Oregon legislation · 2026 Legislative Measures
Oregon HB4078: Relating to an income tax subtraction allowed for plaintiffs in wildfire litigation; prescribing an effective date.
Status: Failed, March 6, 2026
Digest: Exempts awards from and legal fees paid in wildfire suits from corporate excise and income tax. (Flesch Readability Score: 76.5). Creates Oregon corporate excise and income tax subtractions for amounts received in resolution of a civil action arising from wildfire. Creates Oregon corporate excise and income tax subtractions for wildfire-related legal fees paid by plaintiffs. Allows a taxpayer to amend a return to claim a refund for the earliest tax year in which a subtraction is allowed. Applies to declarations and executive orders issued on or after January 1, 2018, and before January 1, 2027, and to amounts received, losses incurred and legal fees paid in tax years beginning on or after January 1, 2018. Takes effect on the 91st day following adjournment sine die.
What the bill says
To amend a return to claim a refund for the earliest tax year in which a subtraction is allowed. Applies to declarations and executive orders issued on or after January 1, 2018, and before January 1, 2027, and to amounts received, losses incurred and legal fees paid in tax years beginning on or after January 1, 2018. Takes effect on the 91st day following adjournment sine die. A BILL FOR AN ACT Relating to an income tax subtraction allowed for plaintiffs in wildfire litigation; and prescribing an effective date.
From the introduced text, January 28, 2026:
to amend a return to claim a refund for the earliest tax year in which a subtraction is allowed. Applies to declarations and executive orders issued on or after January 1, 2018, and before January 1, 2027, and to amounts received, losses incurred and legal fees paid in tax years beginning on or after January 1, 2018. Takes effect on the 91st day following adjournment sine die. A BILL FOR AN ACT Relating to an income tax subtraction allowed for plaintiffs 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 2026 Act are added to and made a part of ORS chapter 317. SECTION 2. (1) There shall be subtracted from federal taxable income any amount received 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 (b) Occurs in an area subject to an executive order of the Governor invoking the Emergency 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 …