The Financial Side of Safety
You know you need a storm shelter. Living in Oklahoma, it isn’t a luxury item—it’s a life-safety device. But when you look at the price tag of a high-quality underground garage unit or a concrete slope-top, you naturally start looking for ways to offset the cost.
One of the most common questions we get at Oklahoma Shelters is: “Can I write this off on my taxes?”
The answer is a mix of “Yes,” “No,” and “It depends.”
While there isn’t a simple line item on your state tax return that says “Storm Shelter Deduction,” there are significant tax protections and financial avenues you need to know about.
Here is the breakdown of how the tax code treats your storm shelter in 2025.
The Big Win: Property Tax Exemption
This is the most direct financial benefit for Oklahoma homeowners, and many people completely forget to claim it.
In most states, if you add a permanent structure to your home (like a deck or a new room), your property value goes up, and so do your property taxes.
Oklahoma is different. Thanks to a constitutional amendment (State Question 696), up to 100 square feet of a storm shelter is exempt from property tax assessment.
- What this means: You can install a shelter that adds value to your home and safety for your family, but the county assessor cannot raise your taxes based on that added value.
- How to claim it: You must file Form 905 with your county assessor’s office. It is a simple one-page form.
Oklahoma Shelters can help ensure you have the correct specifications to fill out this form easily after we complete your installation.
State Income Tax: The “Bad” News
As of the 2024-2025 tax year, there is no specific deduction or credit on your Oklahoma state income tax return for the purchase of a storm shelter.
While bills have been proposed in the state legislature to create such a credit (like SB627), none are currently active law for this tax year.
However, if you receive a rebate from the state (like SoonerSafe), that money is generally tax-exempt. You do not have to report the grant money as income.
Federal Income Tax: The “Medical Necessity” Loophole
Can you deduct a shelter on your federal taxes? Generally, the IRS views a storm shelter as a “capital improvement” to your home, which is not directly deductible.
However, there is an exception. If the shelter is medically necessary, it might qualify as a medical expense deduction.
- Who qualifies? This typically applies if a doctor prescribes the shelter for a specific condition, such as severe Post-Traumatic Stress Disorder (PTSD) or extreme storm anxiety that affects a patient’s health.
- The Math: You can only deduct medical expenses that exceed 7.5% of your Adjusted Gross Income (AGI).
- The Catch: You must itemize your deductions (instead of taking the standard deduction), and the value of the deduction is reduced by the increase in your property value. Since Oklahoma exempts the property value increase locally, the calculation can get complicated.
Disclaimer: We are shelter experts, not CPAs. Always consult a tax professional before attempting to claim this deduction.
Better Than a Deduction: 2025 Rebates & Grants
While tax deductions are nice, free money is better.
Instead of waiting for a small percentage back on your taxes, you should target the grant programs available right now.
1. SoonerSafe Rebate (2025 Cycle)
The state’s primary rebate program has increased its payout.
- Amount: Up to $3,000 (covering 75% of the cost).
- Status: This is a lottery system. You must register at soonersafe.ok.gov.
2. Tribal Assistance Programs
If you are a member of a tribal nation, you might have access to the best funding in the state. Several nations have open or recurring programs for 2025:
- Chickasaw Nation: The Homeowner Preparedness Grant offers up to $5,000 for storm shelters.
- Choctaw Nation: Offers grants ranging from $1,750 to $5,000 depending on the applicant’s age and disability status.
- Muscogee (Creek) Nation: Their Storm Shelter Program typically has an application window in the fall (Oct-Dec).
- Comanche Nation: Often provides shelter assistance through their Social Services department.
These tribal grants often cover the entire cost of an Oklahoma Shelters installation, meaning you pay $0 out of pocket.
Financing: The Alternative
If you don’t win the rebate lottery and don’t qualify for tribal funds, don’t let that stop you.
The cost of a shelter is small compared to the cost of losing your home—or worse.
- Local Banks: Many Oklahoma credit unions offer specific “Storm Shelter Loans” with interest rates much lower than credit cards.
