follow health and safety codes, and obey nondiscrimination laws. The program has a tremendous opportunity to be one of the nation’s strongest, if the eligibility and overall funding cap are raised or removed entirely and the pro-rata method for distributing tax credits is removed.

Rules and Regulations

  • Income Limit: 300 percent x FRL
  • Prior Year Public School Requirement: None
  • Geographic Limit: Statewide
  • Enrollment Cap: None
  • Scholarship Cap: Conditional
  • Testing Mandates: None
  • Credit Value: Conditional
  • Total Credit Cap: Yes
  • Budget Cap: $3.5 million

 

SGO Requirements:

  • Use at least 90 percent of contributions for scholarships
  • Register as an SGO with the state
  • Spend portion of expenditures on scholarships for students who qualify for the free or reduced-price lunch program ($44,863 for family of four in 2015-16) in an amount equal or greater to the percentage of eligible low-income students in the state
  • Ensure scholarships are portable during the school year and can be used at any qualified school that accepts the eligible student
  • Conduct background checks on employees and board members
  • Maintain full and accurate records on contributions and expenditures and other documentation required by the state

Governing Statutes

Okla. Rev. Stat. § 68-2357.206

Legal History

No legal challenges have been filed against the program.

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