OKPOLICY.ORG
In 2011, the Legislature passed the Oklahoma Equal Opportunity Education Scholarship Act, which authorized the creation of scholarship granting organizations (SGOs) and educational improvement grant organizations (EIGOs). SGOs issue scholarships for students who meet certain requirements to attend private schools, and EIGOs issue grants to public schools. In 2021, the program was expanded to allow for contributions to public school foundations and public school districts.
Under the program, individuals and businesses can make a donation to an SGO, EIGO, public school foundation, or public school district and receive a tax credit of 50 percent for a one-time donation or 75 percent for a two-year donation, along with the standard charitable deduction. The maximum tax credit is $2,800 for an individual, $5,600 for a married couple, and $100,000 for a business.
In 2021, the Legislature increased the total amount of tax credits that can be issued each year from $5 million to $50 million, with $25 million allocated for SGOs and $25 million for public schools. According to Tax Commission data reported by Advance Oklahoma Kids, $10.1 million was donated to SGOs in 2022, the first year the higher cap was in effect, which led to $4.7 million in reduced tax liability. In 2023, contributions to SGOs declined slightly to $9.7 million. In addition to contributions to SGOs, a total of $2.5 million was donated to public school entities in 2022 and $3.7 million in 2023
Students benefiting from tuition scholarships may receive a maximum of $8,000 or 80 percent of the statewide annual average per pupil expenditures, whichever is greater. For students with special needs, the maximum benefit is $25,000. A family of four with income up to $178,000 (as of 2025) is eligible for a full scholarship under the program.
The Equal Opportunity Scholarships benefited a total of 3,222 private school students in 2022-23, according to EdChoice. There were 106 participating private schools in 2020-21 and the average scholarship amount was $2,695.
Proponents of the tax credits argue that they expand parental school choice by helping cover the cost for low-income students to attend private schools. Opponents express concern that public tax dollars are used for religious education and that the program’s eligibility guidelines allow middle-income families to benefit. The tax credits are also faulted for allowing some upper-income taxpayers a risk-free profit on contributions they make to fund private school scholarships.
