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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Senate Bill 893
Sponsored by Senator ANDERSON
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 as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: Doubles the amount of money a person can put in a savings account each year for a first
home purchase. (Flesch Readability Score: 72.3).
Permits a person to open a first-time home buyer savings account until January 1, 2030, and
doubles the annual contribution limits on the accounts. Permits a person other than the account
holder to take a subtraction and exemption for contributions to the account if the account holder
does not take the subtraction and exemption.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to first-time home buyer savings accounts; creating new provisions; amending ORS 316.798,
316.800 and 316.803; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 316.798 is amended to read:
316.798. (1) Subject to ORS 316.800, and in addition to the other modifications to federal taxable
income contained in this chapter, there shall be subtracted from federal taxable income the amount
of funds contributed by an account holder to the account holder’s first-time home buyer savings
account during the tax year, not to exceed [$5,000] $10,000 for an account holder who files an indi-
vidual income tax return or [$10,000] $20,000 for joint account holders who file a joint income tax
return.
(2) Earnings, including interest and other income, on the principal in the account during the tax
year are exempt from taxation until withdrawn by the taxpayer, subject to subsection (3) of this
section.
(3) An account holder may claim the subtraction and exemption under subsections (1) and (2)
of this section:
(a) For contributions made into a first-time home buyer savings account opened before January
1, [2027] 2030;
(b) For a period not to exceed 10 years from the date the account holder first opens any first-
time home buyer savings account; and
(c) For an aggregate total amount of principal and earnings not to exceed [$50,000] $100,000
during the 10-year period.
(4) A person other than the account holder who deposits funds in a first-time home buyer savings
account [is not entitled to] may claim the subtraction and exemption provided for in this section
only if the account holder does not claim the subtraction and exemption and includes with
the account holder’s tax return a form that specifically designates the person to claim the
subtraction and exemption, as provided in ORS 316.803 (3) .
SECTION 2. ORS 316.800 is amended to read:
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 1017 SB893
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316.800. (1) The limits applicable to a subtraction from federal taxable income and an exemption
allowed under ORS 316.798 are:
(a) [$10,000] $20,000 if reported on a joint income tax return, or [$5,000] $10,000 for all others,
if the federal adjusted gross income of the taxpayer for the tax year is less than $149,000 or, if re-
ported on other than a joint return, less than $104,000.
(b) [$8,000] $16,000 if reported on a joint income tax return, or [$4,000] $8,000 for all others, if
the federal adjusted gross income of the taxpayer for the tax year is $149,000 or more and less than
$158,000 or, if reported on other than a joint return, $104,000 or more and less than $111,000.
(c) [$6,000] $12,000 if reported on a joint income tax return, or [$3,000] $6,000 for all others, if
the federal adjusted gross income of the taxpayer for the tax year is $158,000 or more and less than
$167,000 or, if reported on other than a joint return, $111,000 or more and less than $117,000.
(d) [$4,000] $8,000 if reported on a joint income tax return, or [$2,000] $4,000 for all others, if
the federal adjusted gross income of the taxpayer for the tax year is $167,000 or more and less than
$176,000 or, if reported on other than a joint return, $117,000 or more and less than $123,000.
(e) [$2,000] $4,000 if reported on a joint income tax return, or [$1,000] $2,000 for all others, if
the federal adjusted gross income of the taxpayer for the tax year is $176,000 or more and less than
$187,000 or, if reported on other than a joint return, $123,000 or more and less than $131,000.
(2) If the federal adjusted gross income of the taxpayer for the tax year is $187,000 or more if
reported on a joint income tax return, or $131,000 or more if reported on other than a joint income
tax return, the limit is zero and the taxpayer is not allowed a subtraction from federal taxable in-
come or an exemption under ORS 316.798.
(3) The Department of Revenue by rule [may] shall adjust the limits applicable in the current
tax year to the subtractions and exemptions specified in subsection (1) of this section so that the
limits reflect the percentage change in the U.S. City Average Consumer Price Index, as published
by the Bureau of Labor Statistics of the United States Department of Labor, during the tax year.
(4) Any amounts contributed to a first-time home buyer savings account that are not subtracted
from federal taxable income for any reason may not be carried forward as a subtraction for any
succeeding tax year.
SECTION 3. ORS 316.803, as amended by section 6, chapter 53, Oregon Laws 2024, is amended
to read:
316.803. (1) On or before January 31 of each calendar year, for calendar years beginning before
January 1, 2025, a financial institution at which an account holder has created a first-time home
buyer savings account shall provide to the account holder a certificate containing the following in-
formation:
(a) The date when the account was created;
(b) The name of the account holder;
(c) The amount of funds contributed to the account during the tax year;
(d) The amount of funds withdrawn from the account during the tax year; and
(e) Any other information as required by rules adopted by the Department of Revenue.
(2) A financial institution is not required to:
(a) Track the use of moneys withdrawn from a first-time home buyer savings account;
(b) Allocate funds in a first-time home buyer savings account among joint account holders; or
(c) Designate an account as a first-time home buyer savings account, including in the account
contracts or systems of the financial institution.
(3)(a) An account holder or a joint account holder may designate an account at a financial in-
[2] SB893
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stitution as a first-time home buyer savings account and may designate:
(A) A proposed first-time home buyer as the qualified beneficiary of the account; and
(B) A person other than the account holder or joint account holder as the person who
may take the subtraction and exemption described in ORS 316.798 .
(b) The designations required under this subsection shall be made to the Department of Re-
venue, in a form and manner prescribed by the department. The department may provide a means
by which the designations required under this subsection are indicated on an income tax return filed
by the account holder and, if applicable, another person.
(4) A financial institution is not responsible or liable for:
(a) Determining or ensuring that an account satisfies the requirements to be a first-time home
buyer savings account;
(b) Determining or ensuring that funds in a first-time home buyer savings account are used for
eligible costs; or
(c) Reporting or remitting taxes or penalties related to the use of a first-time home buyer
savingsaccount.
(5) Upon being furnished proof of the death of the account holder and such other information
required by the contract governing the first-time home buyer savings account, a financial institution
shall distribute the principal and accumulated interest or other income in the first-time home buyer
savings account in accordance with the terms of the contract governing the account.
SECTION 4. The amendments to ORS 316.798, 316.800 and 316.803 by sections 1 to 3 of this
2025 Act apply to tax years beginning after December 31, 2024.
SECTION 5.This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
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