HB 4052
Plain-language analysis
Generated analysis, not an official summary or legal advice. Confirm with linked Oregon documents.
Creates a corporate income tax credit of up to $1 million annually for three years for newly chartered Oregon banks commencing business between January 1, 2027, and December 31, 2032. The credit offsets the bank's corporate tax liability, allows carryforward of unused credits through the third year, and applies only to banks formed as new entities rather than via merger or conversion of existing taxpayers. This reduces state corporate tax revenue for eligible institutions and may incentivize the formation of new depository banks in Oregon.
Basis: Bill text · Source: Enrolled
The policy purpose of this measure is to encourage formation of new Oregon-chartered banks to serve communities throughout the state.
Basis: Official analysis · Source: Revenue Impact Statement INTRO
Inferred from cited text; not a stated purpose.
Oregon may seek to reverse a prolonged hiatus in new bank charters (the most recent occurred around 2006) and address local banking access or branch closure concerns by offsetting the high costs of establishing new institutions, leveraging national trends of increased charter applications.
Basis: Inferred · Source: Staff Measure Summary
Eligible for a corporate tax credit equal to their tax liability, capped at $1 million per year for three consecutive years. The credit reduces effective startup costs and can be carried forward if unused within the eligibility window.
Basis: Bill text · Source: Enrolled
If an eligible de novo bank elects S corporation status, the credit passes through to shareholders pro rata under ORS 314.772, allowing individual tax offset.
Basis: Bill text · Source: Enrolled
Excluded from eligibility by definition. Banks formed by, merged with, or converted from a taxpayer that filed an Oregon return in a preceding year cannot claim the credit.
Basis: Bill text · Source: Enrolled
Must adopt rules to verify taxpayer eligibility and provide information on eligible taxpayers to the Department of Revenue per ORS 315.058.
Basis: Bill text · Source: Enrolled
Behavioral incentive to pursue Oregon charters over other jurisdictions during the 2027-2032 window.
Basis: Inferred · Source: Enrolled
Eligibility requires prior demonstration of obtaining a bank charter and certificate of authority from DCBS under ORS chapter 707.
Basis: Bill text · Source: Enrolled
Minimal fiscal impact on state expenditures; revenue reduction depends on qualification volume and taxable income.
Basis: Official analysis · Source: Fiscal Impact Statement INTRO
Definition incorporates federal depository institution terms (12 U.S.C. 1813(c)) but establishes an Oregon-law eligibility change.
Basis: Bill text · Source: Enrolled
New de novo bank
A new bank commences business in 2027, generates $10 million in taxable income annually, and utilizes the full $1 million credit for three years. The entity uses the subsidy to build capital reserves rapidly, underprice competitors, and establish a sustainable presence in an unserved rural community.
Basis: Inferred · Source: Enrolled
State revenue and policy integrity
A financial entity structures a complex merger of multiple small Oregon entities just before the deadline, claims de novo status by exploiting a narrow interpretation of formation timing, and captures $3 million in credits without adding genuine new banking capacity or competition, undermining the measure's purpose while reducing revenue.
Basis: Inferred · Source: Enrolled
inference
Sources · Enrolled
The measure trades potential corporate tax revenue for a targeted financial incentive designed to stimulate the formation of new depository institutions in Oregon, balancing fiscal cost against the goal of increasing banking competition and access.
Lowers barriers to entry for new banks, potentially increasing banking options and competition.
Basis: Inferred · Source: Revenue Impact Statement INTRO
Addresses a long hiatus in new charters by offsetting startup costs.
Basis: Inferred · Source: Staff Measure Summary
Credit structure limits revenue impact to entities with actual tax liability and caps exposure at $3 million per bank.
Basis: Bill text · Source: Enrolled
Revenue reduction for the state, though likely minimal given historical rarity of new charters.
Basis: Official analysis · Source: Revenue Impact Statement INTRO
Excludes merger-based consolidation, which may be a more efficient path to market for some entities.
Basis: Bill text · Source: Enrolled
Risk of subsidizing banks that would have formed without the credit.
Basis: Inferred · Source: Revenue Impact Statement INTRO
No material changes between the introduced and enrolled versions. The text, credit caps, definitions, eligibility exclusions, carryforward provisions, amendments to ORS 314.772 and ORS 318.031, and effective dates remain identical. Staff summaries confirm no amendments were made.
No substantive change identified.
Tradeoff: none
high confidence. Analysis based on enrolled bill text and official revenue/fiscal impact statements. No amendments between introduced and enrolled versions.
29 records currently loaded
Records available in the current snapshot.
Earliest loaded signal
Introduced bill text posted
Posted Jan 28, 2026, 3:25 PM PST
Follow the official text for HB 4052 and every amendment branch. Connections come from each amendment's stated base. Horizontal position shows when each document was first posted, when available.
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Selected document summary
No deeper official pre-number history was found.
Chief sponsors: Representative E. Werner Reschke, Representative Pam Marsh
Regular sponsors: Representative Anna Scharf, Senator Christine Drazan, Senator David Brock Smith, Representative Bobby Levy, Representative Nathan Sosa, Representative David Gomberg, House Majority Leader Ben Bowman, Representative Zach Hudson, Representative John Lively, Representative Jules Walters, Senator Mark Meek
House carrier
Representative E. Werner Reschke
Third Reading Of House Bills
Senate carrier
Senator Christine Drazan
Third Reading Of House Measures
A carrier presents the measure or report but is not necessarily its sponsor or author.
Records already listed in Activity are not repeated here.
Official origin records are incomplete; missing facts are not inferred.
29 events
Full timeline
29 entries shown.
Chapter 36, (2026 Laws): Effective date June 5, 2026.
Governor signed.
President signed.
Speaker signed.
Third reading. Carried by Drazan. Passed.
Ayes, 30.
Second reading.
Recommendation: Do pass.
Staff Measure Summary
Public Hearing and Work Session held.
Public Hearing and Work Session
Heard and Reported Out · Agenda item 2 · Room HR A · Creates a corporate excise tax credit for each of the first three years that a bank does business in this state.
IS_Impact HB 4052 INTRO
Revenue Impact Statement
Referred to Finance and Revenue.
First reading. Referred to President's desk.
Third reading. Carried by Reschke. Passed.
Ayes, 52; Excused, 6--Boshart Davis, Chaichi, Hartman, Osborne, Scharf, Valderrama; Excused for Business of the House, 2--Diehl, Harbick.
Carried over to February 24, 2026 Calendar by virtue of adjournment.
Second reading.
Recommendation: Do pass.
Work Session held.
Work Session
Heard and Reported Out · Agenda item 3 · Room HR A · Creates a corporate excise tax credit for each of the first three years that a bank does business in this state.
IS_Impact HB 4052 INTRO
Revenue Impact Statement
Public Hearing held.
Public Hearing
Heard · Agenda item 3 · Room HR A · Creates a corporate excise tax credit for each of the first three years that a bank does business in this state.
Referred to Revenue.
First reading. Referred to Speaker's desk.
sing health care in traditional settings, including time, geography, and trust. House Bill 4052 (2022) directed the Oregon Health Authority (OHA) to convene a committee to pro
sing health care in traditional settings, including time, geography, and trust. House Bill 4052 (2022) directed the Oregon Health Authority (OHA) to convene a committee to pro
sing health care in traditional settings, including time, geography, and trust. House Bill 4052 (2022) directed the Oregon Health Authority (OHA) to convene a committee to pro
“Chapter 36, (2026 Laws): Effective date June 5, 2026.”
Confirm with the official record.
Supplemental, source-linked analysis from project researchers and community contributors. It is separate from Oregon's official record.