HB 1834 Summary

• Creates the "Inhofe Disaster Savings Account Act" allowing Oklahoma residents to establish tax-deductible savings accounts for hurricane, flood, tornado, hail, and windstorm damage protection for their primary residences, effective for taxable years beginning January 1, 2026.

• Permits annual tax deductions for contributions with limits ranging from $2,000 to $15,000 depending on insurance deductibles, up to $350,000 for self-insured individuals, adjusted annually by 5 percent.

• Interest earned in disaster savings accounts is exempt from Oklahoma income tax and accounts are protected from legal attachment, levy, or garnishment.

• Distributions from the account are tax-free only when used for qualified disaster expenses declared by the President or Governor; non-qualified distributions are subject to income tax plus an additional 2.5 percent penalty (unless taxpayer is age 70 or older or no longer owns a residence).

• Upon death, the account is included in the recipient's income unless inherited by the surviving spouse; surviving spouses are exempt from the additional 2.5 percent tax on distributions.