OK SB736

Creates a state income tax deduction for contributions paid to health care sharing ministries (HCSMs), effective for tax year 2026 and beyond, allowing members to deduct these expenses from Oklahoma adjusted gross income

Defines qualifying HCSMs as 501(c)(3) nonprofits that limit membership to those sharing common ethical or religious beliefs, facilitate medical expense sharing, conduct annual independent audits, and provide quarterly reports to members

Treats employer contributions toward employee HCSM membership as nontaxable fringe benefits and exempts funds received from HCSM members for medical expenses from taxable income

Requires the Oklahoma Tax Commission to develop forms and procedures for implementation and submit annual reports to the Legislature on deductions claimed and revenue impact

Establishes penalties for fraudulent claims including repayment of improperly claimed deductions, $500 civil penalty per offense, and 3-year ineligibility for future deductions