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28	28	STATE OF OKLAHOMA
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30	30	1st Session of the 60th Legislature (2025)
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32	32	HOUSE BILL 1473 By: Hildebrant
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38	38	AS INTRODUCED
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40	40	An Act relating to revenue and taxation; creating the
41	41	Health Care Sharing Ministry Tax Parity Act;
42	42	providing Legislative findings; defining terms;
43	43	providing for income tax deduction; providing
44	44	procedure for claiming deduction; requiring Oklahoma
45	45	Tax Commission to create forms and guidelines;
46	46	providing funds to be nontaxable; providing Oklahoma
47	47	Tax Commission with administrative oversigh t;
48	48	providing penalties for fraudulent claims; providing
49	49	for severability; providing for noncodification;
50	50	providing for codification; and providing an
51	51	effective date.
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56	56	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
57	57	SECTION 1. NEW LAW A new section of law not to be
58	58	codified in the Oklahoma Statutes reads as follows:
59	59	This act shall be known and may be cited as the "Health Care
60	60	Sharing Ministry Tax Parity Act".
61	61	SECTION 2. NEW LAW A new section of law not to be
62	62	codified in the Oklahoma Statutes reads as follows:
63	63	The Legislature finds and declares:
64	64	1. Health Care Sharing Ministries (HCSMs) play a significant
65	65	role in addressing medical needs for individuals and families,
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92	92	providing financial and emoti onal support outside of health
93	93	insurance.
94	94	2. HCSMs enable their members to share health care costs in a
95	95	voluntary and community -focused manner consistent with their ethical
96	96	and religious beliefs.
97	97	3. Despite their critical function, HCSM contributions and
98	98	payments are not currently afforded the same tax treatment as health
99	99	insurance premiums under state law.
100	100	4. To ensure fairness and eliminate financial discrimination,
101	101	this act allows HCSM members to deduct qualifying expenses and
102	102	contributions on their s tate income tax returns, achieving tax
103	103	parity with health insurance plans.
104	104	SECTION 3. NEW LAW A new section of law to be codified
105	105	in the Oklahoma Statutes as Section 2358.111 of Title 68, unless
106	106	there is created a duplication in num bering, reads as follows:
107	107	A. As used in this act:
108	108	1. "Health Care Sharing Mi nistry" (HCSM) means a not-for-profit
109	109	organization that is tax -exempt under Section 501(c)(3) of the
110	110	Internal Revenue Code and:
111	111	a. limits its members to those who share a common set of
112	112	ethical or religious beliefs ,
113	113	b. facilitates sharing of medical expenses between
114	114	members in accordance with its ethical or religious
115	115	beliefs,
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142	142	c. requires regular contributions from members with no
143	143	assumption of risk or promise to pay for medical
144	144	expenses,
145	145	d. provides a quarterly report to members detailing the
146	146	amount of needs shared and contributions received ,
147	147	e. conducts annual independent audits that are publicly
148	148	available, and
149	149	f. provides a disclaimer stating that it is not an
150	150	insurance company an d participation is voluntary ;
151	151	2. "Qualified Health Care Sharing Expenses " means amounts paid
152	152	by a qualified individual as a member of a HCSM ; and
153	153	3. "Qualified Individual " means any resident of Oklahoma who
154	154	has been an active member of an HCSM for at lea st one (1) month
155	155	during the applicable tax year.
156	156	B. 1. For tax years beginni ng on or after January 1, 2026, a
157	157	qualified individual is entitled to deduct the total amount of
158	158	qualified health care sharing expenses paid during the taxable year
159	159	from their adjusted gross income (AGI) on their Oklahoma state
160	160	income tax return.
161	161	2. The deduction allowed under this section shall be applicable
162	162	to:
163	163	a. self-employed individuals, in the same manner as
164	164	deductions for health insurance premiums ,
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191	191	b. employer contribution s toward HCSM membership for
192	192	employees, which shall be treated as nontaxable f ringe
193	193	benefits, and
194	194	c. individuals paying amounts for HCSM membership for
195	195	themselves or their dependents .
196	196	C. 1. To claim the deduction, a qualified individual must:
197	197	a. submit documentation of membership and contributions
198	198	to an HCSM, including any records issued by the
199	199	ministry, and
200	200	b. file any additional forms or information required by
201	201	the Oklahoma Tax Commission to verify eligibility.
202	202	2. The Oklahoma Tax Commission shall deve lop forms, guidelines,
203	203	and procedures for the implementation of this section.
204	204	D. Funds received by a qualified individual from HCSM members
205	205	to assist with medical expenses shall not be considered taxable
206	206	income under Oklahoma state law.
207	207	E. The Oklahoma Tax Commission shall be responsible for
208	208	administering the provisions of this act. The Tax Commission shall
209	209	issue an annual report to the Legislature detailing the number of
210	210	deductions claimed, the total fiscal impact, and any other relevant
211	211	data.
212	212	F. Any individual who knowingly submits false documentation to
213	213	claim the deductions or exemptions under this act shall be subject
214	214	to:
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241	241	1. Repayment of any income tax amount attributable to
242	242	improperly claimed deductions;
243	243	2. A civil penalty of Five Hundred Dollars ($500.00) per
244	244	offense; and
245	245	3. Ineligibility to claim deductions under this act for a
246	246	period of three (3) years.
247	247	G. If any provision of this act is found unconstitutional or
248	248	invalid by a court of competent jurisdiction, the remaining
249	249	provisions shall rema in in full force and effect.
250	250	SECTION 4. This act shall become effective November 1, 2025.
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252	252	60-1-11358 AO 01/15/25

Oklahoma 2025 Regular Session

Oklahoma House Bill HB1473 Compare Versions