Bill > SB587

This bill provides tax relief for individuals and businesses affected by wildfires by creating income tax subtraction opportunities for amounts received in wildfire litigation and related legal fees. Specifically, the bill allows taxpayers to subtract from their federal taxable income any amounts received in judgment or settlement of civil actions arising from wildfires that were the subject of a state of emergency, an executive order invoking the Emergency Conflagration Act, or a federally declared disaster. The tax subtraction is only permitted for amounts not already claimed as a deduction on federal tax returns and only to the extent that losses are not already compensated by insurance. Additionally, taxpayers can subtract legal fees incurred in wildfire-related litigation, regardless of whether they itemize deductions. The bill applies to declarations and executive orders issued between January 1, 2018, and January 1, 2026, and allows taxpayers to file amended returns to claim refunds for tax years beginning on or after January 1, 2018, with a deadline of May 15, 2028, for filing such claims. The bill takes effect 91 days after the adjournment of the 2025 regular legislative session, providing retroactive tax relief for wildfire victims.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB587