Bill > HB2863

This bill introduces a tax incentive program for affordable housing development in opportunity zones, which are designated low-income census tracts with populations between 1,000 and 49,900 residents. The bill allows property owners to subtract a percentage of capital gains from their federal taxable income when selling opportunity zone property that consists of at least 50% affordable housing units. The tax subtraction varies based on the property's holding period: 50% for properties held 10-15 years, 75% for properties held 15-17 years, and 100% for properties held 17 years or more. To qualify for the tax benefit, the property must comply with all applicable housing and safety regulations, have a solar energy system installed, and represent a complete sale of the owner's interest. Taxpayers must obtain verification of eligibility from the Oregon Business Development Department before claiming the subtraction. The bill applies to tax years between January 1, 2025, and January 1, 2031, and will take effect 91 days after the legislative session adjourns, aiming to incentivize long-term investment in affordable housing in low-income communities.

Housing and Urban Affairs

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2863