1. A. The provisions of this act shall also apply to taxpayers who are not receiving preferred federal tax treatment for a health savings account pursuant to Section 223 of the Internal Revenue Code.

2. B. For taxable years beginning after 2005, a resident of Oklahoma or an employer shall be allowed to deposit contributions to a health savings account. The amount of deposit for each year shall not exceed one of the following:

   1. 1. The amount of the plan's high deductible; or
   2. 2. Two Thousand Six Hundred Dollars ($2,600.00) for an individual policy; or
   3. 3. Five Thousand One Hundred Fifty Dollars ($5,150.00) for a family policy.

3. C. Except as provided in Section 5 of this act, the following are exempt from taxation under the Oklahoma Income Tax Act:

   1. 1. Principal contributed to and interest earned on a health savings account up to the amount of the high deductible; and
   2. 2. Money reimbursed to an eligible individual or an employee for qualified medical expenses.

Laws 2005, HB 1848, c. 306, § 3, eff. November 1, 2005.