Natural Disaster Tax Credit for Residential Real Property Owners

How it works

The Oklahoma Tax Commission form says a credit is allowed against income tax for owners of residential real property whose primary residence was damaged or destroyed in a natural disaster. For this credit, a natural disaster means a weather or fire event for which a Presidential Major Disaster Declaration was issued.

What the credit is based on

The credit equals the difference between the ad valorem property tax paid on the damaged property in the year before the loss and the ad valorem property tax paid on the replacement or improved home in the first year after the improvement is complete. The first-year post-improvement property tax amount is based on the same or similar square footage as the damaged property.

Amounts and duration

The form states the credit is refundable. Eligible taxpayers may claim it for five consecutive years. After the first year, the credit amount is 80% of the previous year’s credit.

Timing and filing

The form reviewed is the 2025 Form 576 instructions. The official page reviewed does not provide an application deadline beyond the tax-filing process itself.

Important limitation

This is a tax credit tied to replacing or rebuilding a damaged primary residence, not a grant or rebate for pre-disaster hardening work.