OregonOregon-chartered new banks may claim a limited tax credit
Under the enacted law, Oregon-chartered banks starting business from 2027 through 2032 may claim a limited state tax credit during their first three years.
What it does
Eligible Oregon-chartered banks may claim a state tax credit during their first three years of business, up to $1 million per year and no more than their tax bill.
If a bank cannot use all its credit in one tax year, it may carry the unused amount forward for up to three succeeding tax years.
Argument forA qualifying new Oregon bank could use the credit to reduce its state tax bill during its first three years of business.
Argument againstA bank with little tax to owe may not be able to use the full credit, and any amount left unused after three carryforward years expires.
More detail
A qualifying bank may claim a credit against its state taxes. The bank must be Oregon-chartered and must start business in Oregon in the tax year or either of the two prior tax years. A bank formed by, merged with, or converted by a taxpayer that filed a return under the relevant chapter in an earlier tax year is excluded. Before claiming the credit, the bank must show that it obtained an Oregon bank charter and authority to conduct banking business. The credit cannot exceed the bank’s tax liability for that year. The credit applies to banks that start business in tax years beginning on or after January 1, 2027, and before January 1, 2033. The three credit years begin in the year the bank starts business.
A bank may carry unused credit forward to reduce its tax bill in later years. This applies to unused credit under the de novo bank credit provision. The credit used in any year cannot exceed the bank’s tax liability for that year. Any amount still unused after the third succeeding tax year cannot be carried forward again.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 6Chapter 36, (2026 Laws): Effective date June 5, 2026.Latest
- Mar 31Governor Tina Kotek signed.Became Law
- Mar 6President signed.Major
- Mar 5Speaker signed.Major
- Mar 4Third reading. Carried by Drazan. Passed.Passed Senate
- Vote recorded Third reading. Carried by Drazan. Passed. Result: pass.Upper
- Mar 3Second reading.Minor
- Mar 3Recommendation: Do pass.Minor
- Mar 2Public Hearing and Work Session held.
- Vote recorded Heard and Reported Out. Result: pass.Upper
- Feb 25Referred to Finance and Revenue.Minor
- Vote recorded Third reading. Carried by Reschke. Passed. Result: pass.Lower
- Feb 25First reading. Referred to President's desk.Minor
- Feb 25Third reading. Carried by Reschke. Passed.Passed House
- Feb 24Carried over to February 24, 2026 Calendar by virtue of adjournment.
- Feb 20Second reading.Minor
- Feb 19Recommendation: Do pass.Minor
- Feb 18Work Session held.
- Vote recorded Heard and Reported Out. Result: pass.Lower
- Feb 4Public Hearing held.
- Feb 2Referred to Revenue.Minor
- Feb 2First reading. Referred to Speaker's desk.Introduced
Taxes & Budget