HB 3975
Creates a corporate excise tax credit for each of the first three years that a bank does business in this state.
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Support
100%
Oppose
0%
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill creates a corporate excise tax credit for new banks operating in Oregon. The credit is available for the first three years a bank is in business in the state, up to a maximum of $1 million per year. Banks must meet specific chartering requirements and demonstrate eligibility to receive the credit. Any unused credit can be carried forward to subsequent tax years, but only for a maximum of three years.
Key provisions
- Provides a corporate excise tax credit for new banks.
- The credit is available for the first three years a bank operates in Oregon.
- The maximum credit per year is $1 million.
- Banks must obtain a charter and certificate of authority to qualify.
- Unused credit can be carried forward for up to three years.
- The Department of Consumer and Business Services will establish rules and procedures for credit verification.
- The credit applies to banks that commenced business in tax years beginning on or after January 1, 2026.
- ORS 314.772 and 318.031 are amended to incorporate the new tax credit provisions.
Who is affected
- Banks
- Oregon Department of Revenue
- Oregon Department of Consumer and Business Services
- Taxpayers
Notable changes
- Establishes a new tax credit specifically for de novo banks.
- Limits the credit amount to $1 million per year for the first three years.
Sponsors
Official sponsors from legislative records.
Primary sponsors
E. Werner Reschke
Arguments in favor
Reasons to support this legislation.
Supporters of the bill argue that newly chartered Oregon banks require temporary tax relief to mitigate the financial burden of regulatory compliance, technological upgrades, and staffing costs. By providing this relief, proponents believe it can significantly enhance Oregon's business environment and foster a more supportive ecosystem for community banks. This, in turn, is expected to promote economic growth, job creation, and increased access to financial services in underserved communities.
Source: Testimony Summaries
Arguments opposed
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