HB3900 • 2025

Disallows, for purposes of personal income taxation, the 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.

Housing Taxes

Passed Legislature

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

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

Plain English Breakdown

The plain English breakdown is still being put together. The official documents below are already here.

Bill History

2025-06-27 House
In committee upon adjournment.
2025-03-04 House
Referred to Housing and Homelessness with subsequent referral to Revenue.
2025-02-27 House
First reading. Referred to Speaker's desk.

Official Summary Text

Digest: The Act says a taxpayer must pay income tax on interest paid on a loan for a second or third or additional home. The Act says some taxpayers must pay income tax on some or all interest paid on loans for a principal home. (Flesch Readability Score: 69.1).
Disallows, for purposes of personal income taxation, the 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. Phases out the allowable deduction for the interest for a principal residence based upon income. Disallows a deduction for a principal residence above the threshold income amount.
Establishes the Oregon Housing Opportunity Account. Transfers an amount equal to the estimated increase in revenue attributable to restrictions on the deduction of mortgage interest to the account.
Applies to tax years beginning on or after January 1, 2026.
Takes effect on the 91st day following adjournment sine die.
Relating to: Relating to tax treatment of mortgage interest; prescribing an effective date.
Current location: In House Committee