Bill > HB2197

This bill creates tax incentives for financial institutions that provide loans in rural areas of Oregon, specifically for agricultural real estate, rural residences, and coastal fishing boats. The bill defines specific criteria for these loans, such as loan maturity, lien status, and loan-to-value ratios. Financial institutions can subtract a portion of their interest income from these qualified loans when calculating their Oregon taxable income, effectively reducing their tax burden. The bill establishes detailed definitions for terms like "coastal fishing boat," "qualified agricultural real estate loan," and "single family residence," focusing on properties in rural areas or small cities with fewer than 2,500 inhabitants. The tax subtraction and related corporate activity tax exemption will apply to tax years beginning on or after January 1, 2026, and before January 1, 2032, with the goal of encouraging lending in rural communities and supporting agricultural and fishing-related economic activities. The bill will take effect 91 days after the 2025 regular legislative session adjourns.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2197