Income tax deduction; creating the catastrophe savings account; authorizing income tax deduction for certain deposits. Effective date.

SB 1802 creates a new Oklahoma income tax deduction for contributions to "catastrophe savings accounts," designed to help residents cover repair costs after natural disasters like floods or tornadoes. It allows Oklahoma homeowners to set up one dedicated savings account for primary residence repairs, with contribution limits based on their insurance deductible (ranging from $2,000 for low deductibles to $250,000 for uninsured homes). Taxpayers can deduct contributions from their state income tax, and interest earned or distributions used for qualified disaster repairs are exempt from taxation. The law takes effect January 1, 2027, and applies only to primary residences.