Oklahoma legislation · 2026 Regular Session
Oklahoma SB1802: Income tax deduction; creating the catastrophe savings account; authorizing income tax deduction for certain deposits. Effective date.
Status: In committee, February 3, 2026
What the bill says
An Act relating to catastrophe savings accounts; defining terms; authorizing the establishment of a catastrophe savings account; limiting accounts that may be opened; prescribing deposit amounts in order to claim deduction; authorizing income tax deduction for certain deposits; exempting certain interest and returns from taxable income; providing exemption for certain distributions; authorizing the Oklahoma Tax Commission to promulgate rules; providing for codification; and providing an effective date.
From the introduced text, January 14, 2026:
An Act relating to catastrophe savings accounts; defining terms; authorizing the establishment of a catastrophe savings account; limiting accounts that may be opened; prescribing deposit amounts in order to claim deduction; authorizing income tax deduction for certain deposits; exempting certain interest and returns from taxable income; providing exemption for certain distributions; authorizing the Oklahoma Tax Commission to promulgate rules; providing for codification; and providing an effective date. SECTION 1. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 2358.8 of Title 68, unless there is created a duplication in numbering, reads as follows: A. As used in this section: 1. "Catastrophe savings account" means a regular savings account or money market account established by a taxpayer who is a resident of this state, the exclusive purpose of which is to pay for qualified catastrophe expenses; Req. No. 2477 Page 1 2. "Catastrophic event" means a windstorm, a tornado, an earthquake, an ice storm, a flood, a hailstorm, and any other weather event that causes damage to homes; 3. "Qualified catastrophe expenses" means a qualified deductible paid for damage resulting from a catastrophic event and expenses incurred, that are not covered by an insurance policy, in repairing damage or replacing a structure damaged by a catastrophic event for the primary residence of the taxpayer; …