Relating to first-time home buyer savings accounts.
Summary
SB 101 extends Oregon’s first-time home buyer savings account tax incentive. Under current law, account holders can subtract certain contributions from federal taxable income and exclude earnings from taxation if the account was opened before a specified date; this bill moves that opening deadline from January 1, 2027 to January 1, 2032. It also extends the overall sunset for the program, allowing the subtraction and exemption to apply to tax years beginning before January 1, 2042 instead of ending before January 1, 2037.
The bill does not change the basic structure of the program. Eligible account holders may still claim a subtraction for contributions up to $5,000 per individual return or $10,000 per joint return, and earnings remain tax-exempt until withdrawn, subject to the existing 10-year limit and $50,000 aggregate cap. The measure is a targeted tax policy change intended to keep the homebuyer savings incentive available for a longer period.
Impact
SB 101 amends ORS 316.798 and section 9 of chapter 109, Oregon Laws 2018, extending the availability of the first-time home buyer savings account subtraction and earnings exemption. It changes the account-opening deadline and the program sunset date, thereby preserving the tax benefit for a longer period and affecting taxpayers who use these accounts to save for a first home. The bill leaves the contribution limits, 10-year claim period, and $50,000 aggregate cap unchanged.
Sentiment
The available voting history shows strong support for the bill. It passed the Senate Committee unanimously 5-0, passed Senate Third Reading 29-0, and later received a unanimous 7-0 do-pass recommendation in the House committee. No committee transcripts were provided, but the recorded votes indicate broad bipartisan or noncontroversial support for extending the homebuyer tax incentive.
Contention
No significant opposition is reflected in the provided materials. The only notable policy question implied by the bill is whether Oregon should continue and extend a tax expenditure for first-time home buyers, which affects state revenue and the duration of the program. The unanimous votes suggest that any concerns about fiscal impact or the effectiveness of the incentive were not strong enough to generate recorded dissent.