OR SB563

Creates an Oregon tax subtraction allowing financial institutions to deduct interest income from qualified loans for agricultural real estate, rural single-family residences, and coastal fishing boats from their federal taxable income

Exempts the same qualified interest income from Oregon's corporate activity tax by excluding it from the definition of commercial activity

Qualified agricultural loans must have 5-40 year maturity, be secured by first lien (or second if institution holds first), and have loan-to-value ratio under 85% (or have private mortgage insurance for amounts exceeding 85%)

Rural residences must be principal residences located in USDA-defined rural areas outside metropolitan statistical areas or in cities with fewer than 2,500 inhabitants

Tax benefits apply to tax years beginning January 1, 2026 through January 1, 2032, with the act taking effect 91 days after the 2025 legislative session adjourns