Bill > HB2847

This bill creates a tax subtraction for start-up expenditures for businesses operating in Oregon, allowing taxpayers to subtract 20 percent of the start-up expenses that are deductible under section 195 of the Internal Revenue Code. The term "start-up expenditure" is specifically defined by the federal tax code, and the subtraction applies to both individual income tax (ORS chapter 316) and corporate income tax (ORS chapter 317). The tax benefit is available for tax years beginning on or after January 1, 2026, and before January 1, 2032, providing a six-year window for businesses to take advantage of this deduction. The Department of Revenue is authorized to establish rules and criteria for implementing the subtraction, and the bill will take effect 91 days after the adjournment of the 2025 regular legislative session. This legislation aims to provide financial support for new businesses by offering a modest tax relief mechanism for their initial startup expenses.

Business and Industry

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2847