- FEMA Compliance: Because our shelters meet all FEMA and ICC 500 standards, getting approved for these specific loans is straightforward.
The Bottom Line
While you likely won’t get a big refund check from the IRS for your shelter, the property tax exemption and rebate opportunities make it a financially smart decision.
You are adding equity to your home tax-free. You are potentially getting thousands of dollars in grant money. And most importantly, you are buying a future for your family.
Ready to explore your options?
At Oklahoma Shelters, we work with rebate programs every day. We know the paperwork, we know the codes, and we know how to get you installed fast.
Call Oklahoma Shelters today at (405) 367-7901. Let us help you find the most affordable way to get “Sooner Safe.”
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People Also Ask (PAA) for Storm Shelter Tax & Rebate Info
1. Is a storm shelter tax deductible in Oklahoma? For the 2025 tax year, there is no specific state income tax deduction for purchasing a storm shelter in Oklahoma. However, homeowners can claim a property tax exemption for the shelter itself, ensuring that the added value to the home does not increase their annual property tax bill.
2. Does installing a storm shelter increase my property taxes in Oklahoma? No. Under the Oklahoma Constitution, up to 100 square feet of a storm shelter or safe room added to your home is exempt from ad valorem (property) taxation. To receive this benefit, you must file Form 905 (Storm Shelter Exemption Application) with your local County Assessor’s office after installation.
3. What is the maximum payout for the 2025 SoonerSafe rebate? The SoonerSafe Safe Room Rebate Program increased its maximum payout for the 2025 cycle. Selected homeowners can now receive a reimbursement of up to $3,000, covering 75% of the total purchase and installation cost. This is an increase from the previous $2,000 limit.
4. Can I claim a storm shelter as a medical expense on my federal taxes? Potentially, yes. If a physician prescribes a storm shelter as medically necessary (e.g., for a patient with severe storm anxiety or PTSD), you may be able to deduct the cost as a medical expense on your federal return. However, this is only applicable if your total medical expenses exceed 7.5% of your Adjusted Gross Income (AGI).
5. Which Oklahoma tribes offer storm shelter grants? Several tribes offer storm shelter assistance to their citizens. The Chickasaw Nation offers up to $5,000 through its Homeowner Preparedness Grant. The Choctaw Nation offers grants ranging from $1,750 to $5,000 depending on age and disability. The Muscogee (Creek) Nation and Comanche Nation also have assistance programs, though funding windows vary.
6. Is the SoonerSafe rebate retroactive if I already bought a shelter? No. The SoonerSafe rebate program is not retroactive. You must apply and be selected via the lottery system before you purchase or install your storm shelter. If you install the unit prior to receiving official notification from the state, you will be disqualified from receiving the funds.
7. Can I use my HSA or FSA to pay for a storm shelter? You may be able to use a Health Savings Account (HSA) or Flexible Spending Account (FSA) to pay for a storm shelter if you have a Letter of Medical Necessity (LMN) from a doctor. This letter must verify that the shelter is primarily for the prevention or alleviation of a physical or mental defect or illness. Always check with your plan administrator first.
8. What form do I need for the Oklahoma storm shelter tax exemption? You need OTC Form 905, titled “Storm Shelter Exemption Application.” You can download this form from the Oklahoma Tax Commission website or pick it up at your county assessor’s office. You typically need to submit this form after the shelter is installed and inspected.
9. Does Oklahoma have a state tax credit for storm shelters? Currently, there is no active state income tax credit for storm shelters in Oklahoma for the 2024-2025 tax year. While legislation (such as Senate Bill 627) has been proposed to create a 25% tax credit starting in tax year 2026, it is not yet law for current filings.
10. Are storm shelter rebates considered taxable income? Generally, state and federal disaster mitigation payments (like the SoonerSafe rebate) are not considered taxable income for federal tax purposes. However, you should not include the reimbursed amount when calculating your property basis or claiming any other deductions. It is recommended to consult a tax professional for your specific situation.
