Bill > HB4078

This bill allows individuals and corporations in Oregon to subtract certain amounts from their taxable income related to wildfire litigation, meaning these amounts will not be taxed. Specifically, it provides a subtraction for any money received as a judgment or settlement from a civil lawsuit stemming from a wildfire, as long as the wildfire was declared a state of emergency, was subject to an executive order invoking the Emergency Conflagration Act, or was a federally declared disaster. This subtraction is only allowed if the award isn't already accounted for as a deduction or credit on federal taxes and if the damages weren't fully covered by insurance. Additionally, the bill allows for a subtraction of legal fees paid by plaintiffs in such wildfire lawsuits, even if those fees aren't otherwise deductible. Taxpayers can amend past returns to claim refunds for eligible tax years beginning on or after January 1, 2018, and the bill applies to wildfires declared or ordered between January 1, 2018, and January 1, 2027. The provisions for refunds for tax years prior to January 1, 2024, must be claimed by May 15, 2029, and these refunds will not accrue interest.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2026R1/Measures/Overview/HB4078