HB 1725 Summary

• Allows a deduction from Oklahoma taxable income for natural persons making contributions to qualified insured loss savings accounts for primary residences or qualified motor vehicles, capped at $10,000 annually for single filers and $20,000 for married filers.

• Interest income derived from principal amounts deposited into qualified savings accounts is exempt from state income tax.

• Requires withdrawals from qualified accounts to be made only from federally or state licensed financial institutions to pay insurance policy deductibles or expenses resulting from damage, disaster, or accidents to covered property.

• Defines "primary residence" as a dwelling occupied by the taxpayer for at least six months annually and excludes dwellings not meeting this occupancy requirement.

• Becomes effective November 1, 2025.