The Health Care Sharing Ministry Tax Parity Act aims to provide tax parity for members of Health Care Sharing Ministries (HCSMs) in Oklahoma by allowing them to deduct qualifying health care sharing expenses from their state income tax returns. The bill defines HCSMs and outlines the criteria they must meet, including being not-for-profit organizations that facilitate the sharing of medical expenses among members who share common ethical or religious beliefs. Starting from tax years beginning on or after January 1, 2027, qualified individuals who are active members of an HCSM for at least one month during the tax year will be eligible for this deduction, which will also apply to self-employed individuals and employer contributions toward HCSM memberships.

Additionally, the bill mandates the Oklahoma Tax Commission to create necessary forms and guidelines for claiming the deduction and ensures that funds received from HCSM members for medical expenses will not be considered taxable income. It also establishes penalties for individuals who submit false documentation to claim deductions, including repayment of improperly claimed amounts and civil penalties. The act includes provisions for administrative oversight by the Oklahoma Tax Commission and will take effect on November 1, 2026.