On February 15, the Oklahoma Tax Commission (OTC) notified taxpayers that, based on their calculations, the tax credits from scholarship granting organizations and education improvement granting organizations generated approximately $5.7 million of tax credits, exceeding the amount of $5.0 million available for 2017. Based on the Oklahoma Equal Opportunity Education Act, the OTC has established the proportionate share of the credit which may be claimed by any taxpayer so that the maximum credits authorized are not exceeded.
For tax year 2017, contributions made to scholarship-granting organizations must be multiplied by 86.5% before the applicable percentage (either 50% or 75%) is applied to calculate the credit. Credits limited by the 86.5% limitation may be carried over to the next tax year. In other words, 13.5% of the remaining credit for 2017 can be carried over and taken on the taxpayer’s 2018 tax return.
Letters to all donors of the Opportunity Scholarship Fund went out starting on February 15 and all effected donors been notified.
For further information, go to the OTC website here, or contact your scholarship granting organization.