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Senate approves joining federal scholarship tax-credit program amid questions on accounting and oversight
Summary
House Bill 3704 passed after extended floor questions about whether federal rules and state implementation could allow duplicative tax benefits; sponsors said Tax Commission will administer and federal guidance limits double deductions.
The Senate voted to have Oklahoma participate in a new federal income tax credit for contributions to scholarship-granting organizations when it passed House Bill 3704 on April 15.
Sponsor Senator Daniels said the bill creates a state structure for participation and that the Oklahoma Tax Commission will administer the program. Lawmakers pressed the sponsor for details about how the state credit would interact with federal rules and whether donors might "double-dip" by claiming both a federal credit and a charitable deduction. Senator Howard and Minority Leader Kurt asked several follow-ups.
Senator Daniels and Senator Howard explained that federal guidance has interpreted such credits as consideration that reduces the charitable deduction on Schedule A, and the sponsor said, "You may not take the tax credit and then deduct it." Senators were told the state credit would be up to $1,700 per individual as described on the floor and that additional implementation rules will be provided by the Tax Commission.
Opponents warned about potential loss of state revenue and the need for accountability; proponents said the program would expand scholarship opportunities. The bill passed 38–8 and will proceed to the governor.
