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HB2847 • 2025

Creates a subtraction from taxable income for start-up expenditures.

Creates a subtraction from taxable income for start-up expenditures.

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Representative Evans
Last action
2025-06-27
Official status
In House Committee
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Creates a subtraction from taxable income for start-up expenditures.

Digest: The Act makes a new tax subtraction for start-up expenditures.

What This Bill Does

  • Digest: The Act makes a new tax subtraction for start-up expenditures.
  • (Flesch Readability Score: 61.3).
  • Creates a subtraction from taxable income for start-up expenditures.
  • Applies to tax years beginning on or after January 1, 2026, and before January 1, 2032.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-06-27 House

    In committee upon adjournment.

  2. 2025-01-17 House

    Referred to Economic Development, Small Business, and Trade with subsequent referral to Revenue.

  3. 2025-01-13 House

    First reading. Referred to Speaker's desk.

Official Summary Text

Digest: The Act makes a new tax subtraction for start-up expenditures. (Flesch Readability Score: 61.3).
Creates a subtraction from taxable income for start-up expenditures.
Applies to tax years beginning on or after January 1, 2026, and before January 1, 2032.
Takes effect on the 91st day following adjournment sine die.
Relating to: Relating to subtractions for start-up expenditures; prescribing an effective date.
Current location: In House Committee

Current Bill Text

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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 2847
Sponsored by Representative EVANS (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 as introduced. The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act makes a new tax subtraction for start-up expenditures. (Flesch Readability
Score: 61.3).
Creates a subtraction from taxable income for start-up expenditures.
Applies to tax years beginning on or after January 1, 2026, and before January 1, 2032.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to subtractions for start-up expenditures; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
Section 2 of this 2025 Act is added to and made a part of ORS chapter 316.
SECTION 2. (1) As used in this section, “start-up expenditure” has the meaning given
that term in section 195(c) of the Internal Revenue Code.
(2)(a) A subtraction from federal taxable income shall be allowed under this chapter for
start-up expenditures of an Oregon trade or business paid or incurred by the taxpayer.
(b) The amount of the subtraction under this section shall equal 20 percent of the amount
allowed as a deduction under section 195 of the Internal Revenue Code for the tax year.
(3) The Department of Revenue shall by rule establish criteria and policies for adminis-
tering the subtraction allowed under this section.
SECTION 3. Section 4 of this 2025 Act is added to and made a part of ORS chapter 317.
SECTION 4. (1) As used in this section, “start-up expenditure” has the meaning given
that term in section 195(c) of the Internal Revenue Code.
(2)(a) A subtraction from federal taxable income shall be allowed under this chapter for
start-up expenditures of an Oregon trade or business paid or incurred by the taxpayer.
(b) The amount of the subtraction under this section shall equal 20 percent of the amount
allowed as a deduction under section 195 of the Internal Revenue Code for the tax year.
(3) The Department of Revenue shall by rule establish criteria and policies for adminis-
tering the subtraction allowed under this section.
SECTION 5. Sections 2 and 4 of this 2025 Act apply to tax years beginning on or after
January 1, 2026, and before January 1, 2032.
SECTION 6. 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.
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 1521