Bill > SB93

This bill introduces a tax incentive for financial institutions that provide loans in rural areas of Oregon, specifically targeting agricultural real estate, rural residences, and coastal fishing boats. The bill defines detailed criteria for qualifying loans, including requirements about loan duration, loan-to-value ratios, and geographic location. Financial institutions can subtract a portion of their interest income from these specific types of loans when calculating their Oregon taxable income, effectively providing a tax break for lending in rural and agricultural sectors. The bill applies to tax years beginning on or after January 1, 2026, and before January 1, 2032, and covers both income tax and corporate activity tax. A "qualified" loan must meet specific conditions, such as being made to an Oregon resident, having a certain loan-to-value ratio, and being used for agricultural production, home purchase/improvement, or coastal fishing boat acquisition. The legislation aims to encourage financial institutions to support rural economic development by making lending in these areas more financially attractive through tax incentives.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB93