House Bill No. 1834, known as the "Inhofe Disaster Savings Account Act," establishes a new framework for disaster savings accounts in Oklahoma. The bill allows individuals to create a Disaster Savings Account specifically for covering insurance deductibles and self-insured losses related to catastrophic events such as hurricanes, tornadoes, and floods. Taxpayers can contribute to this account with specific limits based on their insurance deductibles, and contributions will be tax-deductible starting from the 2026 tax year. Additionally, any interest earned on these accounts will be exempt from state income tax. The bill also outlines the conditions under which distributions from the account can be made without incurring tax penalties, particularly when used for qualified disaster expenses.

The legislation includes provisions for the management of these accounts, such as restrictions on contributions and requirements for withdrawals if limits are exceeded. It specifies that distributions must be reported as income unless they are used for qualified disaster expenses, and it imposes an additional tax on certain distributions. The bill mandates that the Oklahoma Tax Commission create rules for the implementation of the act and requires notification to the Oklahoma Insurance Department regarding any rule changes. The act is set to take effect on November 1, 2025.