Bill > SB563

This bill introduces a tax incentive for financial institutions that provide loans to rural agricultural and residential properties, as well as coastal fishing boats in Oregon. The bill defines specific criteria for "qualified" loans, including loans for farm properties, single-family residences in rural areas or small cities, and coastal fishing boats. Financial institutions can subtract a portion of their interest income from these targeted loans when calculating their Oregon taxable income. The tax subtraction is calculated by determining the ratio of qualified net interest income to total interest income and applying that ratio to the institution's total net income. Additionally, the bill exempts this subtracted interest income from the corporate activity tax. These tax incentives will apply to tax years beginning on or after January 1, 2026, and before January 1, 2032, with the bill taking effect 91 days after the 2025 legislative session adjourns. The goal appears to be encouraging financial institutions to provide more lending support to rural communities and specific economic sectors like agriculture and coastal fishing.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB563