Bill > HB2735

This bill modifies Oregon's Individual Development Account (IDA) tax credit program by increasing the total annual tax credits allowed from $7.5 million to $16.5 million. IDAs are special savings accounts designed to help low-income individuals build financial assets, and this bill allows taxpayers to claim a tax credit for donations to fiduciary organizations that distribute funds to these accounts. The bill extends the sunset date for claiming these credits to April 15, 2030, meaning taxpayers can continue to receive tax credits for donations to IDAs until that date. Specifically, donors can receive a tax credit of up to 90% of their donation amount, with a per-taxpayer annual limit of $500,000. Any unused tax credits can be carried forward and applied to taxes in the next three successive tax years. The changes to the tax credit provisions will apply to tax years beginning on or after January 1, 2025, providing additional incentives for supporting individual development accounts and helping low-income individuals build financial stability.

Budget and Finance, Housing and Urban Affairs

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2735