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82nd OREGON LEGISLATIVE ASSEMBLY--2024 Regular Session
B-Engrossed
Senate Bill 1520
Ordered by the House March 4
Including Senate Amendments dated February 23 and House Amendments
dated March 4
Sponsored by Senators BOQUIST, FINDLEY, JAMA, MEEK, SMITH DB, Representatives CATE, GOMBERG,
GOODWIN; Senators ANDERSON, HANSELL, HAYDEN, KNOPP, LINTHICUM, MANNING JR, THATCHER,
WEBER, Representatives DIEHL, LEVY B, RESCHKE (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure. The statement includes a measure digest written in compliance with applicable readability standards.
Digest: Exempts awards from and legal fees paid in wildfire suits from income tax.
(Flesch Readability Score: 76.5).
[Digest: Exempts award from wildfire suit from income tax.(Flesch Readability Score: 71.8).]
Creates Oregon tax subtraction for amounts received in resolution of a civil action arising from
wildfire. Creates an Oregon tax subtraction for wildfire-related legal fees paid by plaintiffs.
Allows taxpayer to amend return to claim refund for earliest tax year in which subtraction is al-
lowed.
Applies to declarations and executive orders issued on or after January 1, [2020] 2018, and be-
fore January 1, 2026, and to amounts received, losses incurred and legal fees paid in tax years
beginning on or after January 1, [2020] 2018.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to an income tax subtraction for amounts received in wildfire litigation; and prescribing
an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Sections 2 and 3 of this 2024 Act are added to and made a part of ORS
chapter316.
SECTION 2.(1) There shall be subtracted from federal taxable income any amount re-
ceived in judgment or settlement of a civil action arising from a wildfire, as defined in ORS
477.089, and awarded to a plaintiff.
(2) A subtraction under this section is allowed only for resolution of civil actions arising
from a wildfire that:
(a) Is the subject of a state of emergency declared by the Governor;
(b) Occurs in an area subject to an executive order of the Governor invoking the Emer-
gency Conflagration Act under ORS 476.510 to 476.610; or
(c) Is a federally declared disaster, as defined in section 165 of the Internal Revenue Code,
whether located within Oregon or elsewhere.
(3) A subtraction under this section:
(a) Is not allowed for any amount described in subsection (1) of this section that is taken
into account as a deduction or credit on the taxpayer’s federal income tax return for any tax
year;and
(b) Is allowed only to the extent that losses, expenses or other damages compensated by
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 177 B-Eng. SB 1520
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the amount of the judgment or settlement are not compensated for by insurance or other-
wise.
SECTION 3. (1) As used in this section:
(a) “Wildfire” means a wildfire as defined in ORS 477.089, that:
(A) Is the subject of a state of emergency declared by the Governor;
(B) Occurs in an area subject to an executive order of the Governor invoking the Emer-
gency Conflagration Act under ORS 476.510 to 476.610; or
(C) Is a federally declared disaster, as defined in section 165 of the Internal Revenue
Code, whether located within Oregon or elsewhere.
(b) “Wildfire-related litigation” means litigation through which a plaintiff seeks compen-
sation for losses, expenses or damages found to be caused by a wildfire.
(2) There may be subtracted from federal taxable income the amount:
(a) That would be allowable under sections 63(d) and 67 of the Internal Revenue Code as
amended and in effect on December 21, 2017, and as applicable to tax years beginning before
January 1, 2018, as a deduction for legal fees incurred by a plaintiff in wildfire-related liti-
gation;and
(b) As applicable to the tax year of the taxpayer.
(3) A subtraction under this section is allowed regardless of whether the taxpayer elects
to deduct itemized deductions on the taxpayer’s federal or state return.
SECTION 4. (1) Section 2 of this 2024 Act applies to declarations and executive orders
issued on or after January 1, 2018, and before January 1, 2026, and, notwithstanding ORS
315.037, to amounts received in all tax years beginning on or after January 1, 2018.
(2) Section 3 of this 2024 Act applies to:
(a) Declarations and executive orders issued on or after January 1, 2018, and before
January 1, 2026; and
(b) Notwithstanding ORS 315.037, losses incurred and legal fees paid or incurred in all tax
years beginning on or after January 1, 2018.
SECTION 5. (1) Any taxpayer who seeks refunds due to exemption of amounts from
taxation as provided in section 2 or 3 of this 2024 Act, as applicable to tax years beginning
on or after January 1, 2018, and before January 1, 2021, shall file an amended return for the
applicable tax year.
(2) Notwithstanding ORS 314.415 (2), a taxpayer may file a claim for a refund described
in subsection (1) of this section at any time prior to May 15, 2025.
(3) A refund described in this section does not bear interest under ORS 305.220.
SECTION 6. This 2024 Act takes effect on the 91st day after the date on which the 2024
regular session of the Eighty-second Legislative Assembly adjourns sine die.
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