Oklahoma Natural Disaster Tax Credit

Natural Disaster Tax Credit
2023 Form 576 Natural Disaster Tax Credit for Residential Real Property Owners Only
FORM

State of Oklahoma

Natural Disaster Tax Credit
(For residential real property owners only)

576

2
0
2
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Read all information on the back of this form prior to completing the fields below. Keep a copy of this
form to file with your return for the next four years.
Name (as shown on your income tax return)

Social Security Number

Name of property owner(s) -if different from above

Address of Property

Parcel Identification Number or Account Number

Legal Description of Property (include county)

Enter the qualifying natural disaster that damaged or destroyed your Oklahoma residence. To qualify, a
Presidential Major Disaster Declaration must have been issued. Qualifying Oklahoma natural disasters for
which a Presidential Major Disaster Declaration was issued can be found on FEMA’s website at www.fema.
gov/disasters. The Declaration Type is ‘Major Disaster Declarations’.
Oklahoma Natural Disaster

Date of Natural Disaster

Credit Computation
	Enter
only the allowed ad valorem property tax paid on the property
1
	 (and improvements) the first year after the improvement is complete ................ _______________________
(Property Tax Only)
	
(If you increased the size of your home, see Line 1 instructions on the back of the
	

form to determine the amount to enter on this line)

	Enter
only the ad valorem property tax paid on the property
2
	 (and improvements) in year prior to the damage or destruction.......................... _______________________
Note: You must be the owner of record for each tax year the credit is claimed.

(Property Tax Only)

	 3 Refundable credit available for tax year 2023. (Subtract line 2 from line 1)........ _______________________
	 4 Refundable credit available for tax year 2024. (Multiply line 3 by 80%).............. _______________________
	 5 Refundable credit available for tax year 2025. (Multiply line 4 by 80%).............. _______________________
	 6 Refundable credit available for tax year 2026. (Multiply line 5 by 80%).............. _______________________
	 7 Refundable credit available for tax year 2027. (Multiply line 6 by 80%).............. _______________________
The filing of this form authorizes the Oklahoma Tax Commission to verify the information contained herein with the applicable County Assessor’s and/or Treasurer’s office. If this is the first year you are claiming the credit, you may be asked to
validate the amounts on lines 1 and 2. To provide validation, you may provide a copy of your ad valorem property tax bill
and provide the square footage of the home for the first year after the improvement is complete (Line 1) and for the year
prior to the damage or destruction (Line 2).

Natural Disaster Tax Credit Instructions

2023 Form 576
Page 2

68 OS Sec. 2357.29A
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 purposes of this credit, a “natural disaster” means a weather or fire event for which a
Presidential Major Disaster Declaration was issued.
The amount of the credit is the difference between the ad valorem property tax paid on the property and improvements
in the year prior to the damage or destruction and the ad valorem property tax paid the first year after the improvement is
complete.  For purposes of this credit, the amount of ad valorem property tax paid the first year after the improvement is
complete is based on the same or similar square footage as the property that was damaged or destroyed.  
The credit is a refundable credit. Eligible taxpayers are entitled to claim this credit for five consecutive years. After the first
year the credit is claimed, the amount of the credit is 80% of the previous year’s credit.
The credit will not be allowed if the property is transferred or title is changed or conveyed.  Any credit claimed and allowed
prior to the transfer of the property or the change or conveyance of title will not be affected.
In order to qualify for this credit:
	 1.	 The property was damaged or destroyed by a natural disaster;
	 2.	 The property is within an area that has been declared a federal disaster area;
	 3.	 The property is the primary residence of the owner both the year prior to and after the natural disaster;
	 4.	 The owner has been granted a homestead exemption or is eligible to claim a homestead exemption both the year
prior to and after the natural disaster;
	 5.	 The primary residence must be repaired or rebuilt on the same property as it existed prior to the natural disaster; and
	 6.	 The primary residence must be repaired or rebuilt and used as the primary residence no later than 36 months after the
date of any natural disaster.
Line 1 instructions:
If your home, after being rebuilt or repaired, has more square feet than it did in the year prior to the natural disaster, do not
enter the full amount of your property tax on line 1. The credit is based on same or similar square footage; therefore, you
must determine the portion of your property tax based on the size of your home, as it was in the year prior to the natural
disaster. Use the following steps to determine the amount to enter on line 1.
	

Step One: 	Determine the property tax, per square foot, of your home after being rebuilt or repaired. To do this     
divide the property tax on your rebuilt or repaired home by your home’s current square footage.

	

Step Two: 	Multiply the amount from Step One by what your home’s square footage was in the year prior to the
natural disaster. Enter this amount on line 1, this is the portion of your property tax upon which the
credit is based.

Example: Your home in 2017 was 1,200 square feet and your property tax was $390. After your home was rebuilt or repaired it is now 2,500 square feet and your property tax is $1,000.
	
	

Step One:	 $1,000 = $0.40 per square foot.
	 	
  2,500

	

Step Two:	 $0.40 X 1,200 = $480.

Enter $480 on line 1 and $390 on line 2. Your credit is $90 (line 3).