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 January 1, 2026. Additionally, interest earned on these accounts will be exempt from state income tax, and the accounts themselves will be protected from legal processes like attachment or garnishment.

The bill outlines the conditions under which distributions from the Disaster Savings Account will be taxed, primarily focusing on whether the funds are used for qualified disaster expenses. If distributions exceed the qualified expenses, the excess will be included in taxable income, with an additional tax imposed on such distributions unless certain conditions are met, such as the taxpayer being over 70 years old or no longer owning a residence. The Oklahoma Tax Commission is tasked with creating rules for the implementation of this act, which is set to take effect on November 1, 2025.