Bill
Bill > HB4136
summary
Introduced
02/02/2026
02/02/2026
In Committee
02/02/2026
02/02/2026
Crossed Over
Passed
Dead
03/06/2026
03/06/2026
Introduced Session
2026 Legislative Measures
Bill Summary
The statement includes a measure digest written in compliance with applicable readability standards. Digest: The Act ends the tax deduction for mortgage interest paid for a taxpayer’s second home. (Flesch Readability Score: 61.8). Disallows, for purposes of personal income taxation, a mortgage interest deduction for a resi- dence other than the taxpayer’s principal residence, unless the taxpayer sells the residence or ac- tively markets the residence for sale. Establishes the Oregon Homeownership Opportunity Account. Transfers an amount equal to the estimated increase in revenue attributable to restrictions on the deduction of mortgage interest to the account, for the purpose of making down payment assistance payments. Applies to tax years beginning on or after January 1, 2026. Takes effect on the 91st day following adjournment sine die.
AI Summary
This bill modifies Oregon's tax laws to limit the mortgage interest deduction for second homes, meaning taxpayers will generally no longer be able to deduct interest paid on a mortgage for a residence that is not their primary home, unless they sell that residence or are actively trying to sell it. This change, which applies to tax years beginning on or after January 1, 2026, is intended to generate additional tax revenue. The bill also establishes the Oregon Homeownership Opportunity Account within the State Treasury, and an amount equal to the estimated increase in tax revenue from these mortgage interest deduction restrictions will be transferred to this account annually, starting in 2028, to fund down payment assistance payments for homeownership programs.
Committee Categories
Budget and Finance
Sponsors (21)
Jeff Golden (D)*,
Annessa Hartman (D)*,
Courtney Neron Misslin (D)*,
Tom Andersen (D),
Farrah Chaichi (D),
Willy Chotzen (D),
Lew Frederick (D),
Mark Gamba (D),
Sara Gelser Blouin (D),
Ken Helm (D),
Zach Hudson (D),
John Lively (D),
James Manning (D),
Susan McLain (D),
Lesly Muñoz (D),
Rob Nosse (D),
Deb Patterson (D),
Katherine Pham (D),
Floyd Prozanski (D),
Janeen Sollman (D),
Lamar Wise (D),
Last Action
In committee upon adjournment. (on 03/06/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://olis.oregonlegislature.gov/liz/2026R1/Measures/Overview/HB4136 |
| WitnessRegistrationHB4136 | https://olis.oregonlegislature.gov/liz/2026R1/Downloads/CommitteeMeetingDocument/315492 |
| HB 4136 Preliminary SMS | https://olis.oregonlegislature.gov/liz/2026R1/Downloads/CommitteeMeetingDocument/314238 |
| Open Government Impact Statement for HB4136 INTRO | https://olis.oregonlegislature.gov/liz/2026R1/Downloads/MeasureAnalysisDocument/94073 |
| BillText | https://olis.oregonlegislature.gov/liz/2026R1/Downloads/MeasureDocument/HB4136/Introduced |
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