OR SB500

Creates a new income or corporate excise tax credit equal to 50% of eligible costs (capped at $200/sq ft) for newly constructed single-family homes sold at prices affordable to households earning at or below 120% of area median income

Total tax credits capped at $5 million per year, with at least 35% reserved for properties in counties with populations under 125,000

Unused credits may be carried forward for up to three succeeding tax years; pass-through entities and tax-exempt organizations may allocate or transfer credits to taxable entities

Resale restrictions apply for 11 years: qualified purchasers may only resell to other qualified purchasers at the original price plus 3% per year of ownership, with county clerks required to verify compliance before recording transfers

Applies to tax years beginning January 1, 2026 through January 1, 2032; takes effect 91 days after the 2025 legislative session adjourns