Oregon legislation · 2026 Legislative Measures
Oregon HB4136: Relating to tax treatment of mortgage interest; prescribing an effective date.
Status: Failed, March 6, 2026
Digest: The Act ends the tax deduction for mortgage interest paid for a taxpayer's second home. (Flesch Readability Score: 61.8). Disallows, for purposes of personal income taxation, a mortgage interest deduction for a residence other than the taxpayer's principal residence, unless the taxpayer sells the residence or actively markets the residence for sale. Establishes the Oregon Homeownership Opportunity Account. Transfers an amount equal to the estimated increase in revenue attributable to restrictions on the deduction of mortgage interest to the account, for the purpose of making down payment assistance payments. Applies to tax years beginning on or after January 1, 2026. Takes effect on the 91st day following adjournment sine die.
What the bill says
A bill FOR AN ACT Relating to tax treatment of mortgage interest; creating new provisions; amending ORS 316.695; and prescribing an effective date.
From the introduced text, January 28, 2026:
A BILL FOR AN ACT Relating to tax treatment of mortgage interest; creating new provisions; amending ORS 316.695; and prescribing an effective date. Be It Enacted by the People of the State of Oregon: SECTION 1. ORS 316.695 is amended to read: 316.695. (1) In addition to the modifications to federal taxable income contained in this chapter, there shall be added to or subtracted from federal taxable income: (a) If, in computing federal income tax for a tax year, the taxpayer deducted itemized deductions, as defined in section 63(d) of the Internal Revenue Code, the taxpayer shall add the amount of itemized deductions deducted (the itemized deductions less an amount, if any, by which the itemized deductions are reduced under section 68 of the Internal Revenue Code). (b) If, in computing federal income tax for a tax year, the taxpayer deducted the standard deduction, as defined in section 63(c) of the Internal Revenue Code, the taxpayer shall add the amount of the standard deduction deducted. (c)(A) From federal taxable income there shall be subtracted the larger of (i) the taxpayer's itemized deductions or (ii) a standard deduction. Except as provided in subsection (8) of this section, for purposes of this subparagraph, "standard deduction" means the sum of the basic standard deduction and the additional standard deduction. (B) For purposes of …
Sponsors
- Annessa Hartman (D, 40) · primary sponsor
- Jeffrey Golden (D, 3) · primary sponsor
- Courtney Neron Misslin (D, 13) · primary sponsor
- Mark Gamba (D, 41)
- Ken Helm (D, 27)
- John Lively (D, 7)
- Wise, Lamar (D, 48)
- Lew Frederick (D, 22)
- Sara Gelser Blouin (D, 8)
- Manning Jr., James (D, 7)
- Deb Patterson (D, 10)
- Katherine Pham (D, 23)
Latest actions
- : In committee upon adjournment.
- : Public Hearing held.
- : Referred to Revenue.
- : First reading. Referred to Speaker's desk.
Common questions
- What is HB4136?
- HB4136 is a bill in the Oregon Legislature (2026 Legislative Measures): Relating to tax treatment of mortgage interest; prescribing an effective date.
- What does HB4136 do?
- In its own words: A bill FOR AN ACT Relating to tax treatment of mortgage interest; creating new provisions; amending ORS 316.695; and prescribing an effective date.
- What is the status of HB4136?
- Failed as of March 6, 2026. Latest action: In committee upon adjournment. (March 6, 2026).
- Who sponsored HB4136?
- Annessa Hartman (D, 40), with 11 co-sponsors.
- Where is the official record for HB4136?
- On the Oregon Legislature website: https://olis.oregonlegislature.gov/liz/2026R1/Measures/Overview/4136
Source: official Oregon record. Tracked by Delilah, AI for legislation across all 50 states and Congress.