Bill > HB1725

This bill modifies Oklahoma's tax code to create a new tax deduction for contributions to qualified insured loss savings accounts for primary residences and motor vehicles. Specifically, the bill allows individual taxpayers to deduct up to $10,000 annually for single filers and $20,000 for married filers when contributing to these specialized savings accounts. Any interest earned on the principal amounts deposited into these accounts will be exempt from state income tax. A "primary residence" is defined as a dwelling occupied by the taxpayer for at least six months per year, including properties with a homestead exemption. Withdrawals from these accounts are only permitted to pay insurance policy deductibles for the primary residence or up to three motor vehicles, or to cover expenses related to damage, disaster, or accidents - regardless of whether an insurance claim is filed. The bill aims to provide taxpayers with a tax-advantaged way to save for potential unexpected property-related expenses, and it will become effective on November 1, 2025.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1725&Session=2600