OR HB2863

Creates a state tax subtraction for capital gains from selling "opportunity zone property" - defined as projects with at least 50% affordable housing by square feet located in low-income census tracts with populations between 1,000 and 49,900

Subtraction percentage increases with holding period: 50% exclusion for 10-15 years, 75% for 15-17 years, and 100% for 17+ years

Qualifying properties must have a solar photovoltaic or solar thermal energy system installed and connected to the electrical grid at time of sale

Taxpayers must obtain eligibility verification from the Oregon Business Development Department before claiming the subtraction

Applies to tax years beginning January 1, 2025 through December 31, 2030; takes effect 91 days after legislative session adjourns