The math behind your gift.
A state tax credit, a possible federal deduction, and rules that let you carry unused credit forward — here's how it all stacks.
A credit, not a deduction.
A credit reduces your Oklahoma tax bill dollar-for-dollar — far more powerful than a deduction, which only reduces your taxable income.
Reduces taxable income.
If you donate $1,000 and your federal bracket is 22%, you save about $220 — that's the deduction's value.
Reduces your tax bill, dollar-for-dollar.
On the same $1,000 two-year pledge, Oklahoma returns 75% — $750 — straight off what you owe the state.
Two paths at the federal level.
How your gift is treated on your federal return depends on whether you give as an individual or as a business. Talk to your CPA to confirm what's best for your situation.
Itemized charitable deduction.
Individuals who itemize on Schedule A may also claim the donation as a charitable contribution. Note: the IRS reduces your federal deduction by the value of the state credit you receive.
Ordinary business expense.
Businesses can typically treat the donation as an ordinary and necessary business expense — fully deductible against business income, with separate state credit treatment.
Net cost across donor types.
Each row assumes the maximum cap, a two-year pledge (75% credit), and a 22% federal bracket where applicable. Your numbers may vary.
Figures rounded for clarity. Effective net cost depends on your full federal tax situation — confirm with your CPA.
Give more than you owe? Carry it forward.
The credit is non-refundable — but unused credit carries forward up to three additional tax years.
Apply as much credit as your Oklahoma liability allows.
Unused balance carries to next year against new liability.
Continue carrying any remaining balance for up to three additional tax years total.
68 O.S. § 2357.206
OEOEF operates under SB 1080 and the Oklahoma Equal Opportunity Education Scholarship Act, codified at 68 O.S. § 2357.206 — the statute that authorizes the credit and sets eligibility, caps, and reporting requirements.
Read on OSCN.net“A credit equal to fifty percent (50%) of the total amount of contributions … or seventy-five percent (75%) of the total amount … if the taxpayer commits to make the same amount … for an additional year.”
— 68 O.S. § 2357.206(C), abridgedRedirect your tax bill into Oklahoma classrooms.
Download the pledge form, send it in, and claim up to 75% on your next Oklahoma return.