OR HB3900

Eliminates the Oregon personal income tax deduction for mortgage interest on second homes and vacation properties, unless the taxpayer is actively selling the residence

Phases out the mortgage interest deduction for principal residences when federal adjusted gross income exceeds $200,000, with complete elimination of the deduction above $250,000

Creates the Oregon Housing Opportunity Account in the State Treasury, funded by the estimated increased tax revenue from these deduction restrictions

Directs the Housing and Community Services Department to distribute funds to programs promoting affordable homeownership (down payment assistance, home repairs, foreclosure counseling) and homelessness prevention (rental assistance, supportive housing, services for foster youth and domestic violence survivors)

Applies to tax years beginning on or after January 1, 2026, and takes effect 91 days after the 2025 legislative session adjourns