Businesses win with tax credit program

The Tax Credit Scholarship (TCS) program that provides state tax credits for gifts to Catholic schools has proven beneficial and popular for Oklahoma donors. This year, 500 students, nearly 10% of all enrolled children in the 19 Catholic schools across the Archdiocese of Oklahoma City, benefited from scholarships through the program. 

A lesser-known side of this program, however, holds especially beneficial incentives for Oklahoma business owners.

By participating in the Tax Credit Scholarship program, any legal business entity (LLCs, S-corps, C-corps, general partnerships, etc.) can receive 75% of their gift in state tax credits annually—up to $100,000. Businesses can customize their gift amount based on their tax liability, and therefore wipe out any state taxes they would have otherwise paid. 

If the business operates as a pass-through entity, the tax credit on the gift can also pass through to the owner’s personal tax liability.

Thus, corporate gifts have the potential to greatly expand the Tax Credit Scholarship program and transform the lives of students whose families otherwise couldn’t afford a Catholic school education.

TCS has existed since 2011, when the Oklahoma legislature passed the Equal Opportunity Scholarship Act. The statewide cap on credits had been $5 million per year, but this year grew to $50 million thanks to a bill approved by lawmakers in 2021.

TCS raised more than $1.5 million in 2021, and by growing this program, students, families, schools, parishes and donors all benefit. It is truly a win-win. 

Corporate gifts offer tremendous benefits to business owners, and an opportunity to help children who need it. This is a lasting investment into a child’s future, with immediate returns. 

Go to tcsok.org to make a gift. Contact [email protected] or call (405) 709-2700.